Which is incorrect concerning the presentation of Income Statement? A. When items of income and expense are material, their nature and amount shall be disclosed separately.   B. An entity shall present extraordinary items separately on the face of the income statement or in the notes to F/S.   C. Natural presentation means that expenses are aggregated according to their nature like depreciation and employee benefits.   D. Cost of sales method classifies expenses according to their function such as cost of sales, cost of distribution and cost of administrative activities.   E. Both the natural presentation and functional presentation has their own merits for different types of entities, so the standard allows management to choose which they think is more relevant and reliable presentation.

Q: Which statement is incorrect? *

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Q: The expense recognition principle (“matching”) controlsa. Where on the income statement expenses…

A:

Q: Which statement is incorrect? * The FUNCTIONAL Income Statement classifies expenses into cost of…

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Q: The functional presentation of expenses in the income statement is usually shown by grouping into…

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Q: The functional presentation of expenses in the income statement is usually shown by grouping into…

A: Solution 1: True, The functional presentation of expenses in the income statement is usually shown…

Q: An entity classifying expenses by function shall disclose additional information on the nature of…

A: Solution: An entity classifying expenses by function shall disclose additional information on the…

Q: An entity shall present all items of income and expenses recognized in a period: I-in a single…

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Q: RUE OR FALSE? The cumulative effect of change in accounting policy is shown in the income statemen

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Q: Explain in what situations it would be appropriate to recognize revenue over time

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Q: In the blanks provided to the right below, select the letters of the underlying assumption,…

A: 1 J 2 I.  3 H. 4 G. 5 G. 6 L.

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Q: Which of the following is not an acceptable way of displaying the components of other comprehensive…

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A:

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A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…

Q: Define extraordinary items. How are extraordinaryitems distinguished from items that are presented…

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Q: Under AASB101 Presentation of Financial Statements, which of the following items, if it exists, must…

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