Which statement is incorrect? a. Notes to financial statements (F/S) provide narrative description or disaggregation of items disclosed in F/S and information about items that do not qualify for recognition. b. Notes to F/S are an integral part of F/S. c. Notes to F/S amplify the items presented in the F/S. d. Notes to F/S is the best demonstration of the standard of adequate disclosure. e. none of the above Which statement is incorrect? a. The FUNCTIONAL Income Statement classifies expenses into cost of sales, selling expenses and general administrative expenses, among others. b. Income encompasses both revenues and gains. Revenues arise in the ordinary course of business activities while gains are not. c. Expenses encompasses both expenses and losses. Losses usually comprise the majority amount of deductible expenses to arrive at taxable income. d. The statement of comprehensive income encompasses all income and expenses, whether they are recognized in profit or loss determination or recognized directly in equity. e. none of the above Which event after the reporting period would require adjustment? a. Loss of plant as a result of fire b. a major business combination c. announcing a plan to discontinue an operation d. all of the above e. none of the above
Which statement is incorrect?
a. Notes to financial statements (F/S) provide narrative description or disaggregation of items disclosed in F/S and information about items that do not qualify for recognition.
b. Notes to F/S are an integral part of F/S.
c. Notes to F/S amplify the items presented in the F/S.
d. Notes to F/S is the best demonstration of the standard of adequate disclosure.
e. none of the above
Which statement is incorrect?
a. The FUNCTIONAL Income Statement classifies expenses into cost of sales, selling expenses and general administrative expenses, among others.
b. Income encompasses both revenues and gains. Revenues arise in the ordinary course of business activities while gains are not.
c. Expenses encompasses both expenses and losses. Losses usually comprise the majority amount of deductible expenses to arrive at taxable income.
d. The statement of comprehensive income encompasses all income and expenses, whether they are recognized in profit or loss determination or recognized directly in equity.
e. none of the above
Which event after the reporting period would require adjustment?
a. Loss of plant as a result of fire
b. a major business combination
c. announcing a plan to discontinue an operation
d. all of the above
e. none of the above
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