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1. The presentation and disclosure requirement achieves all of the following, except An effective communication tool a. b. More relevant and faithfully represented financial information C. Understandability and comparability of information d. Financial position, financial performance and cash flows 2. It is the sorting of assets, liabilities, equity, income and expenses with similar characteristics. a. Classification b. Summarization c. Interpretation d. Recognition 3. All of the following can considered appropriate classification, except a. Current and noncurrent assets b. Current and noncurrent liabilities c. Ordinary shares and preference shares d. Offsetting asset and liability 4. Income and expenses are classified as a. Profit or loss and other comprehensive income b. Profit loss and retained earnings c. Retained earnings and other comprehensive income d. Ordinary and extraordinary 5. What is the new term to describe the income statement or statement of profit or loss together with the statement showing other comprehensive income. a. Income statement b. Statement of comprehensive income c. Statement of other comprehensive income d. Statement of financial performance

1. The presentation and disclosure requirement achieves all of the following, except An effective communication tool a. b. More relevant and faithfully represented financial information C. Understandability and comparability of information d. Financial position, financial performance and cash flows 2. It is the sorting of assets, liabilities, equity, income and expenses with similar characteristics. a. Classification b. Summarization c. Interpretation d. Recognition 3. All of the following can considered appropriate classification, except a. Current and noncurrent assets b. Current and noncurrent liabilities c. Ordinary shares and preference shares d. Offsetting asset and liability 4. Income and expenses are classified as a. Profit or loss and other comprehensive income b. Profit loss and retained earnings c. Retained earnings and other comprehensive income d. Ordinary and extraordinary 5. What is the new term to describe the income statement or statement of profit or loss together with the statement showing other comprehensive income. a. Income statement b. Statement of comprehensive income c. Statement of other comprehensive income d. Statement of financial performance

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter2: Financial Reporting: Its Conceptual Framework
Section: Chapter Questions
Problem 7C
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Kindly answer the following items in problems 7-1 and 7-2.
ctive 7. tal al PROBLEMS Problem 7-1 Multiple choice (Conceptual Framework) 1. The presentation and disclosure requirement achieves all of the following, except a. An effective communication tool b. More relevant and faithfully represented financial information C. Understandability and comparability of information d. Financial position, financial performance and cash flows 2. It is the sorting of assets, liabilities, equity, income and expenses with similar characteristics. a. Classification b. Summarization c. Interpretation d. Recognition 3. All of the following can considered appropriate classification, except a. Current and noncurrent assets b. Current and noncurrent liabilities c. Ordinary shares and preference shares d. Offsetting asset and liability 4. Income and expenses are classified as a. Profit or loss and other comprehensive income b. Profit loss and retained earnings c. Retained earnings and other comprehensive income d. Ordinary and extraordinary 5. What is the new term to describe the income statement or statement of profit or loss together with the statement showing other comprehensive income. a. Income statement b. Statement of comprehensive income c. Statement of other comprehensive income d. Statement of financial performance 137
Transcribed Image Text:ctive 7. tal al PROBLEMS Problem 7-1 Multiple choice (Conceptual Framework) 1. The presentation and disclosure requirement achieves all of the following, except a. An effective communication tool b. More relevant and faithfully represented financial information C. Understandability and comparability of information d. Financial position, financial performance and cash flows 2. It is the sorting of assets, liabilities, equity, income and expenses with similar characteristics. a. Classification b. Summarization c. Interpretation d. Recognition 3. All of the following can considered appropriate classification, except a. Current and noncurrent assets b. Current and noncurrent liabilities c. Ordinary shares and preference shares d. Offsetting asset and liability 4. Income and expenses are classified as a. Profit or loss and other comprehensive income b. Profit loss and retained earnings c. Retained earnings and other comprehensive income d. Ordinary and extraordinary 5. What is the new term to describe the income statement or statement of profit or loss together with the statement showing other comprehensive income. a. Income statement b. Statement of comprehensive income c. Statement of other comprehensive income d. Statement of financial performance 137
Problem 7-2 Multiple choice (Conceptual Framework) 1. Financial capital is defined as a. Net assets in monetary terms. b. Net assets in terms of physical productive capacity. c. Legal capital. d. Share capital issued and outstanding. 2. The physical capital maintenance concept requires the adoption of which measurement basis? a. Historical cost b. Current cost C. Fair value d. Present value 3. Which concept is applied to net income and other comprehensive income? a. Financial capital b. Physical capital c. Legal capital d. Borrowed capital 4. Which statement regarding the term profit is true? a. Profit is any amount over and above that required to maintain the capital at the beginning of the period. b. Profit is equal to income minus expenses. c. Profit is the equivalent of net income under IFRS. d. All of these statements are true about the term profit. 5. Under the financial capital concept, net income occurs when a. The nominal amount of net assets at year-end increased. b. The physical productive capital at year-end increased after excluding any distributions to and contributions from owners. c. The nominal amount of net assets at year-end increased after excluding distributions to and contributions from owners. d. The physical productive capital at year-end increased. 138 CH PRES An int Stater PAS 1 TECH To ide To un To kn To ur as To kr рс
Transcribed Image Text:Problem 7-2 Multiple choice (Conceptual Framework) 1. Financial capital is defined as a. Net assets in monetary terms. b. Net assets in terms of physical productive capacity. c. Legal capital. d. Share capital issued and outstanding. 2. The physical capital maintenance concept requires the adoption of which measurement basis? a. Historical cost b. Current cost C. Fair value d. Present value 3. Which concept is applied to net income and other comprehensive income? a. Financial capital b. Physical capital c. Legal capital d. Borrowed capital 4. Which statement regarding the term profit is true? a. Profit is any amount over and above that required to maintain the capital at the beginning of the period. b. Profit is equal to income minus expenses. c. Profit is the equivalent of net income under IFRS. d. All of these statements are true about the term profit. 5. Under the financial capital concept, net income occurs when a. The nominal amount of net assets at year-end increased. b. The physical productive capital at year-end increased after excluding any distributions to and contributions from owners. c. The nominal amount of net assets at year-end increased after excluding distributions to and contributions from owners. d. The physical productive capital at year-end increased. 138 CH PRES An int Stater PAS 1 TECH To ide To un To kn To ur as To kr рс
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