quiz-2

These are omissions from or misstatements in the entity's financial statements for one or more prior periods arising from failure to use reliable information that was available when financial statement for those period were authorize to issue

• accounting estimates

• prior period errors

• change in accounting policy

• reconciling items

The use of estimates may be required in the determination of the following except

• inventory obsolescence

• useful lives of depreciable assets

• amount of cash in bank

• warranty obligations

Which of the following is not considered an objective of financial statements

• to enhance the credibility of information in order to meet the needs of the users

• To provide information about the financial position of the entity

• to present the sources and application of cash during a certain period

• To provide information about management's utilization of resources

The following statements indicate compliance with the requirement of fair presentation except

• The entity applies all the requirements of applicable PFRS

• The entity presents information that will provide relevant , reliable, comparable, and understandable financial statements

• the entity provides additional disclosure when a specific requirements of PFRS is insufficient to enable users to understand the impact of a certain transaction

• The entity applies all the requirements of PFRS in order to meet the specific needs of external users

PAS 1 set out the guidelines in the preparation and presentation of

• financial review of the management

• general purpose financial statement

• special reports and tax computation

• environmental reports

The following are the objectives of PAS 1 except

• to ensure timeliness of financial statements

• to prescribe the basis for the preparation and presentation of financial statements

• to ensure the comparability of financial statements

• to set out the structure and minimum requirements of the content of financial statements

A financial statement that is not tailored to meet the specific information needs of certain users is called

• general-purpose financial statement

• special-purpose financial statement

• financial review report

• environmental report

the result of the operation of a business entity is reflected in the

• statement of cash flow

• statement of financial position

• statement of financial performance

• statement of changes in equity

The following disclosure shall be made by the management when it departs from compliance with certain requirements of PFRS except

• the management conclusions that the financial statement presents fairly financial performance, financial position and cash flow of an entity

• the compliance with applicable Standard except that it departs from certain requirement to achieve a fair presentation

• the title of the standards form which the entity has departed and the nature of the departure

• the monetary effect of the departure requirements of the standard

the materiality of certain items in the financial statements depends on the following except

• the size of the items

• the nature of the items or transactions

• the combination of both size and nature

• some other factors