ACCTG12 - DRILLS (EXAM REVIEW)

According to PAS 1, an entity shall make an explicit and unreserved statement of compliance with the PFRSs in the notes only if the entity complies with all the requirements of PFRSs.

• TRUE

• FALSE

The primary focus of financial accounting has been on meeting the needs of which of the following groups?

           

• managers of an enterprise   

• present and potential creditors of an enterprise

• national, and local taxing authorities

• independent auditors  

Events after the reporting period are those favorable events, that occur between the end of the reporting period and the date when the financial statements are authorized for issue.

• TRUE

• FALSE

PAS 1 encourages, but does not require, the presentation or the preceding year's financial statements as comparative information to the current year's financial statements.

• TRUE

• FALSE

Which of the following regarding understandability is correct?

I.  It is assumed that financial reports are prepared for users who have in-depth knowledge of business and economic activities and who can make through review and analysis of the information.

II. Some phenomena which are too complex to understand need not to be presented in detail in the financial statements

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• I only     

• II only  

• Both I and II

• Neither I nor II

A resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. Type your answer in capital letter.

It represents the gross outflows of economic benefits during the period arising in the course of ordinary activities of an enterprise when these outflows result in decreases in equity, other than those relating to distributions to owners. Type your answer in capital letters.

Cyra Company has attempted to determine the fair value of one of its building carried under revaluation model. Three different appraisers arrive at substantially different amounts for this value. The president , nevertheless , decides to report the middle value for external reporting purposes. Which qualitative characteristics information is lacking in these data ?

• Relevance

• Comparability

• Verifiability

• Conservatism

Noncash investing and financing activities must be reported in the body of a statement of cash flows.

• TRUE

• FALSE

The elements that directly related to the measurement of financial position are:

• assets, liabilities and equity.

• assets and liabilities.  

• income and expenses.

• assets, liabilities, equity, income and expenses