CFAS Chapter 3: Mastering PAS 1 - Financial Statements Layout
b. The Statements of Retained Earnings is a required basic statement in financial reporting. - correct
answer ✔✔Which of the statements is false?
a. The Statement of Changes in Equity is a basic statement that shows the movements in the elements or
components of the shareholders' equity.
b. The Statements of Retained Earnings is a required basic statement in financial reporting.
c. Income Statement shows the financial performance of an entity for a given period of time.
d. The Statement of Comprehensive income starts with the profit of loss as shown in the income
statement plus or minus the components of other comprehensive.
a. Expenses of general executives - correct answer ✔✔Distribution Cost includes the following items,
except
a. Expenses of general executives
b. Depreciation of delivery equipment and store equipment
c. Salesmen's salaries
d. Freight out
a. Current Asset Less Current Liabilities - correct answer ✔✔As generally used, the term net assets
represent
a. Current Asset Less Current Liabilities
b. Retained Earnings
c. Total Assets less Total Liabilities
d. Total Contribution Capital
d. The entity holds the asset primarily for the purpose of collecting contractual cash flows - correct
answer ✔✔An entity shall classify an asset as current under the following conditions, except:
a. The asset is cash or cash equivalent unless the asset is restricted to settle a liability for more than
twelve months
b. The entity expects to realize the asset or intends to sell or consume it within the entity's normal
operating cycle
, c. The entity expects to realize the asset within twelve months after the reporting period.
d. The entity holds the asset primarily for the purpose of collecting contractual cash flows
d. Prepaid Expenses - correct answer ✔✔The following are components of expenses, except
a. Selling Expenses
b. Income Tax Expenses
c. Administrative Expenses
d. Prepaid Expenses
c. A currently maturing long-term debt - correct answer ✔✔Which of the following is classified as
current liabilities?
a. Noncurrent portion of the long term debt
b. Long-term obligations to company officers
c. A currently maturing long-term debt
d. Long-term deferred revenue
d. noncurrent assets - correct answer ✔✔In which of the following should the cash that is restricted for
settlement of a liability due 18 months after the reporting period be presented?
a. equity
b. noncurrent liabilites
c. current assets
d. noncurrent assets
b. The refinancing on a long-term basis is completed on or before the end of the reporting period,
therefore the obligation is classified as noncurrent liability. - correct answer ✔✔Which of the following is
true?
a. If the entity has the discretion to refinance the obligation for at least 12 months after the reporting
period under an existing loan facility, the obligation is classified as current liability.
b. The refinancing on a long-term basis is completed on or before the end of the reporting period,
therefore the obligation is classified as noncurrent liability.
b. The Statements of Retained Earnings is a required basic statement in financial reporting. - correct
answer ✔✔Which of the statements is false?
a. The Statement of Changes in Equity is a basic statement that shows the movements in the elements or
components of the shareholders' equity.
b. The Statements of Retained Earnings is a required basic statement in financial reporting.
c. Income Statement shows the financial performance of an entity for a given period of time.
d. The Statement of Comprehensive income starts with the profit of loss as shown in the income
statement plus or minus the components of other comprehensive.
a. Expenses of general executives - correct answer ✔✔Distribution Cost includes the following items,
except
a. Expenses of general executives
b. Depreciation of delivery equipment and store equipment
c. Salesmen's salaries
d. Freight out
a. Current Asset Less Current Liabilities - correct answer ✔✔As generally used, the term net assets
represent
a. Current Asset Less Current Liabilities
b. Retained Earnings
c. Total Assets less Total Liabilities
d. Total Contribution Capital
d. The entity holds the asset primarily for the purpose of collecting contractual cash flows - correct
answer ✔✔An entity shall classify an asset as current under the following conditions, except:
a. The asset is cash or cash equivalent unless the asset is restricted to settle a liability for more than
twelve months
b. The entity expects to realize the asset or intends to sell or consume it within the entity's normal
operating cycle
, c. The entity expects to realize the asset within twelve months after the reporting period.
d. The entity holds the asset primarily for the purpose of collecting contractual cash flows
d. Prepaid Expenses - correct answer ✔✔The following are components of expenses, except
a. Selling Expenses
b. Income Tax Expenses
c. Administrative Expenses
d. Prepaid Expenses
c. A currently maturing long-term debt - correct answer ✔✔Which of the following is classified as
current liabilities?
a. Noncurrent portion of the long term debt
b. Long-term obligations to company officers
c. A currently maturing long-term debt
d. Long-term deferred revenue
d. noncurrent assets - correct answer ✔✔In which of the following should the cash that is restricted for
settlement of a liability due 18 months after the reporting period be presented?
a. equity
b. noncurrent liabilites
c. current assets
d. noncurrent assets
b. The refinancing on a long-term basis is completed on or before the end of the reporting period,
therefore the obligation is classified as noncurrent liability. - correct answer ✔✔Which of the following is
true?
a. If the entity has the discretion to refinance the obligation for at least 12 months after the reporting
period under an existing loan facility, the obligation is classified as current liability.
b. The refinancing on a long-term basis is completed on or before the end of the reporting period,
therefore the obligation is classified as noncurrent liability.
