. S1: In the statement of changes in equity, the effect of the correction of a prior period error is presented separately for each component of equity. S2: Preference share dividend appear under the retained earnings section of the statement of changes in equity A. True, True B. False, False C. True, False D. False True
. S1: In the statement of changes in equity, the effect of the correction of a prior period error is presented separately for each component of equity. S2: Preference share dividend appear under the retained earnings section of the statement of changes in equity A. True, True B. False, False C. True, False D. False True
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. S1: In the statement of changes in equity, the effect of the correction of a
prior period error is presented separately for each component of equity.
S2:
of the statement of changes in equity
A. True, True
B. False, False
C. True, False
D. False True
2.The entity classified a building as held for sale on January 1, 2020. However, the company decided to use it for a product line expansion on December 31, 2020. Which of the following statements are true?
- The company will record
depreciation expense for the year 2020. - The company will recognize an impairment loss on January 1, 2020, if applicable.
- I only
- II only
- Both I and II
- None of the above
3.Which statement is incorrect?
- Revenues are income that arises from the ordinary course of business activities.
- Revenues may arise from decrease in liability from primary operations.
- Generally, revenue is recognized when the earning process is complete and a valid promise of payment has been received.
- Revenues arise from sale of goods or services, use of entity resources and disposal of noncurrent assets of the businesses.
- None of the above
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