Multiple choice 1-10Continuation from the photo9. This is the most commonly used method of presenting a statement of financial position. It facilitates the computation of liquidity and solvency ratios.a. Classified presentationb. Unclassified presentationc. Classified as to liquidityd. Based on liquidity10. Which of the following best reflects the definition of normal operating cycle under PAS 1?a. For a manufacturing entity, this is the usual time it takes for the entity to acquire raw materials, process those raw materials into finished goods, and sell the finished goods.b. For a manufacturing entity, this is the usual time it takes for the entity to acquire raw materials, process those raw materials into finished goods, sell the finished goods on account, and collect the receivables. c. For a manufacturing entity, this is the usual time it takes for the entity to acquire raw materials on account and settle the account. d. For a manufacturing entity, this is the usual time it takes for the entity to sell finished goods on account and collect the receivables. PROBLEM 2: MULTIPLE CHOICE1. The objective of PAS 1 isto ensure comparability by prescribing the basis forpresentation of general purpose financial statements.b. toа.ensure the faithful representation of financialstatements.to ensure the relevance of information presented in thefinancial statements.c.d. to prescribe the recognition and measurement principlesapplicable to assets, liabilities, income and expenses.2. Entity A's financial statements in the current period iscomparable with Entity A's financial statements in theprevious period. This type of comparability is calleda. Inter-comparabilityb. Intra-comparabilityc. Extra-comparabilityd. Intro-comparability3. The scope of PAS 1 isa. the preparation and presentation of general purpose....b. the recognition, measurement and disclosure requirementsfor specific transactions and other events.c. the presentation of general purpose financial statements aswell as all other information contained in an entity'sannual report.d. all of theseThe statement of financial position is also calleda. balance sheet.b. income statement.4.c. positions statement.d. all of these5. When preparing financial statements, PAS 1 requiresmanagement to assess the entity's ability to continue as agoing concern. The assessment covers a minimum period ofat least one year from the end of the reporting period.b. at least two years from the end of the reporting period.a.All rights belongs to respective authcPlease consider buving the originalPresentation of Financial Statements145c. at least five years from the end of the reporting period.d. there is no such requirement. Which of the following is not considered an appropriateapplication of offsetting under PAS 1?a. Presenting a gain from the sale of a noncurrent asset net ofthe related selling expenses.b. Deducting foreign exchange losses from foreign exchangegains and presenting only the net amount.c. Deducting unrealized losses from unrealized gains fromtrading securities and presenting only the net amount.d. Deducting accumulated depreciation from the equipmentaccount and presenting only the carrying amount.7. PAS 1 requires an entity to provide an additional balancesheet dated as of the beginning of the preceding period ifcertain instances occur. Which of the following is not one ofthose instances? (Assume all of the following has a materialeffect)a. Retrospective application of an accounting policy.b. Retrospective restatementc. Reclassification of items in the financial statementsChange in the frecuency of reporting8. The PFRSS apply to which of the following?a. A management's review of the entity's financialperformance during the period vis-à-vis its targets for thatperiod contained in the entity's annual report, which alsoincludes the entity's financial statements.b. Schedules, reconciliations and returns required by theBureau of Internal Revenue (BIR) to be filed together withthe financial statements.C. Envirormental reports required by the Department ofEnvironment and Natural Resources (DENR) that areincluded in the entity's annual report.NOT FOR SALE!All rights belongs to respective authoPlease consider buvino the original146PAS1d. Explanatory material and other information that ardisclosed in the notes to the financial statements.

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Answered: 1. The objective of PAS 1 is a. to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Multiple choice 1-10 Continuation from the photo 9. This is the most commonly used method of presenting a statement of financial position. It facilitates the computation of liquidity and solvency ratios. a. Classified presentation b. Unclassified presentation c. Classified as to liquidity d. Based on liquidity 10. Which of the following best reflects the definition of normal operating cycle under PAS 1? a. For a manufacturing entity, this is the usual time it takes for the entity to acquire raw materials, process those raw materials into finished goods, and sell the finished goods. b. For a manufacturing entity, this is the usual time it takes for the entity to acquire raw materials, process those raw materials into finished goods, sell the finished goods on account, and collect the receivables. c. For a manufacturing entity, this is the usual time it takes for the entity to acquire raw materials on account and settle the account. d. For a manufacturing entity, this is the usual time it takes for the entity to sell finished goods on account and collect the receivables.

PROBLEM 2: MULTIPLE CHOICE
1. The objective of PAS 1 is
to ensure comparability by prescribing the basis for
presentation of general purpose financial statements.
b. to
а.
ensure the faithful representation of financial
statements.
to ensure the relevance of information presented in the
financial statements.
c.
d. to prescribe the recognition and measurement principles
applicable to assets, liabilities, income and expenses.
2. Entity A's financial statements in the current period is
comparable with Entity A's financial statements in the
previous period. This type of comparability is called
a. Inter-comparability
b. Intra-comparability
c. Extra-comparability
d. Intro-comparability
3. The scope of PAS 1 is
a. the preparation and presentation of general purpose
....
b. the recognition, measurement and disclosure requirements
for specific transactions and other events.
c. the presentation of general purpose financial statements as
well as all other information contained in an entity's
annual report.
d. all of these
The statement of financial position is also called
a. balance sheet.
b. income statement.
4.
c. positions statement.
d. all of these
5. When preparing financial statements, PAS 1 requires
management to assess the entity's ability to continue as a
going concern. The assessment covers a minimum period of
at least one year from the end of the reporting period.
b. at least two years from the end of the reporting period.
a.
All rights belongs to respective authc
Please consider buving the original
Presentation of Financial Statements
145
c. at least five years from the end of the reporting period.
d. there is no such requirement.

Which of the following is not considered an appropriate
application of offsetting under PAS 1?
a. Presenting a gain from the sale of a noncurrent asset net of
the related selling expenses.
b. Deducting foreign exchange losses from foreign exchange
gains and presenting only the net amount.
c. Deducting unrealized losses from unrealized gains from
trading securities and presenting only the net amount.
d. Deducting accumulated depreciation from the equipment
account and presenting only the carrying amount.
7. PAS 1 requires an entity to provide an additional balance
sheet dated as of the beginning of the preceding period if
certain instances occur. Which of the following is not one of
those instances? (Assume all of the following has a material
effect)
a. Retrospective application of an accounting policy.
b. Retrospective restatement
c. Reclassification of items in the financial statements
Change in the frecuency of reporting
8. The PFRSS apply to which of the following?
a. A management's review of the entity's financial
performance during the period vis-à-vis its targets for that
period contained in the entity's annual report, which also
includes the entity's financial statements.
b. Schedules, reconciliations and returns required by the
Bureau of Internal Revenue (BIR) to be filed together with
the financial statements.
C. Envirormental reports required by the Department of
Environment and Natural Resources (DENR) that are
included in the entity's annual report.
NOT FOR SALE!
All rights belongs to respective autho
Please consider buvino the original
146
PAS1
d. Explanatory material and other information that ar
disclosed in the notes to the financial statements.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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