12. Which of the following is correct regarding the use of terminology under IAS 1 Presentation of Financial Statements? a. Entities are required by IAS 1 to use the terms “other comprehensive income,” “profit or loss” and “total comprehensive income.” The use of the term “net income” is prohibited. b. Entities may use the terms “balance sheet,” “net income,” “income statement,” and “cash flow statement” to describe their financial statements and other terms provided they are not misleading. c. Entities are required by IAS 1 to use the term “statement of cash flows” in presenting the sources and uses of cash for a period. The use of the term “cash flow statement” is prohibited. d. Entities are required by IAS 1 to use the term “statement of financial position” in presenting its assets, liabilities and equity as of a given point of time. The use of the term “balance sheet” is prohibited.
12. Which of the following is correct regarding the use of terminology under IAS 1 Presentation of Financial Statements? a. Entities are required by IAS 1 to use the terms “other comprehensive income,” “profit or loss” and “total comprehensive income.” The use of the term “net income” is prohibited. b. Entities may use the terms “balance sheet,” “net income,” “income statement,” and “cash flow statement” to describe their financial statements and other terms provided they are not misleading. c. Entities are required by IAS 1 to use the term “statement of cash flows” in presenting the sources and uses of cash for a period. The use of the term “cash flow statement” is prohibited. d. Entities are required by IAS 1 to use the term “statement of financial position” in presenting its assets, liabilities and equity as of a given point of time. The use of the term “balance sheet” is prohibited.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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12. Which of the following is correct regarding the use of terminology under IAS 1 Presentation of Financial Statements?
a. Entities are required by IAS 1 to use the terms “other comprehensive income,” “profit or loss” and “total comprehensive income.” The use of the term “net income” is prohibited.
b. Entities may use the terms “balance sheet,” “net income,” “income statement,” and “cash flow statement” to describe their financial statements and other terms provided they are not misleading.
c. Entities are required by IAS 1 to use the term “statement of cash flows ” in presenting the sources and uses of cash for a period. The use of the term “cash flow statement” is prohibited.
d. Entities are required by IAS 1 to use the term “statement of financial position ” in presenting its assets, liabilities and equity as of a given point of time. The use of the term “balance sheet” is prohibited.
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