D Question 7S1: To be considered as a finance lease, thetitle should be transferred to the lessee at thebeginning of the lease before the lease termcommence in their engagement.S2: IFRS 16 does not provide for aquantitative threshold for low value asset.Therefore, the latter is a matter ofprofessional judgement.S3: Sales type lease includes (a) initial directcost, (b) gross investment, (c) net investmentin the lease, (d) sales, (e) cost of sales, (f)unearned interest income, and (g) grossprofit.one statement is falsetwo statements are false.all statements are trueall statements are false D Question 9Statement 1: Depreciation expense error willself correct in the next year after the momentof erroneous entry.Statement 2: Failure to record the accruedsalaries at the end of reporting period resultsin overstated retained earningsStatement 3: Combined Financial Statementsprovide information about assets, liabilities,equity, income and expenses of both theparent and its subsidiaries as a singlereporting entity.one statement is trueone statement is falseall statements are falseall statements are true

Answer to Question 7 : One Statement is False. (S1 is false). Explanation : S1 : As per IFRS 16, To…

Statement 1: Depreciation expense error wil self correct in the next year after the momer of erroneous entry. Statement 2: Failure to record the accrued salaries at the end of reporting period results in overstated retained earnings Statement 3: Combined Financial Statement provide information about assets, liabilities, equity, income and expenses of both the parent and its subsidiaries as a single reporting entity. one statement is true one statement is false all statements are false all statements are true

Statement 1: Depreciation expense error wil self correct in the next year after the momer of erroneous entry. Statement 2: Failure to record the accrued salaries at the end of reporting period results in overstated retained earnings Statement 3: Combined Financial Statement provide information about assets, liabilities, equity, income and expenses of both the parent and its subsidiaries as a single reporting entity. one statement is true one statement is false all statements are false all statements are true

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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