The profit or loss of the entity based from its current operation is required, under IAS 1 Presentation of Financial Statements, to be presented on the face of the: a. statement of comprehensive income b. cash flow statement c. statement of cash flows d. statement of changes in equity

The profit or loss of the entity based from its current operation is required, under IAS 1 Presentation of Financial Statements, to be presented on the face of the: a. statement of comprehensive income b. cash flow statement c. statement of cash flows d. statement of changes in equity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Statement I: Under accrual accounting the computation of the entity’s net income is by deducting the…

A: Under accrual accounting, expense are recognized even if they are not actually paid and income is…

Q: Appropriation for accumulated profits, if reflected in separate account, shall be shown as a.…

A: Solution: Appropriation for accumulated profits, if reflected in separate account, shall be shown…

Q: Which of the following is included in computing the total gross income? Incidental revenue Net…

A: Gross Income - It the amount of total income which includes from the other sources include operating…

Q: Prepayments are presented: A. in statement of financial position as assets B. in statement of…

A: Prepayments are the amounts paid by us in advance for which benefit shall be received in the future.

Q: Under which basis of accounting are revenues and expenses reported in the income statement in the…

A: Accrual Accounting - Under Accrual Basis of accounting revenue is recorded only if earned and…

Q: it of What is considered a summary of profit or loss? Select one: a. Retained earnings b.…

A: The correct answer to the question is "C. Income Statement"Income statement is considered as summary…

Q: Garcia Company recognized revenue on account. The recognition will affect which of the following…

A: According to the revenue recognition principle, the revenue is recognized at the time sales occurred…

Q: Which of the following isNOT RUE the Statement of Financial Position and the Profit and Loss…

A: Financial statements are prepared by an entity with a view to evaluate the different aspects of…

Q: With reference to the definitions of the basic elements of the Balance Sheet (Assets, Liabilities)…

A: ANSWER:- A balance sheet and an income statement are related by the net income. Net income is…

Q: by The financial performance of an entity is calculated Select one: A. a decrease in expenditure. B.…

A: The financial performance of the company is the overall standing of the company in the categories of…

Q: Notes Payable is a(n) and is reported on the A. Asset; Income Statement B. Liability; Balance Sheet…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Is it true or not? An entity shall prepare all its financial statements, except the statement for…

A: An organisation can report revenue before obtaining payment for the products or services sold and…

Q: Which of the following best represents operating income? Seleccione una: Oa. Income after financing…

A: Income after financing activities (option a): This option describes the net income remaining after…

Q: Balance Sheet ClassificationA balance sheet contains the following classifications:(a) Current…

A: Balance Sheet Classification: Assets Liabilities and Stockholders equity (a) Current assets…

Q: 9. The following statements are correct, except: a. Profit or loss is the total income less…

A: Profit & Loss A/c Statement is an important part of Accounting & used for the purpose to…

Q: PFRS 9 can an entity classify financial assets that meet the amortized cost criteria as at FVTPL?

A: As per PFRS 9, an entity may classify financial assets initially according to the measurement at…

Q: The net assets approach of computing for the net income requires this item to be added to the ending…

A: Net Assets is the difference between Outsiders' Liability and Assets of the firm. It gives the Net…

Q: Under IFRS, how should changes in accounting policy be recognized in the financial statements? a.…

A: Change in Accounting Policy:A Change in accounting policy occurs if there has been a change in the…

Q: On which financial statement do revenues appear?

A: Revenues and expenses are the accounts which are required to compute the Net income earned or net…

Q: Which one of the following comprises a full set of financial statement: A. Statement of profit or…

A: The following statements are comprises a full set of financial statement:

Q: This type of financial statement is basically produced by deducting expenses from the revenues of an…

A: Financial Statements: Written documents that communicate information about a company's business…

Q: Which of the following terms is used when assuming a business will continue to operate in…

A: Accounting assumptions means a set of rules that will ensure business operations of an organization…

Q: relationship among balance sheet, cash flow sheet and income statement

A: Relationship among balance sheet, statement of cash flow sheet, and income statement as…

Q: Examine the link between the income statement, the statement of retained profits, and the balance…

A: Financial statements prepared by the business organizations include income statements, Financial…

Q: Revenues and expenses must be recorded in the accounting period in which they were earned or…

A: The income and expenses are recorded in the income statement to estimate the profitability of the…

Q: The following may be presented as current assets, except * A. Advances to shareholders, directors,…

A: Current assets: These include all the assets of the business that can be converted into cash within…

Q: The valuation method primarily used in the balance sheets of business entities is a. current exit…

A: Balance Sheet: It shows the financial position of the entity. All the assets and liabilities are…

Q: The cumulative balance of other comprehensive income is reported in (Enter 1, 2, 3, or 4 that…

A: The accumulated other comprehensive income consists of all the unrealized gains and losses.

Q: The ___________ reports information about assets, liabilities and equity. Select one alternative:…

A: The financial statements of the business includes balance sheet and income statement.

Q: What is the purpose of arranging an income statement toshow subtotals for income from continuing…

A: Income statement is prepared to compute the total net profit or loss generated or incurred during an…

Q: ncial statements are comprised of balance sheet , income statement , statement of changes in equity…

A: Explanation : In simple words, there are four basic financial statements, balance sheet, income…

Q: Any gain or loss on the restatement of non-monetary items is included: In the profit or loss,…

Q: a. List the four types of financial statements b.Describe the interrelationshipbetween balance…

A: Financial statements provide detailed financial information of the entity. It includes details…

Q: AS I required that an entity prepare its financial statements (except cash flows statement) using…

A: Solution Concept IAS 1 is the standard related to presentation of the financial statements It…

Q: IDENTIFICATION OF AN ASSETS, LIABILITY, EQUITY, INCOME, EXPENSES or WITHDRAWAL For each of the…

A: The financial statements are prepared by passing the journal entries, adjusting entries,…

Question

The profit or loss of the entity based from its current operation is required, under IAS 1 Presentation of Financial Statements, to be presented on the face of the:

a. statement of comprehensive income

b. cash flow statement

c. statement of cash flows

d. statement of changes in equity

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Interdependence of financial statements (a) Which financial or operational data item appears on both the income statement and the statement of stockholders' equity? (a) Which item appears on both the balance sheet and the statement of retained earnings? (c) Which line item occurs on both the balance sheet and cash flow statement?
Illies Corporation's comparative balance sheet appears below: Beginning Balance Assets: Current assets Cash and cash equivalents. Accounts receivable. Inventory. Total current assets Property, plant, and equipment. Less accumulated depreciation. Net property, plant, and equipment. Total assets. Liabilities and Stockholders' Equity Current liabilities: Accounts payable. Accrued wages and salaries payable.. Accrued income taxes payable. Notes payable. Total current liabilities. Long-term debt. Deferred income taxes. Total liabilities Stockholders' equity: Common stock. Retained earnings. Ending Balance Select one: $ 40,000 19,000 O a. $7,000 O b. $40,000 O c. $29,000 O d. $33,000 67,000 126,000 123,000 358,000 339,000 156,000 132,000 202.000 $328,000 $ 33,000 21,000 69,000 $ 18,000 35,000 23,000 207.000 $330,000 23,000 103,000 22,000 102,000 Total stockholders' equity 126,000 124.000 Total liabilities and stockholders' equity.... $328,000 $330.000 $ 19,000 37,000 19,000 19,000 22,000…
What financial or operational information may be found on the income statement and the statement of retained earnings?
Tr.5.
The retained earnings statement should be prepared a.after the income statement and before the balance sheet b.after the income statement and balance sheet c.before the income statement and after the balance sheet d.before the income statement and balance sheet
IDENTIFICATION OF AN ASSETS, LIABILITY, EQUITY, INCOME, EXPENSES or WITHDRAWAL For each of the following instructions, indicate the following: ASSETS- if the transaction results to an asset LIABILITY- if the transaction results to a liability EQUITY- if the transaction results to an equity INCOME - if the transaction results to an income EXPENSE - if the transaction results to an expense WITHDRAWAL- if the transaction results to a withdrawal N/A- if the transaction does not result to any of the elements. Receipt of cash for services rendered to clients. Collection of rentals from lessees. Purchase of supplies on credit.
Is there any financial or operational data that appears on both the income statement and the retained profits statement except revenue?
The cash basis and accrual basis of accounting in the public sector in terms of A. Recognition of revenue B. Recognition of expenditure C. Disclosure of non financial assets D. Notion of depreciation Please answer part A-D
Name the financial accounts (entries) that are included in the: Income statement Balance sheet Cash flow statement
The retained earnings statement should be prepared a. before the income statement and balance sheet b. after the income statement and before the balance sheet C. before the income statement and after the balance sheet d. after the income statement and balance sheet
If an item appears on both the income statement and retained profits report, there must be financial or operational data.