Which statement is incorrect regarding presentation of statement of profit or loss and other comprehensive income
1. Which statement is incorrect regarding presentation of statement of profit or loss and other comprehensive income?
a. An entity may use the title 'statement of comprehensive income' instead of 'statement of profit or loss and other comprehensive income'.
b. An entity may present the profit or loss section in a separate statement of profit or loss.
c. If presented separately, the statement of profit or loss shall immediately precede the statement
presenting comprehensive income, which shall
begin with profit or loss.
d. An entity may present a single statement of profit or loss and other comprehensive income, with
profit or loss and other comprehensive income
presented in one section.
2. The statement of profit or loss and other comprehensive income shall present
a. Profit or loss
b. Total other comprehensive income
c. Comprehensive income for the period, being the total of profit or loss and other comprehensive income
d. All of the above
3. The statement of profit or loss and other comprehensive income shall present allocation of profit or loss and other comprehensive income for the period attributable to
a. Owners of the parent
b. Non-controlling interests
c. Both a and b
d. Neither a nor b
4. An entity presents an analysis of expenses using a classification based on:
a. The nature of expenses. b. The function of expenses.
c. Either the nature of expenses or the function of expenses within the entity, whichever provides
information that is reliable and more relevant.
d. Either the nature of expenses or the function of expenses within the entity, whichever the entity would prefer to present.
5. Tub Corp. reports operating expenses in two categories: (1) selling, and (2) general and administrative. The adjusted
Accounting and legal fees P120,000
Advertising 150,000
Freight-out 80,000
Interest 70,000
Loss on sale of long-term investment 30,000
Officers' salaries 225,000
Rent for office space 220,000
Sales salaries and commissions 140,000
One-half of the rented premises is occupied by the sales department. Tub's total selling expenses are P_________
6. An entity classifying expenses by function shall disclose additional information on the nature of expenses. The minimum disclosure does not include
a.
b. Amortization
c. Employee Benefits
d. Advertising
7. The alphabetical list of items that may be relevant in the preparation of a statement of profit or loss of Similac Corporation is provided below:
Decrease in inventories of finished
goods and work in progress P107,900
Depreciation expense 17,000
Employee benefits expense 43,000
Finance costs 18,000
Income tax expense 32,000
Other expenses 5,500
Other income 11,300
Raw material and consumables used 92,000
Revenue 355,000
Share of profit of associates 30,100
Work performed by the entity and
capitalized 15,000
The profit for the year is P_____________
8. The profit or loss section or the statement of profit or loss shall include the following line items, except
a. Gains and losses on distribution of non-cash assets to owners.
b. Revenue, presenting separately interest revenue calculated using the effective interest method
c. A single amount for the total of discontinued
operations
d. Impairment losses (including reversals of impairment losses or impairment gains) determined in accordance with PAS 36.
9. In accordance with PAS 1, the profit or loss section or the statement of profit or loss shall include line item for gains and losses from derecognition of
a. Financial assets measured at fair value through profit or loss.
b. Financial assets measured at fair value through other comprehensive income.
c. Financial assets measured at amortized cost.
d. All of these.
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