Statutory Financial Statement

Question 1

Describe the 4 level hierarchical structure of the financial statement

Answer 1

• Macro Classes, represeted by Capital letters
• Classes, represented by roman numerals, used to distinguish the different items of the first level
• Items, represented by arabic numerals, used to strenghten the classes
• Sub-items, represented by lower-case letters

Question 2

How are asset items recorded?

Answer 2

They are recorded net of the corresponding adjustment items

Question 3

Describe the 3 level hierarchical structure of the financial statement

Answer 3

• Highest level, described by capital letters
• Items that make up the highest level, represented by arabic numerals
• Third level, represented by lower case letters

Question 4

What is the financial statement?

Answer 4

It is the structure of the budget imposed by the legislator

Question 5

What must the financial statement consist of?

Answer 5

A balance sheet, an income statement and an explanatory note

Question 6

How are assets divided in the statuatory balance sheet?

Answer 6

A. Subscribed capital unpaid
B. Non-current assets
C. Current assets
D. Accrued income and prepaid expenses

Question 7

How are liabilities and equity divided in the statuatory balance sheet?

Answer 7

A. Equity
B. Provision for risk and charges
C. Provision for staff severance pay
D. Payables
E. Accrued expenses and deferred income