Chapter 4 Flashcards
Name all temporary accounts
All revenue accounts
All expense accounts
Dividends
Name all permanent accounts
All asset accounts
All liability accounts
Equity
118.Which statement is true? A.Chairman’s letters are part of a financial statement
B.Corporate annual reports are part of a financial statement
C.Management discussions and analysis are part of notes to the accounts
D.Financial statements are part of corporate annual reports
D
119.Corporate annual reports typically appear in this order:
A.Corporate information, other statements and disclosures, analysis and commentaries, and financial statements
B.Financial statements, analysis and commentaries, other statements and disclosures, and corporate information
C.Corporate information, analysis and commentaries, other statements and disclosures, and financial statements
D.Financial statements, other statement and disclosures, analysis and commentaries, and corporate information
C
121.Who is responsible for the preparation offinancial statements? A.Auditor
B.Management
C.Chief Financial Officer (CFO) and the accounting staff
D.Chairman of the Board
B
122.Materiality means:
A.The amount in question had the potential to result in a different decision had it been known to financial statement users
B.The amount in question is greaterthan 10% of total assets
C.The amount in question is greater than 10% of revenue
D.The amount in question would have resulted in a different decision had it been known to financial statement users
A
122.Materiality means:
A.The amount in question had the potential to result in a different decision had it been known to financial statement users
B.The amount in question is greaterthan 10% of total assets
C.The amount in question is greater than 10% of revenue
D.The amount in question would have resulted in a different decision had it been known to financial statement users
A
123.IAS1 does not require the following item to be displayed on the statement of financial position: A.Provisions B.Cash and cash equivalents C.Accumulated depreciation D.Intangible assets
C
124.Which of the following is correct?
A.A statement of financial position contains information about how components of equity change during a period
B.An entity is not allowed to aggregate its revenue into one single line on the Income Statement
C.Entities must present their statement of comprehensive income, followed by the statement of financial position, statement of changes in equity, and, lastly, statement of cash flows.
D.Other comprehensive income items may turn a “loss” on the Income Statement into a “profit” on the statement of comprehensive income
D
An entity has the following balances: Cash $15,000, Inventory $10,000, Receivables $22,000, PPE $50,000, and Intangible assets $40,000. Its total current assets are: A.$25,000 B.$37,000 C.$47,000 D.$97,000
Answer: C Chapter: 4
Explanation: Cash + Inventory + Receivables $15,000 + $10,000 + $22,000 = $47,000
126.All of the following may explain changes in equity from one period to another, except for:
A.Additional share issuance during the period
B.Payment of dividend during the period
C.Increase in the entity’s share price during the year
D.Total comprehensive income
C
127.Which of the following statements best describes nots to the financial statements?
A.They are part of a complete set of financial statements
B.They are used to explain how the company has performed during the financial year
C.They provide a breakdown of all the numbers that appear on financial statements
D.The more important numbers are shown on the financial statements and the less important ones are shown in the notes to the financial statements
A
129.The notes to the financial statements can be used for the following, EXCEPT for:
A.Providing additional breakdown of line items on the financial statements
B.Explaining the accounting policies used
C.Providing disclosures of items not shown on the financial statements
D.Explaining the corporate governance policies used
D
130.All of the following may explain changes in equity from one period to the next period, expect for:
A.Realizing profits over the period
B.Additional share issuance during the period
C.Payment of dividend during the period
D.Increase in the company’s share price during the period
D
