Interim Financial Reporting

Question 1

Interim financial reports shall be published

Answer 1

d. Whenever the entity wishes.

Question 2

If an entity does not prepare interim financial reports

Answer 2

b. The year-end financial statements’ compliance with IFRS is not affected.

Question 3

Interim financial reports shall include as a minimum

Answer 3

b. A condensed set of financial statements and selected notes.

Question 4

An interim financial report shall include as a minimum all of the following components, except

Answer 4

d. Accounting policies and explanatory notes

Question 5

There is a presumption that anyone reading interim financial reports shall

Answer 5

c. Have access to the most recent annual report.

Question 6

When the business is seasonal, what does IFRS suggest?

Answer 6

b. Disclosure of financial information for the latest12- month period and comparative information for the prior comparable 12-month period in addition to the interim report

Question 7

Which basic financial statements are prepared as a minimum for interim financial reporting?

Answer 7

d. Statement of financial position, statement of comprehensive income, statement of cash flows and statement of changes in equity

Question 8

An entity is preparing interim financial statements for six months ended June 30, 2023. In the interim financial statements for six months, a statement of financial position on June 30, 2023, a statement of comprehensive income for six months ended June 30, 2023 and statement of cash flows for six months ended June 30, 2023 shall be presented. In addition, all of the following shall be presented, except

Answer 8

a. Statement of financial position on June 30, 2022

Question 9

Which statement is true regarding interim reporting?

.

Answer 9

c. Interim reports are not required

Question 10

Which statement about an interim report is true?

Answer 10

c. An interim financial report may consist of a condensed set or complete set of financial statements.

Question 11

Interim financial statements are usually presented on a

Answer 11

b.Quarterly basis

Question 12

For interim reporting, an inventory loss from a market decline in the second quarter shall be recognized

Answer 12

d. In the second quarter

Question 13

It is appropriate to use estimated gross profit rate to determine the cost of goods sold for

Answer 13

a. Interim reporting

Question 14

For interim financial reporting, an expropriation gain occurring in the second quarter shall be

Answer 14

c. Recognized in the second quarter

Question 15

For interim financial reporting, the income tax expense for the second quarter should be computed by using the

Answer 15

a. Statutory tax rate for the year.

Question 16

Advertising costs incurred shall be deferred to provide an appropriate expense in each period for

Answer 16

d. neither interim reporting nor year end reporting

Question 17

Advertising costs incurred shall be deferred to provide an appropriate expense in each period for

Answer 17

d. neither interim reporting nor year end reporting

Question 18

Due to a decline in market price in the second quarter, an entity incurred an inventory loss. The market price is expected to return to previous level by year-end. At year end, the decline had not reversed. When should the loss be reported in the interim income statement?

Answer 18

c. in the second quarter

Question 19

Interim statements can be described as emphasizing

Answer 19

a. Timeliness over reliability

Question 20

Interim financial reporting should be viewed

Answer 20

c. As reporting for an integral part of an annual period.

Question 21

Which statement about interim reporting is true?

Answer 21

d. The same accounting principles used for the annual report should be employed for interim report.