Question 1

There is no equivalent international accounting standard to AASB ______ 'Concise Financial Reports'.

Accepted Answer

The answer of There is no equivalent international accounting standard...

Question 2

Under IAS 1/AASB 101 which format is subscribed for the statement of financial position?

Accepted Answer

IAS 1/AASB 101 does not prescribe a specific format for the statement of financial position, allowing entities to choose a format that best suits their circumstances.

Question 3

An alternative name for the balance sheet is:

Accepted Answer

The balance sheet is also commonly known as the statement of financial position as it presents an organization's financial position at a specific point in time, including its assets, liabilities, and equity. Options A and B refer to other financial statements that are distinct from the balance sheet, and option D is not a commonly used name for a financial statement.

Question 4

How many of these expenses that would normally appear in an internally prepared income statement are required to be separately disclosed in an external statement prepared to conform to the requirements of the accounting standards?
.Freight outwards
.Printing and stationery expenses
.Utilities expenses

Accepted Answer

None of the listed expenses (freight outwards, printing and stationery, utilities) are required to be separately disclosed in an external income statement according to standard accounting practices.

Question 5

In the 2011 version of IAS 1/AASB 101 the recommended title for the income statement is:

Accepted Answer

The recommended title for the income statement in the 2011 version of IAS 1/AASB 101 is "Statement of profit or loss and other comprehensive income". This title highlights that the income statement shows both the profits/losses for the period as well as any other comprehensive income items that have not yet been recognized in the income statement. Option A and B are incorrect because "profit and loss" is not the preferred terminology for the income statement, and option D is incorrect because "financial performance" may be too broad and could encompass more than just the income statement.

Question 6

A summarised set of financial reports sent to a shareholder as an alternative to the full annual financial report,is called a c___________ report.

Accepted Answer

The answer of A summarised set of financial reports sent...

Question 7

How many of these expenses that would normally appear in an internally prepared profit and loss statement are required to be separately disclosed in an external statement prepared to conform to the requirements of the accounting standards?
.Salaries and wages
.Internet service provider fees
.Cleaning
.Security fees

Accepted Answer

Only the salaries and wages expense is required to be separately disclosed in an external statement prepared to conform to accounting standards. The other expenses, such as internet service provider fees, cleaning, and security fees, would likely be included as part of a broader expense category (such as "other operating expenses").

Question 8

Under the Corporations Act an overriding requirement is that the financial statements must present a t_________ and f________ view of performance and financial position.

Accepted Answer

The answer of Under the Corporations Act an overriding requirement...

Question 9

Which of these is not an expense item that requires separate disclosure under the accounting standards in the statement of profit or loss and other comprehensive income or in the notes attached to the statement?

Accepted Answer

Office expenses are generally included in the larger expense categories, such as administrative expenses or operating expenses, and do not require separate disclosure. Impairment expenses, bad and doubtful debts, and interest paid all typically require separate disclosure in accordance with the accounting standards.

Question 10

If expenses are classified into the groups,cost of sales,selling expenses,administrative expenses and finance expenses,under IAS 1/AASB 101 they are classified by:

Accepted Answer

IAS 1/AASB 101 require expenses to be classified by their function, i.e. whether they relate to cost of sales, selling expenses, administrative expenses or finance expenses. This approach provides useful information to users of financial statements regarding the costs associated with different functional areas of the organization.

Question 11

Which category of revenue listed does not require separate disclosure under IAS 18/ AASB 118?

Accepted Answer

The answer of Which category of revenue listed does not...

Question 12

The untrue statement concerning AASB 1053 is:

Accepted Answer

AASB 1053 is designed to increase the financial disclosure requirements of Tier 1 entities, not decrease them. A, C, and D are all true statements.

Question 13

When might borrowing costs not appear in a statement of profit or loss and other comprehensive income?

Accepted Answer

Borrowing costs that are directly attributable to the acquisition, construction, or production of a qualifying asset may be capitalized as part of the cost of the asset and will not appear in the statement of profit or loss and other comprehensive income. This is in accordance with International Accounting Standard (IAS) 23, which allows for the capitalization of borrowing costs that meet certain criteria. Options A, B, and D do not provide valid reasons for borrowing costs to not appear in the statement of profit or loss and other comprehensive income.

Question 14

As set out in IAS 1/AASB 101,there is a general requirement that the financial statements must provide comparative and corresponding financial disclosures for:

Accepted Answer

According to IAS 1/AASB 101, the financial statements must provide comparative and corresponding financial disclosures for the previous reporting period. Therefore, the best choice is option B. Option A is incorrect as it only covers a twelve month period and not the previous reporting period. Option C and D are incorrect as they exceed the requirement of IAS 1/AASB 101 which only requires disclosures for the previous reporting period.

Question 15

Under IAS 1/AASB 101 the statement of changes in equity must disclose how many of the following?
.Total comprehensive income for the period.
.A reconciliation between carrying amount at the beginning and end of the period for each item of equity
.Contributions by and distributions to owners,disclosed separately

Accepted Answer

IAS 1/AASB 101 requires the statement of changes in equity to disclose all three items: total comprehensive income for the period, a reconciliation of the carrying amount at the beginning and end of the period for each item of equity, and contributions by and distributions to owners, disclosed separately.

Question 16

The term that is currently the most commonly preferred for owner's equity in a company balance sheet is:

Accepted Answer

The answer of The term that is currently the most...

Question 17

It is true under IAS 1/AASB 101 that:

Accepted Answer

IAS 1/AASB 101 requires that assets and liabilities be classified as current or non-current unless a liquidity presentation provides more relevant and reliable information. There is no prescribed format for the balance sheet, movements in reserves are not required on the face of the balance sheet, and there is no requirement for the balance sheet to begin with the assets section.

Question 18

The correct heading on a statement of financial position made up to 30 June 2014 is:

Accepted Answer

As at 30 June 2014 is the most appropriate heading for a statement of financial position, as it reflects the financial position of the entity at a specific point in time, which is the end of the reporting period. Choice B, For the year ended 30 June 2014, is more appropriate for a statement of comprehensive income, as it reflects the entity's performance over the reporting period. Choice C, For the period ended 30 June 2014, is too vague and could refer to any time period, while choice D is not a valid option.

Question 19

IAS 1/AASB 101 requires an entity to adopt either a current/_______________ presentation or a liquidity presentation in the statement of financial position.

Accepted Answer

The answer of IAS 1/AASB 101 requires an entity to...

Question 20

For all entities,apart from small proprietary companies,the financial statements included in the annual report must comply with all the accounting s___________ as well as the Corporations Act.

Accepted Answer

The answer of For all entities,apart from small proprietary companies,the...

Quiz 23: Presentation of Financial Statements