QUIZ 4 CFAS

The statement of financial position is useful for all of the following, except

• To compute rate of return

• To analyze cash inflows and outflows for the period

• To evaluate capital structure

• To assess future cash flows

An entity shall classify an asset as current under all of the following conditions, except

• The entity expects to realize the asset or intends to sell or consume it within the entity’s normal operating cycle.

• The entity holds the asset for the purpose of trading.

• The entity expects to realize the asset within twelve months after the reporting period.

• The asset is cash or a cash equivalent that is restricted to settle a liability for more than twelve months after the reporting period.

In the Philippines, the common practice is to present in the statement of financial position

• Current assets before noncurrent assets, current liabilities before noncurrent liabilities, and equity after liabilities.

• Noncurrent assets before current assets, noncurrent liabilities before current liabilities, and equity after liabilities.

• Current assets before noncurrent assets, noncurrent liabilities before current liabilities, and equity after liabilities.

• Noncurrent assets before current assets, current liabilities before noncurrent liabilities, and equity after liabilities

Liabilities that an entity expects to settle within the normal operating cycle are classified as

• Noncurrent liabilities

• Current or noncurrent liabilities

• Current liabilities

• Equity

Which of the following is not required to be presented as minimum information on the face of the statement of financial position?

• Investment property

• Investment accounted under the equity method

• Biological asset

• Contingent liability

In analyzing financial statements, which financial statements would a potential investor primarily us to assess liquidity and financial flexibility?

• Statement of financial position

• Income statement

• Statement of retained earnings

• Statement of cash flows

The term “net assets” represents

• Retained earnings

• Current assets minus current liabilities

• Total contributed capital

• Total assets less total liabilities

Accrued revenue would normally appear in the statement of financial position under

• Noncurrent assets

• Current liabilities

• Long-term liabilities

• Current assets

The term “deficit” refers to

• An excess of current assets over current liabilities

• An excess of current liabilities over current assets

• A debit balance in retained earnings

• A prior period error

Which is the first item in presenting the notes to financial statements?

• Statement of compliance with PFRS

• Other disclosures, such as contingent liabilities, unrecognized contractual commitments and nonfinancial disclosures

• Supporting information for items presented on the face of the financial statements

• Summary of significant accounting policies