QUIZ BEE PARTICIPANTS (THEORETICAL)

Statement 1: PAS 1 does not prescribe any format of Income Statement.

Statement 2: The two forms of income statement are Functional Presentation and Natural Presentation.

Statement 3: Statement of Cash flows summarizes the operating, investing and financing activities of an entity.

• True, True, True

• False, True, False

• False, True, True

• True, False, True

It is a right that has the potential to produce economic benefits.

• Asset

• Equity

• Economic Resources

• Any of the foregoing choices

It is the end product or main output of the financial accounting process. These are the means by which the information accumulated and processed in financial accounting is periodically communicated to the users.

• Worksheet

• Financial Statements

• Financial Accounting

• Reversing

The difference between Statement of Comprehensive Income and Income Statement is

• Equity Presentation

• Components of Profit or Loss

• Components of Other Comprehensive Income

• Profit Presentation

It is defined as the removal of all or part of a recognized asset or liability from the Statement of Financial Position.

• Depreciation

• Amortization

• Derecognition

• None of the Above

When do we recognize income?

• At the point of sale

• When the legal title to the goods passes to the buyer at the point of sale

• When cash is received

• At the point of production, during production and at the point of collection

For information to be useful, the link between the users and the decisions made is

• Materiality

• Relevance

• Reliability

• Understandability

Rights that have the potential to produce economic benefits and correspond to an obligation of another entity include all, except

• Right to receive cash

• Right over a property

• Right to receive goods

• Right to exchange economic resources with another entity on favorable terms

These are decrease in equity that do not arise in the ordinary course of the business.

• Expense

• Losses

• Income

• Gain

These are the basic notions or fundamental premises on which the accounting process is based.

• Accounting Assumptions

• Underlying Assumptions

• Postulates

• All of the Above