Chapter 19 - Multiple choice quiz

AASB 101 deals with the presentation of which of the following statements?

I	Statement of Financial Position
II	Statement of Comprehensive Income
III	Statement of Changes in Equity
IV	Statement of Cash Flows

A.	I and II only

B.	I, II and III only

C.	I, II and IV only.

D.	I, II, III and IV

The requirements of AASB 101 apply to the following sets of financial statements:

A.	condensed financial statements;

B.	interim financial statements;

C.	general-purpose financial statements;

D.	special purpose financial statements.

The requirements of AASB 101 apply to all of the following types of financial statements except:

A.	general purpose financial statements;

B.	consolidated financial statements;

C.	separate general purpose financial statements of entities;

D.	condensed interim financial statements.

When preparing general purpose financial statements, the following entity may need to amend the AASB 101 descriptions when presenting particular line items:

A.	private sector, for-profit entities;

B.	all public sector entities;

C.	private sector entities with not-for-profit activities;

D.	public sector, for-profit entities

The primary source of information about an entity's financial position is to be found in its:

A.	Statement of Comprehensive Income;

B.	Statement of Financial Position;

C.	Statement of Changes in Equity;

D.	Statement of Cash Flows.

The elements summarised in an entity's Statement of Financial Position are:

A.	income, expense, profit and loss;

B.	cash in, cash out, cash equivalents;

C.	assets, liabilities, equity;

D.	share issues, dividends, retained earnings.

The following financial ratios are evaluated using information contained within a Statement of Financial Position:

A.	working capital ratio, leverage;

B.	earnings per share, return on turnover;

C.	dividend yield, earnings per share;

D.	profit margin, return on sales.

An entity is required to classify its assets and liabilities as current or non-current unless it is considered more relevant to present them according to their:

value;

B.	liquidity;

age;

D.	physical nature.

Typically industries where operating cycles may exceed twelve months include:

A.	food preparation;

B.	manufacturing;

retail;

D.	real estate development.

10.

The following are normally presented in a Statement of Financial Position as current items:

A.	deferred tax liabilities;

B.	accounts payable;

C.	deferred tax assets;

goodwill.

11.

A Statement of Financial Position prepared by a financial organisation such as a bank that borrows and lend funds across a range of time periods will be more relevant if presented using the:

A.	liquidity approach;

B.	current/non-current classification;

C.	tangible/non-tangible presentation;

D.	for-profit/not-for-profit method.

12.

If a liability satisfies the following criterion it will be classified as non-current:

A.	due to be settled within twelve months of the end of reporting period;

B.	expected to be settled in the entity's normal operating cycle;

C.	due to be settled more than twelve months after the end of reporting period;

D.	it is held primarily for the purpose of being traded.

13.

At end of reporting period for Year 1, Elpha Limited had a loan from its bankers that it expected to settle within three months. The loan term was renegotiated after end of reporting period and before the authorisation date of the financial statements, and the repayment date was extended by two years. For Year 1 financial statement presentation purposes this loan is classified by Elpha Limited as:

A.	a non-current liability;

B.	a current liability;

C.	a contingent liability;

D.	an off-Statement of Financial Position liability.

14.

A term in a financial agreement that requires the financial statements of a borrower to not fall below a specified current ratio is known as a:

A.	negative pledge;

B.	positive pledge;

C.	going concern clause;

D.	working capital clause.

15.

Which of the following is not an indicator of a current asset under para 66 of AASB 101?

A.	the entity holds the asset primarily for trading

B.	the entity expects to consume the asset within 12 months of the reporting date

C.	the asset does not meet the criteria for classification as non-current

D.	the entity expects to realise the asset within its normal operating cycle

16.

Which of the following is not required to be presented on the face of the Statement of Comprehensive Income under AASB 101?

A.	asset revaluation gains recognised in accordance with AASB 1016

B.	profit for the period attributable to non-controlling interests

C.	immaterial finance costs

D.	revenue form sale of goods

17.

The prime source of information about the financial performance of an entity is located in the:

A.	notes to the financial statements;

B.	Statement of Changes in Equity;

C.	Statement of Financial Position;

D.	Statement of Comprehensive Income.

18.

In respect to the Statement of Comprehensive Income of an entity, AASB 101 prescribes:

A.	a fixed format for the presentation of items in the Statement of Comprehensive Income;

B.	line items that are considered to be of sufficient importance to warrant presentation;

C.	the presentation of line items of revenue, but not of income;

D.	the presentation of line items comprising total expenses, but not line items comprising total revenue.

19.

Under AASB 101 the profit or loss attributable to non-controlling interests is prescribed for presentation in:

A.	a Statement of Changes in Equity;

B.	a Statement of Financial Position;

C.	a Statement of Comprehensive Income;

D.	a Statement of Cash Flows.

20.

The appropriate treatment of 'extraordinary' items is to:

A.	present on the face of the Statement of Comprehensive Income if sufficiently important;

B.	present directly in equity in the Statement of Financial Position;

C.	disclose as a component of retained earnings in the Statement of Changes in Equity;

D.	exclude from the financial statements;

21.

AASB 101 permits the use of the following classifications in a Statement of Comprehensive Income;

A.	Income tax expense;

B.	Deferred taxation;

C.	Extraordinary items;

D.	Abnormal items.

22.

AASB 101 prescribes the following presentation treatment for the item 'Share of profit of associates':

A.	present as a separate line item;

B.	combine with the total 'Revenue' for the period;

C.	include amongst the 'Other income' of the period;

D.	set-off against 'Finance costs' of the period.

23.

Included in a Statement of Changes in Equity are the following items:

I	Opening and closing balances.
II	Profit or loss for the period.
III	Gains or losses not recognised in the Statement of Comprehensive Income.
IV	New share issues.
V	Dividends paid.

A.	I, II & III only;

B.	II, III and IV only;

C.	I, IV and V only.

D.	I, II, III, IV and V.

24.

AASB 101 requires which of the following to be reported separately in the Statement of Changes in equity?

A.	other comprehensive income attributable to owners of the parent

B.	details of all transactions with owners

C.	the effects of retrospective application of an accounting policy in accordance with AASB 108.

D.	for total equity, a reconciliation between opening and closing equity.

25.

Which of the following would not be separately disclosed in an entity's Statement of Changes in Equity?

A.	Changes in fair value hedges

B.	Translation differences arising on the translation of financial statements of foreign operations.

C.	Details of a share buy-back

D.	Any non-controlling interests share of total comprehensive income

26.

The issuing of bonus shares in lieu of a cash dividend would be separately disclosed in an entity's

A.	Statement of Financial Position

B.	Statement of Comprehensive Income

C.	Statement of Changes in Equity

D.	Statement of Cash Flows

27.

Which of the following statements are not specifically dealt with by AASB 101?

A.	Statement of Financial Position

B.	Statement of Changes in Equity

C.	Statement of Cash Flows

D.	Statement of Comprehensive Income

28.

Which of the following non-financial information is required to be disclosed in the notes in accordance with AASB 101?

A.	the names of all directors of the entity at reporting date

B.	the legal form of the entity

C.	the date of incorporation of the entity

D.	a statement that the entity is a going concern

29.

Which of the following non-financial information is not required to be disclosed in the notes in accordance with AASB 101?

A.	the country of incorporation

B.	the legal form of the entity

C.	the date of incorporation of the entity

D.	the principal activities of the entity

30.

The primary purpose of notes to an entity's financial statements is:

A.	to highlight departures from accounting standards

B.	to enhance the understandability of the financial statements

C.	to verify the accuracy of the information in the financial statements

D.	to provide assurance that the entity is a going concern

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