CFAS - CHAPTER 9 Flashcards
The income statement reveals
a. Resources and equity at a point in time.
b. Resources and equity for a period of time.
c. Net earnings at a point in time.
d. Net earnings for a period of time.
d. Net earnings for a period of time.
Conceptually, net income is a measure of
a. Wealth
b. Change of wealth
c. Capital maintenance
d. Cash flow
b. Change of wealth
Which term cannot be used to describe an item in the statement of comprehensive income?
a. Revenue
b. Gross income
c. Income before tax
d. Extraordinary
d. Extraordinary
Income determination is arrived at by
a. Measuring the change in owners’ equity
b. Identifying the change in the purchasing power
c. Using a transaction approach
d. Applying the value added concept
c. Using a transaction approach
Net income equals
a. Assets minus liabilities
b. Revenue minus cost of goods sold
c. Revenue minus expenses
d. Cash receipts minus cash payments
c. Revenue minus expenses
An entity shall present an analysis of expenses based on
a. The nature of expense
b. The function of expense
c. Either the nature of expense or the function of expense
d. Neither the nature of expense nor the function of expense
c. Either the nature of expense or the function of expense
Under IFRS, the extraordinary item presentation
a. Has not changed from current rules
b. Has been eliminated
c. Has been eliminated from net of tax presentation
d. Has been eliminated from EPS reporting
b. Has been eliminated
It is change in equity during a period resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners.
a. Profit or loss
b. Comprehensive income
c. Other comprehensive income
d. Share capital
b. Comprehensive income
It comprises items of income and expense that are not recognized in the traditional income statement.
a. Comprehensive income
b. Other comprehensive income
c. Profit or loss
d. Retained profit
b. Other comprehensive income
What is the purpose of reporting comprehensive income?
a. To report changes in equity due to transactions with owners.
b. To report a measure of overall entity performance.
c. To replace net income with a better measure.
d. To combine income from continuing operation with income from discontinued operation.
b. To report a measure of overall entity performance.
Comprehensive income includes all of the following, except
a. Dividend revenue
b. Loss on disposal of asset
c. Investment by owners
d. Unrealized gain on trading investment
c. Investment by owners
It comprises items of income and expense, including reclassification adjustments, that are not recognized in profit or loss as required or permitted by IFRS.
a. Comprehensive income
b. Other comprehensive income
c. Profit or loss
d. Retained income
b. Other comprehensive income
Comprehensive income always
a. Is the same as net income.
b. Is greater than net income
c. Is less than net income.
d. Could be greater than or less than net income.
d. Could be greater than or less than net income.
Earnings
a. Include certain gains excluded from comprehensive income
b. Are the same as comprehensive income
c. Exclude certain gains included in comprehensive income
d. Include certain losses excluded from comprehensive income
c. Exclude certain gains included in comprehensive income
Other comprehensive income includes all, except
a. Gain and loss arising from translating the financial statements of a foreign operation.
b. Gain and loss from debt investment measured at fair value through OCI.
c. Gain and loss on hedging instrument in a cash flow hedge.
d. Dividend paid to shareholders.
d. Dividend paid to shareholders.
