chap 5: elements of financial statements

Question 1

it portray the financial effects of transactions and other events by grouping them into broad classes according to their economic characteristics.

Answer 1

financial statements

Question 2

refer to the quantitative information reported in the statement of financiL position and income statement.

Answer 2

elements of financial statements

Question 3

are the building blocks from which financial statements are constructed.

Answer 3

elements of financial statements

Question 4

the cf identify no elementd that are unique to the _ because such statement comprises itemsn that appear in the statement of financial position and the incomd statement.

Answer 4

statement of changes in equity

Question 5

is the residual interest in the assets of the entity after deducting all of the liabilities.

Answer 5

equity

Question 6

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

Answer 6

economic resources

Question 7

is an economic resource and that the potential economic benefits no longer need to be expected to flow the entity.

Answer 7

asset

Question 8

true or false: an entity controls an asset if it has the present ability to direct the use of the asset and obtain the economic benefitd that flow from it.

Answer 8

true

Question 9

it includes the ability to prevent others from using such asset and therefore preventing otherd from obtaining the economic benefits from the asset.

Answer 9

control

Question 10

it may arise of an entity enforced legal rights.

Answer 10

control

Question 11

true or false: if there are no legal rights, control can still exist if an entity has other means of ensuring that no other party van benefit from an asset.

Answer 11

true

Question 12

is the obligation to transfer an economic resource and nog rhe ultimate outflow if economic benefits.

Answer 12

liability

Question 13

true or false: the outflow of economic benefits no longer needs to be expected.

Answer 13

true

Question 14

true or false: the new definition of liability to some extent is inconsistent with the definition of liability under ias 37. the iasb stated that the requirements if a standard shall always prevail over rhe cf.

Answer 14

true

Question 15

is a duty or responsibikity that an entity has no practical ability to avoid. it can be either legal or constructive.

Answer 15

obligation

Question 16

true or false: income do not encompass both revenue and gains.

Answer 16

false - encompasses

Question 17

the essence if revenue is _?

Answer 17

regularity

Question 18

true or false: gains include gain from disposal of noncurrent asset, unrealized gain on trading investment and gain from expropriation.

Answer 18

true

Question 19

refers to the income statement and a statement presenting other comprehensively one.

Answer 19

statement of financial performance

Question 20

is the primary source of information about an entity’s financial performance. As a general rule, all income and expenses are included in profit or loss.

Answer 20

The income statement or statement of profit or loss

Question 21

true ir false: However, in developing accounting standards, there are some items of income and expenses that are included in other comprehensive income and not in profit or loss if suchpresentation would provide more relevant and faithfully represented information about financial performance.

Answer 21

true

Question 22

true or false: There are instances that an amount in other comprehensiveincome in one reporting period may be recycled to profit or loss in another reporting period. Such recycling is permitted as long as it would result to relevant and faithfully represented information about financial performance.

Answer 22

true

Question 23

encompass losses as well as those expenses thatarise in the course of the ordinary regular activities.

Answer 23

expenses