Prelim Flashcards
This term comprises of items of income and expense, including reclassification adjustments that are not recognized in the profit and loss as required by Philippine Financial Reporting Standards (PFRS).
Other Comprehensive Income
It reports the resuts of the operation of the business and shows the revenues and expenses of a particular period.
Income Statement
This method allow recognition of revenue before actual sale
because salability of goods is reasonably assured and related
costs can be reasonably estimated.
Accrual Basis
It is the total of income less expenses. excluding the
components of other comprehensive income.
Profit or Loss
These are events that occur after the reporting period but prior to the issuance of financial statements.
Events after the reporting period
In a statement of cash flows using indirect method, a decrease in prepaid expenses is?
Added to net income
These are inflows and outflows of cash generated from
transactions involving fixed assets, investments and sale of
securities.
Investing activities
In this form of presentation, an entity aggregates expenses within profit or loss according to their nature.
Nature of expense method
It is the change in equity during a period resulting from
transactions and other events, other than changes resulting
from tansactions with owners in their capacity as owners.
Comprehensive income
This form of statement of financial position provides information horizontally…
Account Form
When preparing a statement of cash flows using the indirect method, the amortization of trademarks should be reported as a/an?
Addition to net income to arrive at cash flows from operating activities
Financial statements should be prepared at least?
Annually
The primary purpose of a statement of cash flows is to provide relevant information about?
The cash receipts and cash disbursements of an entity during a period
What is the purpose of reporting comprehensive income?
To report a measure of the overall entity performance
It is a financial report detailing the change in a company’s net assets during a specific period.
Statement of Comprehensive Income
