Hyperinflation
Could current cost financial statements report hold gains during the period for which of the following?
a. Goods sold and inventory
b. Cost of Goods sold
c. Sales
d. Inventory
a. Goods sold and inventory
is a contractual obligation to deliver cash or another financial asset to another entity
financial liability
earnings per share should be computed on the basis of
a. preference share
b. voting ordinary shares
c. income before tax
b. voting ordinary shares
Interim financial reports shall be published
a. once a year
b. whenever the entity wishes
c. quarterly basis
b. whenever the entity wishes
an outflow of resources embodying economic benefits is regarded as "probable" when
probability of the event will occur is greater than the probability of the event will not occur
During a period of inflation, an account balance remains constant. With respect to this account, a purchasing power loss will be recognized if the account is a
Monetary asset
the risk that an entity will encounter difficulty in meeting obligations associated with financial liability
liquidity risk
How to compute the basic earnings per share
Net income divided by ordinary shares outstanding.
Which statement is true regarding interim reporing?
a. Interim reports are not required.
b. Interiam reports are required on a quarterly basis.
c. Interim reports require only a statement of earnings and a statemen of financial position.
a. Interim reports are not required.
midpoint
In a hyperinflationary economy, nonmonetary items are restated by applying
General price index
is inventory a financial asset?
no
earnings per share should always be reported for
a. gross income
b. revenue
c. income from continuing operations
income from continuing operations
Advertising costs incurred shall be deferred to provide an appropriate expense in each period for
a. interim reporting
b. year end reporting
c. neither interim reporting nor year end reporting
neither interim reporting nor year end reporting
a structured program that is planned and controlled by the management that materially changes the scope of a business of an entity
restructuring
During a period of deflation, an entity would have the greatest gain in general purchasing power by holding
a. Property, plant and equipment
b. Mortgage payable
c. Cash
d. Finance lease liability
c. Cash
is cash equivalent part of financial asset?
Yes
earnings per share shall be calculated before accounting which of the following?
a. taxation
b. minority interest
c. ordinary dividend
c. ordinary dividend
Interim financial statements can be described as emphasizing
a. timeliness over reliability
b. reliability over relevance
c. relevance over comparability
timeliness over reliability
it is the abusive practice of manipulation and creative accounting by dumping all kinds of provisions
big bath provision
Which of the following is classified as monetary?
a. Goodwill
b. Equipment
c. Patent
d. Allowance for doubtful accounts
d. Allowance for doubtful accounts
in a form of investment or share of stock
Earnings per share shall be reported for all of the following except
a. continuing operations
b. discounted operations
c. net cash provided by operating activities
c. net cash provided by operating activities
Interim financial statements are usually presented on a
quarterly basis
A legal obligation is derived from
legislation, contract, and other operation law.