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Questions and Answers
What is the main purpose of an income statement?
What is the main purpose of an income statement?
- To present the financial performance of an entity for a given period of time (correct)
- To summarize the cash flows of an entity for a given period of time
- To show the financial position of an entity at a specific point in time
- To provide information about the changes in equity during a period
Which approach is traditionally used for preparing the income statement in conformity with accounting standards?
Which approach is traditionally used for preparing the income statement in conformity with accounting standards?
- Equity valuation approach
- Transaction approach (correct)
- Entity approach
- Resource utilization approach
What is comprehensive income?
What is comprehensive income?
- The change in equity resulting from transactions with non-owners
- The change in equity resulting from transactions and other events excluding changes from transactions with owners (correct)
- The change in equity resulting from transactions with owners
- The change in equity resulting from transactions with both owners and non-owners
What are the components of other comprehensive income (OCI)?
What are the components of other comprehensive income (OCI)?
What does PFRS stand for in the context of comprehensive income?
What does PFRS stand for in the context of comprehensive income?
Why is information about financial performance on the income statement useful?
Why is information about financial performance on the income statement useful?
What is the term used for the income from rendering services such as professional fees, media advertising commissions, and insurance agency commissions?
What is the term used for the income from rendering services such as professional fees, media advertising commissions, and insurance agency commissions?
According to the Application Guidance of PFRS 9, which item indicates that realization of the revaluation surplus is through retained earnings?
According to the Application Guidance of PFRS 9, which item indicates that realization of the revaluation surplus is through retained earnings?
Which category includes income from interest, rent, royalty, and similar sources?
Which category includes income from interest, rent, royalty, and similar sources?
Where should the line items for amounts of other comprehensive income be presented according to PAS 1, paragraph 82A?
Where should the line items for amounts of other comprehensive income be presented according to PAS 1, paragraph 82A?
What is the term for the gain or loss from change in fair value attributable to credit risk of a financial liability designated @ FVPL?
What is the term for the gain or loss from change in fair value attributable to credit risk of a financial liability designated @ FVPL?
Where should the components of profit or loss and components of other comprehensive income be presented?
Where should the components of profit or loss and components of other comprehensive income be presented?
Which item is not included in the line items for amounts of OCI that will be reclassified subsequently to profit or loss when specific conditions are met?
Which item is not included in the line items for amounts of OCI that will be reclassified subsequently to profit or loss when specific conditions are met?
Which category includes income from sales return, allowances, and discounts deducted from gross sales to arrive at net sales?
Which category includes income from sales return, allowances, and discounts deducted from gross sales to arrive at net sales?
What is the term used for the remeasurements that are not reclassified subsequently but are permanently excluded from profit or loss according to the Application Guidance of PFRS 9?
What is the term used for the remeasurements that are not reclassified subsequently but are permanently excluded from profit or loss according to the Application Guidance of PFRS 9?
What term is used for the single statement showing the components of profit or loss and components of other comprehensive income according to the Revised Conceptual Framework?
What term is used for the single statement showing the components of profit or loss and components of other comprehensive income according to the Revised Conceptual Framework?
