16 Questions
What is the main purpose of an income statement?
To present the financial performance of an entity for a given period of time
Which approach is traditionally used for preparing the income statement in conformity with accounting standards?
Transaction approach
What is comprehensive income?
The change in equity resulting from transactions and other events excluding changes from transactions with owners
What are the components of other comprehensive income (OCI)?
Both realized and unrealized gains and losses
What does PFRS stand for in the context of comprehensive income?
Philippine Financial Reporting Standards
Why is information about financial performance on the income statement useful?
To predict future performance and ability to generate future cash flows
What is the term used for the income from rendering services such as professional fees, media advertising commissions, and insurance agency commissions?
Rendering of services
According to the Application Guidance of PFRS 9, which item indicates that realization of the revaluation surplus is through retained earnings?
Unrealized gain or loss on debt investments @ FVOCI
Which category includes income from interest, rent, royalty, and similar sources?
Use of entity resources
Where should the line items for amounts of other comprehensive income be presented according to PAS 1, paragraph 82A?
In a single statement of comprehensive income
What is the term for the gain or loss from change in fair value attributable to credit risk of a financial liability designated @ FVPL?
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?
In a single statement of comprehensive income
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?
Gain or loss from translation of the financial statements of a foreign operation
Which category includes income from sales return, allowances, and discounts deducted from gross sales to arrive at net sales?
Sales of merchandise
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?
Remeasurements of defined benefit plan
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?
Statement of financial position
Test your understanding of the definition of income statement and the financial performance of an entity for a given period of time according to the PAS 1 standard. This quiz covers the conceptual framework and accounting standards related to the statement of profit or loss and other comprehensive income.
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