Question 1

Which of the following note disclosures are not required by AASB 101?

Accepted Answer

A)  Significant accounting policies used. 
B)  Sources of estimation uncertainty in relation to impairment of assets. 
C)  Names and qualifications of all directors of the entity. 
D)  Dividends declared after end of reporting period but before the financial statements are authorised for issue. 
A)  Significant accounting policies used. 
B)  Sources of estimation uncertainty in relation to impairment of assets. 
C)  Names and qualifications of all directors of the entity. 
D)  Dividends declared after end of reporting period but before the financial statements are authorised for issue. C

Question 2

Which of the following items are included in a statement of changes in equity?
I. Dividends paid.
II. New share issues.
III. Opening and closing balances.
IV. Profit or loss for the period.

Accepted Answer

A)  II & III only. 
B)  I, II, and III only. 
C)  I, II and IV only. 
D)  I, II, III and IV. 
A)  II & III only. 
B)  I, II, and III only. 
C)  I, II and IV only. 
D)  I, II, III and IV. D

Question 3

AASB 101 requires which of the following items to be disclosed separately in the statement of profit or loss and other comprehensive income:
I. Cost of sales.
II. Revenue.
III. Finance costs.
IV. Share of the profit or loss from associates.
V. Tax expense relating to extraordinary events.

Accepted Answer

A)  I, II, and V 
B)  II, III and V 
C)  II, III, and IV 
D)  III and V 
A)  I, II, and V 
B)  II, III and V 
C)  II, III, and IV 
D)  III and V C

Question 4

Items that are dissimilar in nature must be presented separately in financial statements unless:

Accepted Answer

A)  they are financial items and can be off-set. 
B)  the directors approve aggregation of the items. 
C)  the auditors approval aggregation of the items. 
D)  they are immaterial. 
A)  they are financial items and can be off-set. 
B)  the directors approve aggregation of the items. 
C)  the auditors approval aggregation of the items. 
D)  they are immaterial.

Question 5

Which of the following items does not have to be presented as a line item on the face of a statement of profit or loss and other comprehensive income?

Accepted Answer

A)  Closing inventories. 
B)  Post-tax profit or loss of discontinued operations. 
C)  Profit or loss attributable to non-controlling interests. 
D)  Revenue. 
A)  Closing inventories. 
B)  Post-tax profit or loss of discontinued operations. 
C)  Profit or loss attributable to non-controlling interests. 
D)  Revenue.

Question 6

Under AASB 101, financial statements must be prepared and presented at least:

Accepted Answer

A)  monthly. 
B)  annually. 
C)  half-yearly. 
D)  every four months. 
A)  monthly. 
B)  annually. 
C)  half-yearly. 
D)  every four months.

Question 7

AASB 101 Presentation of Financial Statements applies to the following sets of financial statements:

Accepted Answer

A)  interim financial statements. 
B)  converted financial statements. 
C)  general purpose financial statements. 
D)  special purpose financial statements. 
A)  interim financial statements. 
B)  converted financial statements. 
C)  general purpose financial statements. 
D)  special purpose financial statements.

Question 8

Under AASB 101 Presentation of Financial Statements, which of the following items is disclosed separately on the face of a statement of financial position?

Accepted Answer

A)  Investment property. 
B)  Cash and cash equivalents. 
C)  Current tax liability. 
D)  All of these items. 
A)  Investment property. 
B)  Cash and cash equivalents. 
C)  Current tax liability. 
D)  All of these items.

Question 9

The issuing of bonus shares in lieu of a cash dividend would be separately disclosed in an entity's:

Accepted Answer

A)  statement of cash flows. 
B)  statement of changes in equity. 
C)  statement of financial position. 
D)  statement of comprehensive income. 
A)  statement of cash flows. 
B)  statement of changes in equity. 
C)  statement of financial position. 
D)  statement of comprehensive income.

Question 10

Under AASB 101, profit or loss attributable to non-controlling interests is required to be presented in the:

Accepted Answer

A)  statement of cash flows. 
B)  statement of changes in equity. 
C)  statement of financial position. 
D)  statement of profit or loss and other comprehensive income. 
A)  statement of cash flows. 
B)  statement of changes in equity. 
C)  statement of financial position. 
D)  statement of profit or loss and other comprehensive income.

Question 11

Industries where operating cycles may exceed twelve months typically include:

Accepted Answer

A)  retail. 
B)  manufacturing. 
C)  food preparation. 
D)  property development. 
A)  retail. 
B)  manufacturing. 
C)  food preparation. 
D)  property development.

Question 12

At reporting date for Year 1, Delta Limited had a loan from its financial institution that is expected to settle within six months. The loan term was renegotiated after reporting date and before the authorisation date of the financial statements and the repayment date was extended by two years. For the purposes of financial statement presentation for Year 1, this loan is classified by Delta Limited as a/an:

Accepted Answer

A)  current liability. 
B)  contingent liability. 
C)  non-current liability. 
D)  off-statement of financial position liability. 
A)  current liability. 
B)  contingent liability. 
C)  non-current liability. 
D)  off-statement of financial position liability.

Question 13

A liability will be classified as 'non-current' if it satisfies which of the following criterion?

Accepted Answer

A)  it is held primarily for the purposes of being traded. 
B)  due to be settled within twelve months of the balance date. 
C)  expected to be settled in the entity's normal operating cycle. 
D)  due to be settled more than twelve months after the statement of financial position date. 
A)  it is held primarily for the purposes of being traded. 
B)  due to be settled within twelve months of the balance date. 
C)  expected to be settled in the entity's normal operating cycle. 
D)  due to be settled more than twelve months after the statement of financial position date.

Question 14

According to AASB 101, a required format for the presentation of the statement of profit or loss and other comprehensive income is:

Accepted Answer

A)  prescribed by the standard. 
B)  not prescribed but guidance is provided in the standard for a suitable format. 
C)  not prescribed and no guidance is provided in the standard for a suitable format. 
D)  prescribed by the standard and further details are found in the Corporations Act. 
A)  prescribed by the standard. 
B)  not prescribed but guidance is provided in the standard for a suitable format. 
C)  not prescribed and no guidance is provided in the standard for a suitable format. 
D)  prescribed by the standard and further details are found in the Corporations Act.

Question 15

In respect to the statement of profit or loss and other comprehensive income of an entity, AASB 101 prescribes:

Accepted Answer

A)  the presentation of line items of revenue, but not of income. 
B)  line items that are considered to be of sufficient importance to warrant presentation. 
C)  the presentation of line items comprising total expenses, but not line items comprising total revenue. 
D)  a fixed format for the presentation of items in the statement of profit or loss and other comprehensive income. 
A)  the presentation of line items of revenue, but not of income. 
B)  line items that are considered to be of sufficient importance to warrant presentation. 
C)  the presentation of line items comprising total expenses, but not line items comprising total revenue. 
D)  a fixed format for the presentation of items in the statement of profit or loss and other comprehensive income.

Question 16

The primary source of information about an entity's financial position is to be found in its statement of:

Accepted Answer

A)  cash flows. 
B)  changes in equity. 
C)  financial position. 
D)  profit or loss and other comprehensive income. 
A)  cash flows. 
B)  changes in equity. 
C)  financial position. 
D)  profit or loss and other comprehensive income.

Question 17

In relation to 'retained earnings', AASB 101 mandates the following disclosures:
I. The beginning balance.
II. The balance at reporting date.
III. Any changes during the reporting period.
IV. The related tax adjustments in respect to any changes during the period.

Accepted Answer

A)  I, II and III only. 
B)  II, III and IV only. 
C)  I, III and IV only. 
D)  III and IV only. 
A)  I, II and III only. 
B)  II, III and IV only. 
C)  I, III and IV only. 
D)  III and IV only.

Question 18

According to AASB 101 Presentation of Financial Statements, a required format for the presentation of a statement of financial position is:

Accepted Answer

A)  prescribed by the standard. 
B)  not prescribed and no guidance is provided in the standard. 
C)  not prescribed by the standard but details are found in the Corporations Act. 
D)  not prescribed but guidance is provided in the standard for a suitable format. 
A)  prescribed by the standard. 
B)  not prescribed and no guidance is provided in the standard. 
C)  not prescribed by the standard but details are found in the Corporations Act. 
D)  not prescribed but guidance is provided in the standard for a suitable format.

Question 19

Assets and liabilities, and income and expenses may be off-set if:

Accepted Answer

A)  there is no tax effect. 
B)  required or permitted by a standard. 
C)  they are financial assets and liabilities. 
D)  they are in respect of borrowing and lending activities such as interest revenue and interest expense. 
A)  there is no tax effect. 
B)  required or permitted by a standard. 
C)  they are financial assets and liabilities. 
D)  they are in respect of borrowing and lending activities such as interest revenue and interest expense.

Question 20

Which of the following items must be presented as a separate line item in the statement of financial position?

Accepted Answer

A)  Trade and other receivables. 
B)  Share of profit of associates. 
C)  Revenue. 
D)  Cost of sales. 
A)  Trade and other receivables. 
B)  Share of profit of associates. 
C)  Revenue. 
D)  Cost of sales.

Exam 16: Presentation of Financial Statements

Which of the following note disclosures are not required by AASB 101?

Which of the following items are included in a statement of changes in equity? I. Dividends paid. II. New share issues. III. Opening and closing balances. IV. Profit or loss for the period.

AASB 101 requires which of the following items to be disclosed separately in the statement of profit or loss and other comprehensive income: I. Cost of sales. II. Revenue. III. Finance costs. IV. Share of the profit or loss from associates. V. Tax expense relating to extraordinary events.

Items that are dissimilar in nature must be presented separately in financial statements unless:

Which of the following items does not have to be presented as a line item on the face of a statement of profit or loss and other comprehensive income?

Under AASB 101, financial statements must be prepared and presented at least:

AASB 101 Presentation of Financial Statements applies to the following sets of financial statements:

Under AASB 101 Presentation of Financial Statements, which of the following items is disclosed separately on the face of a statement of financial position?

The issuing of bonus shares in lieu of a cash dividend would be separately disclosed in an entity's:

Under AASB 101, profit or loss attributable to non-controlling interests is required to be presented in the:

Industries where operating cycles may exceed twelve months typically include:

A liability will be classified as 'non-current' if it satisfies which of the following criterion?

According to AASB 101, a required format for the presentation of the statement of profit or loss and other comprehensive income is:

In respect to the statement of profit or loss and other comprehensive income of an entity, AASB 101 prescribes:

The primary source of information about an entity's financial position is to be found in its statement of:

In relation to 'retained earnings', AASB 101 mandates the following disclosures: I. The beginning balance. II. The balance at reporting date. III. Any changes during the reporting period. IV. The related tax adjustments in respect to any changes during the period.

According to AASB 101 Presentation of Financial Statements, a required format for the presentation of a statement of financial position is:

Assets and liabilities, and income and expenses may be off-set if:

Which of the following items must be presented as a separate line item in the statement of financial position?

Accounting Regulation and the Conceptual Framework

Application of Accounting Theory

Fair Value Measurement

Inventories

Property, Plant and Equipment

Intangible Assets

Impairment of Assets

Provisions, Contingent Liabilities and Contingent Assets

Employee Benefits

Leases

Financial Instruments

Income Taxes

Share Capital and Reserves

Share Based Payment

Revenue

Statement of Cash Flows

Accounting Policies and Other Disclosures

Earnings Per Share

Operating Segments

Related Party Disclosures

Sustainability and Corporate Social Responsibility Recording

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Foreign Currency Financial Statements

Business Combinations

Consolidation: Controlled Entities

Consolidation: Wholly Owned Entities

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Mineral Resources

Agriculture

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