Part 2 - Statement of Comprehensive Income; Statement of Changes in Equity

b. Statement of Financial Position

Which of the following names is not associated with the statement of comprehensive income?

a. Profit and Loss

b. Statement of Financial Position

c. Statement of Operations

d. Statement of Financial Performance

a. Both statements are true

Statement 1: A company that publicly trades its shares must present earnings per share information in its income statement
Statement 2: It is acceptable that some of the expenses reported on the income statement are based on estimates

a. Both statements are true

b. Both statements are false

c. Statement 1 is true and statement 2 is false

d. Statement 1 is false and statement 2 is true

b. A point of time

The income statement heading will specify which of the following?

a. A point in time

b. A point of time

b. Gain

A comapany disposes of an equipment that is no longer uses in its business. The amount received by the company is more than the amount the asset is carried in its accounting records. The company will report a/an

a. Expense

b. Gain

c. Loss

d. Revenue

c. by nature of by function

IFRS requires that expenses be presented in the income statement

a. by amount or in alphabetical order

b. by geographical area

c. by nature of by function

d. by current or non-current

a. Dividends declared during the period

Which among the following is not presented in profit or loss section of the statement of comprehensive income?

a. Dividends declared during the period

b. Revenue earned during the period

c. Expenses incurred during the period

d. Finance costs incurred during the period

b. Advertising expense

Which among the following is presented under selling or marketing expense using the function-of-expense method of presenting expenses in the profit or loss section of the statement of comprehensive income?

a. Uncollectible accounts expense

b. Advertising expense

c. Administrative salaries

d. Office supplies expense

d. Salaries and wages

Which of the following is not a line item on the face of the statement of comprehensive income using the function of expense method?

a. Revenue

b. Finance costs

c. income tax expense

d. Salaries and wages

a. Gross profit

Which of the following line items is normally shown in a statement of comprehensive income presenting expenses by function but not in statement of comprehensive presenting expenses by nature

a. Gross profit

b. Income from associates

c. Income from operations

d. Finance cost

a. Sales revenue

Which of the following would not appear in the statement of changes in equity?

a. Sales revenue

b. Profit

c. Dividends

d. Share capital issued

c. statement of changes in equity

The movement of the balance of the retained earnings account is presented in the

a. statement of financial position

b. statement of comprehensive income

c. statement of changes in equity

d. statement of cash flows

b. weighted average number of shares during the period

If an entity has only one class of share capital outstanding, earnings per share is computed by dividing profit by the

a. number of outstanding shares at the end of the period

b. weighted average number of shares during the period

c. number of outstanding shares at the beginning of the period

d. average number of outstanding years during the last two years