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CFAS - Statement of Changes in Equity and Notes To FS - Quiz 4 - SY2019 2020

The document is a quiz on statements of changes in equity and notes to financial statements. It contains 15 multiple choice questions testing understanding of key concepts such as: 1) What a statement of changes in equity shows and includes. 2) Common components of equity recognized in statements of financial position. 3) Required disclosures in notes to financial statements including significant accounting policies, sources of estimation uncertainty, and compliance with accounting standards. 4) Characteristics of notes to financial statements and what information is normally not included in them.

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188 views

CFAS - Statement of Changes in Equity and Notes To FS - Quiz 4 - SY2019 2020

The document is a quiz on statements of changes in equity and notes to financial statements. It contains 15 multiple choice questions testing understanding of key concepts such as: 1) What a statement of changes in equity shows and includes. 2) Common components of equity recognized in statements of financial position. 3) Required disclosures in notes to financial statements including significant accounting policies, sources of estimation uncertainty, and compliance with accounting standards. 4) Characteristics of notes to financial statements and what information is normally not included in them.

Uploaded by

Ivy Rosales
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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QUIZ

STATEMENT OF CHANGES IN EQUITY/NOTES


TO FS
Prepared by:

CHRISTIAN JOHN P. FORMARAN, CPA, MBA

Subject: CFAS
Date: March 16, 2020, Monday
MULTIPLE CHOICE
SCE & NOTES TO FS
1. A statement of changes in equity means

a. It is a statement that gives more information


about the total amount of shares issued to the
public.
b. It is a statement that shows all changes in an
entity’s equity between two balance sheet dates.
c. It is a statement that gives information how the
total funds are raised during the year in the form
of shares, bank loans, debentures,etc.
d. It is a statement that gives information about
profitability and dividends.
SCE & NOTES TO FS
2. The statement of changes in equity includes a
reconciliation between

a.The carrying amount of retained earnings at the


beginning and the end of the period.
b.The carrying amount of total equity at the beginning and
the end of the period.
c.The carrying amount of each component of equity at the
beginning and the end of the period separately disclosing
changes resulting from (1) profit or loss, (2) each item of
comprehensive income, and (3) the amounts of
investments by, and dividends and other distributions to
owners.
d.The carrying amount of PPE.
SCE & NOTES TO FS
3. The components of equity generally recognized by
companies in the statement of financial position are:

I.Provisions
II.Debentures
III.Share capital
IV.Other reserves
V.Retained earnings

a.I, II and III only


b.II, III, IV and V only
c.II, III and V only
d.III, IV and V only
SCE & NOTES TO FS
4. The statement of changes in equity should disclose the
following, except:

a.Total comprehensive income


b.Gains and losses for the period
c.Capital transactions with owners and distributions to
owners
d.Correction of prior period errors
SCE & NOTES TO FS
5. Which of the following items will not appear in the
statement of changes in equity?

a.Total comprehensive income


b.Dividends
c.Changes in depreciation method
d.Correction of prior error
SCE & NOTES TO FS
6. The notes to FS shall present information

I.About the basis of preparation of the FS


II.Required by PFRS that is not presented elsewhere in
the financial statements
III.Not presented elsewhere in the financial statements
but is relevant to an understanding of any of them

A.I only
B.I and II only
C.II and III only
D.I, II and III
SCE & NOTES TO FS
7. What is the first item presented in the notes to FS?

a.Summary of Significant Accounting Policies


b.Statement of compliance with PFRS
c.Supporting information for items presented on the face
of the FS
d.Disclosures regarding Judgment and Estimates
SCE & NOTES TO FS
8. A characteristic of a notes to the financial statements is
that:

a.They present information that can be expressed in


monetary terms.
b.They are separate from the financial statements
c.They are not that important
d.They describe accounting policies
SCE & NOTES TO FS
9. An entity shall disclose in the summary of significant
accounting policies:

a.The measurement basis (or bases) used in the FS


preparation.
b.All the measurement bases irrespective of whether they
were used by the entity in FS preparation.
c.The measurement basis (or bases) used in FS preparation
and the accounting policies used that are relevant to an
understanding of the financial statements.
d.All of the measurement bases and the accounting policy
choices available to the entity irrespective of whether they
were used by the entity in FS preparation.
SCE & NOTES TO FS
10. According to PAS 1, which of the following should be
disclosed in the notes to FS.

I.Unrecognized contractual commitments and entity’s


financial risk management objectives and policies.
II.Sources of estimation uncertainty.
III.Summary of quantitative data about amount of puttable
financial instruments classified as equity.
IV. Important movements in the key management personnel.

a.I, II, III, IV


b.II, III and IV only
c.III and IV only
d.IV only
SCE & NOTES TO FS
11. PAS 1 requires that an entity must disclose the
following information in its financial statements:

I II III IV
A description of the entity’s operations No Yes Yes Yes
The name of the entity’s No Yes No No
ultimate parent
The address of the registered office No Yes Yes No

a.I
b.II
c.III
d.IV
SCE & NOTES TO FS
12. Which information is normally not included in the notes
to the financial statements?

a.A statement of measurement basis for the financial


statements and accounting policies applied.
b.A statement of cash flows.
c.A statement of compliance with PFRS
d.Supporting information for line items presented and
aggregated
SCE & NOTES TO FS
13. A full disclosure principle is best described by which of
the following?

a.All information related to an entity’s business and


operating objectives is required to be disclosed in the
financial statements.
b.Information about each account balance appearing in the
financial statements is to be included in the notes to the
financial statements.
c.Enough information should be disclosed in the financial
statements so a person wishing to invest in the shares of the
company can make a profitable decisions.
d.Disclosure of any financial facts significant enough to
influence the judgment of an informed reader.
SCE & NOTES TO FS
14. The notes to financial statements should not be used to

a.Describe significant accounting policies


b.Describe depreciation methods employed.
c.Describe the principles and methods peculiar to the
industry.
d.Correct an improper presentation of the financial
statements.
SCE & NOTES TO FS
15. Which of the following should be disclosed in a summary
of significant accounting polices?

a.Claims of equity holders


b.Type of executor contract
c.Depreciation method allowed
d.Amount for cumulative effect of change in accounting
policy
- END -
THANK YOU &
GOD BLESS!

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