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Chapter 5

This document contains 10 multiple choice questions related to accounting concepts including: 1) The definition of changes in equity during a period. 2) The components that are included in comprehensive income. 3) The definition of profit or loss. 4) The definition of other comprehensive income. 5) The two-statement approach for presenting comprehensive income. It asks the reader to identify exceptions and components of other comprehensive income and expenses presented by nature and function.

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Jao Flores
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28 views

Chapter 5

This document contains 10 multiple choice questions related to accounting concepts including: 1) The definition of changes in equity during a period. 2) The components that are included in comprehensive income. 3) The definition of profit or loss. 4) The definition of other comprehensive income. 5) The two-statement approach for presenting comprehensive income. It asks the reader to identify exceptions and components of other comprehensive income and expenses presented by nature and function.

Uploaded by

Jao Flores
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CHAPTER 6:

Problem 6 – 5:

1) It is change in equity during a period resulting from transactions and other events, other
than those changes resulting from transactions with owners in their capacity as owners
a) Profit or loss
b) Comprehensive Income
c) Other Comprehensive Income
d) Share Capital

2) Comprehensive income includes


a) Profit or loss
b) Other comprehensive income
c) Both profit or loss and other comprehensive income
d) Neither profit or loss nor other comprehensive income

3) It is the total of income less expenses, excluding other comprehensive income.


a) Comprehensive income
b) Profit or Loss
c) Accounting income
d) Economic income

4) It comprises items of income and expense, including reclassification adjustments, that are
not recognized in profit or loss as required or permitted by PFRS
a) Comprehensive income
b) Other comprehensive income
c) Profit or loss
d) Retained profit

5) What is the two – statement approach of presenting comprehensive income?


a) A comparative statement of comprehensive income
b) A combined statement of comprehensive income and retained earnings
c) A combined income statement and a statement of changes in equity
d) A separate income statement and a separate statement of comprehensive income

6) Other comprehensive income includes all of the following, except


a) Gain and loss arising from translating the financial statements of a foreign operation
b) Gain and loss from debt investment measured at fair value through OCI
c) Gain and loss on hedging instrument in a cash flow hedge.
d) Dividend paid to shareholders

7) Which component of other comprehensive income shall be reclassified subsequently to


profit or loss?
a) Change in revaluation surplus
b) Remeasurement of defined benefit plan
c) Gain and loss from equity investment measured at fair value through OCI
d) Gain and loss on hedging instrument in a cash flow hedge.
8) An entity shall present an analysis of expenses based on
a) The nature of expense
b) The function of expense
c) Either the nature of expense or the function of expense
d) Neither the nature of expense nor the function of expense

9) Separate line items in an analysis of expenses by nature include


a) Purchases, employee benefits, depreciation, extraordinary items
b) Purchases, distribution costs, employee benefits, depreciation
c) Depreciation, purchases, transport costs, employee benefits
d) Cost of goods sold, administrative costs, transport costs and distribution costs.

10) Separate line items in an analysis of expenses by function include


a) Purchases, employee benefits, depreciation, extraordinary items
b) Purchases, distribution costs, administrative costs, employee benefits
c) Depreciation, purchases, employee benefits, advertising costs
d) Cost of goods sold, administrative expenses and distribution expenses

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