1918 - TOA – STATEMENT OF COMPREHENSIVE INCOME PDF

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TOA – STATEMENT OF COMPREHENSIVE INCOME...

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HTU CPA In-House Review (HCIR) Financial Accounting and Reporting TOA – STATEMENT OF COMPREHENSIVE INCOME

April G.

1. It is the change in equity during a period resulting from transactions and other events, other than changes resulting from transactions with owners in their capacity as owners. a. Comprehensive income b. Other comprehensive income c. Profit or loss d. Retained earnings 2. It is the total of income less expenses, excluding the components of other comprehensive income. a. Comprehensive income b. Profit or loss c. Accounting income d. Economic income 3. This term comprises items of income and expenses 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 earnings 4. Earnings a. Include certain gains excluded from comprehensive income b. Are the same as comprehensive income c. Exclude certain gains and losses included in comprehensive income d. Include certain losses excluded from comprehensive income 5. All of the following components of OCI should be reclassified to profit or loss, except a. Gain or loss from translating the financial statements of a foreign operation b. Gain or loss on premeasuring debt investment at fair value through other comprehensive income. c. The effective portion of gain or loss on hedging instrument in a cash flow hedge d. Gain or loss on premeasuring equity investment at fair value through other comprehensive income 6. Which of the following components of OCI should be reclassified to retained earnings? a. Revaluation surplus b. Premeasurements of defined benefit plan c. Gain or loss attributable to credit risk of a financial liability designated at fair value through profit or loss d. All of these components of OCI should be reclassified to retained earnings 7. The two-statement approach of presenting comprehensive income is preparing 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

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8. Total comprehensive income for the period is presented a. Showing separately the total amount attributable to owners of the parent and the noncontrolling interest. b. Showing separately an analysis of expenses by function. c. Showing separately an analysis of expenses by nature. d. Showing separately profit or loss and the total of other comprehensive income. 9. An entity shall present an analysis of expenses using a classification based on a. The nature of expenses. b. The function of expenses. c. Either the nature of expenses or the function of expenses, whichever provides information that is reliable and more relevant. d. Either the nature of expenses or the function of expenses, whichever the entity would prefer to present. 10.Separate line items in an analysis of expenses by nature include a. Purchases, transport costs, employee benefits, depreciation, extraordinary items. b. Purchases, distribution costs, administrative costs, employee benefits, depreciation, taxes. c. Depreciation, purchases, transport costs, employee benefits and advertising costs. d. Cost of goods sold, administrative and distribution costs. 11. Separate line items in an analysis of expenses by function include a. Purchases, transport costs, employee benefits, depreciation, extraordinary items. b. Purchases, distribution costs, administrative costs, employee benefits, depreciation, taxes. c. Depreciation, purchases, transport costs, employee benefits and advertising costs. d. Cost of goods sold, administrative and distribution costs. 12.Under IFRS, the extraordinary item presentation a. Has not changed from current rules. b. Has been eliminated. c. Has been eliminated from the net of tax presentation. d. Has been eliminated from EPS reporting. 13.What is the purpose of reporting comprehensive income? a. To report transactions with owners b. To report a measure of overall entity performance c. To replace net income with a better measure d. To combine income from continuing operations with income from discontinued operations. 14.Which of the following changes during a period is not a component of other comprehensive income? a. Remeasurement of defined benefit plan b. Treasury share, at cost c. Foreign currency translation adjustment d. Unrealized gain on equity instrument measured at fair value through other comprehensive income

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