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CA Final Introduction to General Purpose Financial Statements: Ind AS Applicability and Schedule III Division II — practice questions — page 2

Explore 47 free Introduction to General Purpose Financial Statements: Ind AS Applicability and Schedule III Division II questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Introduction to General Purpose Financial Statements: Ind AS Applicability and Schedule III Division II questions and exercises with answers

Showing questions 31–47 of 47.

Information is relevant when it is capable of doing what?Read the answer and worked solution →Which enhancing characteristic means having information available in time to influence decisions?Read the answer and worked solution →Financial statements are normally prepared assuming the entity will continue in operation. This is called what?Read the answer and worked solution →An asset is a present economic resource controlled due to what?Read the answer and worked solution →A liability is a present obligation to do what?Read the answer and worked solution →Equity is defined as the residual interest in assets after deducting what?Read the answer and worked solution →Equity increases from contributions by whom are not income?Read the answer and worked solution →Expenses are decreases in equity other than those relating to what?Read the answer and worked solution →Under financial capital maintenance, when is profit earned?Read the answer and worked solution →A complete set of IFRS statements includes which of these?Read the answer and worked solution →IAS 1 says assets and liabilities must not be offset unless what?Read the answer and worked solution →IAS 1 requires a complete set of financial statements at least how often?Read the answer and worked solution →IAS 1 says presentation and classification should do what?Read the answer and worked solution →Under IAS 1, how are items of dissimilar nature shown?Read the answer and worked solution →Cash flows from acquiring and disposing of long-term assets are classed as what?Read the answer and worked solution →Cash flows that change the size of contributed equity and borrowings are classed as what?Read the answer and worked solution →Under the accrual basis, an item is recognised when it meets what?Read the answer and worked solution →

Worked practice questions

Information is relevant when it is capable of doing what?

  1. Being audited at no cost
  2. Making a difference to decisions
  3. Being free of all estimates
  4. Matching all the tax records
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Correct answer: B. Making a difference to decisions

Relevance is defined by ability to make a difference in the decisions of users.

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Which enhancing characteristic means having information available in time to influence decisions?

  1. Verifiability of data
  2. Understandability
  3. Comparability over time
  4. Timeliness of release
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Correct answer: D. Timeliness of release

Timeliness means the information reaches decision-makers early enough to affect their decisions.

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Financial statements are normally prepared assuming the entity will continue in operation. This is called what?

  1. Going concern
  2. Accrual basis
  3. Prudence
  4. Materiality
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Correct answer: A. Going concern

The assumption that the entity will keep operating for the foreseeable future is the going concern assumption.

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More Financialreporting topics

Ind AS 116 LeasesInd AS 36 Impairment of Assets and Ind AS 38 Intangible AssetsInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 12 Income TaxesInd AS 113 Fair Value MeasurementInd AS 109 Financial InstrumentsInd AS 23 Borrowing Costs and Ind AS 40 Investment Property