1. It is not necessary for management, while preparing financial statements, to assess entity’s ability to continue as going concern.
• True
• False
Check Answer
2. In financial statements, cash flow information is prepared on accrual basis.
• True
• False
Check Answer
3. An entity shall present separately each material class of similar items. An entity shall present separately items of a dissimilar nature or function unless they are immaterial.
• True
• False
Check Answer
4. IAS 1 allows off setting of any kind of assets and liabilities
• True
• False
Check Answer
5. Accountant of ABC Company prepared financial statement covering period of 2 years and explained management that as per IAS 1 an entity shall present a complete set of financial statements (including comparative information) at least biennially. Is his explanation true of false?
• True
• False
Check Answer
6. Accountant of ABC Company prepared financial statement covering period of 2 years and explained management that there is no legal obligation in country to prepare financial statements for one year for income tax or other purposes and as per IAS 1 disclosing this reason with disclosure of non comparability of figures in financial statements is enough reason for preparation of biennial financial statements.
• True
• False
Check Answer
7. XYZ company in its annual set of financial statements present comparative information of previous two years , is it allowed by IAS 1 OR not
• Not allowed
• Allowed
Check Answer
8. An entity shall retain the presentation and classification of items in the financial statements from one period to the next except in some specific conditions happen.
• True
• False
Check Answer
9. Other than set of financial statements an entity shall also apply IAS 1 to other information included in the published annual report.
• True
• False
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10. It is not necessary for an entity to clearly identify each financial statement and the notes.
• True
• False
Check Answer
