12. Which of the following is correct regarding the use of terminology under IAS 1 Presentation of Financial Statements? a. Entities are required by IAS 1 to use the terms “other comprehensive income,” “profit or loss” and “total comprehensive income.” The use of the term “net income” is prohibited. b. Entities may use the terms “balance sheet,” “net income,” “income statement,” and “cash flow statement” to describe their financial statements and other terms provided they are not misleading. c. Entities are required by IAS 1 to use the term “statement of cash flows” in presenting the sources and uses of cash for a period. The use of the term “cash flow statement” is prohibited. d. Entities are required by IAS 1 to use the term “statement of financial position” in presenting its assets, liabilities and equity as of a given point of time. The use of the term “balance sheet” is prohibited.
12. Which of the following is correct regarding the use of terminology under IAS 1 Presentation of Financial Statements? a. Entities are required by IAS 1 to use the terms “other comprehensive income,” “profit or loss” and “total comprehensive income.” The use of the term “net income” is prohibited. b. Entities may use the terms “balance sheet,” “net income,” “income statement,” and “cash flow statement” to describe their financial statements and other terms provided they are not misleading. c. Entities are required by IAS 1 to use the term “statement of cash flows” in presenting the sources and uses of cash for a period. The use of the term “cash flow statement” is prohibited. d. Entities are required by IAS 1 to use the term “statement of financial position” in presenting its assets, liabilities and equity as of a given point of time. The use of the term “balance sheet” is prohibited.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA1: International Financial Reporting Standards
Section: Chapter Questions
Problem 7MCQ
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12. Which of the following is correct regarding the use of terminology under IAS 1 Presentation of Financial Statements?
a. Entities are required by IAS 1 to use the terms “other comprehensive income,” “profit or loss” and “total comprehensive income.” The use of the term “net income” is prohibited.
b. Entities may use the terms “balance sheet,” “net income,” “income statement,” and “cash flow statement” to describe their financial statements and other terms provided they are not misleading.
c. Entities are required by IAS 1 to use the term “statement of cash flows ” in presenting the sources and uses of cash for a period. The use of the term “cash flow statement” is prohibited.
d. Entities are required by IAS 1 to use the term “statement of financial position ” in presenting its assets, liabilities and equity as of a given point of time. The use of the term “balance sheet” is prohibited.
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