CAF-1 · Chapter 11 · Question 4 of 15
Alpha Corp has a slow-moving inventory item that is expected to be sold 18 months after the reporting date. How should this be classified in the statement of financial position?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) As a non-current asset.
Explanation
Assets expected to be realized well after the 12-month period from the reporting date (and outside the entity's normal operating cycle) are classified as non-current assets.
More IAS 1 Presentation of Financial Statements MCQs
- Q6Where should the amount of dividends recognized as distributions to owners during the period be presented?
- Q7When presenting the analysis of expenses in profit or loss, IAS 1 allows entities to classify expenses based on two methods. What are they?
- Q8Which of the following is NOT required to be displayed prominently identifying the financial statements?
- Q9Regarding the title of financial statements, which of the following is true under IAS 1?
- Q10Which of the following items must be presented as a minimum in the statement of changes in equity?