PRC-1 · Chapter 10 · Question 1 of 100
Which of the following statements regarding the presentation of financial statements is correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The comparative figures for financial statements of the previous period should be disclosed.
Explanation
IAS 1 Presentation of Financial Statements requires that comparative information must be disclosed in respect of the previous period for all amounts reported in the current period's financial statements to ensure comparability.
More Preparation of Financial Statements MCQs
- Q3Salman has the following balances: Opening stock Rs. 28,700; Closing stock Rs. 21,400; Purchases Rs. 185,000; Carriage in Rs. 16,000…
- Q4Nina Beauty Parlour has: Opening inventory Rs. 71,000; Closing inventory Rs. 85,000; Purchases (net of returns) Rs. 228,000; Drawings of…
- Q5Which of the following items is usually classified as a non-current liability in the statement of financial position?
- Q6How should 'Pre-received income' (unearned income) be treated in the Statement of Financial Position?
- Q7A business has a net profit before adjustments of Rs. 158,000. Adjustments are required for a prepaid expense of Rs. 11,200 and an accrued…