DMC College Foundation’s In-house Review (theory of accounts)

TOA – 006 INTERIM FINANCIAL REPORTS

1. A financial reporting period that is shorter than a full financial year is called a (an)
a. Interim period b. calendar period c. fiscal period d. grace period
2. Under PAS 34, interim financial reports shall be published
a. On a quarterly basis c. whenever the entity wishes
b. Once a year at any time in the same year d. within 1 month from the end of the year
3. Under revised securities act, SEC requires certain companies to file
a. Monthly interim reports within 10 days after the end of each month
b. Monthly interim reports within 15 days after the end of each month
c. Quarterly interim reports within 30 days after the end of each quarter
d. Quarterly interim reports within 45 days after the end of each quarter
4. As a minimum requirement, the interim financial reports should include
a. A balance sheet and statement of comprehensive income
b. A complete set of financial statements pursuant to PAS 1
c. A condensed set of financial statements and selected explanatory notes
d. A balance sheet, a statement of cash flows and a statement of comprehensive income
5. PAS 34 states the presumption that anyone reading interim financial reports will
a. Have access to the records of the entity
b. Have access to the most recent annual report
c. Not make decisions based on interim reports
d. Understand all PFRS
6. An inventory loss from a market decline in the second quarter shall be recognized as a loss
a. In the second quarter
b. At the end of fiscal year
c. Proportionately in each of the second, third, and fourth quarters
d. Proportionately in each of the first, second, third, and fourth quarters
7. For external reporting purposes, it is appropriate to use estimated gross profit rates to determine
the cost of goods sold for
a. Interim reporting only c. both interim and year end reporting
b. Year-end reporting only d. neither interim nor year-end reporting
8. If an entity does not prepare interim financial reports, then
a. The year-end FS are deemed not to comply with PFRS.
b. The year-end FS compliance with PFRS is not affected
c. The year-end FS will not be acceptable under local legislation
d. Interim financial reports should be included in the year-end FS
9. If a financial report contains both the consolidated and the parent’s separate FS, segment
information is required in
a. The separate FS only c. both separate and consolidated FS
b. The consolidated FS only d. neither separate and consolidated