Sample Modal Modal 1 Modal 1 /27 0 Paper-1: Financial Reporting Unit 1: Ind AS 1 “Presentation of Financial Statements” 1 / 27 1. What items are reclassified to profit or loss in subsequent periods? A) Re-measurement gains or losses on defined benefit plans B) Gains or losses arising from translating the financial statements of a foreign operation C) Changes in revaluation surplus D) Gains or losses on financial assets measured at fair value through OCI 2 / 27 2. What should an entity disclose when it changes the end of its reporting period and presents financial statements for a period longer or shorter than one year? A) The explanation of any adjustment made to the financial data. B) The reason for using a longer or shorter period, and the fact that amounts presented in the financial statements are not entirely comparable. C) The details of any material transactions occurring during the period. D) The specific financial items affected by the change in period. 3 / 27 3. Which items are included in the current assets category of A Limited’s consolidated balance sheet? A) Non-controlling interest's share of profit B) Cash and cash equivalents C) Investment property D) Property, plant and equipment 4 / 27 4. What should an entity disclose if the financial statements are not prepared on a going concern basis? A) The intention to liquidate the entity or to cease trading. B) The impact on the entity's net assets and liabilities. C) The basis of preparation of financial statements and the reason why the entity is not regarded as a going concern. D) The details of any significant expenditures incurred during the period. 5 / 27 5. When can an entity offset assets and liabilities or income and expenses? A) When there is a substantial difference in nature or function. B) When the assets and liabilities have the same maturity dates. C) When the amounts are immaterial. D) When required or permitted by an Ind AS. 6 / 27 6. According to Ind AS 1, how should an entity classify inventory and debtors? A) Inventory should be classified as current, but debtors should be classified as non-current. B) Both inventory and debtors would be classified as current if the entity expects to realise these assets in its normal operating cycle. C) Both inventory and debtors should be classified as non-current. D) Inventory should be classified as non-current, but debtors should be classified as current. 7 / 27 7. What is included in the other comprehensive income section? A) Gain on hedge of a net investment B) Net gain or loss through FVTOCI equity securities C) Net movement on cash flow hedges D) Gain on hedge through FVTOCI debt securities 8 / 27 8. Which of the following is a criteria for an entity to change the presentation or classification of items in its financial statements according to Ind AS 1? A) The entity's financial performance improved compared to the preceding year. B) An Ind AS requires a change in presentation. C) The entity believes that the changed presentation will benefit the stakeholders. D) The entity's financial statements are difficult to understand. 9 / 27 9. According to Ind AS 1, when should an entity classify deferred tax assets and liabilities? A) As non-current assets and liabilities. B) As financial assets and liabilities. C) As current assets and liabilities. D) Separately under current and non-current based on liquidity. 10 / 27 10. What is the basis of preparation for financial statements according to Ind AS 1? A) Cash basis of accounting. B) Hybrid basis of accounting. C) The basis determined by the auditor. D) Accrual basis of accounting. 11 / 27 11. What is the objective of Ind AS 1? A) To prescribe the minimum disclosures that are to be made in the financial statements. B) To provide guidelines for the structure and content of financial statements. C) To ensure comparability with the entity's financial statements of previous periods and with the financial statements of other entities. D) To reconcile the carve out in Ind AS 1 from IAS 1. 12 / 27 12. When is an asset classified as current according to Ind AS 1? A) When it expects to realise the asset within twelve months after the reporting period. B) When it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle. C) When the asset is cash or a cash equivalent. D) When it holds the asset primarily for the purpose of trading. 13 / 27 13. If the production time of the entity was 15 months and the time lag between the date of sale and collection from customers is 13 months, would the inventory and trade receivables be current in nature? A) Cannot be determined B) No C) Yes D) Not mentioned in the text 14 / 27 14. According to Ind AS 1, in which circumstance can an entity offset expenses reimbursed by a subsidiary against expenses incurred by a holding company? A) If the holding company bears all expenses incurred by the subsidiary company. B) If the holding company and the subsidiary company have no financial transactions. C) If the holding company reimburses the subsidiary company for future expenses. D) If the arrangement is to reimburse the cost incurred by the holding company on behalf of the subsidiary company. 15 / 27 15. What is the purpose of financial statements? A) To provide minimum disclosures that are to be made in the financial statements. B) To provide information about the financial position, financial performance, and cash flows of an entity that is useful to users in making economic decisions. C) To comply with applicable Ind AS and other relevant regulatory requirements. D) To present a true and fair view of the financial position, financial performance, and cash flows of an entity. 16 / 27 16. According to Ind AS 1, how should a liability be classified if a lender provides a grace period for rectifying a breach? A) The liability can be classified as both current and non-current. B) The liability classification remains unchanged. C) The liability should be classified as non-current. D) The liability should be classified as current. 17 / 27 17. How should inventory/trade receivables be classified if they are expected to be realized within 15 months? A) Non-current B) Depends on the type of inventory C) Current D) Depends on the type of trade receivables 18 / 27 18. According to Ind AS 1, when should a liability be classified as current even if a breach has been rectified? A) If the breach occurred after the end of the reporting period and the liability became payable on the reporting date. B) If the breach occurred on or before the end of the reporting period and the liability became payable on the reporting date. C) If the breach occurred after the end of the reporting period and the liability became payable after the reporting date. D) If the breach occurred on or before the end of the reporting period and the liability became payable after the reporting date. 19 / 27 19. What is meant by ‘true and fair view’ in the presentation of financial statements? A) Faithful representation of the effects of transactions, other events, and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income, and expenses set out in the Conceptual Framework. B) Compliance with all the requirements of applicable Ind AS. C) Presentation of relevant, reliable, comparable, and understandable information. D) Selection and application of accounting policies in accordance with Ind AS 8. 20 / 27 20. Which of the following items should be presented separately in the statement of profit and loss if they are material? A) Disposals of investments B) Write-downs of inventories and reversals of such write-downs C) Revaluations of land and buildings D) Other reversals of provisions 21 / 27 21. When should an entity prepare its financial statements on a going concern basis? A) Only when a separate disclosure is made explaining the circumstances. B) If management believes that the financial statements present a true and fair view. C) If management has significant doubt of the entity's ability to continue as a going concern. D) Unless management either intends to liquidate the entity or to cease trading or has no realistic alternative but to do so. 22 / 27 22. Under which circumstances is an additional statement of financial position not required as per Ind AS 1? A) When the entity is reclassifying comparative amounts in its financial statements. B) When the acquisition had a significant impact on the entity's financial position at 1st April, 20X0. C) When deferred tax assets and liabilities are classified as current assets and liabilities. D) When the acquisition had no impact on the entity’s financial position at 1st April, 20X0. 23 / 27 23. What are the components of financial statements as per Ind AS 1? A) Balance sheet, statement of financial position, statement of changes in equity, and statement of cash flows. B) Balance sheet, statement of profit and loss (including other comprehensive income), statement of cash flows, and notes comprising significant accounting policies, etc. C) Income statement, statement of comprehensive income, statement of changes in equity, and statement of cash flows. D) Statement of financial position, statement of profit or loss, statement of comprehensive income, and statement of cash flows. 24 / 27 24. What is included in the profit or loss section of the statement of profit and loss? A) Share of profit or loss of associates accounted for using the equity method B) Impairment losses determined in accordance with Ind AS 109 C) Loss arising from the derecognition of financial assets measured at amortised cost D) Finance costs 25 / 27 25. In accordance with Ind AS 1, how many balance sheets should an entity present? A) 1 B) 3 C) 4 D) 2 26 / 27 26. When can an entity depart from a requirement of an Ind AS? A) Whenever there is a disagreement between the Company and its auditor on the applicability of any Ind AS. B) When there is a need for additional disclosures to understand the impact of particular transactions, events, and conditions. C) When the relevant regulatory framework allows for such departures. D) In extremely rare circumstances where compliance with a requirement in an Ind AS would be so misleading that it would conflict with the objective of financial statements. 27 / 27 27. What items are excluded from being presented as extraordinary items? A) Items of income or expense in the statement of profit and loss or in the notes B) Comprehensive income for the period C) Total other comprehensive income D) Profit or loss Your score is 0% Restart quiz Button Button 1 Paper-6: Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) Case Study 1 Case Study 1 /0 0 Paper-6: Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) Case Study 1 You need to add questions Your score is 0% Restart quiz Case Study 2 Case Study 2 /0 0 Paper-6: Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) Case Study 2 You need to add questions Your score is 0% Restart quiz Case Study 3 Case Study 3 /0 0 Paper-6: Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) Case Study 3 You need to add questions Your score is 0% Restart quiz Case Study 4 Case Study 4 /0 0 Paper-6: Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) Case Study 4 You need to add questions Your score is 0% Restart quiz Case Study 5 Case Study 5 /0 0 Paper-6: Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) Case Study 5 You need to add questions Your score is 0% Restart quiz Case Study 6 Case Study 6 /0 0 Paper-6: Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) Case Study 6 You need to add questions Your score is 0% Restart quiz Case Study 7 Case Study 7 /0 0 Paper-6: Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) Case Study 7 You need to add questions Your score is 0% Restart quiz Case Study 8 Case Study 8 /0 0 Paper-6: Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) Case Study 8 You need to add questions Your score is 0% Restart quiz Case Study 9 Case Study 9 /0 0 Paper-6: Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) Case Study 9 You need to add questions Your score is 0% Restart quiz Case Study 10 Case Study 10 /0 0 Paper-6: Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) Case Study 10 You need to add questions Your score is 0% Restart quiz Case Study 11 Case Study 11 /0 0 Paper-6: Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) Case Study 11 You need to add questions Your score is 0% Restart quiz Case Study 12 Case Study 12 /0 0 Paper-6: Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) Case Study 12 You need to add questions Your score is 0% Restart quiz Case Study 13 Case Study 13 /0 0 Paper-6: Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) Case Study 13 You need to add questions Your score is 0% Restart quiz Case Study 14 Case Study 14 /0 0 Paper-6: Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) Case Study 14 You need to add questions Your score is 0% Restart quiz Case Study 15 Case Study 15 /0 0 Paper-6: Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) Case Study 15 You need to add questions Your score is 0% Restart quiz