QUESTION 1 Certain differences exist between IFRS and U.S. GAAP financial statem

Question

QUESTION 1 Certain differences exist between IFRS and U.S. GAAP financial statement reporting. Which of the following is false? O IFRS presents a different ordering of the liabilities and shareholders' equity sections. IFRS allows the upward revaluation of property, plant, and equipment. IFRS does not require a statement of cash flows. IFRS financial statements are similar to U.S. GAAP QUESTION 2 The expected exit value is also referred to as the fair value O present value input value current market value QUESTION 3 Which of the following is least likely to be included in long-term liabilities? obligations for future pension payments O capital leases payable O liabilities on options to sell stock unearned revenues QUESTION 4 A balance sheet shows the fair value of a company at a particular date O results of the company's income-producing activities financial position of a company at a particular date 0 cash inflows and outflows of a company for the accounting period

Explanation / Answer

Answer 1

IFRS does not require a Statement of Cash flow : False

Explanation : As per IAS 1 , Statement of Cash flow is included in the set of financial statements . Thus cash flow statement is required under IFRS.

Answer 2

The expected exit value is also reffered as Fair value

Explainaion : Fair value also means as management expected selling price to sall an assst thus also called as expected exit value.

Answer 3

Unearned income

Explanation : Unearned income means the money received by the entity in advance ie the entity is yet to perform its obligation attach to such unearned money received. Generlly unearned income is stated underthe head " Current Liability"

Answer 4

A balance sheet shows the financial position of a company at a particular date

Explanation : Balance Sheet is prepared on a specific date presenting the financial condition of the company under the heads Assets , Liabilities  & shareholders' equity. taking the balance as per books on that date.

Answer 5

A comparison of a company's performance with that of its own past reults is known as intracompany analysis.

Explanation : Intracompany analysis includes comparison of a company's performance department wise or division wise of the same bussiness unit of the company with its own past reults.

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