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QUESTION 5-10 Multiple Choice (ACP) : A. Asset, Liability and Equity
QUESTION 5-10 Multiple Choice (ACP) : A. Asset, Liability and Equity
2. The elements of financial position describe amounts of resources and claims against
resources
a. During a period of time
b. At a moment in time
c. During a period of time and at a moment in time
d. Neither during a period of time nor at a moment in time
6. It is the residual interest in the assets of the entity after deducting all the liabilities.
a. Income
b. Equity
c. Retained earnings
d. All of the choices match the definition
9. This arises in the course of ordinary regular activities of the entity and is referred to by a
variety of different names including sales, fees, interest, dividends, royalties, and rent.
a. Income
b. Revenue
c. Profit
d. Gain
2. Which of the following criteria need not be satisfied for a liability to exist?
a. The entity has an obligation
b. The obligation is to transfer an economic resource.
c. The obligation is a present obligation that exists as a result of a past event.
d. The settlement is expected to result in an outflow of economic benefit
4. Rights that have the potential to produce economic benefits and correspond to an
obligation of another entity include all, except
a. Right to receive cash
b. Right to receive goods
c. Right to exchange economic resources wih another entity on faborable terms.
d. Right over property, plant, and equipment
6. It is the present ability to direct the use of an economic resource and obtain the benefit
that may flow from it.
a. Control
b. Legal right
c. Obligation
d. Ownership
10. This new term refers to the statement of profit or loss and a statement presenting other
comprehensive income.
a. Income statement
b. Statement of comprehensive income
c. Statement of financial performance
d. Statement of financial position
5. An outflow of asset based on an activity that represents the major operations is called
a. Loss
b. Liability
c. Expense
d. Equity