1. The Accounting manager of a general merchandise is contemplating on what would be the presentation of prepaid expenses in the statement of financial position. According to PAS 1 or IAS1, what is the best action?

A. Must be presented separately if the prepaid expense items are material.

B. Must be presented separately regardless of its materiality.

C. Always present it separately and under current assets since there is a presumption that prepaid expense will be fully within the next 12 months.

D. Always present it under the other current asset account.

2. An entity must disclose comparative information for

A. The previous comparable period for all amounts reported.

B. The previous comparable period for all amounts reported and for all narrative and descriptive information.

C. The previous two comparable periods for all the amounts reported.

D. The previous comparable period for all amounts reported, and for all narrative and descriptive information when it is relevant to an understanding of the financial statements of the current period.

3. Statement of Cash flows is primarily created for

A. To disclose separately non-cash investing and financing activities.

B. To assess the ability of the entity to pay dividends to stockholders.

C. To help investors, creditors, and other users to assess the entity's ability to generate positive future net cash flows.

D. To provide relevant information about cash receipts and cash payments of an entity during a period.

4. On December 2020, Grower Company issued its statement of financial position. The following shall be as non-current, except for

A. Notes obtained with refinancing clause at the option of the borrower, due on April 2020.

B. Service Vehicle acquired five years ago until fully depreciate on March 2021.

C. Prepaid Expense to be fully utilize within the next 10 months.

D. Investment on Super Company, wherein the Bighit has 60% controlling interest.

5. In the statement of cash flows, interest received, and dividend received may be reclassified alternatively as cash flow from

A. Investing Activities

B. Financing Activities

C. Operating Activities

D. No alternative presentation