2) Which of the following should be classified as current asset?

A. Investment property C. Financial asset held for trading

B. Property, plant and equipment D. Cash surrender value

3) Information about the source and uses of an enterprises cash and cash equivalents is provided in the

A. Statement of comprehensive income C. Statement of cash flows

B. Statement of changes in equity D. Statement of financial position

4) This refers to financial statements that are intended to meet the needs of users who are not in a position to

require an entity to prepare reports tailored to their particular information needs.

A. All-purpose financial statements C. Managerial reports

B. General purpose financial statements D. Unisex financial statements

5) The notes to financial statements should not be used to

A. Describe significant accounting policies.

B. Describe depreciation methods employed.

C. Describe the principles and methods peculiar to the industry.

D. Correct an improper presentation in the financial statements.

6) A gain on the initial recognition of a newly born biological asset is recognized in

A. Other comprehensive income C. Retained earnings

B. Profit or loss D. Share premium

7) Which of the following would be classified as a non-current asset?

A. Goods which are in process of production for sale in the ordinary course of business.

B. Debt and equity securities acquired principally for the purpose of generating a profit from short-term

fluctuations in price or dealers margin.

C. Cash funds that are set aside for payment of equipment to be delivered a month after the reporting

period.

D. Amounts due from customers within a period of 12 to 18 months, extended within the usual credit term

of the enterprise.