6) If a dividend is declared after the balance sheet date but before the financial statement are authorized for issue the dividend is A Recognized as a liability at the balance sheet date. B. Not recognized as a liability at the balance sheet date. C Recorded as a direct reduction of equity at the balance sheet date. D. Recorded as a reduction against the asset "cash" at the balance sheet date. 7) In accordance with the requirement of PAS 1 Presentation of Financial Statements, which one of the following statements is correct? A The share of profit or loss of associate determined using the equity method must be included in other comprehensive income. B. Every item that appears in other comprehensive income will require a reclassification adjustment in future reporting periods when the item involved is derecognized. C Reclassification adjustments relating to components of other comprehensive income must be disclosed, D. Retrospective adjustments arising from a change in accounting policy in accordance with PAS 8 Accounting Policies, Changes in Accounting Estimates and Errors must be included in other comprehensive income 8) The primary purpose of preparing a trial balance is to determine that A The ledger contains an equal peso amount of debit and credit entries. B. The ledger contains an equal number of debit and credit entries. C. The number of ledger accounts with debit balances is equal to the number of accounts with credit balances D. Each transaction was recorded with equal amounts of debits and credits. L 9) Which of the following is correct regarding the classification of certain items in the statement of cash flows by a non-financial institution? Option 1 Option 2 Interest received Operating activities Investment activities II. Interest paid Operating activities Financial activities Dividends received Operating activities Investing activities IV. Dividends paid Financing activities Operating activities A. I only B. lll and all C. II, II, and IV D. All of these III. 10) On the statement of cash flows in which the operating activities section is prepared under the indirect method, depreciation is treated as an adjustment to reported net earnings because depreciation A is a direct inflow of cash from investing activities. B. Reduces reported net earnings and involves an inflow of cash. C Reduces reported net earnings but does not involve an outflow of cash. D. Is an inflow of cash to a reserve account for replacement of assets