PART 1:

1.Which of the following statements is correct?

a.PAS 1 Presentation of Financial Statements prescribes the basis for presentation of general and special purpose financial statements to improve both inter-comparability and intra-comparability.

b.Intra-comparability is also referred to as horizontal comparability while inter-comparability is also referred to as vertical comparability.

c.Working capital is the net amount of a company's relatively liquid resources. It is the excess of total assets over total liabilities.

d.Equity is the residual interest in the net assets of an entity.

2.According to PAS 1, these are financial statements intended to serve the needs of users who do not have the authority to demand financial reports tailored for their own needs.

1. General purpose financial statements
2. Common purpose financial statements
3. Regular financial statements
4. All-purpose financial statements

3.The assessment of an entity's going concern shall cover a minimum period of

a. one yearc. three years

b. three monthsd. any of these

4.In which of the following instances would a liability that would otherwise be presented as current is presented as noncurrent?

1. The liability is payable on demand but the entity estimates that it is probable that the lender will not demand payment within 12 months after the reporting period.
2. The liability is payable on demand but the lender promises the entity after the reporting period that the lender will not demand payment in the next 12 months.
3. The entity enters into a refinancing agreement after the reporting period but before the financial statements are authorized for issue.
4. The entity enters into a refinancing agreement and the refinancing agreement is completed by the balance sheet date.

5.In a classified balance sheet, deferred tax assets/liabilities are presented as

1. non-current items if the deferred taxes are not expected to reverse within 12 months after the reporting period
2. noncurrent items
3. current items
4. a or c