CFAS - Chapter 8: PAS 1 - PRESENTATION OF FINANCIAL

STATEMENTS (Statement of Financial Position)

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1. Account form the presentation follows that of an 12. Financial means by which the information accumulated
account, meaning, the assets are shown Statement and processed in financial accounting is
on the left side and the liabilities and periodically communicated to the users
equity on the right side of the statement
13. Financial structured financial representation of the
of financial position
Statement financial position and financial performance of
2. Annually Financial statements shall be presented an entity
at least ________
14. Identifiable Common example of intangible assets include
3. Asset economic resource controlled by an patent, franchise, copyright, lease right,
entity as a result of past event trademark, and computer software
4. Asset is cash or Classify an assets as current when: 15. intangible an identifiable nonmonetary asset without
cash equivalent assets physical substance
Asset primarily
16. investment an asset held by an entity for the accretion of
for the purpose
wealth through capital distribution, such as
of trading
interest, royalties, dividends and rentals, for
Realize the asset
capital appreciation or for other benefits to
within 12 months
the investing entity such as those obtained
after the
though trading relationships
reporting period
Intended to sell 17. legal or an obligation can either be....
or consume in constructive
within the entity's 18. Liability present obligation of an entity to transfer an
normal operating economic resource as a result of past event
cycle
19. Liquidity Current assets are usually listed in the order of
5. Cash and cash the line items under current assets are: _______
equivalents
20. Liquidity Investors, creditors and other statement users
Financial assets
Solvency analyze the statement of financial position to
at fair value
Need of the evaluate such as______-
Trade and other
entity for
receivable
additional
Inventories
financing
Prepaid
Expenses 21. Net assets total asset minus total liability
6. Common users general purpose financial statements are 22. Non- Residual definition
directed to all __________ and not to specific current
users assets

7. Corporation Stockholders' equity/Shareholders' equity 23. Notes to used to report information that does not fit
the financial into the body of the financial statements in
8. Covenants restrictive on the borrower as to
statements order to enhance the understandability of the
undertaking further borrowings. paying
financial statements
dividends, maintaining specified level of
working capital and so forth 24. Notes to Provide narrative description or
the financial disaggregation of the items presented in the
9. Current Classification of Assets
statements financial statements and information about
Non-Current
items that do not qualify for recognition
10. Equity Residual interest in the assets of an entity
25. Objective to provide information about the financial
after deducting its liabilities.
of Financial position, financial performance and cash flows
11. Financial the end product or main output of the Statements of an entity that is useful to a wide range of
Statement financial accounting process users in making economic decisions
26. Obligation duty or responsibility that an entity has no
practical ability to avoid
27. Operating of an entity is the time between the 36. Shareholders' residual interest of owners in the net assets
Cycle acquisition of assets for processing and Equity of a corporation measured by the excess of
their realization in cash or cash equivalent assets over liabilities
28. Owners the holder of instruments classified as 37. Statement of formal statement showing three elements
equity are simply known as _____ Financial namely assets, liabilities and equity
Position
29. Partnership Partners' Equity
38. Statement of Components of Financial Statements
30. PPE tangible assets which are held by an entity
Financial
for use in production or supply of goods
Position
and services, for rental to others, or for
Statement of
administrative purposes, and are expected
Comprehensive
to be used during more than one period
Income
31. PPE the line items under non-current assets are: Statement of
Long-term Changes in
investments Equity
Intangible Statement of
assets Cash Flows
Deferred tax Notes to
assets Financial
Other Statement
noncurrent
39. Trade and the line items for current liabilities
assets
other payables
32. Proprietorship Owner's Equity Current
33. purpose of to provide the necessary disclosure Provisions
notes to the required by PFRS Short-term
financial borrowing
statements Current portion
of long term
34. Report form This form sets forth the three major sections
debt
in a downward sequence of assets,
Current tax
liabilities, and equity
liability
35. Settle the Classify a liability as current when:
40. Unidentifiable goodwill example
Liability within
the entity's
normal
operating
cycle
Holds the
liability
primarily for
the purpose of
trading
Due to settled
within 12
months
Does not have
an
unconditional
right to defer
settlement of
the liability