QUESTION 19-11 Multiple choice (IFRS)

1. Interim financial reports shall be published

a. Once a year at any time during the year.
b. Within a month of the half year-end.
c. On a quarterly basis.
d. Whenever the entity wishes.

2. If an entity does not prepare interim financial reports

a. The year-end financial statements are deemed not to comply with IFRS.
b. The year-end financial statements' compliance with IFRS is not affected.
c. The year-end financial statements shall not be acceptable under local jurisdiction.
d. Interim financial reports shall be included in the year-end financial statements.
3. Interim financial reports shall include as a minimum
a. A complete set of financial statements.
b. A condensed set of financial statements and selected notes.
c. A condensed statement of financial position and an income statement.
d. A condensed statement of financial position, income statement and statement of cash flows.
4. An interim financial report shall include as a minimum all of the following components, except
a. Condensed statement of financial position and statement of comprehensive income
b. Condensed statement of cash flows
c. Condensed statement of changes in equity
d. Accounting policies and explanatory notes
5. There is a presumption that anyone reading interim financial reports shall
a. Understand all International Financial Reporting Standards.
b. Have access to the records of the entity.
c. Have access to the most recent annual report.
d. Not make decisions based on the report.
6. When the business is seasonal, what does IFRS suggest?
a. Additional notes be written in the interim reports about seasonal nature of the business
b. Disclosure of financial information for the latest 12- months and comparative information
for the prior comparable 12-month period in addition to the interim report
c. Additional disclosure in the accounting policy notes
d. No additional disclosure
7. Which statement is true regarding interim financial statements?
a. Interim financial statements are required.
b. If interim financial statements are presented, four basic financial statements are
required.
c. If interim financial statements are presented, only a statement of financial position and a
statement of comprehensive income are required.
d. Interim financial statements must be presented with the most recent annual financial
statements.

8. An entity is preparing interim financial statements for six months ended June 30, 2020. In the interim
financial statements for six months, a statement of financial position on June 30, 2020, a statement of
 comprehensive income for six months ended June 30, 2020 and statement of cash flows for six months
ended June 30, 2020 shall be presented. In addition, all of the following shall be presented, except
a. Statement of financial position on June 30, 2019
b. Statement of financial position on December 31, 2019
c. Statement of comprehensive income for six months ended June 30, 2019
d. Statement of cash flows for six months ended June 30, 2019

QUESTION 19-12 Multiple choice (AICPA Adapted)

1. Interim financial statements are usually presented on a
a. Monthly basis
b. Quarterly basis
c. Semiannual basis
d. Nine-month basis
2. For interim reporting, an inventory loss from a market decline in the second quarter shall be
recognized as a loss
a. In the fourth quarter
b. Proportionately in each of the second, third and fourth quarters
c. Proportionately in each of the first, second, third and fourth quarters
d. In the second quarter
3. For external reporting purposes, it is appropriate to use estimated gross profit rate to determine the
cost of goods sold for
a. Interim reporting
b. Year-end reporting
c. Interim reporting and year-end reporting
d. Neither interim reporting nor year-end reporting
4. For interim financial reporting, an expropriation gain occurring gain occurring in the second quarter
shall be
a. Recognized ratably over the last three quarters
b. Recognized ratably over all four quarters with the first quarter being restated
c. Recognized in the second quarter
d. Disclosed in the second quarter
5. Advertising costs incurred shall be deferred to provide an appropriate expense in each period for
a. Interim reporting
b. Year-end reporting
c. Interim reporting and year-end reporting
d. Neither interim reporting nor year-end reporting
6. Due to a decline in market price in the second quarter, an entity incurred an inventory loss: The
market price is expected to return to previous level by the end of the year. At the end of the year,
the decline had not reversed. should the loss be reported in the interim income statement?
a. Ratably over the second, third and fourth quarters
b. Ratably over the third and fourth quarters
c. In the second quarter
d. In the fourth quarter
7. Conceptually, interim financial statements can be described as emphasizing
a. Timeliness- over reliability
b. Reliability over relevance
 c. Relevance over comparability
d. Comparability over neutrality
8. Interim financial reporting should be viewed
a. As a special type of reporting that need not follow International Financial Reporting
Standards.
b. As useful only if activity is evenly spread throughout the year so that estimates are
unnecessary.
c. As reporting for an integral part of an annual period.
d. As reporting for a separate accounting period.
9. Which statement about interim reporting is true?
a. All entities that issue an annual report must issue interim financial report.
b. The integral view is the appropriate approach in preparing interim financial
report.
c. A complete set of financial statements must be presented for an interim period.
d. The same accounting principles used for the annual report should be
employed for interim report.
10 For interim financial reporting, the income tax expense for the second quarter should
be computed by using the
a.
Statutory tax rate for the year.
b. Effective tax rate expected to be applicable for the second quarter.
c. Effective tax rate expected to be applicable for the full year as estimated at
the end of the first quarter.
d. Effective tax rate expected to be applicable for the full year as estimated at the
end of the second quarter.