6.

Financial statements must be prepared at least

Annually
7. Technically, offsetting in financial statements is accomplished when
Gain or loss from disposal of noncurrent assets is reported by deducting from the proceeds
the carrying amount of the asset and the related disposal cost
The allowance for doubtful accounts is deducted from accounts receivable
The accumulated depreciation is deducted from property, plan, and equipment
The total liabilities are deducted from total assets
8. The presentation and classification of items in the financial statements shall be retained from one
accounting period to the next.
Consistency of presentation
Materiality
Aggregation
Comparability
9. A third statement of financial position as at beginning of the earliest comparative period presented is
required
When an entity applies an accounting policy retrospectively
When an entity makes a retrospective restatement of items in the financial statements
When an entity reclassifies items in the financial statements
10. Which statement in relation to financial statements is incorrect
a. general purpose financial statements do not do not and cannot provide all of the information that
primary users need
b. general purpose financial statements are designed to show the value of the reporting
entity
c. general purpose financial statements are intended to provide common information to users
d. financial statements are largely based on estimate and judgment rather than exact depiction