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Multiple Choice Identify the choice that best completes the statement or answers the question. 

1. The IASB specifies that “the elements directly related to the measurement of financial position area. assets, liabilities and profit”

 b. expenses, revenues and equity”c. expenses, revenues and profit”d. assets, liabilities and equity”

ANSWER: D

ModeratePOINTS: 0 / 1REF:  page 88 

2. Which of the following is not  a long-term liability?a. Accounts payable (for payables due in more than one year)

 b. Bank borrowings reimbursable in more than one year c. Bank overdraftsd. Bonds

ANSWER: CEasy

POINTS: 0 / 1REF:  page 91 

3. Where is the decreasing liquidity approach commonly used?a. German-speaking countries

 b. North Americac. European countriesd. None of the above

ANSWER: BEasy

POINTS: 0 / 1REF:  page 91 

4. Which of the following is not  a current asset?a. Accounts receivable

 b. Inventory of finished productsc. Inventory of raw materialsd. Land

ANSWER: DEasy

POINTS: 0 / 1REF:  pages 91, 92 

Name: Score: 0 / 10 points (0%)

Chapter 3 - Financial statements presentation

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5. Which of the following is a financial asset?a. Inventories

 b. Equipmentc. Loan to an associated. Accounts receivable

ANSWER: CEasy

POINTS: 0 / 1REF:  page 93 

6. Classification by nature is the method often used in:a. North America

 b. Asiac. Continental and East European countriesd. All of the above

ANSWER: C

EasyPOINTS: 0 / 1REF:  page 96 

7. The cash flow statement consists of the following sections:a. Operating and non-operating

 b. Current and non-currentc. Operating, investing, and financingd. Trading and financial

ANSWER: C

EasyPOINTS: 0 / 1REF:  page 100 

8. Which of the following statements is true?a. The balance sheet, the income statement and the cash flow statement are totally

linked. b. There are links only between the balance sheet and the cash flow statement.c. There is no link between the balance sheet, the income statement and the cash

flow statement.d. There are links only between the income statement and the cash flow

statement.

ANSWER: AEasy

POINTS: 0 / 1REF:  page 101 

9. The income statement impact on the cash flow statement is through revenues andexpenses collected or paid during the year.a. True

 b. False

ANSWER: AEasy

POINTS: 0 / 1REF: a e 102

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10. Continental European balance sheets reflect a patrimonial approach and so list currentassets at the top.a. True

 b. False

ANSWER: B

EasyPOINTS: 0 / 1REF:  page 106 

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