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Quiz Financial Statements

The document discusses requirements for the GAM for NGAs (Government Accounting Manual for Non-Governmental Agencies). It states that the GAM requires all information to be displayed prominently and repeatedly on financial statements, except for the name of related registries, name of fund cluster, reporting currency, or level of rounding off of amounts.

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Ezer Cruz Barrantes
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2K views7 pages

Quiz Financial Statements

The document discusses requirements for the GAM for NGAs (Government Accounting Manual for Non-Governmental Agencies). It states that the GAM requires all information to be displayed prominently and repeatedly on financial statements, except for the name of related registries, name of fund cluster, reporting currency, or level of rounding off of amounts.

Uploaded by

Ezer Cruz Barrantes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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The GAM for NGAs requires all of the following information to be displayed prominently

and repeatedly on the face of the financial statements, except

Group of answer choices

Name of the related Registries used


Name of fund cluster
The reporting currency
The level of rounding-off of amounts

Which of the following does not lead to the classification of a liability as current?

Group of answer choices

It is cash or a cash equivalent, unless it is restricted from being exchanged or


used to settle a liability for at least 12 months after the reporting date.
Held primarily for trading.
Due to be settled within 12 months after the reporting date.
Expected to be settled in the entity’s normal operating cycle.

A government entity presents payments for purchases of items of PPE in the statement
of cash flows

Group of answer choices

net of withholding taxes.


gross of withholding taxes.
as footnote disclosure only.
under financing activities.
When an entity presents expenses in the statement of financial performance by
function, it shall provide additional disclosures in the notes that include all of the
following except

Group of answer choices

amortization expense
depreciation expense
employee benefits expense
capital outlays

According to the GAM for NGAs, government entities shall present expenses in the
statement of financial performance according to the

Group of answer choices

b. nature of those expenses


a. function of those expenses
c. a or b, as a matter of accounting policy choice
d. neither a nor b

The presentation requirements for statement of cash flows of government entities differ
from the requirements of a business entity in which of the following respects?

Group of answer choices

The presentation of statement of cash flows in comparative form, with cross-referencing


to the notes whenever deemed relevant to the understanding by users of financial
statements.
The classification of cash flows according to operating, investing and financing
activities.
The presentation of cash flows from (used in) investing and financing activities at gross
amounts of receipts and disbursements, unless the conditions for presenting at net
amounts are met.
The presentation of cash flows from (used in) operating activities using the direct
method only; the choice of using the indirect method is not available.

A government entity recognizes the effect of this item in surplus or deficit rather than
directly in equity.

Group of answer choices

Correction of a prior period fraudulent transaction that is discovered in the current year
The increase in the fair value of an investment that is classified as available-for-sale
financial asset
Receipt of Notice of Cash Allocation
Change in accounting policy

Which of the following information is not reported in the statement of changes in net
assets/equity?

Group of answer choices

The balance of accumulated surpluses or deficits at the beginning of the period and at
the reporting date, and the changes during the period.
Effects of changes in accounting estimates.
Surplus or deficit for the period
Items of revenue and expense that are recognized directly in equity
Changes in accounting policies are accounted for

Group of answer choices

using the transitional provision, if any.


any of these
by prospective application
by retrospective application.

These differences between the ‘actual amounts on comparable basis’, presented in the
statement of comparison of budget and actual amounts, and amounts presented in the
other components of financial statements occur when the approved budget is prepared
on a basis other than the accounting basis.

Group of answer choices

Timing Differences
Basis Differences
Entity Differences
Permanent Differences

According to the GAM for NGAs, a Condensed Statement of

Financial Position is one that presents line items only rather than all the accounts used
by the entity.

Group of answer choices

True
False
The GAM for NGAs requires government entities to present expenses in the statement
of financial performance according to the function of those expenses.

Group of answer choices

True
False

Which of the following is most likely applicable to a government entity but not to a
business entity?

Group of answer choices

Presenting cash flows from operating activities in the statement of cash flows using the
direct method
Presenting a statement of financial position in a detailed format.
Presenting a classified statement of financial position showing distinctions between
current and noncurrent assets and liabilities
Presenting additional disclosures in the notes when expenses are presented in the
statement of financial performance by function

Which of the following is an adjusting event?

Group of answer choices

Sale of inventories that evidences the correct NRV of inventories at the reporting
date.
Settlement of a court case that evidences a present obligation after the reporting date.
Destruction of a building due to fire that occurred after the reporting date.
Destruction of a building due to fire that occurred after the reporting date.
The statement of financial position is dated as at the reporting date.

Group of answer choices

True
False

The statement of financial performance of a government entity is the exact equivalent of


the statement of comprehensive income of a business entity.

Group of answer choices

True
False

Non-adjusting events are never recognized but are always disclosed.

Group of answer choices

True
False

Prior period errors are corrected by retrospective restatement.

Group of answer choices

True
False
In the first instance, changes in accounting policies are accounted for by retrospective
application.

Group of answer choices

True
False

Unlike business entities, government entities are required to prepare interim financial
statements on a quarterly basis.

Group of answer choices

True
False

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