Study Questions for Chapter Four

1. Unless a reporting entity is under ……….. to present its financial position showing assets (resources) and liabilities (obligations) in the order of liquidity as is the case of financial institutions, the entity shall separately portray its resources and obligations under current and non-current classifications.

2. It is important to ……… the assets based on the current and non-current categories.

3. Assets that are principally held for ……… are classified as current in the statement of financial position.

4. ……. is the amount that is remaining after deducting liabilities from assets.

5. Liabilities that are primarily held for ……. are classified as current in the statement of financial position.

6. IAS 1 allows the …….. of Assets equals Equity Plus Liabilities.

7. The presentation of Assets Less Liabilities equals to Equity is the …………..

8. Property, plant, and equipment are classified as ………….

9. Share capital and retained earnings are classified as …………

10. Inventories are classified as …………