1. Which statement is false?

First statement: Comprehensive income reports an expanded version of income to

include certain types of gains and losses not included in traditional income

statements.

Second statement: Comprehensive income is the total change in shareholders' equity

that occurred during the period.

A. 2nd statement only

B. None

C. First only

D. Both statements

2.Other comprehensive income includes all of the following except

A. Loss from translating the financial statements of a foreign operation

B.Share premium

C.Unrealized gain on available for sale financial asset

D.Actuarial gain on defined benefit plan that is fully recognized

3. Which statement is true?

First statement: Philippine Financial Reporting Standards require a company to

classify expenses in an income statement by function.

Second statement: Income from continuing operations sometimes includes gains

from non-operating activities

A. Both

B. 1st stement

C. None

D. The 2nd

4. A characteristic of the notes to the financial statements is that:

A. They describe accounting policies

B. They are separate from the financial statements.

C.They are not important.

D.They present information that can be expressed in money terms.