Kindly answer the following items in problems 7-1 and 7-2. ctive7.talalPROBLEMSProblem 7-1 Multiple choice (Conceptual Framework)1. The presentation and disclosure requirement achievesall of the following, excepta. An effective communication toolb. More relevant and faithfully represented financialinformationC. Understandability and comparability of informationd. Financial position, financial performance and cashflows2. It is the sorting of assets, liabilities, equity, income andexpenses with similar characteristics.a. Classificationb. Summarizationc. Interpretationd. Recognition3. All of the following can considered appropriateclassification, excepta. Current and noncurrent assetsb. Current and noncurrent liabilitiesc. Ordinary shares and preference sharesd. Offsetting asset and liability4. Income and expenses are classified asa. Profit or loss and other comprehensive incomeb. Profit loss and retained earningsc. Retained earnings and other comprehensive incomed. Ordinary and extraordinary5. What is the new term to describe the income statementor statement of profit or loss together with the statementshowing other comprehensive income.a. Income statementb. Statement of comprehensive incomec. Statement of other comprehensive incomed. Statement of financial performance137 Problem 7-2 Multiple choice (Conceptual Framework)1. Financial capital is defined asa. Net assets in monetary terms.b. Net assets in terms of physical productive capacity.c. Legal capital.d. Share capital issued and outstanding.2. The physical capital maintenance concept requires theadoption of which measurement basis?a. Historical costb. Current costC.Fair valued. Present value3. Which concept is applied to net income and othercomprehensive income?a.Financial capitalb. Physical capitalc. Legal capitald. Borrowed capital4. Which statement regarding the term profit is true?a. Profit is any amount over and above that required tomaintain the capital at the beginning of the period.b. Profit is equal to income minus expenses.c. Profit is the equivalent of net income under IFRS.d. All of these statements are true about the term profit.5. Under the financial capital concept, net income occurswhena. The nominal amount of net assets at year-endincreased.b. The physical productive capital at year-end increasedafter excluding any distributions to and contributionsfrom owners.c. The nominal amount of net assets at year-endincreased after excluding distributions to andcontributions from owners.d. The physical productive capital at year-end increased.138CHPRESAn intStaterPAS 1TECHTo ideTo unTo knTo urasTo krрс

d. Financial position, financial performance and cash flows are directly determined by the financial…

1. The presentation and disclosure requirement achieves all of the following, except An effective communication tool a. b. More relevant and faithfully represented financial information C. Understandability and comparability of information d. Financial position, financial performance and cash flows 2. It is the sorting of assets, liabilities, equity, income and expenses with similar characteristics. a. Classification b. Summarization c. Interpretation d. Recognition 3. All of the following can considered appropriate classification, except a. Current and noncurrent assets b. Current and noncurrent liabilities c. Ordinary shares and preference shares d. Offsetting asset and liability 4. Income and expenses are classified as a. Profit or loss and other comprehensive income b. Profit loss and retained earnings c. Retained earnings and other comprehensive income d. Ordinary and extraordinary 5. What is the new term to describe the income statement or statement of profit or loss together with the statement showing other comprehensive income. a. Income statement b. Statement of comprehensive income c. Statement of other comprehensive income d. Statement of financial performance