Financial Statement Presentation, CICA PSA Handbook, Requires Governments and Public

question 32

Multiple Choice

Financial Statement Presentation, CICA PSA Handbook, requires governments and public sector entities to include indicators of financial position, the measure of operating surplus or deficit and other information for the benefit of financial statement users. The statement of financial position indicators include:

• A)Net debt.
• B)Operating surplus or deficit.
• C)Change in net debt.
• D)Cash and cash equivalents.

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Definitions:

Domestic Corporations

Companies that are incorporated and operate within the legal framework of a specific country.

Subsidiaries

Companies that are partially or fully owned by another company, which usually holds a controlling interest in the subsidiary's shares.

Accrual-based Net Income

Net income calculated under the accrual basis of accounting, recognizing revenues when earned and expenses when incurred, regardless of cash flow.

Domestic Corporations

Companies that are incorporated and operate within the legal jurisdiction of a specific country.