The Correct Heading on a Statement of Financial Position Prepared

question 3

Multiple Choice

The correct heading on a statement of financial position prepared for 30 June 2019 is:

• A) 30th June 2019
• B) as at 30 June 2019
• C) for the year ended 30 June 2019
• D) for the period ended 30 June 2019

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Definitions:

Cash Flows Characteristics Test

The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest.

Financial Asset

An intangible asset deriving value due to a contractual claim, such as cash, stock, bonds, and bank deposits.

Objective Evidence

Objective evidence refers to information, facts, or data that can be quantifiably measured or verified, uninfluenced by feelings, interpretations, or bias.

Impaired

Refers to a reduction in the recoverable value of an asset below its carrying amount on the balance sheet, indicating a loss in value that must be accounted for.