1. PAS 8 provides that an entity shall correct material prior period errors retrospectively in
the first set of financial statements authorized for issue after the discovery by
a. Restating the comparative amounts for the latest period presented in which the error
was discovered.
b. Restating the opening balances of asset liabilities and equity for all prior period
presented if the error occurred before the earliest period presented
c. Restating the comparative amounts for the latest period presented in which the
error was Corrected
d. Restating the opening balances of asset, liability and equity for the earliest period
presented if the error occurred before the earliest period presented
2. preferred shares with specific redemption date and acquired before the balance sheet date
can qualify as cash equivalents
a. True
b. False, if cannot qualify as cash equivalents
c. False, it should be acquired three months before the balance sheet date
d. False, it should be acquired three months before the redemption date
3. in which circumstances that a bank overdraft is include as component of cash and cash
equivalent
a. when it s repayable on demand
b. when it is repayable on demand or form an integral part of an entity’s cash
management
c. when it is repayable on demand and form an integral part in the entity’s cash
financial statement
d. when it is repayable on demand and form an integral part of an entity’s cash
management
4. if the containers are not returnable, they are
a. Charged to loss
b. Charged to gain
c. Charged to the cost of the product