Reference no: EM132759278

Problem 1: A bank loan for $50 000, taken out on 1 July 2018, is repayable in equal instalments, plus interest, over 5 years. The annual repayments are due on the second last day of the financial year. How would the loan be classified in a balance sheet prepared at 30 June 2019, the end of the entity's financial year?

Select one:

a. Current liability $5 000; non-current liability $45 000

b. Current liability $10 000; non-current liability $50 000

c. Current liability $10 000; non-current liability $40 000

d. Non-current liability $50 000

Problem 2: Which of the following is not a constraint of the Conceptual Framework's qualitative characteristic of timeliness?

Select one:

a. The frequency of the reporting perioD.

b. Preparing financial reports for a 12-month perioD.

c. Having information available in time to influence decisions.

d. The longer the delay in publication of the financial reports after the end of the financial period, the less relevant the information for decision-making purposes.