Reference no: EM133134097
Question 1 - Violan Co. acquired 100% of Anne Marie Corp. prior to 2022. During 2022, the individual companies included in their financial statements the following:
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Violan
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Anne Marie
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Officers' salaries
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P75,000
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P50,000
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Loans to officers
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125,000
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50,000
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Intercompany sales
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150,000
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What amount should be reported as related-party disclosures in the notes to Violan's 2022 consolidated financial statements?
a. P150,000
b. P350,000
c. P300,000
d. P450,000
Question 2 - Which is incorrect concerning the overall considerations in the preparation and presentation of financial statements?
a. An entity shall prepare its financial statements, except for cash flow information, under the accrual basis of accounting.
b. The presentation and classification of items in the financial statements shall be retained from one period to the next.
c. Asset and liabilities, income and expenses, shall not be offset unless required or permitted by another PFRS.
d. Comparative information need not be disclosed in respect of the previous period for all numerical information in the financial statements.
Question 3 - The statement of financial position is useful for analyzing all of the following, except:
a. Liquidity
b. Solvency
c. Profitability
d. Financial flexibility