- CFA Exams
- CFA Exam: Level I 2021
- Study Session 6. Financial Reporting and Analysis (1)
- Reading 20. Financial Reporting Standards
- Subject 4. General Requirements for Financial Statements
CFA Practice Question
Which statement is false regarding the general requirements for financial statements?
B. All material items shall be presented.
C. Assets and liabilities can not be offset.
D. A classified income statement is one of the required financial statements.
A. Dissimilar immaterial items can be aggregated.
B. All material items shall be presented.
C. Assets and liabilities can not be offset.
D. A classified income statement is one of the required financial statements.
Correct Answer: D
The balance sheet, not the income statement, needs to be classified.
User Contributed Comments 3
| User | Comment |
|---|---|
| johntan1979 | How is A correct? Immaterial? I thought measurable and relevant (material) transactions should be recognized. |
| Shaan23 | If they are immaterial they can be grouped together on the Financial statements....it makes no affect to us the users..will NOT affect our decisions... material ones will and need to be seperate |
| jrojasut09 | thanks @Shaan23 |