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  • Quiz - PFRS 7 - Financial Inst - Disclosures

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    Gonzalo Jr. Ruales
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    PFRS 7 establishes requirements for disclosures about financial instruments and how they are affected by risks. It requires entities to provide disclosures in their financial statements that enable users to evaluate: 1) The significance of financial instruments for the entity's financial position and performance. 2) The nature and extent of risks arising from financial instruments that the entity is exposed to during the period and at the end of the reporting period, and how the entity manages those risks.

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    QUIZ_PFRS 7_FINANCIAL INST_DISCLOSURES

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    PFRS 7 establishes requirements for disclosures about financial instruments and how they are affected by risks. It requires entities to provide disclosures in their financial statements that enable users to evaluate: 1) The significance of financial instruments for the entity's financial position and performance. 2) The nature and extent of risks arising from financial instruments that the entity is exposed to during the period and at the end of the reporting period, and how the entity manages those risks.

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    4K views1 page

    Quiz - PFRS 7 - Financial Inst - Disclosures

    Uploaded by

    Gonzalo Jr. Ruales
    PFRS 7 establishes requirements for disclosures about financial instruments and how they are affected by risks. It requires entities to provide disclosures in their financial statements that enable users to evaluate: 1) The significance of financial instruments for the entity's financial position and performance. 2) The nature and extent of risks arising from financial instruments that the entity is exposed to during the period and at the end of the reporting period, and how the entity manages those risks.

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    PFRS 7 Financial Instruments: Disclosures

    QUIZ:
    1. Mark Ngina’s Sari-sari Store has a sign that reads “Your credit is good but I need cash.” What
    type of risk is Mr. Mark trying to avoid by putting up that sign?
    a. credit risk
    b. market risk
    c. liquidity risk
    d. store risk

    2. How does PFRS 7 define “liquidity risk”?


    a. The risk that an entity will encounter difficulty in meeting obligations associated with
    financial liabilities.
    b. The risk that an entity will encounter difficulty in disposing a financial asset due to lack of
    market liquidity.
    c. The risk that an entity will encounter difficulty in meeting cash flow needs due to cash flow
    problems.
    d. The risk that an entity’s cash inflows will not be sufficient to meet the entity’s cash outflows.
    (Adapted)

    “Formal education will make you a living; self-education will make you
    a fortune.” - Jim Rohn
    - END –

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