not set
1. How should an associate be accounted for in the consolidated statement of financial position (Balance Sheet)?
-
The group share of the associate's profit after tax and dividends is recorded as a one-line entry.
-
Only dividends received from the associate are recorded in the group statement of profit or loss
-
The associate's assets and liabilities are added to those of the group on a line-by-line basis.
-
The group share of the associate's assets and liabilities is added to the group figures on a line- by-line basis.
2. How does IAS 28 Investments in associates and joint ventures require investments in more than 20% equity of another company to be measured and accounted for?
-
Percentage share of the associate's income is added to the group's account on the statement of financial position
-
Fair value with changes going through profit or loss.
-
Fair value with changes going through other comprehensive income.
-
Amortised cost with changes going through profit or loss.
3. Which of the following statements can be regarded as advantages of Cash Flow Statement?
1. Shows ability of the business to generate cash
2. Gives creditors and employers the information if the company can to repay them than what is more useful for these groups of stakeholders than its profitability
3. It is easier to understand and more difficult to manipulate than statements based on accruals concept 4. Provides additional information on liquidity of the company
-
1, 3, and 4
-
Only 1
-
All of the above
-
None of the above
4. If a company issues shares-ordinary to acquire an CHF95,000 machine, how would the transaction appear on the statement of cash flows?
-
It would depend on whether you are using the direct or the indirect method
-
It would be a positive CHF95,000 in the financing section and a negative CHF95,000 in the investing section
-
It would be a negative CHF95,000 in the financing section and a positive CHF95,000 in the investing section
-
It would not appear on the statement of cash flows
5. Which of the following items is NOT a change of accounting estimate under IAS 8 Accounting policies, changes in MC accounting estimates and errors?
-
A change in reporting depreciation charges as cost of sales rather than as administrative expenses
-
Depreciation charged on reducing balance method rather than straight line
-
Decision to increase Allowance for Doubtful Accounts from 5% to 7% of Sales Decision to increase Allowance for Doubtful Accounts from 5% to 7% of Sales
-
Revising the remaining useful life of a depreciable asset
6. Which one of the following would be treated under IAS 8 Accounting policies, changes in accounting estimates and MC errors as a change of accounting policy?
-
A change of depreciation method from the straight-line method to the units-of-production method
-
Decision to increase Allowance for Doubtful Accounts from 5% to 7% of Sales
-
A change in valuation of inventory from a FIFO basis to weighted-average basis
-
Decision to capitalize borrowing costs which have arisen for the first time
7. How does the Conceptual Framework define an asset?
-
A resource owned by an entity as a result of past events and from which future economic benefits are expected to flow to the entity
-
A resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity
-
A resource over which an entity has legal rights as a result of past events and from which economic benefits are expected to flow to the entity
-
A resource to which an entity has a future commitment as a result of past events and from which future economic benefits are expected to flow from the entity.
8. How does the Conceptual Framework define a liability?
-
A present obligation of the entity to transfer an economic resource as a result of past events
-
An obligation owed by an entity as a result of present events
-
A resource to which an entity has legal rights as a result of past events and from which economic benefits are expected to flow to the entity
-
An obligation to which an entity has a future commitment as a result of past events and from which future economic costs are expected to flow out of the entity.
9. The accountant of Word Corp. is finalizing the consolidated financial statements. Which of the following statements MC is true regarding consolidated financial statements?
-
Goodwill on acquisition should be amortised over a period not exceeding 20 years.
-
The non-controlling interest share of profit is part of the consolidated statement of financial position.
-
If a subsidiary is acquired during the year, its results are NOT apportioned over the year of acquisition.
-
Only the group share of the subsidiary's non- current assets is shown in the statement of financial position
10. The accountant of Word Corp. is finalising the consolidated financial statements. Which of the following statements MC is true regarding consolidated financial statements?
-
Goodwill on acquisition should be amortised over a period not exceeding 20 years.
-
Account “Investment in Subsidiary” is shown in the Long-term Assets category in the consolidated statement of financial position.
-
Only the group share of the subsidiary's non- current assets is shown in the statement of financial position
-
If a subsidiary is acquired during the year, its results are apportioned over the year of acquisition
11. IFRS 10 Consolidated financial statements provides a definition of control and identifies three separate elements of control.
-
Power over the investee
-
The power to participate in the financial and operating policies of the investee
-
Exposure to, or rights to, variable returns from its involvement with the investee
-
The ability to use its power over the investee to affect the amount of the investor's returns
12. Monroe Corp. is being sued by a customer for $3 million for breach of contract over a cancelled order. Monroe Corp. has obtained legal opinion that there is a 30% chance that Monroe will lose the case. Accordingly Monroe has provided $900,000 ($3 million × 30%) in respect of the claim. What is the amount of the provision that should be made by Monroe Corp. in accordance with IAS 37 Provisions, contingent liabilities and contingent assets?
-
$600,000
-
$3,000,000
-
None of the above
-
$0
13. The following two issues relate to Quartz Co’s mining activities:
Issue 1: Quartz Co began operating a new mine in January 2022 under a five-year government licence which required Quartz Co to landscape the area after mining ceased at an estimated cost of $250,000.
Issue 2: During 2024, Quartz Co’s mining activities caused environmental pollution on an adjoining piece of government land. There is no legislation which requires Quartz Co to rectify this damage, however, Quartz Co does have a published environmental policy which includes assurances that it will do so. The estimated cost of the rectification is $1,000,000.
In accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets, which of the following statements is correct in respect of Quartz Co’s financial statements for the year ended 31 December 2024?
-
Both issues 1 and 2 require disclosure only
-
A provision is required for the cost of issue 1 but issue 2 requires disclosure only
-
A provision is required for the cost of both issues 1 and 2
-
ssue 1 requires disclosure only and issue 2 should be ignored
14. The following two issues relate to Quartz Co’s mining activities:
Issue 1: Quartz Co began operating a new mine in January 2022 under a five-year government licence which required Quartz Co to landscape the area after mining ceased at an estimated cost of $250,000.
Issue 2: During 2024, Quartz Co’s mining activities caused environmental pollution on an adjoining piece of government land. There is no legislation which requires Quartz Co to rectify this damage and Quartz Co has not published environmental policy which includes assurances that it will do so. The estimated cost of the rectification is $100,000.
In accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets, which of the following statements is correct in respect of Quartz Co’s financial statements for the year ended 31 December 2024?
-
Both issues 1 and 2 require disclosure only
-
Issue 1 requires disclosure only and issue 2 should be ignored
-
A provision is required for the cost of both issues 1 and 2
-
A provision is required for the cost of issue 1 but issue 2 can be ignored
15. Which of the following constitutes a Provision Liability? 1. Reserves for business recession
2. Environmental damage
3. Warranties
4. Onerous contracts
-
All of the above are Provision Liabilities
-
Only 1, 2 , and 3
-
2, 3 and 4
-
1, 2, and 4
16. XYZ Co purchased a bond for $411,351 on 1 January 2021. No interest is payable on the bond, but it will be held to maturity and redeemed on 31 December 2024 for $500,000. The bond has been designated as at fair value through profit or loss. The effective interest rate is 5%. The bond is sold at:
-
Premium
-
Par value
-
Discount
-
Coupon rate
17. XYZ Co purchased a bond for $604,686 on 1 January 2021. No interest is payable on the bond, but it will be held to maturity and redeemed on 31 December 2023 for $700,000. The bond has not been designated as at fair value through profit or loss. The effective interest rate is 5%. The bond is sold at:
-
Premium
-
Discount
-
Par value
-
Coupon rate
18. Company A purchased equity shares of another company and elected to classify them as non-trading (it's a long-term investment). How does IFRS 9 Financial Instruments require investments in equity instruments to be measured and accounted for?
-
Fair value with changes going through Income Statement
-
Amortised cost with changes going through Income Statement
-
Fair value with changes going through the Statement of Other Comprehensive Income
-
Amortised cost with changes going through the Statement of Other Comprehensive Income
19. Which of the following events which occur after the reporting date of a company but before the financial statements are authorised for issue is classified as adjusting events in accordance with IAS 10 Events after the reporting period?
-
The discovery of a fraud which had occurred during the year
-
A change in tax rate announced after the reporting date, but affecting the current tax liability
-
Loss of assembly plant due to fire in January 2022 (the year-end date is December 31, 2022)
-
Merger with another company of comparable size
20. Which of the following events which occur after the reporting date of a company but before the financial statements are authorised for issue is classified as adjusting events in accordance with IAS 10 Events after the reporting period?
-
A change in tax rate announced after the reporting date, but affecting the current tax liability
-
Issuance of a significant number of ordinary shares
-
The destruction of a factory by fire
-
The determination of the sale proceeds of an item of plant sold before the year end
21. Which of the following events are the examples of events that require adjustment to the financial statements according to IAS 10 Events after the reporting period?
1. Amounts received or paid in respect of legal or insurance claims which were in negotiation at the year end
2. Discovery of error or fraud which shows that the financial statements were incorrect
3. Material loss on a year-end receivable because of a customer’s bankruptcy
4. Litigation commenced after the reporting period
-
All of the above
-
1, 2 and 3
-
Only 1 and 2
-
Only 2 and 3
22. In 2022 Smart Co. purchases a debt instrument which will mature in five years' time. Smart Co. portfolio manager intends to use the debt instrument for trading and sell it as soon as the FMV of the debt instrument goes up. How should this debt instrument be measured in the financial statements of Smart Co.?
-
As a financial liability at fair value through profit or loss
-
As a financial liability at amortised cost
-
As a financial liability at amortised cost As a financial asset at fair value through profit or loss
-
As a financial asset at amortised cost
23. ABC Company purchased a debt instrument which will mature in five years' time. ABC Company intends to hold the debt instrument to maturity to collect interest payments. How should this debt instrument be measured in the financial statements of ABC Company?
-
As a financial asset at amortised cost
-
As a financial asset at fair value through profit or loss
-
As a financial liability at amortised cost
-
As a financial liability at fair value through profit or loss
24. For an asset to be classified as 'held for sale' under IFRS 5 Non-current assets held for sale and discontinued operations its sale must be 'highly probable'. Which one of the following is a requirement if the sale is to be regarded as highly probable?
-
A buyer must have been located for the asset
-
The asset must be marketed at a price above Fair Market Value
-
The sale should be expected to take place within 3 years from the date of classification
-
Management must be committed to a plan to sell the asset.
25. For an asset to be classified as 'held for sale' under IFRS 5 Non-current assets held for sale and discontinued operations its sale must be 'highly probable'. Which one of the following is a requirement if the sale is to be regarded as highly probable?
-
The sale should be expected to take place within 1 year from the date of classification
-
A buyer must have been located for the asset
-
The asset must be marketed at a price above Fair Market Value
-
Accountant makes a journal entry to reclassify the non-current asset as “held for sale”
26. Which:
of the following is among the criteria set out in IFRS 16 Leasing for an arrangement to be classified as a Lease
-
The lease term covers the entire economic life of the asset
-
The lease agreement concerns an asset that can be substituted
-
The lessor has the right to direct the use of the asset
-
The lessee has the right to substantially all of the economic benefits from use of the asset
27. Which:
of the following is among the criteria set out in IFRS 16 Leasing for an arrangement to be classified as a Lease
-
The lease term covers the entire economic life of the asset
-
The lease term covers the entire economic life of the asset The lease agreement concerns an asset that can be substituted
-
The lessor has the right to direct the use of the asset
-
The lessee has the right to substantially all of the economic benefits from use of the asset
28. Which :
of the following is among the criteria set out in IFRS 16 Leasing for an arrangement to be classified as a Lease
-
The lease term covers the entire economic life of the asset
-
The lease agreement concerns an identified asset that cannot be substituted
-
The lease agreement concerns an asset that can be substituted
-
The lessor has the right to direct the use of the asset
29. Which of the following is not an advantage of leasing to lessor: 1. Leasing can provide profitable interest margins
2. Leasing can increase sales of company's product
3. Leasing can provide less costly financing
4. Leasing can stimulate sales of a lessor’s product
-
All of the above are disadvantages of leasing to lessor
-
Only 4
-
Only 3
-
Only 1, 3, and 4
30. Which of the following is not an advantage of leasing to lessor: 1. Leasing can provide profitable interest margins
2. Leasing can increase sales of company's product
3. Leasing can provide less costly financing
4. Leasing can stimulate sales of a lessor’s product
-
All of the above are disadvantages of leasing to lessor
-
Only 4
-
Only 3
-
Only 1, 3, and 4
31. Which of the following is an advantage of leasing to lessor: 1. Leasing can provide profitable interest margins
2. Leasing can increase sales of company's product
3. Leasing can provide less costly financing
4. Leasing can stimulate sales of a lessor’s product
-
All of the above are advantages of leasing to lessor
-
Only 1 and 4
-
Only 1, 3, and 4
-
Only 1,2,and 4
32. Which of the following is an advantage of leasing to lessor: 1. Leasing can provide profitable interest margins
2. Leasing can increase sales of company's product
3. Leasing can provide less costly financing
4. Leasing can stimulate sales of a lessor’s product
-
Only 1,2,and 4
-
All of the above are advantages of leasing to lessor
-
Only 1 and 4
-
Only 1, 3, and 4
33. Mester Co has a building with a carrying amount of $12,000,000 and the remaining useful life of 22 years. There has been a surge in real estate prices in the current year, and the building is now worth $16,000,000. If the company management does NOT elect a fair market value (FMV) option for valuation of this building, then the company:
-
use the carrying value of $12,000,000 for subsequent deprecation calculations
-
recognize Gain on Revaluation of $4,000,000 in the Statement of Other Comprehensive Income
-
recognize Gain on Revaluation of $4,000,000 in the Statement of Profit and Loss
-
use the carrying value of $16,000,000 for subsequent deprecation calculations
page d'accueil 
Canaux 
Heure du jeu 
quiz avec résultats