FI

NANCI
ALACCOUNTINGTHEORY-TESTBANK
80102016-2
1.Theobj
ecti
vesoff i
nanci
alrepor
tingarebasedon
a.General
lyacceptedaccounti
ngpr i
nci
ples
b.Reporti
ngforregul
ators
c.Theneedf orconserv
ati
sm
d.Theneedsoft heusersoftheinformat
ion

2.Therelevanceofpr ovi
dingi
nfor
mat
ioni
nfi
nanci
alst
atement
sissubj
ectt
othe
const
raintof
a.Compar abil
i
t y
b.Cost -
benef i
t
c.Reliabil
i
ty
d.Faithfulrepresent
ati
on

3.Whichoft hef ol
lowingisanenhanci
ngqual
it
ythatr
elat
est
obot
hrel
evanceand
fai
thf
ulrepresentati
on?
a.Compar abili
ty
b.Confirmatoryv al
ue
c.Predicti
vev al
ue
d.Freedom f r
om error

4.Whatist
her equi
rementfori
ncorporat
inganitem i
ntothefi
nancialst
atement
s?
a.Itmeetsthedefi
niti
onofrel
evanceandf ai
thf
ulrepr
esentat
ion.
b.Itmeetsthedefi
niti
onofanel ementandcanbemeasur edr el
iabl
y
c.Itsat
isf
iesthecri
teri
aofcapi
talmaintenance
d.Itmeetstherequi
rementofcompar abil
i
tyandconsist
ency.

5.Whati
sthepurposeofreport
ingcomprehensiveincome?
a.Torepor
tchangesinequityduetotransact
ionswithowners.
b.Torepor
tameasur eofoveral
lenti
typerfor
mance.
c.Torepl
acenetincomewi t
habet t
ermeasur e.
d.Tocombineincomef rom cont
inui
ngoper ati
onswi t
hincomefr
om di
scont
inued
oper
ati
ons.

6.When a f ul
l set of gener al
-purpose f i
nanci
al stat
ements are pr esent
ed,
comprehensiv
eincomeandi tscomponent sshould
a.Appearasapar tofdisconti
nuedoper ati
ons.
b.Ber epor
tednetofr elat
edincomet axshouldeff
ect,
intot
alandindi
vidual
ly.
c.Appearinasuppl ement alscheduleinthenotestofi
nancial
stat
ement s.
d.Bedi spl
ayedi naf inanci
alst at
ementt hathast hesamepr ominenceasot her
fi
nancialstat
ement s.

7.Whi
chisanaccept ablemethodforreport
ingcomprehensi
vei ncomeunderI
FRS?
a.Onecompr ehensivei
ncomest at
ement .
b.Twostatements, ani
ncomest at
ementandacompr ehensiveincomest
atement
.
c.Int
hestatementofchangesi nequity
.
d.Onecompr ehensiveincomestatementort wostat
ement s,anincomestat
ement
andacompr ehensiveincomestatement

8.Whi
choft hefoll
owingist rueaboutf inancialstatementrequir
ement s?
a.Prioryearcomparati
vef i
nanci
al statement sarerequir
ed.
b.I
ncomest at
ementsf ort hr
eey earsar erequired.
c.Statementsoffi
nanci alpositi
onf orthreey earsarerequir
ed.
d.Therear enospecif
icr equir
ement sr egardingcompar ati
vefinancial
stat
ement
s.
 Page 2
9.Whichofthefol
lowi
ngitemswoul dcauseearningstodifferfr
om compr
ehensi
ve
i
ncome?
a.Unreal
i
zedlossoninv
est mentclassi
fi
edasav ai
labl
eforsale
b.Unreal
i
zedlossoninv
est mentclassi
fi
edastrading
c.Lossonexchangeofsimilarasset
d.Lossonexchangeofdissimil
arasset

10.
Whi
choft hefoll
owingst at
ementsconfor
mst ot
her eal
i
zati
onconcept?
a.Equipmentdepr eciat
ionwasassignedt oapr oducti
ondepartmentandt
hent
o
productunitcost.
b.Depreciat
edequi pmentwassoldinexchangef oranoterecei
vabl
e.
c.Cashwascol l
ectedonaccountsrecei
vable.
d.Productunitcostswer eassi
gnedtocostofgoodssol dwhentheunit
swer
esol
d.

11.
Whatistheunder l
yi
ngconceptt
hatsuppor
tsest
imat
ingaf
ixedasseti
mpai
rment
char
ge?
a.Substanceov erfor
m
b.Consistency
c.Matching
d.Fait
hfulrepr
esentat
ion

12.
Whati
stheconceptthatsuppor
tst
hei
ssuanceofi
nter
imr
epor
ts?
a.Rel
evance
b.Mater
ial
ity
c.Consi
stency
d.Fai
thf
ulrepresent
ati
on

13.
Whi
chofthefoll
owi ngi sanessent
ialcharact
eri
sti
cofanasset
?
a.Thecl
aimst oanasset ’
sbenefi
tsarelegal
lyenf
orceabl
e.
b.Anasseti
st angible.
c.Anasseti
sobt ai
nedatacost .
d.Anassetprovidesf utur
ebenefi
ts.

14.
Theinstall
mentmet hodofaccounti
ngmaybeusedi fthe
a.Collecti
onper i
odextendsovermoret hantwelv
emont hs.
b.Install
ment saredueindif
fer
entyears.
c.Ulti
mat eamountcol l
ecti
blei
sindeterminat
e.
d.Per centageofcompleti
onmet hodi
si nappropr
iat
e.

15.
Whi chstatementbestj usti
fi
est heuseoft hecostrecover
ymet hodofrev
enue
recognit
iontoaccountf orinstall
mentsales?
a.Thesal escontractpr ovi
dest hatt i
tl
et otheequipmentonlypassestothe
purchaserwhenall payment shav ebeenmade.
b.Nocashpay ment sar edueunt iloneyearfr
om t
hedateofsale.
c.Sal esaresubj
ectt oahi ghr at
eofr et
urn.
d.Ther eisnoreasonabl ebasi sforesti
matingcol
l
ect
ibi
lit
y.

16.
Whichofthefoll
owingisnotoneofthecrit
eri
aforr
evenuerecognit
ionforsal
eof
goods?
a.Thesigni
fi
cantriskandrewar
dsofownershi
pofgoodsaretr
ansferred.
b.Paymenthasbeenr ecei
ved.
c.Theentit
ydoesnotr et
ainacont
inui
ngmanageri
alinvol
vementorcont r
olover
t
hegoods
d.Thecostsincurr
edcanbemeasuredreli
abl
y

17.
Whichoft hefoll
owingi sthef i
rststepwithi
nthehi er
archyofguidancewhen
sel
ect
ingaccounti
ngpolici
es?
a.Considert
hemostr ecentpronouncementsofot
herstandardset
ti
ngbodies.
b.Applyast andar
df r
om PFRSi fitspeci
fi
cal
lyrel
atestot hetr
ansact
ion,other
 eventorcondit
ion.
c.Consider the applicabil
i
ty of t he defi
nit
ions, r
ecognit
ion cr i
ter
ia and
measur ementconceptsintheConceptual
Framework
d.Applytherequi
rementsinPFRSdeal i
ngwithsi
mi l
arandrel
atedissues.

Page 3

18.
Theeffectofachangei naccount i
ngpoli
cyt hatisinseparablef r
om theeff
ectofa
changeinaccountingest imateshouldber eported
a.Byr estat
ingthefinancialstatementsofallpriorperi
odspr esented.
b.Asacor r
ecti
onofaner r
or.
c.Asacomponentofi ncomef rom cont
inuingoper at
ions,intheper i
odofchange
andfutur
eper i
odsi fthechangeaf fect
sbot h.
d.Asasepar at
edi sclosureaf t
erincomef rom continuingoper at
ions,i
ntheperi
od
ofchangeandf utureper i
odsi ft
hechangeaf f
ectsbot h.

19.
Ifi
tisi
mpracti
cabletodeterminethecumulati
veef fectofanaccounti
ngchanget
o
anyoft
hepriorperi
ods,theaccounti
ngchangeshoul dbeaccountedfor
a.Asapri
oradj ustment
b.Onaprospect i
vebasis
c.Asacumul ati
veeffectchangeinthei
ncomest atement
d.Asanadjustmenttor et
ainedearni
ngsinthefi
rstperiodpr
esented.

20.
An entit
yt hathas i ncluded i
n consoli
dated f
inanci
alst at
ement
st hi
sy eara
subsidi
aryacquir
edy earsagot hatwasappr opri
atel
yexcludedfr
om consol
i
dati
on
lasty
earshouldreport
a.Anaccount ingchangepr ospect
ivel
y.
b.Anaccount ingchanger etr
ospect
ivel
y.
c.Acor rect
ionofaner ror.
d.Nei t
heranaccountingchangenoracor recti
onofanerror.

21.
Avol
unt
arychangei naccountingmet hodmayonl
ybemadeif
a.Anewstandardmandat esthechangeinmethod
b.Managementpr efersthenewmet hod
c.Thenewmet hodpr ovidesrel
iabl
eandmorerelev
anti
nfor
mat
ion
d.Ther
eisnopr ohibit
ionfort
hechange.

22.
Thelossondisposalofadisconti
nuedcomponentshoul
d
a.Excludeassociat
edempl oyeerel
ocati
oncost
b.Excludeoperat
inglossfortheperi
od.
c.Includeassoci
atedemployeeterminat
ioncost
d.Excludeassociat
edleasecancelat
ioncost

23.
An ent
it
yr ecent lymov ed to anew bui l
ding.Theol d bui
ldi
ng i
sbeing act
ivel
y
market
edforsal e,andtheent i
tyexpectstocompl et
ethesal
einfourmonths.Each
oft
hefoll
owingst atement siscor r
ectregardingtheoldbui
ldi
ng,except
a.Itwil
lberecl assifi
edasanassethel dforsal e.
b.Itwil
lbecl assifi
edasacur r
entasset.
c.Itwil
lnolongerbedepr eciated.
d.Itwil
lbev aluedathi stori
cal cost.

24.
Financialstatement sshalli
ncludedi sclosuresofmat er
ialtransact
ionsbet ween
relat
edpar t
ies, except
a.Nonmonet aryexchangesbyaffi
li
ates.
b.Sal esofinv entorybyasubsidi
arytot hepar ent.
c.Expenseal lowancesforexecuti
veswhi chexceednormal businesspract
ice.
d.Anent i
ty’sagr eementt
oactassur etyf oral oantot
hechiefexecuti
v eof
ficer.

25.
Whati
sthepur
poseofi
nfor
mat
ionpr
esent
edi
nnot
est
ofi
nanci
alst
atement
s?
 a.Toprovidediscl
osuresrequiredbygener
all
yaccept edaccounti
ngpr
inci
ples.
b.Tocorrectimproperpresentati
oninthef
inancialst
atements.
c.Toprov i
der ecogni
ti
onofamount snotincludedi nthetotal
softhef inanci
al
st
atement s.
d.Topresentmanagementr esponsetoaudit
orcomment s.

Page 4

26.
Thesummar yofsignif
icantaccounti
ngpol i
ciesshoulddiscl
oset he
a.Proformaeffectofretr
oactiv
eapplicati
onofanaccount i
ngchange.
b.Basisofprofi
trecogniti
ononl ongterm construct
ioncontract
s.
c.Adequacyofpensi onplanassetsinrelati
ont ovestedbenefit
s.
d.Futureminimum leasepay mentsintheaggr egateandforeachofthesucceedi
ng
fi
scalyears.

27.
Whi
choft hefol
lowi ngi
snottrueaboutt hepresentati
onoffinancial
stat
ements?
a.A separatest atementofcompr ehensi
vei ncomeand separ at
est at
ementof
changesinequi tyar
erequir
ed.
b.TheLIFOcostf l
owassumpt i
onisnotal l
owedf orinvent
ories.
c.Presentat
ionofext r
aor
dinaryi
temsi srequir
ed.
d.Impairmentlossesmayber eversedinfutureperiods.

28.
Whi
choft hefol
lowingitemsisrequir
eddi
sclosur
eintheincomestatement
?
a.Revenue,costofgoodssol dandadver
tisi
ngexpense
b.Fi
nancecost ,t
axexpenseandi ncome
c.Operati
ngexpenses, nonoper
ati
ngexpensesandextraor
dinar
yit
ems
d.Grossprofi
t,operat
ingprofi
tandnetprofi
t

29.
Whichofthefol lowi nginvent
oryi
snotv
aluedatt
hel
owerofcostandnetr
eal
i
zabl
e
val
ue?
a.Manuf act
ur edi nv ent
ory
b.Retaili
nvent ory
c.Biologi
calinv entor y
d.Industr
iali
nv ent ory

30.
Thespeci f
icidenti
fi
cationmet hodofaccount ingfori
nvent
oryi
srequi
redfor
a.Allinventoryit
ems
b.Inventoryitemst hatareinterchangeable
c.Inventoryi t
emst hatar enoti nterchangeabl
eandgoodst hatareproducedand
segr egatedforspeci fi
cprojects.
d.Agriculturali
nventories.

31.
Whi
choft hef ol
l
owingisnottrueaboutaccountingfori
nventory?
a.FI
FOisal lowed
b.I
nter
estcost smaynotbecapi tal
i
zedwhenf i
nancingpurchaseofi
nvent
ory
c.Thewei ghtedaveragemethodisacceptable
d.I
nventoriesarealwaysval
uedatnetrealizabl
ev al
ue.

32.
Whi
choft hefoll
owingattr
ibut
eswoul
dnotbeusedt
omeasur
einv
ent
ory
?
a.Histori
cal cost
b.Replacementcost
c.Netr eali
zablevalue
d.Presentv alueoffutur
ecashfl
ows

33.
Whi
chofthefoll
owingst
atementsistr
ueaboutbiol
ogical
asset
s?
a.Bi
ologi
calasset
sareonlyfoundinBi
otechent
iti
es.
b.Bi
ologi
calassetsarel i
vi
ng animalsorplantsand mustbe di
scl
osed asa
 separatei
tem i
nthest
atementoffi
nanci
al posi
ti
on.
c.Biol
ogical
assetsmustbevaluedatcost
.
d.Biol
ogical
assetsdonotgeneral
l
yhavefutureeconomi
cbenef
it
s.

34.
Impai
rmentl
ossforassettobeheldandusedshal l
ber epor
ted
a.Asanextraor
dinar
yitem.
b.Asacomponentofdi scont
inuedoper
ations.
c.Asacomponentofi ncomef r
om cont
inuingoperat
ions.
d.Asachangeinaccount i
ngesti
mate.

Page 5

35.
Long-l
i
v edassetsarerequir
edtober evi
ewedforimpai
rment
a.Att heendofr eporti
ngperi
od,everythr
eeyears.
b.Whent heassetisfull
ydepreci
ated.
c.Whenci r
cumst ancesindi
catethatthecarr
yingamountofanassetmi
ghtnotbe
r
ecov er
able.
d.Att heendofr eporti
ngperi
od,everyyear
.

36.
Thei
mpai r
mentrulesforlong-l
i
vedassetsapplytoal
loft
hef
oll
owi
ng,
except
a.Buil
dingcurr
entlyusedinthebusiness
b.Fi
nanciali
nstr
ument s
c.Land
d.Mini
comput er
susedt or unaproducti
onprocess

37.
Whati
srequi
redwithr
especttoaccountingforgoodwi l
l
?
a.Goodwil
lshoul
dbeamor ti
zedoveraf iv
ey earperi
od
b.Goodwil
lshoul
dbeamor ti
zedovertheexpect edusefull
i
fe.
c.Goodwil
lshoul
dberecordedandnev eradjusted
d.Goodwil
lshoul
dberecordedandper i
odicall
yevaluatedf
ori
mpai
rment

38.
Whi
chist r
ueabouttherev
aluati
onmodel f
orval
uingplant,property
,andequi
pment
?
a.Revaluat
ionofasset
smustbemadeont helastdayoft hefiscalyear
.
b.Revaluat
ionofasset
smustbemadeont hesamedat eeachy ear.
c.Thereisnorulefort
hefrequencyordat
eofreval
uation
d.Revaluat
ionofasset
smustbemadeev eryt
woy ears.

39.
Anentityusesthefai
rvaluemodelforreport
inginvestmentpr oper
ty.Whichofthe
fol
l
owingst at
ementsi
st r
ue?
a.Changesi nfai
rval
uearereport
edinprofi
torlossinthecurrentperi
od
b.Changesi nfai
rval
uearereport
edinothercomprehensiveincomef ort
heper i
od
c.Changesi nfai
rvalue ar
er epor
ted asan ext raor
dinar
ygai ni nthe income
st
atement
d.Changesi nfai
rval
uearereport
edasdeferredrevenuefortheperiod

40.
Whenaccount
ingf
orproper
ty,pl
antandequipment
,anent
it
y
a.Mustusethecostmodelforpr
esenti
ngtheassets
b.Mayelectt
ousethecostmodel ort
hereval
uati
onmodelonanyi
ndivi
dualasset
.
c.Mayelectt
ousethecostmodel ort
hereval
uati
onmodelonanyassetcl
ass.
d.Mustusethecostmodelforl
and

41.
Anent i
tythatacquiresani nt angi
bleassetmayuset her evaluat
ionmodelf
or
subsequentmeasurementonl yi f
a.Theusef ul
lif
eoft heintangibleassetcanberel
iabl
ydet er
mi ned.
b.Anact i
vemar ketexistsfortheintangi
bleasset
.
c.Thecostoft heintangibleassetcanbemeasur edrel
iably.
d.Thei nt
angibl
easseti samonet ar
yasset.

42.
Whi
chi
sacr
it
eri
ont
hatmustbemeti
nor
derf
orani
tem t
ober
ecogni
zedasan
 i
ntangibl
eassetotherthangoodwi l
l?
a.Thef airval
uecanbemeasur edr el
i
ably.
b.Thei tem ispartoft he acti
vit
iesaimedatgai ni
ngnew sci
ent
if
icortechnical
knowledge.
c.Thei t
em isexpectedt obeusedinthepr oduct
ionorsuppl
yofgoodsorservi
ces
d.Thei t
em isident
if
iableandlacksphy si
calsubstance.

43.
Whi
chofthefoll
owi
ngstat
ementsistrueaboutaccounti
ngf ordevel
opmentcost?
a.Devel
opmentcostmustbeexpensed
b.Devel
opmentcosti
salwaysdeferr
edandexpensedagai nstfut
urerev
enue
c.Devel
opmentcostmaybecapi tal
izedasani ntangi
bleasseti nver
yrestr
ict
ive
si
tuat
ions.
d.Devel
opmentcosti
srecor
dedinot hercompr
ehensiveincome.

Page 6

44.
Whi choft hef ol
lowingisthepr opertr eat
mentoft hecostofequi pmentusedin
researchanddev elopmentact i
vi
tiesthatwi l
lhaveal
ternati
vefutur
euse?
a.Expensedi nthey eari
nwhicht heresearchanddev el
opmentpr oj
ectstar
ted.
b.Capi t
ali
zedanddepr eci
atedov ert het er
m oft her esearchanddev el
opment
project.
c.Capi t
ali
zedanddepr eci
atedov ert
heest imatedusefulli
fe.
d.Ei thercapital
ized orexpensed butnotbot h,depending on theterm ofthe
researchanddev elopmentproject
.

45.
Int
angi
bleasset
swi t
hindef i
nit
elif
earetest
edforimpai
rment
a.Quarterl
yatthequar t
erl
yreporti
ngdate
b.Annuallyatt
heannual reporti
ngdate
c.Biannuall
yatthereporti
ngdat e
d.There are no gui deli
nes defini
ng when int
angi
ble asset
s ar
etest
ed f
or
i
mpairment

46.
Anyinvestmentmaybeaccount edforatfai
rval
uet
hroughpr
ofi
tandl
osswhen
a.Itistradedinanacti
vemarket
b.Itisanequi tyi
nst
rument
c.Itisadebti nst
rument
d.Thei nstrumentmatur
eswithin2years.

47.
Inv
est
ment sareclassi
fi
edinanyofthefol
lowingdi
ff
erentway
s,except
a.Fairval
uethroughprofi
tandloss
b.Amor ti
zedcost
c.Tradable
d.Fairval
uethroughothercomprehensi
veincome

48.
Anequityinvest
mentmaybeaccountedforusi
ngt
heequi
tymet hodi
fthei
nvest
or
hassignif
icantinf
luenceov
ert
hei nvest
ee.Si
gni
fi
canti
nfl
uenceisindi
cat
edby
ownershi
pof
a.Atleast10%
b.From 20t o50%
c.Mor ethan50%
d.Mor ethan70%

49.
Deri
vat
ivesarefinanci
alinstr
umentsthatderiv
ethei
rval
uef
rom changesi
na
benchmarkbasedonanyoft hefol
l
owing,except
a.Stockprice
b.Mor t
gageandcurrencyrate
c.Commodi t
ypri
ce
d.Discountonaccountsrecei
vabl
e
50.
Der
ivat
iveinstr
umentsarefi
nanci
alinst
rumentsthatmustcont
ain
a.Oneormor eunder
lyi
ng,oroneormor enoti
onalamount.
b.Noi ni
ti
alnetinv
estmentorsmallnetinvest
ment.
c.Termst hatdonotrequi
reorpermitnetsett
lement
.
d.Allofthese.

51.
Whi
choft hefoll
owingst atementsistrueregardi
ngint
eri
mr epor
ti
ng?
a.Thediscreteviewi srequir
edforinter
imfinanci
alst
atements.
b.I
nter
imr eportsarer equir
edonaquar t
erl
ybasis.
c.I
nter
imr eportsarenotr equir
ed.
d.I
nter
imr eportsr equirethepr eparat
ionofonl yastatementofcompr
ehensi
ve
i
ncomeandast atementoff i
nancialposi
tion.

52.
Infi
nancialrepor
tingforsegmentofabusi ness,anentit
yshalldiscl
oseal
lofthe
fol
l
owi ng,except
a.Ty pesofpr oductsandservicesfrom whicheachr epor
tabl
esegmentder i
ves
r
ev enue.
b.Thet i
tl
eofthechiefoper
ati
ngdecisionmakerofeachreport
ablesegment
.
c.Fact orsusedtoidenti
fyt
hereport
ablesegments.
d.Thebasi sofmeasur ementofsegmentprofi
torlossandsegmentassets.

Page 7

53.
Forsegmentr eport
ingpur poses,whichtestsmustbeappl
i
edt
odet
ermi
nei
fa
componenti
sar eportableoperati
ngsegment ?
a.Revenuetestandassett est
b.Revenuetest,assettestandprofi
torlosstest
c.Revenuetest,assettestandexpensetest
d.Revenuetest,assettestandcashflowt est

54.
Themostr elevantmeasurementofli
abi
li
ti
esatini
ti
alrecogni
ti
onandf
reshst
art
measur
ementshoul dalwaysrefl
ect
a.Theexpect ati
onofthemanagement
b.Hist
ori
cal cost
c.Thecreditstandi
ngoftheentit
y
d.Thesinglemostlikel
ymi ni
mum ormaxi
mum possi
bleamount

55.
Incalcul
atingpresentv al
ueinasi tuati
onwi thar angeofpossibl
eoutcomesal
l
discount
edusingt hesamei nt
erestr
ate,theexpect
edpr esentv
aluewoul
dbe
a.Themost -l
i
kelyoutcome
b.Themaxi mum outcome
c.Themi nimum outcome
d.Thesum ofpr obabi l
i
ty-
weightedpresentval
ues

56.
Ifanenti
tyusesthemodif
iedcashbasisofaccount i
ng,themodi f
icat
ionsf
rom t
he
purecashbasi
sshouldhavesubst
anti
alsupportwhichrequir
est hat
a.Thef i
nanci
alstat
ement
shav eonl
ymi normodif
icati
onsfrom GAAP.
b.Themodi fi
cat
ionsmustbethesameast hoserequiredbytaxl aw.
c.Themodi fi
cat
ionsmustbethesameasGAAPandnoti ll
ogical.
d.Nomodi fi
cati
onsareal
lowed.

57.
Prospect
ivef
inanci
ali
nfor
mati
onisdef
inedas
a.Anyf i
nancial
inf
ormati
onaboutt
hepast,pr
esentorfut
ure.
b.Anyf i
nancial
inf
ormati
onaboutt
hepresentorfut
ure.
c.Anyf i
nancial
inf
ormati
onaboutt
hefutur
erelat
edtoday-t
o-dayoper
ati
ons.
d.Anyf i
nancial
inf
ormati
onaboutt
hefutur
e.

58.
Toachiev
ear easonablyobj
ecti
vebasi
s,fi
nanci
alf
orecast
sandpr oj
ect
ionsshoul
d
beprepar
ed
a.Inaccordancewi t
hGAAP.
b.Usinginfor
mat i
ont hati
sinaccor
dancewit
htheplansoftheent
ity
.
 c.Wit
hdueprofessi
onalcare.
d.InAccor
dancewithGAAP,usi nginfor
mat
ioni
naccor
dancewi
thpl
ansoft
he
ent
it
yandwithdueprofessi
onalcar
e.

59.
Anentit
ymustr eportfi
nancecostsinthestatementofcashf
lows
a.Inoper at
ingacti
vit
ies
b.Eit
heri noperat
ingacti
vit
iesorfi
nancingacti
vi
ti
es
c.Infinanci
ngactivi
ti
es
d.Ininvesti
ngactivi
ti
esorfinanci
ngactivi
ti
es

60.
Anent it
yacqui redequipmentbyi ssuing shares.How shouldthistransact
ionbe
report
edint hest at
ementofcashf l
ows?
a.Asanout fl
owofcashf r
om investi
ngactivi
ti
esandi nfl
owofcashf rom fi
nancing
acti
vit
ies
b.Asani nflow ofcashf rom f i
nancingactiv
iti
esandanout l
flow ofcashf rom
operati
ngact ivi
ti
es
c.Att he bot t
om oft he statementofcash f l
ows as a si
gni f
icantnoncash
tr
ansaction
d.I nthenot estof i
nancialst
atement sasasignifi
cantnoncasht
ransaction.

Page 8

61.
Cashadv ancesandl oansf
rom bankover
draf
tsshoul
drepor
tedi
nthest
atementof
cashfl
owsas
a.Oper atingact
ivi
ties
b.Investingacti
vi
ties
c.Financingactivi
ties
d.Othersi gni
fi
cantnoncashact i
vi
ti
es

62.
Int
erestpaidonanot epayableshouldberepor
tedinthest
atementofcashf
lows
a.Inoper at
ingacti
vi
ti
es
b.Inf i
nanci
ngactivi
ti
es
c.Ei t
herinoperat
ingact
ivi
ti
esorf i
nanci
ngacti
v i
ti
es
d.Ei t
herini
nvesti
ngacti
viti
esorfinanci
ngacti
vit
ies

63.
All
oft
hefol
l
owingshouldbeclassif
iedasinvest
ingactivi
ti
es,
except
a.Cashout
fl
owst opurchasemanufactur
ingequipment
b.Cashi
nfl
owsfrom thesaleofbondsofotherentit
ies
c.Cashout
fl
owst ol
endersforint
erest
d.Cashi
nfl
owsfrom thesaleofmanufactur
ingplant

64.
An enti
tyr ecei ved noti
fi
cat i
onofl egalactionagai nsttheent it
y.Theattor
neys
det
erminet hati tispr obabl et heentit
ywi llloset hesui tand thelosscanbe
est
imatedr eliably.Howshoul dtheestimatedlossber eported?
a.Asal ossr ecordedinot hercompr ehensiveincome.
b.Asacont ingentli
abili
tyreport edi
nthestat ementoffinancialposi
ti
onandaloss
intheincomest atement
c.Asapr ov isi
onf orlossr eportedinthestatementoff inanci
alposit
ionandaloss
intheincomest atement
d.Inthenot estof i
nancialstatement sasacont ingency

65.
Ifalong-
term debtbecomescal lableduet othev
iolat
ionofaloancovenant
a.Thedebtmaycont i
nuet obecl assi
fi
edasl ongt er
mi ftheent
itybel
iev
est
he
covenantcanber enegotiated.
b.Thedebtmustber eclassif
iedascur r
ent.
c.Cashmustber eserv
edt opayt hedebt.
d.Ret ai
nedear ni
ngsmustber estri
ctedintheamountoft hedebt
.

66.
Whi
chofthef
oll
owingwoul
dnotbeconsi
der
eda“
prov
isi
on”
?
a.War
rantyl
i
abil
it
y
 b.Baddebt
c.Taxpayable
d.Notepayable

67.
Acont
ingencyisdescri
bedas
a.Anest i
matedli
abil
it
y
b.Anev entwhichisnotrecogni
zedbecauseitisnotprobabl
ethatanout
fl
owwi
l
l
berequiredortheamountcannotbereasonabl
yesti
mated.
c.Apotential
lysmalll
i
abi
lit
y
d.Apotential
lyl
argeli
abi
li
ty

68.
Whi
choft hefoll
owingisrepor t
edasi nt
erestexpense?
a.Pensioncostinter
est
b.Postret
ir
ementheal t
h-carebenef i
tsi
nterest
c.I
mput edinter
estonnoni nterest
-bear
ingnote
d.I
nteresti
ncurredtofinanceconst r
ucti
onofmachi neryf
orownuse.

69.
Thediscountresultingfr
om thedet er
minati
onofpresentv
alueofanot
epay
abl
e
shoul
dber eported
a.Addi t
iontothef aceamountoft henote.
b.Def er
redchar geseparatefrom t
henote.
c.Def er
redcreditseparatefr
om thenote.
d.Directdeductionf r
om thefaceamountofthenot
e.

Page 9

70.
How shoul danenti
tycal
cul
atethenetproceedst ober ecei
vedfrom t hebond
issuance?
a.Di scountt
hebondsatt
hestat
edrateofi
nterest.
b.Di scountt
hebondsatt
hemarketrat
eofinterest.
c.Di scountt
hebondsatt
hestat
edrateofi
nterestanddeductbondissuancecost.
d.Di scountt
hebondsatt
hemarketrat
eofinterestanddeductbondissuancecost
.

71.
Whi
chi sat ruest
atementforelecti
ngthefairval
ueopti
onf orvalui
ngbondspay abl
e?
a.Theef fecti
veint
erestmethodofamor t
izat
ionmustbeusedt ocalcul
ateinterest
expense.
b.Discountorpremium isdi
sclosedinthenot est
othefinancialst
atements.
c.Thef ai
rv al
ueofthebondandt heprinci
palobli
gati
onv al
uemustbedi sclosed.
d.Ifthefairval
ueoptioni
selected,i
tmustbeappl i
edtoal lbonds.

72.
Whatmethodmaybeusedt or
eportthebondspayabl
eatyear
-end?
a.Amorti
zedcost
b.Fai
rvaluet
hroughot
hercomprehensiv
eincome
c.Amorti
zedcostandfai
rval
uethroughothercompr
ehensi
veincome
d.Amorti
zedcostandfai
rval
uethroughprofi
torl
oss

73.
Issuedconv ert
iblebondsar e
a.Separ atedintodebtandequi tycomponent swit
htheli
abil
i
tycomponentrecorded
atfairval ueandther esi
dualassignedtotheequit
ycomponent
b.Al way sr ecordedusingthefairvalueopti
on
c.Recor dedatf acev alueforthel i
abil
i
tyalongwiththeassociat
edpremi um or
discount
d.Recor dedatf acev al
uewi t
houtconsiderat
ionofapremium ordi
scount
.

74.
Whi
choft hefol
lowingmet hodsisusedi
nIFRSt
oaccountf
ordef
inedbenef
itpl
ans?
a.Proj
ectedunitcredi
tmet hod
b.Benefi
t-y
ears-of
-ser
vicemet hod
c.Accumulatedbenefit
smet hod
d.Vestedyearsofservi
cemet hod
75.
Anenti
tyhassev eralpensionplanscov er
ingv ariousclassesofempl oy
ees.When
maytheenti
tynetasset sandli
abil
it
iesofthev ari
ouspl ans?
a.Assetsandli
abili
tiesmayalway sbenetted.
b.Assetsandliabi
lit
iesmaybenet tedwhent hereisal egal
lyenfor
ceabler
ightt
o
usetheassetsofonepl antoset t
letheobligati
onsofanot herpl
an.
c.Whent heesti
mat edcashinflowsandout fl
owsar esimil
arinpat
ter
n.
d.Whent heassetsandl i
abil
i
tiesarebothfinancial.

76.
Anent it
ysignedal easetorentequi
pmentfortenyear
s..Attheendoft hel
ease
term,theentit
ymaypur chasetheequi
pmentforanominalamount.Theequi
pment
isestimatedt ohave ausef ull
if
eof12y ear
s.How shouldtheenti
tycl
assi
fythi
s
lease?
a.Oper ati
ngl ease
b.Capi tall
ease
c.Fi nancelease
d.Sal estypelease

77.
Anent i
tysignedanagr eementtoleasel andandabui ldi
ngfor20y ears.Attheend
ofthelease,thepr oper t
ywil
lnott ransf ert othelessee.Theli
f eofthebui l
dingi
s
est
imatedt obe20y ears.Howshoul dt heent it
yaccountforthelease?
a.Thel easeisrecor dedasafinancel ease.
b.Thel easeisrecor dedasanoper atingl ease.
c.Thel andisrecor dedasanoper atingl easeandt hebuildi
ngi srecordedasa
financelease.
d.Thel andisr ecor dedasaf inancel easeandt hebuil
dingi srecordedasan
oper ati
nglease.

Page 10

78.
Whatistheinter
estrateusedbyal esseetocapi
tal
i
zeaf
inancel
easewhent
he
impl
i
citr
atecannotbedetermined?
a.Theprimerate
b.Thelessor’
spubl
ishedrat
e
c.Thelessee’
saverageborr
owingrate
d.Thelessee’
sincr
ementalborrowi
ngrate

79.
Ini
ti
aldir
ectcostsincurredbythelessorunderasalesty
pel easeshouldbe
a.Def err
edandal l
ocatedov ert
heeconomi cli
feoftheleasedpropert
y.
b.Expensedi ntheper i
odincurr
ed.
c.Def err
edandal l
ocatedov ertheter
m oftheleaseinproporti
ontotherecogni
ti
on
ofrental
income.
d.Addedt othegrossi nvestmentintheleaseandamor t
izedovertheter
m ofthe
l
easeasay i
eldadjustment.

80.
Whi
choft hefoll
owingstatement si
st rueaboutaccount
ingf
orleases?
a.Alll
easesaret r
eatedasf i
nancel ease
b.Alll
easesaret r
eatedasoper ati
ngl ease
c.When l and and buil
ding arel eased,elements ofthe l
ease are consi
der
ed
separatel
yinaccountingforthelease
d.Operati
ngleasesar eneverrecordedi nt
hestatementoff
inanci
alposi
tion

81.
Whi chofthefoll
owingstat
ementsiscorr
ectregardi
ngt hepr
ov i
sionsf ori
ncome
taxesint
hefinanci
alst
atement
sofasolepropr
ietor
ship?
a.Thepr ovisi
onf ori
ncomet axesshoul
dbebasedonbusi nessi ncomeusing
 i
ndiv
idual taxrates.
b.Theprov i
si onsf orincometaxesshouldbebasedonbusi
nessincomeusing
cor
poratet axr at
es.
c.Theprovisionf orincometaxesshoul
dbebasedonthepr
opr
iet
or’
stotalt
axabl
e
i
ncome.
d.Noprovisionf orincometaxesi
srequi
red.

82.
Whi
chisnotsubjecttotheappli
cat
ionofi
ntr
aper
iodi
ncomet
axal
l
ocat
ion?
a.Di
scontinuedoperat
ions
b.I
ncomef r
om cont
inuingoper
ati
ons
c.Pri
orperioderr
ors
d.Operat
ingincome

83.
Whi
chiscor r
ectaboutt hepresentat
ionofdeferr
edt axassetsandliabi
lit
ies?
a.Currentdef err
edtaxasset sarenett
edagainstcur r
entdeferr
edtaxliabil
iti
es
b.Allnoncur rentdeferredtaxasset sarenettedagai nstnoncurrentdef er
redt
ax
l
iabil
it
ies
c.Deferredtaxasset sar enevernet
tedagainstdeferr
edt axl
iabi
li
ti
es
d.Deferredt axassetsar enettedagainstdef
erredtaxliabi
li
ti
esiftheyrelatetot
he
samet axi
ngaut hori
ty.

84.
Which oft he foll
owi
ng istrue regardi
ng report
ing defer
red t
axes i nfi
nancial
stat
ement spreparedi
naccor
dancewi thIFRS?
a.Deferredtaxassetsandli
abil
it
iesareclassif
iedascur r
entandnoncur r
entbased
onexpirat
iondate.
b.Deferredtaxassetsandli
abil
i
tiesmayonl ybeclassi
fiedasnoncurrent.
c.Deferredtaxassetsareal
waysnet t
edagainstdeferr
edt axli
abi
l
iti
es.
d.Deferredt axesofonejuri
sdi
ct i
onar eoff
setagainstanotherjur
isdict
ioninthe
net
ti
ngpr ocess.

Page 11

85.
Whencollect
ibil
it
yisr easonabl
yassur ed,theexcessofthesubscri
pti
onpr i
ceov
er
thest
atedvalueoft henoparordinarysharessubscri
bedshouldberecordedas
a.Noparor dinaryshares
b.Sharepremi um whent hesubscri
pti
oni srecor
ded.
c.Sharepremi um capit
alwhenthesubscr ipt
ioniscol
lect
ed.
d.Sharepremi um capit
alwhentheor dinar
ysharesareisissued.

86.
Aret
ainedear ningsappr opri
ati
oncanbeusedt o
a.Absor baf ir
el osswhenanent it
yisself-
insured.
b.Providef oracont ingentl
ossthatisprobableandreasonabl
yest
imabl
e.
c.Smoot hperiodicincome.
d.Restrictearningsav ail
abl
efordivi
dends.

87.
Inaccounti
ngf orshar e-basedcompensati
on,whatinterestratei
susedt
odi
scount
boththeexercisepri
ceoft heopti
onandthefuturedi
videndst r
eam?
a.Theent i
ty’sknowni ncrement
alborr
owingrate.
b.Thecur rentmar ketr atethatent
it
iesinthatparti
cularindust
ryuset
odi
scount
cashfl
ows.
c.Ther i
sk-fr
eei nt
erestr ate.
d.Anyr at
et hatenti
tiescanj ust
if
yasbeingreasonable.

88.
Inwhatcir
cumst ancesiscompensat
ionexpensei
mmediat
elyr
ecognized?
a.Inallci
rcumst ances
b.Incir
cumst anceswhent heopti
onsareexerci
sabl
ewit
hint
woy earsforser
vices
 r
ender
edov erthenexttwoyear
s.
c.I
ncir
cumstanceswhenopt i
onsaregrantedforpr
iorser
viceandt heoptionsar
e
i
mmediatel
yexercisabl
e.
d.I
nnocircumstancesiscompensat
ionexpenseimmediat
elyrecognized.

89.
Compensati
oncostf orashar e-basedpaymenttoempl oy
eest hatiscl
assi
fi
edas
li
abi
l
ityi
smeasur edas
a.Thechangei nfairvalueoftheinstrumentf
oreachrepor
tingperi
od.
b.Thetotalf
airvalueatgr antdate.
c.Thepresentvalueofcashpay ment sdueovert
heli
feofthegrant.
d.Theactualcashout layfortheperiod.

90.
Whati sthemeasur ementdatef orashar
e-basedpay
mentt
oempl
oyeest
hati
s
classi
fi
edasal i
abil
it
y?
a.Theser vi
ceincepti
ondate
b.Thegr antdate
c.Theset t
lementdat e
d.Theendoft her eport
ingper
iod

91.
Indetermi
ningdilut
edear ni
ngspershare,divi
dendsonnonconv
ert
ibl
ecumul
ati
ve
pref
erencesharesshouldbe
a.Disregarded
b.Addedbackt oneti
ncomewhet herdecl
aredornot.
c.Deduct edfr
om netincomeonlyifdecl
ared.
d.Deduct edfr
om netincomewhetherdeclaredornot
.

92.
In determini
ng earnings pershar e,int
erestexpense,netofi ncome tax,on
converti
bledebtthati
sdi luti
veshoul dbe
a.Addedbackt owei ghted-
av er
ageshar esout st
andi
ngf ordi
l
utedear
ningsper
share.
b.Addedbackt oneti ncomef ordilutedearni
ngspershare.
c.Deduct edfrom netincomef ordil
utedearningspershar
e.
d.Deduct edf r
om wei ghted-
av er
ageshar esout st
andi
ngf ordi
l
utedear
ningsper
share.

Page 12

93.
In computing basic earni
ngs pershare,an entit
ywoul dincl
ude whi
ch oft
he
fol
lowing?
a.Di vi
dendsonnonconv ert
ibl
ecumulat
ivepr
eferenceshares.
b.Di vi
dendsonor dinaryshares.
c.I nt
erestonconver t
ibl
ebonds.
d.Numberofnonconv erti
blecumul
ati
vepref
erenceshares.

94.
Thepri
mar ypurposeofaquasi reorganizati
oni
stogiveanent
it
ytheoppor
tuni
tyt
o
a.Obtainreli
effr
om cr edi
tors.
b.Revalueunderstatedassetstofairvalue.
c.Eli
minateadef i
citinret
ainedearnings.
d.Dist
ributethesharesofanewl ycreatedsubsi
diar
ytosharehol
der
s.

95.
Whenanent i
tygoest hr
oughaquasir
eor
gani
zat
ion,
thecar
ryi
ngamount
sar
est
ated
at
a.Ori
ginalcost
b.Ori
ginalcarr
yingamount
c.Repl
acementv al
ue
d.Fai
rv al
ue

96.
Whi
choft
hef
oll
owi
ng i
snotamet
hodt
hatmaybeusedt
oaccountf
ort
reasur
y
 shar
es?
a.Costmet hod
b.Parvaluemet hod
c.Retai
nedear ni
ngsmet hod
d.Constr
uct i
vereti
rementmethod

97.
Anentit
yhascosi gnedthemor tgagenoteonthehomeofi t
spr esi
dentguaranteeing
thei
ndebt ednessi ntheeventthatthepresi
dentshoul
ddefault
.Theentityconsiders
theli
kel
ihoodofdef aultt
ober emote.How shouldtheguaranteebetreatedint he
fi
nanci
al stat
ement s?
a.Disclosedonl y
b.Accruedonl y
c.Accruedanddi sclosed
d.Neitheraccr uednordisclosed

98.
Ifthepaymentofempl oyees’compensationforfut
ureabsencesi sprobabl
e,the
amountcan be r easonablyestimated and t
he obli
gati
on relat
es t
or i
ghtsthat
accumulat
e,thecompensat i
onshouldbe
a.Accruedifatt
ri
butabletoempl oy
ees’servi
cesnotyetrender
ed.
b.Accruedifatt
ri
butabletoempl oy
ees’servi
cesal
readyrendered.
c.Accruedifatt
ri
butabletoempl oy
ees’servi
ceswhetheralr
eadyrender
edornot.
d.Recognizedwhenpai d.

99.
Foratroubleddebtr estructuri
nginvolv
ingonlyamodi f
icati
onoft erms, whi
chofthe
fol
lowi
ngspeci f
iedbyt henewt ermswouldbecompar edtot hecar r
yingamountof
thedebttodeterminei fthedebt orshouldr
epor tagainonext inguishmentofdebt?
a.Thet otalf
uturecashpay ments
b.Thepr esentvalueoft henewdebtatt heoriginali
nterestr
at e
c.Thepr esentvalueoft henewdebtatt hemodi f
iedi
nterestrate
d.Theamountoff uturecashpay ment sdesi
gnat edaspr i
ncipalrepayments.

100. Thevest
edbenefi
tsofanemployeeinapensi
onplanrepresent
a.Benef
it
stobepaidtotheret
ir
edempl oy
eeint
hesubsequenty ear
.
b.Benef
it
saccumulat
edinthehandsofandependenttr
ustee
c.Benef
it
stobepaidtotheret
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Page 13

1. D 26. B 51. C 76. C

2. B 27. C 52. B 77. C

3. A 28. B 53. B 78. D

4. B 29. C 54. C 79. B

5. B 30. C 55. D 80. C

6. D 31. D 56. C 81. D

7. D 32. D 57. D 82. D

8. A 33. B 58. D 83. D

9. A 34. C 59. B 84. B

10. B 35. C 60. D 85. B

11. D 36. B 61. A 86. D

12. A 37. D 62. C 87. C

13. D 38. C 63. C 88. C

14. C 39. A 64. C 89. A

15. D 40. C 65. B 90. C

16. B 41. B 66. D 91. D

17. B 42. D 67. B 92. B

18. C 43. C 68. C 93. A

19. B 44. C 69. D 94. C

20. B 45. B 70. D 95. D

21. C 46. A 71. C 96. C

22. C 47. C 72. D 97. A

23. D 48. B 73. A 98. B

24. B 49. D 74. A 99. B

25. A 50. B 75. B 100 D

END