Started on Tuesday, 5 May 2020, 11:30 AM

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Completed on Tuesday, 5 May 2020, 11:40 AM
Time taken 9 mins 55 secs
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Question 1
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Different measurement models affect the determination of income and expenses.

The different measurement models include

Select one:
a. market value, opportunity cost, historical cost.
b. historical cost, direct costs, indirect costs
c. historical cost, fair value, present value 

d. current cost, historical cost, overhead cost.

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The correct answer is: historical cost, fair value, present value

Question 2
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The notes to the accounts that relate to income and expense should include: 

Select one:
a. only information that would have resulted in a different profit or loss figure if it
had been included on the face of the statement.

b. only items that were deemed non-material when selecting items to place on the
face of the accounts
c. a variety of information that incorporates the disclosures required in all
standards related to income and expenses.

d. only commentary on issues covered by AASB 101.

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The correct answer is: a variety of information that incorporates the disclosures
required in all standards related to income and expenses.

Question 3
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An entity is required in AASB 101 to produce

Select one:
a. a statement of profit or loss and other comprehensive income.

b. a statement of changes in equity.

c. all of the given answers 

d. a statement of financial position

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The correct answer is: all of the given answers

Question 4
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Hunter Ltd has purchased a set of wine-tasting glasses. They expect to use them
extensively, and will dispose of them within 12 months. The glasses cost $130.
What would be included in the journal entry to record the purchase of the wine-
tasting glasses set? 

Select one:
a. DR Wine-tasting glasses (expense) 130 
b. DR Wine-tasting glasses (asset) 130

c. DR Loss on wine-tasting glasses 130

d. CR Gain on sale of glasses 130

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The correct answer is: DR Wine-tasting glasses (expense) 130

Question 5
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The statement of changes in equity is required: 

Select one:
a. to summarise the large number of transactions that take place on the income
statement
b. because AASB 101 deals with income and does not define profit.
c. to provide a reconciliation of opening and closing equity, and also to provide
details of the various equity accounts that are impacted by the period's total
comprehensive income. 

d. to show profit and loss for the period

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The correct answer is: to provide a reconciliation of opening and closing equity, and
also to provide details of the various equity accounts that are impacted by the
period's total comprehensive income.

Question 6
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If it is found that an error had been made in a prior period: 

Select one:
a. AASB 108 requires that errors are corrected via an adjustment to opening
balance of retained earnings 
b. material errors discovered in the current reporting period must be included in
that period's statement of profit or loss and other comprehensive income, while
non-material errors may be corrected with an adjustment to opening retained
earnings.
c. AASB 101 does not cover this concept and so no entry is required.

d. the error should be rectified by including the item of income or expense in the
period in which the error was discovered.

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The correct answer is: AASB 108 requires that errors are corrected via an
adjustment to opening balance of retained earnings

Question 7
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The effect of a revision of an accounting estimate must be recognised in profit and

loss in which reporting periods? 

Select one:
a. In the present, prior (by adjusting retained earnings) and future periods
affected.

b. In the present and future periods affected. 

c. Not recognised in any period

d. In the present and prior reporting periods (by adjusting retained earnings).

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The correct answer is: In the present and future periods affected.

Question 8
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A statement displaying components of profit or loss is referred to in AASB 101 as a

: 

Select one:
a. statement of income.
b. profit and loss statement
c. statement of financial performance.

d. income statement. 

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The correct answer is: income statement.

Question 9
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'Comprehensive income' refers to: 

Select one:
a. the statement of changes in equity.

b. the net profit figure shown at the bottom of the statement of profit or loss.

c. none of the given answers 

d. the statement of total recognised income and expense.

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The correct answer is: none of the given answers

Question 10
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Which of the following is not a required disclosure pertaining to payments made to

auditors? 

Select one:
a. The nature of each of the non-audit services provided by the auditor.
b. The amounts paid to an auditor for an audit of financial statements of the entity.

c. The amounts payable to an auditor for a review of financial statements of the

entity.

d. The amounts paid to assurors of corporate sustainability reports 

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The correct answer is: The amounts paid to assurors of corporate sustainability
reports