Question 21

The concept of accounting entity is applicable

Only to the legal aspects of business organizations Only to the economic aspects of business organizations Only to business
organizations
Whenever accounting is involved
Question 22
Generally, revenue is recognized
At the point of sale
When cause and effect are associated
At the point of cash collection
At appropriate points throughout the operating cycle

Question 23
The primary measurement basis is
The current market price if the asset currently held was sold on the open market.
The current market price if the asset held was purchased on the open market.
The present value of the cash flows that the asset is expected to generate.
The market price at the date the asset was acquired.

Question 24
Revenue from artistic performance is recognized when
The audience register for the event online.
The tickets for the concert are sold.
Cash has been received from the ticket sales.
The event takes place.

Question 25
How to treat change in accounting policy
Retrospectively
Currently and prospectively
Adjustment
None of the above

Question 26
It is a normal recurring correction or adjustment of an asset or liability which is the natural result of the use
of an estimate.
Accounting policies
Accounting estimates
Errors
Adjustments

Question 27
Which of the following is not an accounting estimate
Doubtful accounts
Inventory obsolescence
Useful life, residual value and expected pattern of consumption of benefit of depreciable asset
All of the above are examples of accounting estimates

Question 28
Events after reporting period that provide evidence about conditions that existed at the current year-end
and affect the realizability of accounts receivable should be
Discussed only in the management commentary
Disclosed only in the notes
Used to record an adjustment to doubtful accounts expense
Question 29
Which statement is true regarding events after the end of reporting period?
Recognize a loss for all recognized and unrecognized subsequent events in the current year
Recognize a gain or loss for any recognized subsequent event in the current year
Recognize a loss for a recognizes subsequent event in the financial statements in the year when
the subsequent event occurs
Recognize a loss for a recognized subsequent event in the current year financial
statements

Question 30
What is the subsequent measurement of Property Plant and Equipment
Either cost model or revaluation models
Either Fulfillment value or exit price
Either Current Value or entry price
None of the above