Issue date is the date on which a note is written.

正确!
True
False

问题 2
1/1分
Which of the following about the disclosure of contingent assets and liabilities is not correct?

A description of the nature of the contingent asset at the end of the reporting period should be
disclosed.
Contingent liabilities require recognition in the statement of financial position and disclosure in
the notes.
An estimate of the financial effect of a contingent asset should be disclosed.
Disclosure of contingent liabilities is required unless the possibility of an outflow of resources is
remote.

问题 3
1/1分
Library Laser Ltd (LL) is restructuring one of its major production facilities. LL is in the process
of developing a detailed formal plan for the restructuring provision. Which of the following is not
likely to be an element identified in the formal plan?

The number of years' service provided by each affected employee.

Date that the plan will be implemented.
The roles and approximate numbers of affected staff.
The business unit concerned.

问题 4
1/1分
Notes Payable is a promissory note that a business issues to a creditor or to a bank to obtain a loan

FALSE
TRUE

问题 5
1/1分
Winter Co. is being sued for illness caused to local residents as a result of negligence on the
company's part in permitting the local residents to be exposed to highly toxic chemicals from its
plant. Winter's lawyer states that it is probable that Winter will lose the suit and be found liable for
a judgment costing Winter anywhere from $1,200,000 to $6,000,000. However, the lawyer states
that the most probable cost is $3,600,000. As a result of the above facts, Winter should accrue

a loss contingency of $1,200,000 and disclose an additional contingency of up to $4,800,000.

a loss contingency of $3,600,000 but not disclose any additional contingency.
no loss contingency but disclose a contingency of $1,200,000 to $6,000,000.
a loss contingency of $3,600,000 and disclose an additional contingency of up to $2,400,000.

问题 6
1/1分
Farnot Ltd (Farnot) has acquired 100 per cent ownership and control of Closeso Ltd (Closeso). As
part of the due diligence process, Farnot developed a detailed formal plan to discontinue the
homewares division of Closeso, due to underperforming sales. Farnot estimated the restructure
costs to be $60 000. Management formally announced the homewares division closure and
mentioned that it is unsure when the restructure will take place, but that it will definitely finalize
the process within six months of acquisition. Which of the following statements about the need for
Farnot to recognize a provision for restructuring is correct?

Farnot should recognize a provision of $60 000 in its post-acquisition financial statements.
Farnot should recognize a provision of $60 000 at acquisition date as part of the acquisition
process.
Farnot cannot recognize a provision for restructuring as has not confirmed when the restructure
will take place.
Farnot cannot recognize the provision because it should be recognised in the financial statements
of Closeso.

问题 7
1/1分
Which of the following is not a key disclosure requirement for provisions according to IAS 37
Provisions, Contingent Liabilities and Contingent Assets?

Amount charged against the provision during the period.

Increases made to the provisions during the reporting period.
Amount of unused provisions reversed during the reporting period.
The opening balance of provisions from the previous reporting period.

问题 8
1/1分
Which of the following about contingent assets is not correct?

Contingent assets are based on the definition of an asset according to the Conceptual Framework.
 Contingent assets are possible assets as their present existence is unclear.
Contingent assets are recognised in the statement of financial position and in the notes to the
accounts.
Contingent assets are disclosed in the notes to the accounts where the flow of economic benefits
is probable.

问题 9
0/1分
On January 3, 2015, Boyer Corp. owned a machine that had cost $200,000. The accumulated
depreciation was $120,000, estimated salvage value was $12,000, and fair value was $320,000.
On January 4, 2015, this machine was irreparably damaged by Pine Corp. and became worthless.
In October 2015, a court awarded damages of $320,000 against Pine in favor of Boyer. At
December 31, 2015, the final outcome of this case was awaiting appeal and was, therefore,
uncertain. However, in the opinion of Boyer’s attorney, it is probable Pine’s appeal will be denied.
At December 31, 2015, what amount should Boyer accrue for this contingent asset?

$260,000.
$200,000.
$0.
$320,000.

问题 10
1/1分
On September 1, 2012, Herman Co. issued a note payable to National Bank in the amount of
$1,800,000, bearing interest at 12%, and payable in three equal annual principal payments of
$600,000. On this date, the bank's prime rate was 11%. The first payment for interest and principal
was made on September 1, 2013. At December 31, 2013, Herman should record accrued interest
payable of

$44,000.
$72,000.
$48,000.
$66,000.

问题 11
1/1分
The amount of cash actually received by the borrower of a non-interest-bearing note payable is
called proceeds.

FALSE
TRUE
问题 12
1/1分
Which of the following terms is associated with recognizing a provision?

Probable.
Possible but not probable.
Remote.
Likely.

问题 13
1/1分
Q Company issued a $20,000 note to the Capital Bank on August 1. The note carried a one-year
term and a 12% rate of interest. The adjusting entry on Fallon's books to record accrued interest
expense on December 31 will

Decrease equity and increase liabilities by $2,400.

Increase liabilities and decrease equity by $800.
Increase liabilities and decrease equity by $1,000.
Decrease assets and decrease retained earnings by $1,000.

问题 14
1/1分
The interest deducted in advance from a non-interest-bearing note payable is called the discount.

True
False

问题 15
1/1分
A note that requires the face value plus interest to be paid on the maturity date is called an interest-
bearing notes payable.

True
False

问题 16
1/1分
RRR Ltd (RRR) operates in the recycling industry. Three weeks ago, it inadvertently released
poisonous gases into the air which caused a number of local residents to become ill.
A law firm representing the affected residents has submitted a compensation claim to the entity for
pain and suffering of between $10 000 to $50 000 per affected resident. There was a total of 15
residents affected.
The court hearing is scheduled to occur sometime over the next three months. RRR does not
believe that they will be required to make any payments to claimants, as this was an accident and
no-one has been seriously harmed as a result.

Which of the following is the most correct approach for accounting for this event?

As a provision as it is a present obligation arising as a result of a past event that will result in a
probable outflow of economic benefits which can be reliably measured however the timing of this
occurring is uncertain.
No recognition or disclosure is required as there is no present obligation arising as a result of a
past event that will result in a probable outflow of economic benefits which can be reliably
measured.
As a contingent liability as it is a possible obligation arising as a result of a past event that may
result in a probable outflow of economic benefits which can be reliably measured.
As a liability as it is a present obligation arising as a result of a past event that will result in a
probable outflow of economic benefits which can be reliably measured.

问题 17
1/1分
Among the short-term obligations of Lance Company as of December 31, the balance sheet date,
are notes payable totaling $250,000 with the Madison National Bank. These are 90-day notes,
renewable for another 90-day period. These notes should be classified on the balance sheet of
Lance Company as

long-term liabilities.
current liabilities.
intermediate debt.
deferred charges.

问题 18
0/1分
P Company borrowed $25,000 cash on October 1 and signed a nine-month, 8% interest-bearing
note payable with interest payable at maturity. The amount of interest expense to be reported in the
year the note matures is:

$500
$1,000
$300
$750

问题 19
0/1分
H Company borrowed $10,000 from T Bank on March 1. H Company is to repay the principal and
interest on February 28 of the next year The interest rate is 8%. If the year-end adjustment is
properly recorded, what will be the effects of the accrual on H Company's current year financial
statements?

Increase assets and increase liabilities

Increase liabilities and increase expenses
Increase assets and increase revenues
No effect

问题 20
1/1分
Term refers to the amount of time the borrower has to repay the note.

True
False

问题 21
1/1分
M Company borrowed $50,000 cash on April 1, and signed a one-year 12%, interest- bearing note
payable. The interest and principal due on March 31 of the following year will be:

$50,000
$54,00
$56,000
$51,500

问题 22
1/1分
IFRS uses the term “contingent” for assets and liabilities not recognized in the financial
statements.

TRUE
FALSE

问题 23
0/1分
Which of the following is the proper way to report a contingent liability, receipt of which is
virtually certain?

No disclosure or accrual required.

 As revenue.
As a liability.
As a disclosure only.

问题 24
1/1分
Contingent assets are not reported in the statement of financial position.

True
False

问题 25
1/1分
Which of the following describes elements of when a provision is recognised in the statement of
financial position?

Item I - A present obligation as a result of a future event.

Item II - The provision amount must be measured accurately.
Item III - An outflow of economic benefits to settle the obligation is probable.
Item IV - The provision amount can be measured reliably, even if it has to be estimated.

II, III and IV only.

I, II and IV only.
III and IV only.
I and III only.

问题 26
0/1分
On October 1, B Company borrowed $10,000 from F Bank by signing a one year, 6% note. On
December 31, B Company failed to make the adjusting entry to accrue the related interest. This
error will cause:

Net income for the current year to be understated and net income for the next year to be
overstated.
Net income for the next year to be understated and liabilities for the current year to be
understated.
Net income for the current year to be overstated and liabilities for the current year to be
overstated.
Net income for the current year to be understated and liabilities for the current year to be
overstated.
问题 27
0/1分
Constructive obligations, in which the company has created a valid expectation on the part of
other parties that it will discharge certain responsibilities, are disclosed in the notes to the financial
statements but not recorded.

True
False

问题 28
1/1分
The entry to record the payment of a $12,000, 8%, 60-day note at maturity would include a debit
to:

Cash for $12,160

Notes Payable for $12,160
Interest Income for $160
Interest Expense for $160

问题 29
1/1分
A zero-interest-bearing note payable that is issued at a discount will not result in any interest
expense being recognized.

FALSE
TRUE

问题 30
1/1分
On November 1, F Company signed a $100,000, 6%, six-month note payable with the amount
borrowed plus accrued interest due on April 30 for the next year.

Assuming F Company recorded the appropriate adjusting entry for the note on December 31, the
entry to record the payment of the note plus accrued interest at maturity on April 30 would include
a:

Debit Interest Expense, $1,000.

Debit Interest Expense, $2,000.
Debit Interest Payable, $2,000.
Debit Interest Expense, $3,000.

问题 31
1/1分
Contingent liabilities are not reported in the financial statements but may be disclosed in the notes
to the financial statements if the likelihood of an unfavorable outcome is possible.

True
False

问题 32
1/1分
Payee is the person or business to which payment will be made.

True
False

问题 33
1/1分
Which of the following is the proper way to report a contingent liability considered probable?

As a disclosure only.
No disclosure or accrual required.
As revenue.
As a liability.

问题 34
1/1分
On June 5, A Company issued a $30,000, 8% 120-day note payable to J Company. Assume the
fiscal of A Company ends June 30. What is the interest expense recognized in the current fiscal
year?

$166.67
$373.33
$633.34
$800.00

问题 35
1/1分
Which of the following is not true about the discount on short-term notes payable?

The Discount on Notes Payable account has a debit balance.

The Discount on Notes Payable account should be reported as an asset on the balance sheet.
When there is a discount on a note payable, the effective interest rate is higher than the stated
discount rate.
All of answers are true.
问题 36
0/1分
IFRS allows for reduced disclosure of contingent liabilities if the disclosure could increase the
company’s chance of losing a lawsuit.

True
False

问题 37
1/1分
For purposes of recognizing a provision, “probable” is defined as more likely than not.

True
False

问题 38
1/1分
Which of the following about contingent liabilities is correct?

Contingent liabilities must be recognised in the statement of financial position.

Contingent liabilities are a present obligation where the outflow of resources in the future is not
probable.
Contingent liabilities have the same accounting treatment as provisions.
Contingent liabilities are a possible obligation where the outflow of resources in the future is
certain.

问题 39
1/1分
Which of the following should not be included in the current liabilities section of the balance
sheet?

The discount on short-term notes payable

All of the choices are included
Short-term zero-interest-bearing notes payable
Trade notes payable

问题 40
1/1分
Provisions are contingent liabilities which are accrued because the likelihood of an unfavorable
outcome is
 possible.
at least 75%.
greater than 50%.
virtually certain.

A contingent liability
 

  
is accrued even though not probable.
 

  
always exists as a liability but its amount and due date are indeterminable.
 
正确!

  
is not reported as a liability if not probable.
 

  
is always the result of a loss contingency. i
 
 

问题 2
1 / 1 分
Provisions are contingent liabilities which are accrued because the likelihood
of an unfavorable outcome is

  
at least 75%.
 
正确!

  
greater than 50%.
 
   
virtually certain.
 

  
possible.
 
 

问题 3
0 / 1 分
Winter Co. is being sued for illness caused to local residents as a result of
negligence on the company's part in permitting the local residents to be
exposed to highly toxic chemicals from its plant. Winter's lawyer states that it
is probable that Winter will lose the suit and be found liable for a judgment
costing Winter anywhere from $1,200,000 to $6,000,000. However, the
lawyer states that the most probable cost is $3,600,000. As a result of the
above facts, Winter should accrue
正确回答

  
a loss contingency of $3,600,000 and disclose an additional contingency of up
to $2,400,000.
 

  
a loss contingency of $1,200,000 and disclose an additional contingency of up
to $4,800,000.
 
您已回答

  
no loss contingency but disclose a contingency of $1,200,000 to $6,000,000.
 

  
a loss contingency of $3,600,000 but not disclose any additional contingency.
 
 

问题 4
1 / 1 分
Which of the following about provisions is not correct?

  
Provisions are an uncertain liability.
 
正确!

  
Provisions are a contingent liability.
 

  
Provisions are often an estimate.
 

  
Provisions are a liability.
 
 

问题 5
1 / 1 分
Which of the following is not a key disclosure requirement for provisions
according to IAS 37 Provisions, Contingent Liabilities and Contingent Assets?

  
Amount of unused provisions reversed during the reporting period.
 
正确!

  
The opening balance of provisions from the previous reporting period.
 

  
Amount charged against the provision during the period.
 

  
Increases made to the provisions during the reporting period.
 
 
问题 6
1 / 1 分
Contingent liabilities do not include provisions for which it is certain that the
entity has a present obligation that is more likely than not to lead to an
outflow of cash or other economic resources, even though the amount or
timing is uncertain.
正确!

  
True
 

  
False
 
 

问题 7
1 / 1 分
Risks and uncertainties are taken into account in measuring a provision.
正确!

  
True
 

  
False
 
 

问题 8
1 / 1 分
A constructive obligation arises from the entity’s actions, through which it has
indicated to others that it will accept certain responsibilities, and as a result
has created an expectation that it will discharge those responsibilities.
正确!

  
True
 
   
False
 
 

问题 9
1 / 1 分
A contingent liability is recognized in the statement of financial position.

  
True
 
正确!

  
False
 
 

问题 10
0 / 1 分
Contingent liabilities are possible obligations whose existence will be
confirmed by past events that are not wholly within the control of the entity.
您已回答

  
True
 

  
False