ĐỀ lần 1 - ĐỀ 4

A
Q1: A company is selling one model of car. It has no inventory at the start of the period.
The company buys 4 cars during the period. Due to price rises, the cars cost: $14000,
$15000, $16000, $17000 in the order they are purchased. The company then sells 2 cars,
and uses FIFO to value the inventory. What is the value of the inventory at the end of the
period?
a. $33,000
b. $29,000
c. $30,000
d. $31,000
Q3: A company owns a piece of machinery with a cost of $80,000 and accumulated
depreciation of $25,000. The company decides to revalue the machinery to its fair value,
which is now estimated to be $60,000. Calculate the new carrying amount of the
machinery after revaluation.
a. $60,000
b. $55,000
c. $75,000
d. $35,000
Q5: An entity acquires new technology that will revolutionise its current manufacturing
process. The costs are set out below
 Original cost of the new technology $2,000,000

Discount provided $400,000

Costs of employee benefits $500,000

Testing of the new manufacturing process $100,000

The cost that should be capitalised as part of the intangible asset is:
a. $2,200,000
b. $2,300,000
c. $1,700,000
d. $1,800,000
Q7: An inventory record card shows the following details.
In February
1 50 units in stock at a cost of $40 per unit
7 100 units purchased at a cost of $45 per unit
14 80 units sold
21 50 units purchased at a cost of $50 per unit
28 60 units sold
What is the value of inventory on 28 February using the FIFO method?
a. $2,450
b. $2,700
c. $2,950
d. $3,000
Q21: A manufacturer incurs the following costs: $38,000 developing new techniques that
will be put in place shortly to cut production costs; $27,000 researching a new process to
improve the quality of the standard product and $18,000 on market research into the
commercial viability of a new type of product.
It is company policy to capitalise costs whenever permitted by IAS 38 Intangible
Assets.
How much should be charged as research expenditure in profit or loss? (ignore
amortisation )
 a. $73,000
b. $35,000
c. $45,000
d. $38,000
Q24: At the beginning of the year, a company's expanded accounting equation shows the
following values:
Assets: $200,000
Liabilities: $80,000
Throughout the year, the company generates a net income of $50,000, invests an
additional $30,000 in the business, and pays off a long-term debt of $15,000.
Calculate the Owner's Equity at the end of the year.
a. $185,000
b. $200,000
c. $150,000
d. None of the above
Q28: A business acquired a specialized machine for $200,000. After several years of use,
the machine's carrying amount is $120,000. The company decides to dispose of the
machine and sells it for $110,000. Calculate the gain or loss on the disposal of the
machine.
a. Gain of $10,000
b. Loss of $10,000
c. Gain of $20,000
d. Loss of $20,000
Q31: According to IAS 16, which of the following costs should be capitalized as part of
the cost of an item of property, plant, and equipment?
a. Routine maintenance costs
b. Initial delivery and handling costs
c. General administrative expenses
d. Repairs and maintenance to restore the asset's condition
Q32: According to IAS 38, which of the following is an example of an intangible asset
with a finite useful life?
a. Goodwill
b. Copyright
 c. Land
d. Trademarks Q37: A company is selling one model of car. It has no inventory at the start
of the period. The company buys 4 cars during the period. Due to price rises, the cars cost:
$14000, $15000, $16000, $17000 in the order they are purchased. The company then sells
2 cars, and uses FIFO to value the inventory. What is the cost of goods sold?
a. $33,000
b.$29,000
c. $30,000
d. $31,000
Q39: An entity acquired an item of Plant in exchange for an item of Equipment.
The Equipment has a carrying value of $9.000 and a fair value of $7.000. The journal
entry to record the transaction will show:
a. a loss of $2.000;
b. a gain of $2.000;
c. proceeds on sale of Equipment of $2.000;
d. proceeds on sale of Plant of $1.000.

B
Q20: Beta Co is operating in heavy duties tool industry with the financial year ended on
31* December. On 19 January 20X0, Beta Co acquired a production machine from
MYCA Co. The following information is available in relation with the machine:
Machine's list price (10% recoverable VAT
$2,530,000
included)

Import duties (Irrecoverable) $126,500

Staff training $150,000

Installation $81,200

Site preparation $44,800

General overheads $125,000

Transportation $7,000

Testing cost $57,000

Site restoration cost at year 12th (estimated) $24,000

At the purchasing point, the estimated useful time of this machine is 10 years and residual
value is zero. Also, straight-line depreciation method is applied. How much is depreciation
expense on 31 December 20X0?
a. $264,050
b. $246,050
c. $260,000
d. $280,500

C
Q6: Company A acquired 80% of shares of Company B, equivalent to 60,000 outstanding
shares for a consideration of 4$ cash per share, par value per share was 3$. The fair value
of the non-controlling interest was $30,000 and the fair value of the net assets acquired
was $200,000
What should be recorded as goodwill on the acquisition of Company B in the consolidated
financial statements?
a. $70,000
b. $90,000
c. $50,000
d. 75,000
Q12: Company X sells three products - Basic, Super and Luxury. The following
information was available at the year-end.
Super $ per unit Luxury $ per unit
Basic $ per unit
Original cost
6 9 18
Estimated selling
price 10 12 16

Selling and
distribution costs 1 4 5

Units of inventory
200 250 150

What is the value of inventory at the year-end?

a. $4,200
b. $4,850
 c. $5,700
d. $6,150
Q13: Company X rents a small shop located in Ho Chi Minh City, Company X should
recognize the monthly payment for the shop rental as:
a. an increase in income and a decrease in liabilities.
b. a decrease in assets and an increase in expense
c. a decrease in assets and an increase in equity.
d. a decrease in assets and a decrease in income.
Q36: Company T purchased a boring machine on 1 January 20X1 for $95,000.
The useful life of the machine is estimated at 4 years with a residual value at the end of
this period of $5,000.
During its useful life, the expected units of production from the machine are:
20X1 10,000 units
20X2 5,000 units
20X3 2,000 units
20X4 1,000 units
What should be the depreciation expense for the year ended 31 December 20X4,
using the most appropriate depreciation method permitted by IAS16 Property, plant and
equipment?
a. $50,000
b. $25,000
c. $10,000
d. $5,000

E
Q16: Examples of costs expensed in the period they are incurred are:
(i) Selling costs, storage costs for finished goods and general administration costs.
(i) Costs of purchase and conversion.
(iii) Abnormal amounts of wasted materials, labour and other produc on costs.
a. (1) and (ii)
b. (i) and (iii)
c. (ii) and (iii)
 đ. (i), (ii) and (iii)
Q25: Eastern Management Ltd acquired all the assets and liabilities of King Ltd on 30
June 2017. The carrying amount and estimated fair value of assets and liabilities of King
Ltd to be takenover are as follows:

Carrying amount Fair value

Accounts Receivable $760,000 $720,00

Inventory $1,300,000 $1,440,000

Property, plants and $1,680,000 $1,760,000

equipment

Accounts payables $680,000 $680,00

Note payable $90,000 $200,00

The price paid was $4,000,000

What is the amount of goodwill that would be recorded in the books of Western
Management Ltd?
a. $700,000
b. $3,200,000
c. $4,000,000
d. $960,000

H
Q38: How does IAS 16 recommend that property, plant, and equipment be initially
measured?
a. Historical cost
b. Fair value
c. Replacement cost
d. Net realizable value
Q40: Home Limited (HL) has acquired a subsidiary Stairs Limited (SL) in the current
year. SL has a brand which has been reliably valued by HI at $50,000 and a customer list
which HL has been unable to value. Which of these describes how HL should treat these
intangible assets of SL in their consolidated Financial Statements
a. They should be included in goodwill
 b. The brand should be capitalised as a separate intangible asset, whereas the
customer list should be included within goodwill
c. Both the brand and the customer list should be capitalised as separate intangible
assets
d. The customer list should be capitalised as a separate intangible asset, whereas the
brand should be included within goodwill

I
Q23: Inventories, are defined as:
a. Only tangible products being held for sale, being prepared for sale or materials to
be used in the production process.
b. Tangible goods lying in the store, which are not being sold.
c. Assets being held for sale, being prepared for sale or materials to be used in
the production on process or provision of services.
d. None of the above
Q29: If a company takes out a bank loan, how does this transaction affect the expanded
accounting equation?
a. Assets increase, Liabilities increase
b. Assets increase, Owner's Equity increases
c. Liabilities increase, Owner's Equity decreases
d. Assets decrease, Liabilities increase
Q34: If Carmel knows that the ending inventory at retail for her corner store is $16 000
and her cost to retail percentage is 65%, her ending inventory at cost can be estimated as:
a. $16 000
b. $10 400
c. $26 400
d. $19 000

P
Q27: Passion Limited's year-end inventory on 31 December amounted to $280,000 valued
at cost. However, some inventory items were damaged before year-end and will require
repair work with an estimated cost of $3,000. The items can be sold for 80% of the cost
when repaired. The cost of these damaged goods was $20,000. What is the correct
inventory valuation for inclusion in the financial statements
a. $227,000
b. $211,000
 c. $243,000
d. $273,000

S
Q10: Selected data on inventory, purchases, and sales for Company X, are as follows
Cost Retail

Company X

Inventory, March 1 $300,000 $450,000

Transaction during March:

Purchase $4,700,000 $5,550,000

Sales $3,000,000

What is the estimated cost of the merchandise inventory of Company X onMarch 31 by

the retail method?
a. $3,000,000
b. $5,000,000
c. $2,500,000
d. $4,000,000

T
Q14: The definition of intangible assets according to IAS 38 does not require ...
a. identifiability
b. non-monetary asset
c. future economic benefits can be measured reliably
d. no physical substance
Q15: The purchase of computer modems on 20 March, as per the stock card, is 1,010 units
which cost, in total, $20,800. Afterward, the company buys 500 modems for a total cost of
$ 11,000, what is the average cost of each modem after the purchase?
a. 21.06
b. 20.00
с. 22.06
 d. 20.21
Q30: The purchase price, transport, and handling costs, taxes, and import duties are all
examples of:
a. Costs of conversion
b. Costs of purchase
c. 2 and 3
d. Neither

U
Q2: Under IAS 16, which of the following costs is not typically included in the initial
measurement of property, plant, and equipment?
a. Purchase price
b. Directly attributable costs
c. General administrative costs
d. Cost of dismantling and removing the asset /

W
Q4: With regards to the International Accounting Standards, IASB stands for:
a. International Auditing Standards Board.
b. International Accounting Securities Body.
c. International Accounting Standards Board.
d. International Accounting Statements Body.
Q9: Which of the following could be classified as development expenditure on the
statement of financial position as at 31 March 2020 according to IAS 38 Intangible
Assets?
a. $10,000 spent on developing a prototype and testing a new type of propulsion
system. The project needs further work on it as the system is currently not viable
b. A payment of $10,000 to a local university's engineering faculty to research new
environmentally friendly building techniques
c. $10,000 developing an electric bicycle. This is near completion and the product
will be launched soon. As this project is the first of its kind, it is expected to make a loss
 d. $10,000 developing a special type of new packaging for a new energy-
efficient light bulb. The packaging is expected to reduce Mars Limited's distribution
costs by $2,000 a year
Q11: Which TWO of the following criteria must be met before developing expenditure is
capitalised according to IAS 38 Intangible Assets?
(i) the technical feasibility of completing the intangible asset
(ii) future revenue is expected
(iii) the intention to complete and use or sell the intangible asset (iv) there is no need for
reliable measurement of expenditure
a. (i) and (ii)
b. (i) and (iii)
c. (ii) and (iii)
d. (ii) and (iv)
Q17: Which of the following shall be capitalized as intangible asset in financial
statements?
a. $400,000 developing a new process which will bring in no revenue but is
expected to bring significant cost savings
b. $400,000 developing a new product. During development a competitor launched
a rival product and now the entity is hesitant to commit further funds to the process
c. $400,000 spent on marketing a new product which has led to increased sales of
$1,000,000
d. $400,000 spent on training staff
Q18: Which of the following should be included ina the company's statement of financial
position as an intangible asset under IAS 38 Intangible Assets?
a. Internally developed brands
b. Internally generated goodwill
c. Expenditure on completed research
d. Payments made on the successful registration of a patent
Q19: Which is thé following costs maybe included when arriving at the cost of finished
goods inventory for inclusion in the financial statements of a manufacturing
company?
1. carriage outwards
2. carriage inwards
3. Finished goods storage costs
 4. right-of-use assets used in the production process
5. Factory supervisors' wages
a. 1 and 5 only
b. 2, 4 and 5 only
c. 1, 3 and 5 only
d. 1, 2, 3 and 4 only
Q22: Won Ltd has a historical gross profit percentage of 35%. Net purchases for six
months were $1,400 and sales were $ 2,000. Inventory at the end of the previous period
was $300. If Won Ltd prepares an interim balance sheet the amount that can be estimated
for closing inventory is:
a. $100
b. $300
c. $1,000
d. $400
Q26: Which of the following statements is false?
a. The IFRS Advisory Council is directly accountable to the Monitoring Board.
b. The International Accounting Standards Committee (IASC) was established in
June 1973 in London.
c. The IASB and IFRS Interpretations Committee are appointed and overseen by
a geographically and professionally diverse group called the IFRS Foundation Trustees.
d. The IASB is an independent standard-setting board that develops and
approves International Financial Reporting Standards.
Q33: Which of the following is the correct formula for the Accounting Equation?
a. Assets = Liabilities - Shareholder's Equity
b. Assets = Liabilities + Shareholder's Equity
c. Liabilities = Assets + Shareholder's Equity
d. Shareholder's Equity = Assets + Liabilities
Q35: What are inventories measured at?
a. Fair value
b. lower of cost and net realized value
c. market value
d. book value
 X
Q8: X company has provided the following information as at 31 December
2016:
(1) Project A - $200,000 has been spent on the research phase of this project
during the year
(ii) Project B - $800,000 has been spent on this project in the previous year and $200,000
this year. The project was capitalized in the previous year; however, it has been decided to
abandon this project at the end of the year
(iii) Project C - $900,000 was spent on this project this year. The project meets the criteria
of IAS 38 and is to be capitalized
Which of the following adjustments will be made in the financial statements as at 31
December 2016?
a. Reduce profit by $700,000 and increase non-current assets by $1,000,000
b. Reduce profit by $1,500,000 and increase non-current assets by $1,000,000
c. Reduce profit by $1,200,000 and increase non-current assets by $100,000
d. None of the above