FI

NANCI
ALACCOUNTINGTHEORY-TESTBANK
80102016-1
1.Whichoft hef oll
owingi str
uer egardingthecomparisonofmanagerialandfinanci
al
accounti
ng?
a.Manager ialaccount
ingisgenerall
ymor epr
eci
se.
b.Manager ialaccounti
ngneednotf oll
owgeneral
lyaccept
edaccount
ingpri
nci
pleswhil
e
fi
nancialaccountingmustfoll
owt hem.
c.Manager ialaccount
inghasaf utur
efocus.
d.Theemphasi sonmanager ialaccountingi
srel
evanceandtheemphasi sonfinanci
al
accountingistimeli
ness.

2.Theinf
ormat i
onpr ovi
dedbyf i
nancialreporti
ngper tai
nsto
a.Indi
vidualbusinessenterpr
ises,industri
esandaneconomyasawhol e,r
athert
hanto
member sofsocietyasconsumer s
b.Indi
vidualbusi
nessent erpr
ises,ratherthant oindustri
esoraneconomyasawhol eor
tomember sofsocietyasconsumer s.
c.Indi
vidualbusinessenterpri
sesandaneconomyasawhol e,r
athert
hantoindust
ri
es
ortomember sofsocietyasconsumer s
d.Indi
vidualbusinessenterpri
sesandi ndustr
ies,ratherthantoaneconomyasawhol e
ortomember sofsocietyasconsumer s

3.Whi
chofthef oll
owi
ngr
elat
est
obot
hrel
evanceandf
ait
hfulr
epr
esent
ati
on?
a.Ti
meliness
b.Predi
cti
vev al
ue
c.Completeness
d.Neutr
ali
ty

4.Whi
choft hefoll
owingv i
olat
estheconceptoff ai
thf
ul r
epr
esentat
ion?
a.Financialst atementsi ncl
uded pr opert
y with a carry
ing amount incr
eased to
managementest i
mateofmar ketv al
ue
b.Financialstatementswer ei
ssuedni nemonthslat
e
c.Repor tdataonsegment shavi
ngt hesameexpect edri
sksandgrowthrat
estoanaly
sts
estimat i
ngfutureprofi
t
d.Managementr eport
st oshareholdersregul
arl
yrefertonew proj
ectsunder
takenbut
thefinancialstat
ement sneverreportpr
ojectr
esults

5.Comprehensiv
ei ncomeexcl udeschangesinequi
tyresult
ingf
rom whi
choft
hef
oll
owi
ng?
a.Unreali
zedlossonsecur i
ti
escl
assif
iedasavai
lableforsal
e
b.Purchaseoft reasuryshares
c.Lossfrom discont i
nuedoperat
ions
d.Pri
orperioder rorcorr
ecti
on

6.Ear
nings
a.Includecer
tai
ngainsthatareexcludedfrom comprehensiv
eincome
b.Aret hesameascompr ehensivei
ncome
c.Excludecert
aingainsandlossesthatareincl
udedincompr ehensi
vei
ncome
d.Includecer
tai
nlossesthatareexcludedfrom comprehensi
veincome

7.Anentit
yr ecordsallsalesusi
ngt hei nstall
mentmet hodofaccounting.I
nst
all
mentsales
contr
acts callfor36 equalmont hlycash pay ment s.Accordi
ng tothe conceptual
framework,theamountofdef er
redgr ossprofi
trel
ati
ngt ocol
lect
ions12mont hsbey
ond
theendofr eport
ingperiodshouldber eport
edinthe
a.Cur r
entassetsect i
onasacont raaccount
b.Noncur rentli
abi
li
tysecti
onasdef er r
edrevenue
c.Noncur rentassetsecti
onasacont raaccount
d.Cur r
entliabi
li
tysecti
onasadef erredr ev
enue
 Page 2
8.Whichoft hefol
lowi ngi sadef erredcostthatshouldbeamor t
izedovert
heper
iods
benef
it
ed?
a.Adv ancefrom cust omert ober etur
nedwhensal ei
scompleted
b.Prepay mentoft hree-
y earinsurancepremiumsonmachiner
y
c.Propertytaxfort hisyearpay ablenextyear
d.Secur i
tydepositrepresentingtwomont hs’r
entonl
easedof
ficespace

9.Magazi
nesubscript
ionscol l
ectedinadvanceshouldber epor
tedas
a.Acontraaccountt omagazinesubscripti
onsrecei
vable
b.Defer
redrevenueint hel
iabi
lit
ysecti
on
c.Magazinesubscripti
onrevenueintheper i
odcoll
ected.
d.Defer
redrevenueint hesharehol
ders’equi
tysecti
on

10.
How woul dthepr oceedsr eceiv edfrom theadvancesaleofnonrefundabl
eti
cketsfora
theatr
icalper formance be r epor t
ed int he sel
ler
’sfinanci
alstatement
s befor
et he
perfor
mance?
a.Unear nedrev enuetotheext entofrel
atedcostsexpended
b.Rev enuetot heextentofr elatedcostsexpended
c.Unear nedrev enuefortheent i
reproceeds
d.Rev enuefort heenti
repr oceeds.

11.
Anenti
tyr ecei
vedr oyal
ti
esfrom t heassignmentofpatenttootherent
it
ies.I
ntheper
iod
inwhi
cht heroyalti
esareearned, theroyalt
iesshoul
dbe
a.Nettedagainstpat entamortizati
onexpense
b.Amor tizedt
oi ncomeov erther emainingusefull
i
feofthepat
ent
c.Subtractedfrom thecapit
alizablecostoft hepat
ent
d.Reportedasr evenue

12.
Underwhatcondi ti
on i
sitpr opert or ecogni
ze r ev
enue pr
iortothe sal
e oft
he
merchandi
se?
a.Whenmanagementhasal ong-
establi
shedpolicytodoso.
b.Whent herevenueist
obereport
edasani nst
allmentsal
e
c.Whent heult
imatesal
eofthegoodsi satanassur edsal
espri
ce
d.Whent heconceptofint
ernalconsistencyofamount sofrevenuemustbecompl
i
ed
wi
th.

13.
Howshouldanent i
tytr
eator
gani
zat
ioncost
sint
hef
inanci
alst
atement
s?
a.Neveramor t
ized
b.Amor t
izedoverfort
yyear
s
c.Expensedimmedi at
ely
d.Amor t
izedoversixt
ymonths

14.
Whi
chofthefoll
owingisall
owableforf
inanci
alr
epor
ti
ngunderI
FRS?
a.Completedcontr
actmethod
b.Ext
raordi
naryi
tems
c.LI
FO
d.Lowerofcostornetreal
izabl
evalue

15.
Theeffectsofachangei naccounti
ngprincipl
eshoul dber ecordedonapr ospecti
ve
basi
swhent hechangeisfr
om the
a.Thecor recti
onofanerrori
nt hedeter
minationoft helastyear’si
nventor
y
b.Straightli
nemethodofdepreciat
iontothedoubl edecli
ningbalancemet hod.
c.Costr ecoverymethodofaccounti
ngtot heper centageofcompl eti
onmet hod.
d.Presentationofstat
ementsofindiv
idualentit
iesinconsol i
datedstatements.

16.
Achangeintheresi
dualval
ueofanassetdepr
eci
atedonast
rai
ght
-l
inebasi
sar
isi
ng
becauseaddi
ti
onali
nfor
mat i
onhasbeenobtai
nedi
s
a.Acor r
ecti
onofanerror
 b.Notanaccounti
ngchange
c.Anaccounti
ngchangethatshoul
dber
efl
ect
edint
heper
iodofchangeandfut
ure
per
iodsi
fthechangeaffect
sboth
d.Anaccounti
ngchangethatshoul
dber
eport
edbyr
est
ati
ngthefi
nanci
alst
atementsof
al
lpri
orper
iodspresent
ed.

Page 3
17.
Present
ingconsolidatedf i
nancialst
atementst
hisyearwhenstatementsofindi
vidual
enti
ti
eswer epresentedl astyeari
s
a.Anaccount ingchanget hatshouldberepor
tedbyrestat
ingthefi
nanci
alstat
ementsof
al
lpri
orperiodspr esented.
b.Anaccount ingchanget hatshouldberepor
tedprospect
ivel
y
c.Notanaccount ingchange
d.Acor recti
onofaner ror

18.
Duri
ngt hecur r
enty ear,t
heentityvoluntar
il
ychangeditsaccounti
ngmet hodbecausethe
newmet hodwi l
lprovidemor ereli
ableandr el
evantinf
ormati
on.Theentitycanesti
mate
theef
fect softhechange.Howshoul dtheentit
yt r
eatthechangeinaccountingpol
icy
?
a.Onapr ospecti
vebasi s
b.Byr est at
ingthef i
nancialst
atement s
c.Byacumul ati
veadj ust
mentont heincomest at
ement
d.Onar etr
ospecti
v ebasis

19.
Anentit
ychangedf rom anaccount i
ngpr inciplet
hati
snotgener al
lyacceptedt
oonet hat
isgeneral
lyaccepted.Theef fectoft hechangeshoul dber eported,netoftax,i
nt he
cur
rent
a.Retainedearni
ngsstat ementasanadj ustmentoftheopeni
ngbal ance
b.Retainedearni
ngsstat ementaf ternetincomebutbef oredi
vidends
c.Incomest at
ementaf terextraordinaryitems
d.Incomest at
ementaf terincomef rom continui
ngoperat
ions

20.
Whi
chofthef oll
owi ngdescr i
besachangeinreporti
ngenti
ty?
a.Amanuf acturi
ngent i
tyexpandsit
smarketf r
om regi
onalt
onationwi
de.
b.Anentit
ypr esentsconsol i
datedfi
nanci
alstatementsi
nplaceofindi
vi
dualf
inanci
al
st
atements.
c.Anentit
yacqui resaddi t
ionalshar
esofaninvesteeandchangestotheequi
tymethod
ofaccounting
d.Anentit
ydiscont inuesapr oductl
ine

21.
Inwhichofthef oll
owi
ngsit
uati
onsshouldanentit
yr eportapri
orperi
odadjust
ment ?
a.Thecor recti
onofamat hemati
calerr
orint
hecal culat
ionofpri
oryear
s’depreciat
ion
b.Achangei nt heest
imatedusefull
if
eofpr operty,pl
antandequipmentpur chasedin
pr
ioryears
c.Aswi tchfrom thest
rai
ghtli
netodoubledecli
ningbalancemethodofdepr eciati
on
d.Thescr appingofanassetpri
ortotheendoftheexpect eduseful
li
fe

22.
UnderIFRS,changesinaccountingpol i
ciesmayoccur
a.Eitherwhenachangei srequi r
edbyanI FRSorwhenitpr
ovidesreli
abl
eandmore
r
elevanti
nformati
on
b.Nei t
herwhenachangei sr equiredbyanI FRSnorwhenitprovi
desreli
abl
eandmore
r
elevanti
nformati
on
c.Onl ywhenachangei srequiredbyanI FRS
d.Onl ywhenachangepr ovidesr eli
abl
eandmor erel
evantinf
ormation

23.
UnderI
FRS, achangeinaccountingest
imateisaccountedfor
a.Retrospect
ivel
y
b.Asacumul at
iveef
fectofanaccountingchangeintheincomest
atement
c.Currentl
yinthefi
nancialst
atements.
d.Prospecti
velyi
ntheper i
odofchangeandf utur
eperiods.
24.
Whenani nv estorusest heequi t
ymet hodt oaccountf orani nv
estmentinordi
naryshares
andthef airv alueopt i
onofr eporti
ngf inancialassetsi snotelectedafterthedat eof
acqui
siti
on.t heinvestmentaccountoft heinv est
orwoul d
a.Bei ncreasedbyi t
sshar eoft heear ni
ngsoft heinvesteebutwouldnotbeaf fectedby
i
tsshareoft hel ossesofthei nvestee.
b.Bei ncreasedbyi t
sshar eoft heearningsoft hei nv
esteeanddecr easedbyitsshareof
t
helossesoft heinvestee.
c.Notbeaf fectedbyi t
sshar eoft heearningsorl ossesoft heinv
estee.
d.Notbeaf fectedbyi tsshareoft heear ningsoft heinvesteebutwouldbedecr easedby
i
tsshareoft hel ossesofthei nvestee.

Page 4
25.
Anent itypur chasedshar esofanot herent i
tyandcl assifi
edt heinvestmentast radi
ng
securit
ies.Theent it
yshoul dr
epor ttheset r
adingsecurit
iesat
a.Lowerofcostormar ketwithhol dinggainsincl
udedi near ningsonlytot heext
entof
previouslyrecognizedhol dinglosses.
b.Lowerofcostormar ketwithholdi nggainsandlossesi ncludedinearnings.
c.Fai rvalue,withholdinggai nsandl ossesincl
udedinear nings.
d.Fai rv al
uewi t
hhol dinggai nsincl udedinearningsonl yt ot heextentofpr ev
iousl
y
recognizedhol di
ngl osses.

26.
Ani nvestorusest heequitymet hodtoaccountforinv
est
mentsinor di
nar
yshares.The
purchasepr iceimpliesaf ai
rv alueoft hei
nvest
ee’sdepr
eci
ableassetinexcessofthe
inv
est ee’snetassetcarr
yingamount s.Thei
nvest
or’
samorti
zat
ionoftheexcess
a.Decr easestheinvest
mentaccount
b.Decr easesthegoodwillaccount
c.Doesnotaf f
ecttheinvestmentaccount
d.I ncreasestheinvestmentrev enueaccount

27.
Thecomposit
edepr eci
ati
onmet hod
a.Doesnotrecognizegainorlossontheret
ir
ementofsi
ngleassetint
hegroup
b.Doesnotsubtractresi
dualvaluef
rom t
hebaseofthedepreci
ati
oncal
cul
ati
on
c.Isanaccel
eratedmet hodofdepreci
ati
on
d.Isappl
i
edt oagr oupofhomogenousassets

28.
Whi
chdepr eciat
ionmethodiscomput
edi
nthesamewayasdepl
eti
on?
a.Producti
v eoutput
b.Sum oft heyears’di
git
s
c.Strai
ghtline
d.Doubledecl i
ningbal
ance

29.
Whatv
aluati
onmodelshouldanent i
tyusetoval
ueproper
ty,
plantandequi
pment
?
a.Thereval
uat
ionmodelort hef airvaluemodel
b.Thecostmodelortherevaluationmodel
c.Thecostmodelorthefai
rv aluet hroughpr
ofi
torl
ossmodel
d.Thecostmodelorthefai
rv aluemodel

30.
Anasseti sbeingconstructedforanent i
ty’sownuse.Theassethasbeenf i
nancedwit
ha
specif
icnewbor rowing.Theinterestcostincur
redduri
ngtheconstr
uctionper i
odis
a.Apar tofthehist
oricalcostofacquiri
ngt heassettobewrit
tenoffov ertheesti
mated
usefulli
feoftheasset
b.Apr epaidassettobewr it
tenoffovertheestimatedusef
ull
if
eoft heasset
c.Apar tofthecostoft heassettobewr itt
enoffovert
heterm oft
hebor rowing
d.Interestexpenseint heconstr
uctionper i
od

31.
Whenshoul
dalong-l
ivedassetbetestedf orr
ecoverabi
lit
y?
a.Whenexter
nalf
inancialst
atementsar ebeingprepared.
b.Wheneventsi
ndicatethatcarr
yingamountmaynotber ecov
erabl
e.
c.Whentheasset
’scarryi
ngamounti slessthanf airv
alue.
d.Whentheasset
’sfairval
uehasdecr easedandt hedecreasei
sjudgedt
obeper
manent
.
32. Whi chofthefoll
owi
ngcondit
ionsmustexi sti
nor derf oranimpair
mentl
osst
obe
recogni
zed?
a.Thecar r
yingamountoft
heasseti
slessthanfairvalue.
b.Thecar r
yingamountoft
heasseti
snotrecoverabl
e.
c.Thecar r
yingamountoft
heasseti
slessthanvalueinuse.
d.Thecar r
yingamountoft
heasseti
slessthanrecoverableamount
.

33. Ther
equir
eddi scl
osuresfort
hei mpairmentoflong-l
i
v edasset
sincl
udeall
,except
a.Thebusinesssegmentaf fect
ed,i
fappl i
cabl
e
b.Theamountoft hei mpai
rmentlossandhowf airvaluewasdeter
mined
c.Therecommendat ionoftheauditor,si
gnedanddat edasofthedateofdiscover
y
d.Thefactsandcircumstancesleadingtotheimpairment

Page 5
34. Whent hef
airval
ueisdeterminable, anonr
eci
procalt
ransf
erofanonmonetaryassetto
anotherenti
tyshoul
dber ecordedatt he
a.Recor dedamountoftheassett ransf
err
ed
b.Recor dedamountoftheassetr eceiv
ed
c.Fai rval
ueoft heassettransferredandagai norlossshoul
dberecognizedont he
disposi
ti
onoftheasset
d.Fai rval
ueoft heassetr ecei
v edbutnogai norlossshouldberecognizedont he
disposi
ti
onoftheasset

35. Whichoft hef oll

owi ngstatement sdescri
best hepr operaccounti
ngf orl osswhen
nonmonetaryassetisexchangedf orothernonmonet ar
yasset?
a.Al osscanoccuronl ywhenasseti ssoldordisposedofinamonet arytransact i
on
b.Al oss whichisunr el
atedt othedeterminat
ionoftheamountoft heassetr ecei
ved
shoul
dber ecorded
c.Al ossisdeferr
edsot hattheassetreceiv
edint heexchangeisproperl
yv al
ued
d.Al ossisrecogni zedimmedi atel
ybecauseassetr eceivedshouldnotbev aluedat
morethanthecashequi valentpri
ce.

36. Whichoft hef oll

owingaccurat
elydescr i
bestheappropri
ateaccounti
ngforgoodwi
l
l
acqui
redthroughabusinesscombi nati
on?
a.Itshouldber ecor
dedatcostandamor ti
zedover40-
yearper
iod
b.Itshouldber ecor
dedatcostandamor ti
zedovera10-y
earperi
od
c.Itshouldber ecor
dedatcostandt estedfori
mpairmentever
ythreey
ears
d.Itshouldber ecor
dedatcostandt estedfori
mpairmentonanannualbasi
sandmore
of
tenifcert
aineventsoccur

37. Whi
choft hefoll
owingstatement si
scor r
ectconcerni
ngstartupcost
s?
a.Costsofst artupact ivi
tiesincludingor gani
zati
oncost sshoul
dbeexpensedas
i
ncurred
b.Costsofst artupactivit
iesincl
udi ngor gani
zati
oncostsshouldbecapi t
ali
zedand
amortizedonast r
aight-
li
nebasi sov ertheeconomicli
feoftheenti
ty
c.Costsofst artupactivit
iesincl
udi ngor gani
zati
oncostsshouldbecapi t
ali
zedand
expensedonlyifanimpai rmentexists
d.Costsofst artupact i
vit
iesshoul dbecapi t
ali
zedandamor ti
zedonast r
aight
-l
ine
basis overthe economi cl i
fe oft he entit
ywhi l
e organi
zat
ion cost
s should be
expensedasi ncur
red.

38. Goodwi
llshouldbetestedforimpairmentatwhi
choft
hef
oll
owi
ngl
evel
s?
a.Eachreporti
ngunit
b.Eachacquisiti
onunit
c.Eachidenti
fiabl
elong-
term asset
d.Enti
rebusinessasawhol e

39.Whichofthefol
lowingisanexampleofactiv
iti
esthatwoul
dtypi
call
ybeexcludedfrom
resear
chanddev el
opmentcosts?
a.Qual i
tycont
roldur
ingcommercial
producti
onincl
udi
ngrout
inetest
ingofproduct
s
 b.Laborat
oryr
esearchaimedatdiscoveryofnewknowledge
c.Design,
constr
ucti
onandt est
ingofproduct
ionpr
otot
y pesandmodel s
d.Testi
nginsearchfororv
aluati
onofproductorpr
ocessal t
ernat
ives

40. Anact
ivityt
hatwoul dbeexpensedcurrentl
yasresearchanddev elopmentcost
sisthe
a.Engineeringfollow-
throughinanearlyphaseofcommer cialproducti
on
b.Legal workinconnect i
onwithpatentappli
cati
onandt heli
censingofpatent
c.Testinginsear chfororeval
uati
onofpr oductorprocessalt
ernativ
es
d.Adapt at
ionofanexi stingcapabi
li
tytoapar ti
cul
arrequir
ementorcust omerneedas
apar tofcontinuingcommer ci
alacti
vit
y.

41. Whi
chofthef ol
lowingi sar esear
chanddev elopmentcost?
a.Researchanddev elopmentper formedundercont ractf
orother
s
b.Devel
opmentori mpr ovementoft echniquesandprocesses
c.Off
shor eoi
lexplorationthatisthepr i
mar yact
ivi
tyofanenti
ty
d.Marketresearchrelatedt oamaj orproductfortheenti
ty

Page 6

42. Whichofthef oll

owingdescri
best heappropriat
eaccount i
ngforint
angibl
eassetwi th
fi
nit
eusefull
ife?
a.Thecostoft heassetisnotamor t
izedbutisperi
odical
lytest
edfori
mpairment
b.Thecostoft heassetisamor t
izedov ert
heusef ulli
feandtheassetisnevertested
forimpair
ment
c.Thecostoft heassetisamort
izedov er40years.
d.Thecostoft heassetisamorti
zedov ertheusef ull
if
eandt heassetisperi
odicall
y
testedf
orimpai r
ment

43. Whatv
aluati
onmethodsareusedf ori ntangi
bleasset
s?
a.Thecostmodelandthefai
rv aluemodel
b.Thereval
uat
ionmodelandt hef airvaluemodel
c.Thecostmodelandthefai
rv aluet hroughprofi
torl
ossmodel
d.Thecostmodelandtherevaluationmodel

44. Anenti
tyhasi nvest
mentpr oper
tythatleasestoanotherenti
ty .Theenti
tyusest hef
air
val
uemodel toreportinv estmentproperty
.Whichofthef ol
l
owi ngstatement
sistrue?
a.Theent i
tyshouldv aluet heequipmentatcostl essaccumul at
eddepreciat
ionand
lessaccumulatedi mpai rmentlosses.
b.Theentityshouldr epor tthei
ncreaseinfai
rval
uei nothercompr ehensi
veincomef or
theperi
od.
c.Theentit
ydepr eciatest heequipmentusingnormal depr
eciationmethod.
d.Theentit
ydoesnotr ecorddepreciat
ionontheinvestmentpr oper
ty

45. An enti
typurchased land f
orf ut
ure use and appr
opri
atel
yclassi
fi
es the l
and as
i
nvestmentpr
oper t
y.Whatvaluat
ionmodelmaybeusedt oreportt
heland?
a.Fairval
uemodel orreval
uati
onmodel
b.Fairval
uethroughothercomprehensi
veincomeorreval
uati
onmodel
c.Costmodel orfairv
aluemodel
d.Costmodel orreval
uati
onmodel

46. Whenpr acticabl

etoest
imat
e,anent
it
ymustdi
scl
oset
hev
alueoff
inanci
ali
nst
rument
s
at
a.Historicalcost
b.Netr eali
zableval
ue
c.Fairvalue
d.Carryingamount

47. Whichofthefoll
owingprovi
destheholdert
herighttosel
latanexer
ciseorst
rikepr
ice
anyt
imeduringaspecif
iedperi
odagainaccruestothehol
derasthemarketpr
iceofthe
under
lyi
ngfall
sbelowthestr
ikepri
ce?
 a.For
wardcont
ract
b.Putopt
ion
c.Swapti
on
d.Cal
lopti
on

48. Whi
choft hefollowi
nginst
rument
sisnotconsi
der
edader
ivat
ivef
inanci
ali
nst
rument
?
a.Currencyfutures
b.Stockindexopt i
on
c.Bankcer t
if
icateofdeposi
t
d.I
nterestrateswap

49. Aderi
vativ
ef i
nanciali
nstrumentisbestdescri
bedas
a.Acont ractthatconvey stoasecondent i
tyar i
ghttofuturecol
lecti
onsonaccounts
receiv
ablefrom afir
stent i
ty
b.Evidenceofanowner shipint
eresti
nanentit
ysuchasor dinar
yshares
c.Acont ractt
hathasi tssett
lementvaluet
iedtoanunder l
yingandanot i
onalamount
d.Acont ractt
hatconv eystoasecondent i
tyarightt
oreceivecashfrom afi
rstent
it
y.

Page 7

50. Anyf i
nancialorphy si
calvar
iabl
ethathasei
therobser
vabl
echangesorobj
ect
ivel
y
ver
if
iabl
echangesqual i
fiesas
a.Not i
onal amount
b.Hedge
c.Financialinst
rument
d.Under l
ying

51. Themostr elevantmeasuref

orr
epor
ti
ngf
inanci
ali
nst
rument
sis
a.Histori
cal cost
b.Netr eali
zableval
ue
c.Fairvalue
d.Lowerofcostormar ket

52. Hybridinstrumentsmustbeaccount edfor

a.Att hepr esentv alueoft hecashfl
owsoftheinstrument
b.Atamor ti
zedcost ,atfairval
uethr
oughpr of
itorloss,oratfairv
aluethroughot
her
compr ehensivei ncomei fanenti
tyisnotr
equiredtobifur
cat
et hehybri
dinstr
ument
c.Bybi furcatingthei nstr
umentandv alui
ngthecomponent sseparat
ely
d.Atnetr eali
zabl
ev alueoft hei
nst
rument

53. Whi
choft hef
ollowi
ngdoesnotqual
i
fyasanunder
lyi
ng?
a.I
nsuranceindex
b.Equit
yshares
c.Exchangerate
d.Commodi t
ypr i
ce

54. Whenaccount i
ngf orincomet axes,atemporar
ydiff
erenceoccurswhen
a.Anitem isincludedinthecal cul
ati
onofnetincomeinoney earandt
axabl
eincomein
adiffer
enty ear.
b.Ani tem isi ncl
udedi nt hecal cul
ati
onofneti ncomebuti snei
thert
axablenor
deducti
ble.
c.Theaccr ualmet hodofaccount i
ngisused.
d.Anitem isnol ongertaxableduet oachangeinthetaxlaw.

55. Whent
emporar
ydif
ferencewillr
esul
tintaxabl
eamount sinfutur
eyears
a.Adefer
redt
axl
iabi
lit
yisrecogni
zedinthecur r
entyear.
b.Adefer
redt
axassetisrecogni
zedinthecurr
enty ear.
c.Adefer
redt
axassetmayber ecogni
zedi nthecurrentyeari
fcert
aincondi
ti
onsar
e
met.
 d.Adef
err
edt
axl
i
abi
l
itymayber
ecogni
zedi
nthecur
renty
eari
fcer
tai
ncondi
ti
onsar
e
met
.

56. Atthemostr ecenty ear-

end,anoncurr
entdef erredincomet axassetexceededacur r
ent
deferr
edi ncomet axl i
abil
it
y.Whichoft hef oll
owingshoul dber eport
edatt he most
recentyear-end?
a.Theexcessoft hedef err
edtaxassetovert hedeferredtaxli
abil
it
yasacur rentasset
.
b.Theexcessoft hedef er
redtaxassetov erthedef err
edt axli
abil
i
tyasanoncur r
ent
asset
c.Thedef erredtaxassetasanoncur rentasset
d.Thedef erredi
ncomet axassetasacur r
entasset .

57. Def
ici
tsaccumulatedduringthedevelopmentst ageofanenti
tyshouldbe
a.Reportedasapar tofsharehol
ders’ equity
b.Reportedasorganizati
oncosts
c.Capit
alizedandwr i
tt
enoffinthefirsty earofpri
nci
paloper
ations
d.Capit
alizedandamor t
izedovera5- y earperi
od

Page 8
58. Anent i
tywi shestor aisefundsbyi ssuingeitherbondsorcumul at
iveprefer
enceshar es.
Howwi l
ltheannuali nter
estordiv i
dendaf fectannualnetearningsav ai
labl
etoor dinary
shareholders?
a.Annualnetear ningsav ail
ablet oor di
naryshareholdersarer educedbypr eference
divi
dendsbutnotbyannual interest.
b.Annual netearningsav ail
abletoor di
naryshareholdersarereducedbyannual i
nt erest
butnotbypr ef
erencedi vi
dends.
c.Annualnetear ningsav ail
abletoor di
naryshareholdersarenotr educedbyannual
i
nterestorpr efer
encedi vi
dends.
d.Annual netearningsav ail
abletoor di
naryshareholdersarereducedbyannual i
nt erest
andpr eferencediv i
dends.

59. Whi
choft
hefoll
owingwoul dber eport
edasani nv
esti
ngacti
vi
tyi
nast
atementofcash
fl
ows?
a.Col
l
ect
ionoftaxrefundfrom t
hegov er
nment
b.Col
l
ect
ionofanov erdueaccountrecei
vabl
efrom acust
omer
c.Col
l
ect
ionofproceedsf r
om anot epay
able.
d.Col
l
ect
ionofanot erecei
vabl
ef rom ar
elat
edparty
.

60. Defer
red t axexpenser esulti
ngf r
om tempor
arydif
ferencesrelat
edt odepr
eci
ati
on
shoul
dbepr esentedinast at
ementofcashfl
owsusingindir
ectapproachas
a.Financi
ngact iv
ity
b.Deductionf r
om netincome
c.Noncashf inancingandinvesti
ngact
ivi
tyr
eport
edinaseparateschedul
e.
d.Additi
ont onetincome.

61. Whi
chisi
ncludedunderfi
nanci ngacti
vit
iesi
nt hestatementofcashflows?
a.Casheff
ectsoft r
ansactionsobtaini
ngresourcesf r
om ownersandpr ovi
dingt
hem
wit
hareturnontheiri
nvestment.
b.Cashef
fectsoftr
ansactionsthatenteri
ntothedeterminat
ionofnetincome.
c.Cashef
fectsoftr
ansactionsinvolv
ingmakingandcol l
ecti
ngloans.
d.Cashef
fectsofacquir
inganddi sposi
ngofpr oper
ty,pl
antandequipment.
62. UnderIFRS,al
lofthefoll
owingaret
hreshol
dsfordet
erminingifanoper at
ingsegmentis
areportabl
esegment ,
except
a.Thesegmentr ev
enueis10%ormor eofcombinedrevenueofal l
segment s.
b.Thesegmentasset sare10%ormoreoft hecombinedassetsofallsegment s.
c.Thesegmentasset sare15%ormoreofthecombinedasset sofallsegments.
d.Theamountof segmentpr of
itorlossis10% ormor et hanthegr eat
eroft he
combined profi
tofallprof
it
ablesegmentsor combi nedlossofal lnonprofi
tabl
e
segments.

63. Whichofthefoll
owingtypesofentit
iesar
erequi
redt
orepor
tonbusi
nesssegment
s?
a.Publ
icl
ytradedenter
prises
b.Notforprofi
tent
erpr
ises
c.Joi
ntventures
d.Nonpubli
cbusinessenterpr
ises

64. Whi
chisar equir
edent erpri
se-widediscl
osureregardingexter
nalcustomers?
a.Theidentit
yofanyext ernalcustomerconsider edtobe“major”bymanagement .
b.The identi
tyofanyext ernal customerpr ovidi
ng 10% ormor e ofa par
ti
cul
ar
oper
at i
ngsegmentr evenue
c.I
nfor
mat iononmaj orcustomersisnotrequiredi nsegmentreport
ing
d.Thef actthatt r
ansact i
onswi thapar ti
cul
arext er
nalcustomerconst i
tut
e10% or
moreoft hetotalenterpri
serevenue.

65. Ent
erpr
ise-
widediscl
osuresincl
udeinfor
mat i
onabout
a.Product
sandser vi
ces
b.Geographical
areas
c.Majorcustomers
d.Product
sandser vi
ces,geographi
calareasandmajorcust
omer
s

Page 9
66. Whichoft hefoll
owingst at
ement siscor r
ectr egardi
nghow t heent i
tyshoul
dval
ue
i
nvent
oryintheinter
imf i
nancialstatements?
a.Gainsfrom val
uationi
npr eviousinter
im peri
odsshoul dbefull
yrecognized
b.Onlythecostmet hodofv aluati
onshouldbeused.
c.Invent
orylossesgenerall
yshoul dberecognizedi ntheint
eri
m statements.
d.Tempor ar
ymar ketdecli
nesshoul dnotber ecognizedintheinter
im st
atement
s.

67. Ingener al
, anentit
yprepar
inginter
imf i
nancialst
atementsshould
a.Def errecogniti
onofseasonal r
evenue.
b.Uset hesameaccount i
ngpr i
nciplesfol
lowedinprepari
ngt helatestannualf
inanci
al
statement s
c.Al locater evenueandexpensesev enlyovert hequart
ersr egar
dlessofwhent hey
occur r
ed
d.Di sregar dpermanentdecreasesinthemar ketval
ueofi nv
ent or
y.

68. Howshoul
danentit
yrepor
tthedecisi
ont ochangefrom cashbasistoaccrualbasi
s?
a.Asapri
orperi
odadjust
mentnetoft axbyadjust
ingthebegi
nningr et
ainedearni
ngs.
b.Pr
ospecti
vel
y,wi
thnoamount srel
atedandnocumul ati
veadjust
ment .
c.Asanextr
aordi
naryi
tem netoft
ax.
d.Asachangeinaccount
ingesti
mate.

69. Dur
ingthecur rentyear,theentitydi scoveredithadov er
stat
edsal
esinthepri
oryear
.
Howshouldt heentit
yhandl ethi
si ssue?
a.Adjustcurrentsal
esf ortheentireadj ust
ment .
b.Spreadtheadj ust
mentov erfut
ur eper i
ods.
c.Spreadtheadj ust
mentov ercurrentandf utur
eper i
ods.
d.Restatethepr i
oryearfinanci
al statement spresent
edforcompar
ati
vepur
poses.
70. Whi
chofthefol
lowingchar acteri
sticsdoesnotr el
atetopriorper
iodadjustments?
a.Theyhaveamat eri
al ef
fectoni ncomef r
om cont i
nuingoperat
ionsoftheprioryear.
b.Theycanbespecificall
yidentif
iedwithbusinessactivi
tyofapriorperi
od.
c.Theyareattri
butablet oeconomi ceventsoccur r
ingsubsequentt opr i
orf i
nanci
al
st
atements.
d.Theycoul
dnothav ebeenr easonablyesti
mat edinapr i
orperi
od.

71. UnderIFRS,whichstatementaboutborrowingcost si
str
ue?
a.Bor rowi
ngcost smustalwaysbecapi tal
ized.
b.Bor rowi
ngcost scanneverbecapit
alized.
c.Bor rowi
ng costsmustbecapi tal
ized i ftheymeetcert
aincr
it
eri
aand mustbe
expensedi
ft heydonotmeetcertai
ncr i
teri
a.
d.Al lt
hestat
ement saretrue

72. Apensi
onli
abil
it
ymustberecordedequaltotheunfunded
a.Proj
ect
edbenefi
tobli
gat
ionlessthefai
rvalueofplanasset s.
b.Proj
ect
edbenefi
tobli
gat
ionlesstheprevi
ouslyr
ecogni zedaccruedpensi
oncost.
c.Accumulat
edbenef
itobl
igat
ionplustheprevi
ouslyrecognizedaccruedpensi
oncost
d.Accumulat
edbenef
itobl
igat
ionlesstheprevi
ouslyrecognizedaccruedpensi
oncost
.

73. UnderIFRS,howi st
hediscountrat ef orpensionsdet ermined?
a.I ti
sdeterminedbythemar kety ieldatt heendoft herepor
ti
ngper
iodf
orhi
gh-
qual
i
ty
corpor
atebondshav i
ngasi milart erm ormat uri
ty.
b.I ti
sequaltotherat
eofr eturnonpl anasset s.
c.I ti
sdetermi
nedbyt heweight ed- averageinterestrate.
d.I ti
sequaltothesettl
ementrat e.

74. Theemployeesacceptedat er
minat
ionof ferwhichpr ov
idedforlumpsum payments
andfut
urepay ment
satt heendoft henextt woyears.Theexpenset hi
syearshoul
d
i
ncl
ude
a.Thelumpsum pay mentsandthetotalofthefut
urepay ments
b.Onethirdofthel
umpsum pay mentsandonet hi
rdoft hepresentv
alueoft
hefutur
e
payments
c.Onlythelumpsum payments
d.Thelumpsum pay mentsandthepresentv al
ueofthefutur
epay ments

Page 10

75. Att
heendoft heaccountingper i
od, t
hecur rentmar ketv alueofapur chasecommi tment
waslessthant hefi
xedpur chasepr i
ce.Whi chtreatmenti smostappr opriate?
a.Neitherdescribethepurchaseobl igationnorrecogni zeal oss.
b.Describethenat ureofthecont ractinanot et othef inancialst
atement s, r
ecogni
zea
lossandr ecognizeareductionini nventoryequal totheamountoft heloss
c.Describethenat ur
eoft hecontractandt heestimat edamountoft helossi nanot e.
d.Describet henat ureoft hecont racti n a notet ot hef i
nancialst atementsand
recognizeal i
abil
it
yfortheaccr uedl oss.

76. Whichoft hef ol

lowi ngstatement sist ruewi thr especttoinvent
oryaccount
ingunder
IFRS?
a.Biologicalasset s(agri
culturali
nvent or y
)inv entoryaccounti
ngisexemptfr
om lower
ofcostornetr ealizabl
ev alueval
uat ion
b.Specificidenti
ficationcanbeusedf oral lt
ypesofi nventor
y
c.LIFOi sanaccept ablemet hodforinv entoryv aluati
on
d.FIFOi snotanaccept ablemet hodf ori nventoryv al
uati
on

77.Whi
chofthefoll
owi ngstatementsregardinginventor
yaccount i
ngsystem i
str
ue?
a.Adisadvantageoft heperpetualinventorysystem ist hatinvent
oryamountsusedfor
int
eri
mr eport
ingpur posesareest i
mat edamount s.
b.Adisadvantageoft heperiodicinventorysystem ist hatthecostofgoodssoldused
forfi
nancialr eport
ing purposes includes botht he costofi nvent
orysold and
 i
nvent
oryshor
tages.
c.Anadvant
ageoftheperpet
uali
nventor
ysyst
em i
sthatt
herecor
dkeepingi
ssimple.
d.Anadvantageoft heperi
odi
csy st
em isthati
tprovi
desacontinuousrecor
dof
i
nvent
ory.

78. Reser
vesf
orconti
ngenciesforgeneralorunspeci
fi
edri
sksshould
a.Beaccruedint
hefinanci
alstat
ement sanddiscl
osedint
henot es.
b.Notbeaccruedint
hef i
nancialst
atementsandneednotbedi sclosedi
nthenotes.
c.Notbeaccruedint
hef i
nancialst
atementsbutshoul
dbedi sclosedint
henotes.
d.Beaccruedint
hefinanci
alstat
ement sbutneednotbedisclosedinthenot
es.

79. UnderIFRS,aprovi
sionis
a.Anev entwhi
chisnotr ecognizedbecauseiti
snotpr
obabl
eorcannotbemeasur
ed
r
eli
ably.
b.Anev entwhichisprobableandmeasur abl
e
c.Anev entwhichisprobable,possi
bleorremoteandmeasur
abl
e
d.Anev entwhichisprobablebutnotmeasur abl
e

80. Anentit
yi sthepl aint
if
finapat entinf
ringementcase.Theenti
tyhasahighpr
obabil
it
y
ofaf avorabl
eout comeandcanr easonablyesti
matetheamountoft heset
tlement.
Whatisthepr operaccount i
ngtreatmentofthepatenti
nfri
ngementcase?
a.Nor eporti
ngi srequiredatthi
st i
me
b.Agai ncont i
ngencyf ortheminimum est i
matedamountofthesett
lement
c.Disclosureinthenot esonly
d.Agai ncont i
ngencyf oresti
mat edprobableset
tl
ement

Page 11

1. B 21. A 41. B 61. A

2. B 22. A 42. D 62. C

3. A 23. D 43. D 63. A

4. A 24. B 44. D 64. D

5. B 25. C 45. C 65. D

6. C 26. A 46. C 66. C

7. A 27. A 47. B 67. B

8. B 28. A 48. C 68. A

9. B 29. B 49. C 69. D

10. C 30. A 50. D 70. C

11. D 31. B 51. C 71. C

12. C 32. B 52. B 72. A

13. C 33. C 53. B 73. A

14. D 34. C 54. A 74. D

15. B 35. D 55. A 75. D

16. C 36. D 56. C 76. A

17. A 37. A 57. A 77. B

18. D 38. A 58. D 78. B

19. A 39. A 59. D 79. B

20. B 40. C 60. D 80. C

END