Road to Top Five (English)

1. The financial statements must be prepared in accordance with

• Financial Accounting Standards

• Accounting Regulations

• Accounting Journal Standard

• Financial Reporting Standards

The following are the components of financial statements required by the Financial Accounting Standards, except for

• Statement of Financial Position

• Statement of Retained Earnings

• Statement of Comprehensive Income

• Cash Flow Statement

The order of the accounts in the ledger is:

• Assets, revenues, expenses, liabilities, share capital—ordinary, dividends

• Assets, liabilities, share capital—ordinary, dividends, revenues, expenses

• Share capital—ordinary, assets, revenues, expenses, liabilities, dividends

• Revenues, assets, expenses, liabilities, share capital—ordinary, dividends

Which of the following statements about the accrual basis of accounting is false?

• Events that change a company’s financial statements are recorded in the periods in which the events occur

• Revenue is recognized in the period in which services are performed

• This basis is in accordance with International Financial Reporting Standards

• Revenue is recorded only when cash is received, and expense is recorded only when cash is paid

A company has purchased a tract of land. It expects to build a production plant on the land in approximately 5 years. During the 5 years before construction, the land will be idle. The land should be reported as:

• Property, plant, and equipment

• Land expense

• A long-term investment

• An intangible asset

Who uses internal accounting information?

• Tax Authorities

• Managers

• Trade Unions

• Policy Making Institutions

The following are accounts included in Liabilities is…

• Equipment

• Salaries and Wages Expenses

• Service Revenue

• Unearned Revenue

Included in the nominal account is…

• Notes Payable

• Inventory

• Equity

• Expenses

Accumulated Depreciation will be included in the report….

• Statement of Financial Position

• Income Statement

• Retained Earnings Statement

• Statement of Changes in Equity

If a company receives cash from customers before performing its services, then it will be done in stages over more than one normal accounting period, the accounts that need to be adjusted at the end of the period are….

• Accounts Payable

• Cash

• Notes Receivable

• Revenue