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WorksheetsIFS.Chapter 2
Total questions: 14
Worksheet time: 18mins
Name
Class
Date
1.
During 2009, Accent Toys Plc., which began business in October of that year, purchased 10,000 units of a toy at a cost of ₤10 per unit in October. The toy sold well in October. In anticipation of heavy December sales, Accent purchased 5,000 additional units in November at a cost of ₤11 per unit. During 2009, Accent sold 12.000 units at a price of ₤15 per unit.
? Under the first in, first out (FIFO) method, what is Accent’s cost of goods sold for 2009?
a)
120
b)
122
c)
124
2.
During 2009, Accent Toys Plc., which began business in October of that year, purchased 10,000 units of a toy at a cost of ₤10 per unit in October. The toy sold well in October. In anticipation of heavy December sales, Accent purchased 5,000 additional units in November at a cost of ₤11 per unit. During 2009, Accent sold 12,000 units at a price of ₤15 per unit.
? Under the weighted average cost method, what is Accent’s cost of goods sold for 2009?
a)
120
b)
122
c)
124
3.
Which inventory method is least likely to be used under IFRS?
a)
First in, first out (FIFO).
b)
Last in, first out (LIFO).
c)
Weighted average.
4.
At the beginning of 2009, Glass Manufacturing purchased a new machine for its assembly line at a cost of $600,000. The machine has an estimated useful life of 10 years and estimated residual value of $50,000.
? Under the straight-line method, how much depreciation would Glass take in 2010 for financial reporting purposes?
a)
55
b)
60
c)
65
5.
At the beginning of 2009, Glass Manufacturing purchased a new machine for its assembly line at a cost of $600,000. The machine has an estimated useful life of 10 years and estimated residual value of $50,000.
? Under the double-declining balance method, how much depreciation would Glass take in 2010 for financial reporting purposes?
a)
60
b)
110
c)
120
6.
Which combination of depreciation methods and useful lives is most conservative in the year a depreciable asset is acquired?
a)
Straight-line depreciation with a short useful life.
b)
Declining balance depreciation with a long useful life.
c)
Declining balance depreciation with a short useful life.
7.
Under IFRS, a loss from the destruction of property in a fire would most likely be classified as:
a)
continuing operation
b)
discontinuing operation
c)
other comprehensive income
8.
A company chooses to change an accounting policy. This change requires that, if practical, the company restate its financial statements for:
a)
all prior periods.
b)
current and future periods.
c)
prior periods shown in a report.
9.
Which statement is most accurate? A common size income statement:
a)
restates each line item of the income statement as a percentage of net income.
b)
allows an analyst to conduct cross- sectional analysis by removing the effect of company size.
c)
standardizes each line item of the income statement but fails to help an analyst identify differences in companies’ strategies.
10.
Selected year-end financial statement data for Workhard are shown below.
a)
is $18 million.
b)
is increased by the derivatives accounted for as hedges.
c)
includes $4 million in other comprehensive income.
11.
When preparing an income statement, which of the following items would most likely be classified as other comprehensive income?
a)
A foreign currency translation adjustment
b)
An unrealized gain on a security held for trading purposes
c)
A realized gain on a derivative contract not accounted for as a hedge
12.
For 2009, Flamingo Products had net income of $1,000,000. At 1 January 2009, there were 1,000,000 shares outstanding. On 1 July 2009, the company issued 100,000 new shares for $20 per share. The company paid $200,000 in dividends to common shareholders. What is Flamingo’s basic earnings per share for 2009?
a)
$0,80
b)
$0,91
c)
$0,95
13.
A company with no debt or convertible securities issued publicly traded common stock three times during the current fiscal year. Under both IFRS and US GAAP, the company’s:
a)
basic EPS equals its diluted EPS.
b)
capital structure is considered complex at year-end.
c)
basic EPS is calculated by using a simple average number of shares outstanding.
14.
For its fiscal year-end, Sublyme Corporation reported net income of $200 million and a weighted average of 50,000,000 common shares outstanding. There are 2,000,000 convertible preferred shares outstanding that paid an annual dividend of $5. Each preferred share is convertible into two shares of the common stock. The diluted EPS is closest to:
a)
$3,52
b)
$3,65
c)
$3,70
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