WorksheetsQuiz kiểm tra
Total questions: 46
Worksheet time: 15mins
Which one of the following can be recorded on credit balance of the payables ledger account?
A. The company made the purchase returns to supplier
B. The company purchases goods and pays in cash
C. The company takes the settlement discount
D. The company purchases goods on credit
Which TWO of the following are shown in credit side of the trial balance?
1) Drawings 2) Payables 3) Sales 4) Irrecoverable debts
A. 1 and 3
B. All of them
C. 2 and 3
D. None of them
What should an accountant do if a reliable estimate of probable outflow of resources to settle a present obligation can not be made in accordance with IAS 37 – “Provisions, contingent liabilities and contingent assets”?
A. It shall be recognised as a liability
B. It shall be recognised as a provision
C. It shall be disclosed as a contingent liability
D. None of the above
Which of the following events after the reporting period would normally qualify as non adjusting events according to the IAS 10- Events after the reporting period?
A. An irrecoverable debt suddenly being paid.
B. The bankruptcy of a credit customer with a balance outstanding at the end of the reporting period.
C. A change in the rate of tax, applicable to the previous year.
D. A sudden decline in the value of property held as a long-term asset.
Which of the following statements apply when producing a consolidated statement of financial position
(i) All intra-group balances should be eliminated.
(ii) Intra-group profit in year-end inventory should be eliminated.
(iii) Closing inventory held by subsidiaries needs to be included at fair value.
A. (i) only
B. (iii) only
C. (i) and (ii) only
D. (i), (ii) and (iii)
According to the IAS 2, the following statements about the valuation of inventory are Incorrect:
1. Inventory items are normally to be valued at the higher of cost and net realisable value
2. The cost of goods manufactured by an entity will include materials and labour only
A. True
B. False
According to the IAS 16, the depreciation method should be reviewed periodically. If there has been a significant change in the expected pattern of economic benefits from those assets, the method should be changed to suit this new pattern.
A. True
B. False
Câu 15: Is the following statement about prepayments and accruals true or false?
“Prepayments and Accruals are examples of applying the concept of cash basis in accounting”.
A. True
B. False
The following statement is true or false?
A purchase return of $50 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the supplier's account. Therefore, the trial balance is $50 higher on the debit side
A. True
B. False
Is the following statement about the presentation of trade receivables in SoFP true or false?
“ Trade receivables in the statement of financial position are shown net of any receivables allowance.”
A. True
B. False
Is the following statement about inventories is correct?
“Inventories are assets that are held for sale in a business”
A. True
B. False
The following statement is true or false?
Individual customer accounts are kept in the receivables ledger.
A. True
B. False
The following statement is true or false?
A trial balance may still balance if some of the balances are wrong.
A. True
B. False
In preparing its financial statements for the current year, a company’s closing inventory was understated by $500,000
What will be the effect of this error if it remains uncorrected?
A. The current year’s profit will be overstated and next year’s profit will be understated
B. The current year’s profit will be overstated but there will be no effect on next year’s profit
C. The current year’s profit will be understated but there will be no effect on next year’s profit
D. The current year’s profit will be understated and next year’s profit will be overstated
Câu 5: What are true statements about provisions and accruals among those following?
(i) Accruals and provisions are both liabilities.
(ii) A provision is uncertain in terms of the amount and time of occurance.
(iii) A provision is almost certain in terms of the amount and time of occurance.
(iv) An accrual is uncertain in terms of the amount and time of occurance.
(v) An accrual is almost certain in terms of the amount and time of occurance.
A. (i) only
B. (i), (iii), (iv)
C. (i), (ii), (v)
D. (iii), (iv)
All of the following statements concerning treatment of research and development expenditure are correct:
1. The financial statements should disclose the total amount of research and development expenditure recognized as an expense during the period
2. Intangible assets are never amortized
3. Research expenditure should not be capitalized
A. True
B. False
Is the following entries about the FIRST set-up of a provision true or false?
DEBIT provisions (statement of financial position)
CREDIT expenses (statement of profit or loss)
A. True
B. False
An agreement of the trial balance does not prove that all transactions have been recorded in the proper accounts.
A. True
B. False
“When the A owns 48% of the voting power of B and has power to appoint or remove the majority of the members of the board of directors of B company, control can be assumed.”
A. True
B. False
Under IAS 1-Presentation of financial statements, which of the following must be disclosed on the face of the statement of profit or loss and other comprehensive income:
A. Profit before tax
B. Revenue
C. Gross profit
D. Dividends
A company has received cash for a debt that was previously written off. Which of the following is the correct doublt entry to record the cash received?
A. Dr Cash – Cr Receivables account
B. Dr Cash – Cr Allowance for receivables
C. Dr Irrecoverables debts expense – Cr Receivables account
D. Dr Cash – Cr Irrecoverable debts expense
The following statement is true or false?
The sales return day book is a chronological list of the issued credit notes.
A. True
B. False
The following statement is true or false?
The balance on an expense account will go to the P/L account. However, the balance on a liability account is written off to capital.
A. True
B. False
The following statement is true or false?
A consolidation adjustment is required to remove unrealised profit on intra-group trading.”
A. True
B. False
How is the total of sales day book recorded in the general ledger?
A. Dr Receivables control, Cr Cash
B. Dr Receivables control, Cr Sales
C. Dr Cash, Cr Sales
D. Dr Sales, Cr Receivable control
Which of the following statements is FALSE?
A. A debit records a decrease in liabilities
B. A credit records a decrease in liabilities
C. A debit records an increase in assets
D. A credit records an increase in capital
Which of the following documents should accompany a return of goods to a supplier?
A. Debit note
B. Remittance advice
C. Purchase invoice
D. Credit note
A trial balance is made up of a list of debit balances and credit balances.
Which of the following statements is correct?
A. Every debit balance represents an expense.
B. Assets are represented by debit balances.
C. Liabilities are represented by debit balances.
D. Income is included in the list of debit balances.
The purpose of amortization is:
A. To ensure that funds are available for the eventual purchase of a replacement non-current asset
B. To account for the risk associated with intangible non-current assets
C. To reduce the cost of an intangible non-current asset in the statement of financial position to its estimated market value
D. To allocate the cost of an intangible non-current asset over its useful life
Choose the correct answer about the effect of Prepayments of Income on some items on Financial statements:
A. Prepayments of Income reduce Income
B. Prepayments of Income reduce Profit
C. Prepayments of Income increase Liabilities
D. All of the above
Câu 8 : What are true statements about the effect of Prepayments on some items on Financial statements:
(i). Prepayments reduce expenses
(ii). Prepayments increase expenses
(iii). Prepayment reduce assets
(iv). Prepayment increase assets
A. (i) and (iii)
B. (i) and (iv)
C. (ii) and (iii)
D. (ii) and (iv)
What happens with expenses in the Statement of Profit or Loss when a receivables allowance is increased?
A. There is no change in expenses
B. Expenses are increased
C. Expenses are decreased
D. There must be other information for conclusion in the changes of expenses
What should an accountant do if a reliable estimate of probable outflow of resources to settle a present obligation can not be made in accordance with IAS 37 – “Provisions, contingent liabilities and contingent assets”?
A. It shall be recognised as a liability
B. It shall be recognised as a provision
C. It shall be disclosed as a contingent liability
D. None of the above
Which of the following statements about the requirements of IAS 37 – “Provisions, contingent liabilities and contingent assets” are correct ?
(i). A contingent asset should be disclosed by note if an inflow of economic benefits is probable.
(ii). No disclosure of a contingent liability is required if the possibility of a transfer of economic benefits arising is remote.
(iii) . Contingent assets must not be recognised in financial statements unless an inflow of economic benefits is virtually certain to arise.
A. (i) and (ii) only
B. (ii) and (iii) only
C. (iii) only
D. All statements are correct
Which of the following events after the reporting period would normally qualify as adjusting events according to the IAS 10- Events after the reporting period?
A. Destruction of a production plant by fire after the end of the reporting date.
B. The bankruptcy of a credit customer with a balance outstanding at the end of the reporting period.
C. An issue of shares to finance expansion.
D. A sudden decline in the value of property held as a long-term asset.
Which of the following statements regarding the method of consolidation is true?
(1) Subsidiaries are consolidated in full
(2) Associates are equity accounted
A. Neither statement
B. Statement (1) only
C. Statement (2) only
D. Both statements
Which of the following statements relating to parent companies and subsidiaries are correct?
(1) A parent company could consolidate a company in which it holds less than 50% of the ordinary share capital in certain circumstances.
(2) Goodwill on consolidation will appear as an item in the parent company’s individual balance sheet.
(3) A subsidiary may be excluded from consolidation if it has not previously been consolidated and the parent’s investment in it is held for resale in the near future.
A. (1) and (2)
B. (2) and (3)
C. (1) and (3)
D. Only (1)
Sonia purchased 80% of Catio’s equity on 1 January 20X1. Which of the following statements concerning the non-controlling interest (NCI) is/are correct?
(i) NCI describes shares in the consolidated entry not held by the parent
(ii) NCI describes shares in the subsidiary not held by the parent
(iii) 20% of Sonia’s consolidated retained earnings will be allocated to the NCI
(iv) 20% of Catio’s profit after tax will be allocated to the NCI
A. (i) and (iii)
B. (ii) and (iv)
C. (ii) only
D. (iv) only
How does a company account for a contingent asset that is not probable?
A. It does nothing
B. As an asset in the statement of financial position
C. By way of note
D. None of the above
When valuing inventory, the following methods are available.
1. FIFO
2. AVCO
3. LIFO
4. Standard cost
Which methods are allowable under IAS 2 Inventories
A. 1,2,3
B. 1 only
C. 1,2
D. 1,2,3,4
Which one of the following documents should the business issue as a request for payment?
A. Invoice
A. Sales order
A. Debit note
A. Statements
A sole trader’s capital introduced in the period can be calculated by which of following formulae?
A. Closing net assets – Profit + Drawings – Opening net assets
B. Closing net assets + Profit + Drawings – Opening net assets
C. Closing net assets + Profit - Drawings – Opening net assets
D. Closing net assets – Profit - Drawings – Opening net assets
Apple Co has a 45% shareholding in each of the following three companies.
(i) Pear Co: Apple Co has the right to appoint or remove a majority of the directors of Pear Co.
(ii) Cherry Co: Apple Co has more than half the voting rights in Duck Co as a result of an agreement with other investors.
(iii) Orange Co: Apple Co has the power to govern the financial and operating policies of Orange Co. Which of these companies are subsidiaries of Apple Co for financial reporting purposes?
A. Pear Co and Cherry Co only
B. Pear Co and Orange Co only
C. Cherry Co and Orange Co only
D. Pear Co, Cherry Co and Orange Co
Is the following statement true or false? "Both carriage inwards and carriage outwards are included in the cost of purchases"
A. True
B. False
Is the following statement true or false? "Regarding to the revaluation of non-current assets, IAS 16 requires that when an item of property, plant, and equipment is valued, the whole class of assets to which it belongs should not be revalued"
A. True
B. False
Is the following statement about accruals true or false? "Accruals represent liabilities which have been incurred but for which no invoice has yet been received."
A. True
B. False
