WorksheetsF7 MID TERM EXAM - SOK CHEA
Total questions: 10
Worksheet time: 2hrs 40mins
1. Which of the following gives the best description of the objective of financial statements
as set out by the International Accounting Standards Board’s (The Board’s) Conceptual
Framework for Financial Reporting?
A To provide all information about the reporting entity that users need.
B To fairly present the financial position, performance and changes in financial position
of an enterprise.
C To provide information about the value of the reporting entity to the users.
D To provide financial information about the reporting entity that is useful to users in
making decisions relating to providing resources to the entity.
2.The International Accounting Standards Board’s Conceptual Framework for Financial
Reporting defines a liability as:
A an amount owed to another entity
B a present obligation of the entity to transfer an economic resource as a result of past
events
C expenditure that has been incurred but not yet charged to the statement of profit or
loss
D an obligation that may arise in the future
3.The International Accounting Standards Board’s Conceptual Framework for Financial
Reporting identifies qualitative characteristics of financial statements.
Which TWO of the following characteristics are NOT fundamental qualitative
characteristics according to the IASB’s The Conceptual Framework for Financial
Reporting?
A Relevance
B Reliability
C Faithful representation
D Comparability
4.What is an Asset?
A Decreases in assets or increases in liabilities, that result in decreases in equity, other than those relating to distributions to holders of equity claims
B A present economic resource controlled by the entity as a result of past events
C The residual interest in the assets of the entity after deducting all its liabilities.
D A present obligation of the entity to transfer an economic resource as a result of past events
5. Z entered into a five year lease agreement on 1 November 20X2, paying $10,975 per
annum, commencing on 31 October 20X3. The present value of the lease payments was
$45,000 and the interest rate implicit in the lease was 7%.
What is the amount to be shown within non‐current liabilities at 31 October 20X3?
A $26,200
B $28,802
C $37,175
D $36,407
6.The following trial balance extract relates to a property which is owned by Veeton as at
1 April 20X4.
Property at cost (20 year original life) DEBIT $ 12,000,000
Accumulated depreciation as at 1 April 20X4 CREDIT $ 3,600,000
On 1 October 20X4, following a sustained increase in property prices, Veeton revalued its
property to $10.8 million.
What will be the depreciation charge in Veeton’s statement of profit or loss for the year
ended 31 March 20X5?
(a)
7.Goodwill have carry value $10000. company test impairment find out that value in use $8000, and net selling price $9000.
(a)
8.Viking issues $100,000 5% loan notes on 1 January 20X4, incurring issue costs of $3,000.
These loan notes are redeemable at a premium, meaning that the effective rate of interest
is 8% per annum.
What is the finance cost to be shown in the statement of profit or loss for the year ended
31 December 20X5?
A $8,240
B $7,981
C $7,760
D $8,000
9. According to IAS 37, a (a) is a liability of uncertain timing or amount.
10. According to IAS 37, Contingent Asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurance of one or more uncertain events not wholly within the control of the enterprise.
True
False
