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ACCA Q2

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Tax accounting and financial accounting mainly differ with regard to….

a)

Cash

b)

Warranties

c)

Inventory

d)

Depreciation

2.

Which of the following are NOT characteristics of a lease contract

a)

The right to use an asset is transferred to the lessee

b)

The contract expires if the asset breaks or becomes obsolete

c)

The lessee pays a consideration the the lessor, for the right of using the asset.

d)

The right of the lessee of using the asset doesn’t have a determined time duration

3.

An impairment may be reversed if it’s original cause ceases to exist (only Goodwill impairment can’t be reversed)

a)

Right

b)

Wrong

4.

The deferred tax Assets account includes the income taxes the entity still has to pay for the previous financial year

a)

Right

b)

Wrong

5.

After introducing IFRS 16, the amount of assets in the company BS for most companies is…

a)

Increased

b)

Decreased

c)

Stayed the same

d)

IFRS 16 didn’t impact BS accounts, just expences

6.

Most financial liabilities are measured at fair value, expect for derivatives, which are measured at amm

ortised costs

a)

True

b)

False

7.

The subsequent measurement of financial assets depends on how the owner plans to use them

a)

True

b)

False

8.

All other things being equal, applying IFRS 16 decreases the EBITDA

a)

True

b)

False

9.

The application of IFRS 16 haas impacted the BS of companies working in the sector of …

a)

Aviation

b)

Retail

c)

Fintec

d)

Textile and Apparel

10.

Which of the following is a characteristic of a defined contribution pension plan?

a)

The employer has to make fixed contribution to a third part

b)

The employer bears the actual risk

c)

If the contributions to the fund are not sufficient to pay all the employee’s entitlement, the employer is required to make further contributions

d)

If the pension fund goes bankrupt, the employer is required to fulfill the employee’s entitlements on his own

11.

Property, plant and equipment (PPT) require an annual impairment test under IFRS 16

a)

False

b)

True

12.

Deferred Tax assets and liabilities arise when there is a temporary difference between tax and financial accounting

a)

False

b)

True

13.

If impairment changes are significant, es. For a major economic downturn, they must recognize in full the period they are identified, rather than be distributed over multiple periods.

a)

True

b)

False

14.

The right-of-use assets account and the lease-liability account always have to mach

a)

False

b)

True

15.

When an auditor issues a qualified opinion, it means that the financial statements are fairly stated, except for a specific issue that is mentioned in the audits report.

a)

True

b)

False