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75問 • 1年前MIDTERM

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問題一覧

PAS 2 requires inventory to be stated at the lower of cost and

net realizable value

Why is inventory included in the computation of net income?

To determine cost of goods sold

Which of the following is a characteristic of a perpetual inventory system?

Cost of goods sold is recorded with each sale

Which of the following is incorrect about the perpetual inventory method?

Purchase retums are recorded by debiting accounts payable and crediting purchase returns and allowances

An entry debiting inventory and crediting cost of goods sold would be made when

Merchandise is returned and the perpetual inventory method is used.

Which of the following should not be taken into account when determining the cost of inventory?

Recoverable purchase taxes

The cost of inventory does not include

Salaries of factory staff

Which of the following costs of conversion cannot be included in cost of inventory?

Salaries of sales staff

Which of the following should be taken into account when determining the cost of inventory?

Storage cost of part-finished goods

Costs incurred in bringing the inventory to the present location and condition include

Cost of designing product for specific customers

Inventories encompass all of the following, except

Land and other property not held for sale

A property developer must classify properties that it holds for sale in the ordinary course of business as

Inventory

Which of the following should not be reported as inventory?

Machinery acquired by a manufacturing entity

When determining the cost of an inventory, which of the following should not be included?

Interest on loan obtained to purchase inventory

Financial asset is measured at FVOCI if it meets?

Both A and B

In the case of debt Instrument classified as FVOCI, foreign exchange gain or loss is recognized in?

Profit or loss

When do investments in the instrument be classified as FVOCI?

when the investments in debt instruments held for collect contractual cash flows and sell if beneficial and solely payment of principal and interest on specified dates

Factory supplies to be consumed in the production process are reported as

inventory

Which statement is true when a debt investment at amortized cost Is reclassified to FVOCI

All of the above

Unrealized gain or loss on debt instrument measured at FVOCIR recognize in

Other comprehensive income

When debt instrument measured at FVOCI Is derecognized, the cumulative balance of gain and losses are transferred to profit or loss as a?

Reclassification adjustments

Statement A Unrealized gain and losses on investment in equity securities measured at the FVOCI are recognized in the income Statement B An entity’s investment in equity securities classified as FVOCI and originally acquired for 100 has fair values of 80 and 110 at the end of years 1 and 2 respectively in year to the amount represent in equity in relation to the investment is 30 credit Which of the following statements is true

Both statements are not true

According to PFRS9 investments held under a hold to collect and sell business model Entity A shall classify the securities either FVOCI or FVPL

FVOCI assets

Both statements are not correct

Which of the following is not a debt security

Loads receivable

Closed directly to retained earnings when the investment is sold

A permanent decline in the fair value of an investment in equity securities that the entity has irrevocably elected to measure at FVOCI is recognized in

Other comprehensive income

Investment in debt securities should be recorded on the date of acquisition at?Investment in debt securities should be recorded on the date of acquisition at?

Market value plus brokerage fees and other cost incidental to the purchase

An available for sale debt security is purchased at a discount. The entry to record the amortization of the discount includes a?

Debit to available-for-sale securities

The contractual interest rate on a bond is often referred to as

Stated rate

The expression 3/20, n/60 means

A 3% discount is available if the invoice is paid within 20 days, otherwise, the total invoice price is due in 60 days

These are expenses incurred in storing, promoting, packaging and delivering the merchandise such as Freight Out, Sales Salaries, Advertising and Sales Commission.

Distribution expenses/Selling expenses

The normal balance of sales discount is on ______side of T-account.

Debit

For a merchandise entity, the purchases accounts includes

Acquisition of item for resale.

What does FOB destination mean:

Title does not pass at shipping point, however, seller is responsible for the transportation cost.

Which of the following has no account of its own and requires no special accounting entry?

Trade discount

When comparing the statement of financial position of a service type of business to a merchandising one, the main difference is on the recognition of_____ in the latter

Inventory account

This method of inventory system records continuously the movement of the merchandise and shows the inventory balance at any point of time.

Perpetual inventory system

Which of the following is not a contra account?

Freight-in

A purchase discount results from___

Paying within the discount period

The major revenue for a merchandising business comes from selling goods or merchandise and is called____

Sales Revenue

In the eyes of the seller under the terms FOB shipping point - Collect for the merchandise purchased, who paid the freight?

Buyer

In the eyes of the buyer under the terms FOB shipping point - Collect for the merchandise purchase, who must pay for the freight

Buyer

When a seller of merchandise allowed a customer a reduction from the original price for defective goods, the seller will issue to a customer a

Credit memorandum

When the seller advances the transportation costs and the terms of sale are FOB shipping point, the seller records the payment of the transportation costs by debiting

Accounts receivable

In a merchandising operation, the sales account should include___

Both cash and credit sales of merchandise.

Which of the following statement is false?

Trade discounts are identical to cash discounts

Which of the following methods of determining annual bad debt expense best achieves the matching concept?

Percentage of sales

Which of the following is not true?

The Petty Cash account is debited when the fund is replenished

A Cash Over and Short account

Is debited when the petty cash fund proves out short.

The practice of realizing cash from accounts receivable prior to maturity is widespread. Which term is not associated with this practice?

Defalcation

The following are the classifications of financial instruments under IFRS 9, except

Held-to-maturity investments

Recycling of gains and losses on fair value changes previously recognized in other comprehensive income to the profit or loss is allowed for

Debt instruments at fair value through OCI

Which of the following are exceptions for IFRS 9 application?

Contracts that were entered into and continue to be held for the receipt or delivery of a non-financial item following the entity's expected purchase, sale, or usage requirements

Which of the following loan commitments are within the scope of IFRS 9?

All of the above

The account that appears in the chart of account for a merchandising entity but not for a service activity is

Sales returns and allowances

The excess of net sales over the cost of goods sold is called

Gross profit

The amount of cost of goods available for sale during the year depends ends on the amounts of

Beginning merchandise inventory and net purchase

Which of the following is not considered cash for financial reporting purposes?

Postdated checks and I.O.U.'s

Which of the following is considered cash?

Money market checking accounts

A cash equivalent is a short-term, highly liquid investment that is readily convertible into known amounts of cash and

Is so near its maturity that it presents insignificant risk of changes in interest rates.

Bank overdrafts, if material, should be

Reported as a deduction from cash in bank balance of the same bank.

Deposits held as compensating balances

If legally restricted and held against long-term credit may be included among noncurrent assets.

If a company employs the gross method of recording accounts receivable from customers, then sales discounts taken should be reported as

A deduction from sales in the income statement.

Assuming that the ideal measure of short-term receivables in the balance sheet is the discounted value of the cash to be received in the future, failure to follow this practice usually does not make the balance sheet misleading because

The amount of the discount is not material.

Which of the following methods of determining bad debt expense does not properly match expense and revenue?

Charging bad debts as accounts are written off as uncollectible.

When an entity transfers a financial asset, it shall evaluate the extent to which it retains the financial asset.

The risks and rewards of ownership of

When an entity continues to recognize an asset to the extent of its continuing involvement, the entity shall not recognize an associated liability.

False

Which of the following are not classified as financial instruments?

Intangible assets

Which of the following is not part of the definition of a financial instrument?

Financial income

Entity A enters into a contract to purchase gold bullion from Entity B. Which of the following would result in the contract being considered a financial instrument?

If Entity A and Entity B agree to settle the contract net in cash.

Which of the following is an example of a non-financial item?

Inventory

How do IFRS 9 Financial Instruments require investments in equity instruments to be measured and accounted for (in the absence of any election at initial recognition)?

Fair value with changes going through profit or loss

IFRS 9 uses a mixed model approach to measurement. Which of the following measurement methods are acceptable under IFRS 9?

Amortized cost and fair value

Under what circumstances can the profit or loss on an equity instrument carried at fair value be dealt with in other comprehensive income?

When the equity investment is not held for trading

ユーザ名非公開 · 19問 · 1年前

19問 • 1年前

ユーザ名非公開

問題一覧

PAS 2 requires inventory to be stated at the lower of cost and

net realizable value

Why is inventory included in the computation of net income?

To determine cost of goods sold

Which of the following is a characteristic of a perpetual inventory system?

Cost of goods sold is recorded with each sale

Which of the following is incorrect about the perpetual inventory method?

Purchase retums are recorded by debiting accounts payable and crediting purchase returns and allowances

An entry debiting inventory and crediting cost of goods sold would be made when

Merchandise is returned and the perpetual inventory method is used.

Which of the following should not be taken into account when determining the cost of inventory?

Recoverable purchase taxes

The cost of inventory does not include

Salaries of factory staff

Which of the following costs of conversion cannot be included in cost of inventory?

Salaries of sales staff

Which of the following should be taken into account when determining the cost of inventory?

Storage cost of part-finished goods

Costs incurred in bringing the inventory to the present location and condition include

Cost of designing product for specific customers

Inventories encompass all of the following, except

Land and other property not held for sale

A property developer must classify properties that it holds for sale in the ordinary course of business as

Inventory

Which of the following should not be reported as inventory?

Machinery acquired by a manufacturing entity

When determining the cost of an inventory, which of the following should not be included?

Interest on loan obtained to purchase inventory

Financial asset is measured at FVOCI if it meets?

Both A and B

In the case of debt Instrument classified as FVOCI, foreign exchange gain or loss is recognized in?

Profit or loss

When do investments in the instrument be classified as FVOCI?

when the investments in debt instruments held for collect contractual cash flows and sell if beneficial and solely payment of principal and interest on specified dates

Factory supplies to be consumed in the production process are reported as

inventory

Which statement is true when a debt investment at amortized cost Is reclassified to FVOCI

All of the above

Unrealized gain or loss on debt instrument measured at FVOCIR recognize in

Other comprehensive income

When debt instrument measured at FVOCI Is derecognized, the cumulative balance of gain and losses are transferred to profit or loss as a?

Reclassification adjustments

Both statements are not true

According to PFRS9 investments held under a hold to collect and sell business model Entity A shall classify the securities either FVOCI or FVPL

FVOCI assets

Both statements are not correct

Which of the following is not a debt security

Loads receivable

Closed directly to retained earnings when the investment is sold

A permanent decline in the fair value of an investment in equity securities that the entity has irrevocably elected to measure at FVOCI is recognized in

Other comprehensive income

Investment in debt securities should be recorded on the date of acquisition at?Investment in debt securities should be recorded on the date of acquisition at?

Market value plus brokerage fees and other cost incidental to the purchase

An available for sale debt security is purchased at a discount. The entry to record the amortization of the discount includes a?

Debit to available-for-sale securities

The contractual interest rate on a bond is often referred to as

Stated rate

The expression 3/20, n/60 means

A 3% discount is available if the invoice is paid within 20 days, otherwise, the total invoice price is due in 60 days

These are expenses incurred in storing, promoting, packaging and delivering the merchandise such as Freight Out, Sales Salaries, Advertising and Sales Commission.

Distribution expenses/Selling expenses

The normal balance of sales discount is on ______side of T-account.

Debit

For a merchandise entity, the purchases accounts includes

Acquisition of item for resale.

What does FOB destination mean:

Title does not pass at shipping point, however, seller is responsible for the transportation cost.

Which of the following has no account of its own and requires no special accounting entry?

Trade discount

When comparing the statement of financial position of a service type of business to a merchandising one, the main difference is on the recognition of_____ in the latter

Inventory account

This method of inventory system records continuously the movement of the merchandise and shows the inventory balance at any point of time.

Perpetual inventory system

Which of the following is not a contra account?

Freight-in

A purchase discount results from___

Paying within the discount period

The major revenue for a merchandising business comes from selling goods or merchandise and is called____

Sales Revenue

In the eyes of the seller under the terms FOB shipping point - Collect for the merchandise purchased, who paid the freight?

Buyer

In the eyes of the buyer under the terms FOB shipping point - Collect for the merchandise purchase, who must pay for the freight

Buyer

When a seller of merchandise allowed a customer a reduction from the original price for defective goods, the seller will issue to a customer a

Credit memorandum

When the seller advances the transportation costs and the terms of sale are FOB shipping point, the seller records the payment of the transportation costs by debiting

Accounts receivable

In a merchandising operation, the sales account should include___

Both cash and credit sales of merchandise.

Which of the following statement is false?

Trade discounts are identical to cash discounts

Which of the following methods of determining annual bad debt expense best achieves the matching concept?

Percentage of sales

Which of the following is not true?

The Petty Cash account is debited when the fund is replenished

A Cash Over and Short account

Is debited when the petty cash fund proves out short.

The practice of realizing cash from accounts receivable prior to maturity is widespread. Which term is not associated with this practice?

Defalcation

The following are the classifications of financial instruments under IFRS 9, except

Held-to-maturity investments

Recycling of gains and losses on fair value changes previously recognized in other comprehensive income to the profit or loss is allowed for

Debt instruments at fair value through OCI

Which of the following are exceptions for IFRS 9 application?

Contracts that were entered into and continue to be held for the receipt or delivery of a non-financial item following the entity's expected purchase, sale, or usage requirements

Which of the following loan commitments are within the scope of IFRS 9?

All of the above

The account that appears in the chart of account for a merchandising entity but not for a service activity is

Sales returns and allowances

The excess of net sales over the cost of goods sold is called

Gross profit

The amount of cost of goods available for sale during the year depends ends on the amounts of

Beginning merchandise inventory and net purchase

Which of the following is not considered cash for financial reporting purposes?

Postdated checks and I.O.U.'s

Which of the following is considered cash?

Money market checking accounts

A cash equivalent is a short-term, highly liquid investment that is readily convertible into known amounts of cash and

Is so near its maturity that it presents insignificant risk of changes in interest rates.

Bank overdrafts, if material, should be

Reported as a deduction from cash in bank balance of the same bank.

Deposits held as compensating balances

If legally restricted and held against long-term credit may be included among noncurrent assets.

If a company employs the gross method of recording accounts receivable from customers, then sales discounts taken should be reported as

A deduction from sales in the income statement.

The amount of the discount is not material.

Which of the following methods of determining bad debt expense does not properly match expense and revenue?

Charging bad debts as accounts are written off as uncollectible.

When an entity transfers a financial asset, it shall evaluate the extent to which it retains the financial asset.

The risks and rewards of ownership of

When an entity continues to recognize an asset to the extent of its continuing involvement, the entity shall not recognize an associated liability.

False

Which of the following are not classified as financial instruments?

Intangible assets

Which of the following is not part of the definition of a financial instrument?

Financial income

Entity A enters into a contract to purchase gold bullion from Entity B. Which of the following would result in the contract being considered a financial instrument?

If Entity A and Entity B agree to settle the contract net in cash.

Which of the following is an example of a non-financial item?

Inventory

How do IFRS 9 Financial Instruments require investments in equity instruments to be measured and accounted for (in the absence of any election at initial recognition)?

Fair value with changes going through profit or loss

IFRS 9 uses a mixed model approach to measurement. Which of the following measurement methods are acceptable under IFRS 9?

Amortized cost and fair value

Under what circumstances can the profit or loss on an equity instrument carried at fair value be dealt with in other comprehensive income?

When the equity investment is not held for trading