問題一覧
1
PAS 2 requires inventory to be stated at the lower of cost and
net realizable value
2
Why is inventory included in the computation of net income?
To determine cost of goods sold
3
Which of the following is a characteristic of a perpetual inventory system?
Cost of goods sold is recorded with each sale
4
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
5
An entry debiting inventory and crediting cost of goods sold would be made when
Merchandise is returned and the perpetual inventory method is used.
6
Which of the following should not be taken into account when determining the cost of inventory?
Recoverable purchase taxes
7
The cost of inventory does not include
Salaries of factory staff
8
Which of the following costs of conversion cannot be included in cost of inventory?
Salaries of sales staff
9
Which of the following should be taken into account when determining the cost of inventory?
Storage cost of part-finished goods
10
Costs incurred in bringing the inventory to the present location and condition include
Cost of designing product for specific customers
11
Inventories encompass all of the following, except
Land and other property not held for sale
12
A property developer must classify properties that it holds for sale in the ordinary course of business as
Inventory
13
Which of the following should not be reported as inventory?
Machinery acquired by a manufacturing entity
14
When determining the cost of an inventory, which of the following should not be included?
Interest on loan obtained to purchase inventory
15
Financial asset is measured at FVOCI if it meets?
Both A and B
16
In the case of debt Instrument classified as FVOCI, foreign exchange gain or loss is recognized in?
Profit or loss
17
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
18
Factory supplies to be consumed in the production process are reported as
inventory
19
Which statement is true when a debt investment at amortized cost Is reclassified to FVOCI
All of the above
20
Unrealized gain or loss on debt instrument measured at FVOCIR recognize in
Other comprehensive income
21
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
22
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
23
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
24
Both statements are not correct
25
Which of the following is not a debt security
Loads receivable
26
Closed directly to retained earnings when the investment is sold
27
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
28
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
29
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
30
The contractual interest rate on a bond is often referred to as
Stated rate
31
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
32
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
33
The normal balance of sales discount is on ______side of T-account.
Debit
34
For a merchandise entity, the purchases accounts includes
Acquisition of item for resale.
35
What does FOB destination mean:
Title does not pass at shipping point, however, seller is responsible for the transportation cost.
36
Which of the following has no account of its own and requires no special accounting entry?
Trade discount
37
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
38
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
39
Which of the following is not a contra account?
Freight-in
40
A purchase discount results from___
Paying within the discount period
41
The major revenue for a merchandising business comes from selling goods or merchandise and is called____
Sales Revenue
42
In the eyes of the seller under the terms FOB shipping point - Collect for the merchandise purchased, who paid the freight?
Buyer
43
In the eyes of the buyer under the terms FOB shipping point - Collect for the merchandise purchase, who must pay for the freight
Buyer
44
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
45
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
46
In a merchandising operation, the sales account should include___
Both cash and credit sales of merchandise.
47
Which of the following statement is false?
Trade discounts are identical to cash discounts
48
Which of the following methods of determining annual bad debt expense best achieves the matching concept?
Percentage of sales
49
Which of the following is not true?
The Petty Cash account is debited when the fund is replenished
50
A Cash Over and Short account
Is debited when the petty cash fund proves out short.
51
The practice of realizing cash from accounts receivable prior to maturity is widespread. Which term is not associated with this practice?
Defalcation
52
The following are the classifications of financial instruments under IFRS 9, except
Held-to-maturity investments
53
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
54
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
55
Which of the following loan commitments are within the scope of IFRS 9?
All of the above
56
The account that appears in the chart of account for a merchandising entity but not for a service activity is
Sales returns and allowances
57
The excess of net sales over the cost of goods sold is called
Gross profit
58
The amount of cost of goods available for sale during the year depends ends on the amounts of
Beginning merchandise inventory and net purchase
59
Which of the following is not considered cash for financial reporting purposes?
Postdated checks and I.O.U.'s
60
Which of the following is considered cash?
Money market checking accounts
61
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.
62
Bank overdrafts, if material, should be
Reported as a deduction from cash in bank balance of the same bank.
63
Deposits held as compensating balances
If legally restricted and held against long-term credit may be included among noncurrent assets.
64
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.
65
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.
66
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.
67
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
68
When an entity continues to recognize an asset to the extent of its continuing involvement, the entity shall not recognize an associated liability.
False
69
Which of the following are not classified as financial instruments?
Intangible assets
70
Which of the following is not part of the definition of a financial instrument?
Financial income
71
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.
72
Which of the following is an example of a non-financial item?
Inventory
73
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
74
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
75
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