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Financial Reporting Quiz 4 (30 MCQs)

Quiz Instructions

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1. Most businesses use double entry accounting
2. At 30 June 20X2 a company had $ 1m 8% loan notes in issue, interest being paid half-yearly on 30 June and 31 December.On 30 September 20X2 the company redeemed $ 250, 000 of these loan notes at par, paying interest due to that date. On 1 April 20X3 the company issued $ 500, 000 7% loan notes, interest payable half-yearly on 31 March and 30 September. What figure should appear in the company's statements of profit or loss for interest payable in the year ended 30 June 20X3?
3. The company records its customers' demands even though the court process has not yet been completed = full disclosure
4. If an adjustment includes an entry to Accumulated Depreciation, which type of adjustment is it?
5. The portion of capital in subsidiary companies which is the right of non-controlling shareholders is presented as.....
6. Kleen-Up Company has a receivables turnover ratio of 9.2 for the current year and 10.7 for the prior year. Based on these ratios, management decides to increase the late payment charge imposed on clients when bills are not paid on time. Why did Kleen-Up make this change?
7. Under PFRS for Small Entities, any changes in accounting estimates are accounted for
8. The creative chief executive of a corporation who is personally responsible for numerous inventions and innovations is not reported as an asset on the corporation's balance sheet. The accounting principle/guideline that prevents the corporation for reporting this person as an asset is
9. On which financial statement would the Dividends account appear?
10. The objective of financial reporting according to PSAK 1 is.....
11. The total amount of assets minus the total amount of liabilities will give you the worth of your business
12. Contains the meaning of being able to be compared with financial reports in previous periods and with other companies.
13. Which of the following is a twelve-month reporting cycle that can begin in any month, except January 1, and records financial data for that twelve-month consecutive period?
14. You are preparing the financial statements for abusiness. The cost of the items in closing inventory is $ 41, 875. This includes some items which cost $ 1, 960 and which were damage in transit. You have estimated that it will cost $ 360 to repair the items, and they can then be sold for $ 1, 200. What is the correct inventory valuation for inclusion in the financial statements?
15. Listed below are some comments on accounting concepts.1. Financial statements always treat the business as a separate entity.2. Materiality means that only items having a physical existence may be recognised as assets.3. Provisions are estimates and therefore can be altered to make the financial results of a businessmore attractive to investors.Which, if any, of these comments is correct, according to the IASB's Conceptual Framework forFinancial Reporting?
16. Which of the following is an ethical concern of accountants?
17. Principles-Based Approach to Accounting Standard Setting
18. What effect does a framework have on an accountant's need to exercise professional judgement?
19. An entity granted a share appreciation right to the CEO on January 1, 2022. After a 3-year service, the employee is entitled to receive a cash equal to the appreciation in share price over the market value on January 1, 2022. The market value on January 1, 2020 is the predetermined price for the purpose of determining the compensation. The share option right has the following terms:Service period-January 1, 2022-December 31, 2024Number of shares-100, 000Exercise date-January 1, 2025The quoted prices of the entity's share are:January 1, 2022-150December 31, 2022-155December 31, 2023-152December 31, 2024-160Suppose the market value of share drops on December 31, 2024 from 160 to 151.What is the debit entry on December 31, 2024.
20. Can you delete a Commission Report that has already Marked-As-Paid (Paid)
21. Removal of directors can be done by .....
22. Qualitative characteristics that make useful information more useful include
23. For 2009, Flamingo Products had net income of $ 1, 000, 000. At 1 January 2009, there were 1, 000, 000 shares outstanding. On 1 July 2009, the company issued100, 000 new shares for $ 20 per share. The company paid $ 200, 000 in dividendsto common shareholders. What is Flamingo's basic earnings per share for 2009?
24. ABC Co. follows the accrual basis of accounting and performs a service on account (on credit) in December. The service was billed at the agreed upon amount of $ 3, 500. ABC Co. debited Accounts Receivable for $ 3, 500 and credited Service Revenue for $ 3, 500. The effect of this entry on the balance sheet of ABC is to increase assets by $ 3, 500 and to
25. Which of the following is an example of a financing activity on the cash flow statement under US GAAP?
26. All U.S. businesses uses the same system which follows established accounting guidelines called "generally accepted accounting principles." or .....
27. When an entity presents a semi-annual statement of financial position dated as at June 30, 20x1, the comparative information is dated as at June 30, 20x0.
28. One of the accounting professions that is very necessary in the era of industrial revolution 4.0, namely
29. Accounting is considered as a means of providing an overview of transactions carried out with the environment in the past. This is the nature of accounting as.....
30. The owner is a separate person to the business. This is based on the .....
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