Question 1

On the statement of financial position all of the following are reported as investments except

Accepted Answer

A)  Bonds, ordinary shares, and long-term notes. 
B)  Non-controlling interest. 
C)  Pension funds. 
D)  Non-consolidated subsidiaries. 
A)  Bonds, ordinary shares, and long-term notes. 
B)  Non-controlling interest. 
C)  Pension funds. 
D)  Non-consolidated subsidiaries. B

Question 2

The presentation of non-current liabilities in the statement of financial position should disclose

Accepted Answer

A)  maturity dates. 
B)  interest rates. 
C)  conversion rights. 
D)  All of these choices are correct. 
A)  maturity dates. 
B)  interest rates. 
C)  conversion rights. 
D)  All of these choices are correct. D

Question 3

Land held for speculation is reported in the property, plant, and equipment section of the statement of financial position.

Accepted Answer

A) True 
 B)False  False

Question 4

Accounting policies include each of the following except

Accepted Answer

A)  principles. 
B)  conventions. 
C)  rules. 
D)  All of these answers are included. 
A)  principles. 
B)  conventions. 
C)  rules. 
D)  All of these answers are included.

Question 5

Which item below is not a current liability?

Accepted Answer

A)  Unearned revenue 
B)  Share dividends distributable 
C)  The currently maturing portion of long-term debt 
D)  Trade accounts payable 
A)  Unearned revenue 
B)  Share dividends distributable 
C)  The currently maturing portion of long-term debt 
D)  Trade accounts payable

Question 6

The IASB recommends disclosure for all significant accounting principles and methods that involve selection from among alternatives.

Accepted Answer

A) True 
 B)False

Question 7

Under IFRS an adjunct account on the statement of financial position increases an asset, liability, or equity account.

Accepted Answer

A) True 
 B)False

Question 8

In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for

Accepted Answer

A)  operating activities. 
B)  borrowing activities. 
C)  lending activities. 
D)  financing activities. 
A)  operating activities. 
B)  borrowing activities. 
C)  lending activities. 
D)  financing activities.

Question 9

Presented below are data for Antwerp Corp.

Accepted Answer

A)  € 504. 
B)  € 560. 
C)  €1,220. 
D)  €1,724. 
A)  € 504. 
B)  € 560. 
C)  €1,220. 
D)  €1,724.

Question 10

A complete set of financial statements includes each of the following except

Accepted Answer

A)  a statement of comprehensive income. 
B)  a statement of changes in equity. 
C)  notes. 
D)  All of these answers are included. 
A)  a statement of comprehensive income. 
B)  a statement of changes in equity. 
C)  notes. 
D)  All of these answers are included.

Question 11

In preparing a statement of cash flows, sale of treasury stock at an amount greater than cost would be classified as a(n)

Accepted Answer

A)  operating activity. 
B)  financing activity. 
C)  extraordinary activity. 
D)  investing activity. 
A)  operating activity. 
B)  financing activity. 
C)  extraordinary activity. 
D)  investing activity.

Question 12

One of the benefits of the statement of cash flows is that it helps users evaluate financial flexibility. Which of the following explanations is a description of financial flexibility?

Accepted Answer

A)  The nearness to cash of assets and liabilities. 
B)  The firm's ability to respond and adapt to financial adversity and unexpected needs and opportunities. 
C)  The firm's ability to pay its debts as they mature. 
D)  The firm's ability to invest in a number of projects with different objectives and costs. 
A)  The nearness to cash of assets and liabilities. 
B)  The firm's ability to respond and adapt to financial adversity and unexpected needs and opportunities. 
C)  The firm's ability to pay its debts as they mature. 
D)  The firm's ability to invest in a number of projects with different objectives and costs.

Question 13

For Randolph Company, the following information is available:

Accepted Answer

A)  R110,000. 
B)  R105,000. 
C)  R390,000. 
D)  R385,000. 
A)  R110,000. 
B)  R105,000. 
C)  R390,000. 
D)  R385,000.

Question 14

Treasury shares should be reported as a(n)

Accepted Answer

A)  current asset. 
B)  investment. 
C)  other asset. 
D)  reduction of equity. 
A)  current asset. 
B)  investment. 
C)  other asset. 
D)  reduction of equity.

Question 15

An example of an item which is not an element of working capital is

Accepted Answer

A)  accrued interest on notes receivable. 
B)  goodwill. 
C)  goods in process. 
D)  short-term investments. 
A)  accrued interest on notes receivable. 
B)  goodwill. 
C)  goods in process. 
D)  short-term investments.

Question 16

The correct order to present current assets is

Accepted Answer

A)  cash, accounts receivable, prepaid items, inventories. 
B)  inventories, receivables, prepaid items, cash. 
C)  cash, inventories, accounts receivable, prepaid items. 
D)  inventories, prepaid items, accounts receivable, cash. 
A)  cash, accounts receivable, prepaid items, inventories. 
B)  inventories, receivables, prepaid items, cash. 
C)  cash, inventories, accounts receivable, prepaid items. 
D)  inventories, prepaid items, accounts receivable, cash.

Question 17

Which of the following is not a long-term investment?

Accepted Answer

A)  Investments in ordinary shares 
B)  Franchise 
C)  Land held for speculation 
D)  A sinking fund 
A)  Investments in ordinary shares 
B)  Franchise 
C)  Land held for speculation 
D)  A sinking fund

Question 18

Caroline, Inc. hired a new controller in late 2019. The controller has not prepared financial statements using IFRS before and needs your assistance. In compiling a complete set of financial statements under IFRS, in what order should the following items be reported in the equity section on the statement of financial position at December 31, 2019? If an item is not reported in the equity section, omit it from your answer.

Accepted Answer

A)  I, VI, IV, II, V, III 
B)  VI, I, II, V, IV 
C)  VI, I, IV, II, V 
D)  III, VI, I, II, IV, V 
A)  I, VI, IV, II, V, III 
B)  VI, I, II, V, IV 
C)  VI, I, IV, II, V 
D)  III, VI, I, II, IV, V

Question 19

The equity section of an IFRS statement of financial position includes share capital, share premium, and retained earnings in that order.

Accepted Answer

A) True 
 B)False

Question 20

Preparing the statement of cash flows, using the indirect method, involves all of the following except determining the

Accepted Answer

A)  cash provided by operations. 
B)  cash provided by or used in investing and financing activities. 
C)  change in cash during the period. 
D)  cash collections from customers during the period. 
A)  cash provided by operations. 
B)  cash provided by or used in investing and financing activities. 
C)  change in cash during the period. 
D)  cash collections from customers during the period.

On the statement of financial position all of the following are reported as investments except

The presentation of non-current liabilities in the statement of financial position should disclose

Land held for speculation is reported in the property, plant, and equipment section of the statement of financial position.

Accounting policies include each of the following except

Which item below is not a current liability?

The IASB recommends disclosure for all significant accounting principles and methods that involve selection from among alternatives.

Under IFRS an adjunct account on the statement of financial position increases an asset, liability, or equity account.

In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for

Presented below are data for Antwerp Corp.

A complete set of financial statements includes each of the following except

In preparing a statement of cash flows, sale of treasury stock at an amount greater than cost would be classified as a(n)

One of the benefits of the statement of cash flows is that it helps users evaluate financial flexibility. Which of the following explanations is a description of financial flexibility?

For Randolph Company, the following information is available:

Treasury shares should be reported as a(n)

An example of an item which is not an element of working capital is

The correct order to present current assets is

Which of the following is not a long-term investment?

The equity section of an IFRS statement of financial position includes share capital, share premium, and retained earnings in that order.

Preparing the statement of cash flows, using the indirect method, involves all of the following except determining the

Financial Reporting and Accounting Standards

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Filters

Exam 5: Statement of Financial Position and Statement of Cash Flows

On the statement of financial position all of the following are reported as investments except

The presentation of non-current liabilities in the statement of financial position should disclose

Land held for speculation is reported in the property, plant, and equipment section of the statement of financial position.

Accounting policies include each of the following except

Which item below is not a current liability?

The IASB recommends disclosure for all significant accounting principles and methods that involve selection from among alternatives.

Under IFRS an adjunct account on the statement of financial position increases an asset, liability, or equity account.

In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for

Presented below are data for Antwerp Corp.

A complete set of financial statements includes each of the following except

In preparing a statement of cash flows, sale of treasury stock at an amount greater than cost would be classified as a(n)

One of the benefits of the statement of cash flows is that it helps users evaluate financial flexibility. Which of the following explanations is a description of financial flexibility?

For Randolph Company, the following information is available:

Treasury shares should be reported as a(n)

An example of an item which is not an element of working capital is

The correct order to present current assets is

Which of the following is not a long-term investment?

The equity section of an IFRS statement of financial position includes share capital, share premium, and retained earnings in that order.

Preparing the statement of cash flows, using the indirect method, involves all of the following except determining the

Financial Reporting and Accounting Standards

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Filters