Exam 4: Statements of Financial Position and Changes in Equity; Disclosure Notes

On the December 31,balance sheet of a company,current assets included the following items: An examination of the accounts revealed that the accounts receivable balance made up by the following items: What is the correct amount of current assets as of December 31?

Investments being held-to-maturity must be accounted for using Amortized Cost under IFRS.

The purchase of a machine on credit was recorded as a debit to Machinery,a debit to Discount on note payable,and a credit to Notes payable.Under IFRS,at the end of the accounting period,any unamortized debit balance in the discount account should be reported as a(n):

Z corporation owed the following notes payable,which will mature during the coming year.The corporation plans to settle the notes as follows: Which note is properly classified as a current liability?

By grouping assets in decreasing order of liquidity,the accounts receivable account will almost always be the first item on the balance sheet.

A corporation reported a balance in retained earnings of $16,500 in its December 31,year 1,balance sheet.During year 1,the company incurred a net loss of $2,500,declared a cash dividend of $1,000,issued additional common shares for $5,000,and recorded a correction of prior years' error,net of tax,of $500 (credit).The balance in retained earnings at January 1,year 1,must have been:

Capital transactions are essentially transaction between owners and as a result,must never appear on the income statement.

Which of the following is not a negative element under the "capital assets,tangible" classification?

In financial reporting it is improper to offset current assets with current liabilities unless there is a legal right of offset.

Gain contingencies,which are remote and can be reasonably estimated:

Deferred charges:

For financial statement purposes,a company's operating cycle is deemed to be at least one year.

Which of the following subsequent events (post-balance sheet events) would require adjustment of the accounts before issuance of the financial statements?

Which of the following subsequent events would require an adjustment to the financial statements under IFRS?

Certain types of contingencies neither need to be accrued nor disclosed in the notes to the financial statements.

A company made the following entry on January 1,year 1,to record the total premium paid for a three-year insurance policy: The December 31,year 1,balance sheet should report the following amounts:

Deferred charges are distinguished from prepaid expenses on the basis of the time over which their benefits will be realized.

Only unrealized changes in the fair values of certain assets or liabilities are included in Accumulated Other Comprehensive Income.

The balance sheet reports on the operations of the company for a given period of time.

Under IFRS,the correct order to present current assets is: