Question 1

Which of these is not an example of an accounting estimate?

Accepted Answer

A) Useful life of a depreciable asset 
B) Impairment of asset 
C) Long service leave provided 
D) Accounts payable 
A) Useful life of a depreciable asset 
B) Impairment of asset 
C) Long service leave provided 
D) Accounts payable

Question 2

If sales revenue is $300 000 and cost of sales is $250 000,the gross profit margin is:

Accepted Answer

A) 12% 
B) 17% 
C) 20% 
D) 83% 
A) 12% 
B) 17% 
C) 20% 
D) 83%

Question 3

An item is considered to be __________________ based on the size and/or nature of the item,and whether its non-disclosure could influence users' decision making.

Accepted Answer

The answer of An item is considered to be __________________...

Question 4

The balance of retained earnings at the end of the period is included in the equity section of the __________ sheet.

Accepted Answer

The answer of The balance of retained earnings at the...

Question 5

Post-tax profit is more important to a shareholder than pre-tax profit as:

Accepted Answer

A) the amount of tax paid does not give a true indication of the underlying health of the entity. 
B) tax has to be paid before profits can be distributed as dividends. 
C) personal tax deductions can negate any tax paid by the entity prior to dividends being distributed. 
D) as the entity has no control over the amount of tax that needs to be paid;tax payments do not affect the value of their shares. 
A) the amount of tax paid does not give a true indication of the underlying health of the entity. 
B) tax has to be paid before profits can be distributed as dividends. 
C) personal tax deductions can negate any tax paid by the entity prior to dividends being distributed. 
D) as the entity has no control over the amount of tax that needs to be paid;tax payments do not affect the value of their shares.

Question 6

It is true that

Accepted Answer

A) profit is the excess in cash inflows from income over the cash outflows from expenses. 
B) income is recognised when the economic benefits are certain and can be reliably measured. 
C) whether a transaction is made with cash or credit has no effect on the profit of an entity. 
D) income is only recognised when cash is received 
A) profit is the excess in cash inflows from income over the cash outflows from expenses. 
B) income is recognised when the economic benefits are certain and can be reliably measured. 
C) whether a transaction is made with cash or credit has no effect on the profit of an entity. 
D) income is only recognised when cash is received

Which of these is not an example of an accounting estimate?

If sales revenue is $300 000 and cost of sales is $250 000,the gross profit margin is:

An item is considered to be __________________ based on the size and/or nature of the item,and whether its non-disclosure could influence users' decision making.

The balance of retained earnings at the end of the period is included in the equity section of the __________ sheet.

Post-tax profit is more important to a shareholder than pre-tax profit as:

It is true that

Introduction to Accounting

Business Sustainability

Business Structures

Business Transactions

Balance Sheet

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Budgeting

Cost-Volume-Profit Analysis

Costing and Pricing in an Entity

Capital Investment

Financing the Business

Performance Measurement

Filters

Exam 6: Income Statement and Statement of Changes in Equity

Which of these is not an example of an accounting estimate?

If sales revenue is $300 000 and cost of sales is $250 000,the gross profit margin is:

An item is considered to be __________________ based on the size and/or nature of the item,and whether its non-disclosure could influence users' decision making.

The balance of retained earnings at the end of the period is included in the equity section of the __________ sheet.

Post-tax profit is more important to a shareholder than pre-tax profit as:

It is true that

Introduction to Accounting

Business Sustainability

Business Structures

Business Transactions

Balance Sheet

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Budgeting

Cost-Volume-Profit Analysis

Costing and Pricing in an Entity

Capital Investment

Financing the Business

Performance Measurement

Filters