Question 1

How is the debt ratio calculated?

Accepted Answer

A)  Total assets/Total debt 
B)  Total debt/Total assets 
C)  Debt/Shareholders' equity 
D)  Long-term debt/Shareholders' equity 
A)  Total assets/Total debt 
B)  Total debt/Total assets 
C)  Debt/Shareholders' equity 
D)  Long-term debt/Shareholders' equity

Question 2

If the discount is 'with recourse',the discount mechanism for notes creates:

Accepted Answer

A)  A provision 
B)  A contingent liability 
C)  An accrued liability 
D)  None of these 
A)  A provision 
B)  A contingent liability 
C)  An accrued liability 
D)  None of these

Question 3

Which of the following items is not considered to be payroll taxes?

Accepted Answer

A)  Employer's portion of social security 
B)  Unemployment taxes 
C)  Employer's portion of employees' life insurance premiums 
D)  Workers' compensation taxes 
A)  Employer's portion of social security 
B)  Unemployment taxes 
C)  Employer's portion of employees' life insurance premiums 
D)  Workers' compensation taxes

Question 4

Accrued liabilities are the results of both the accrual process and the time lag between an event and its complete resolution in the course of the cycle of operations.

Accepted Answer

A) True 
 B)False

Question 5

Given the following data:
What is recorded in the balance sheet at the time of the first payment?

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 6

IFRS 16,which supersedes IAS 17,is applicable for accounting periods on or after:

Accepted Answer

A)  1 January 2016 
B)  1 January 2017 
C)  1 January 2018 
D)  1 January 2019 
A)  1 January 2016 
B)  1 January 2017 
C)  1 January 2018 
D)  1 January 2019

Question 7

A major difference between IFRS 16 and IAS 17 is that the new standard introduces a single lessee accounting model,abandoning the distinction between operating lease and finance lease.

Accepted Answer

A) True 
 B)False

Question 8

What is included in post-employment benefits?

Accepted Answer

A)  Pensions. 
B)  Post-employment life insurance. 
C)  Post-employment medical care. 
D)  All of these 
A)  Pensions. 
B)  Post-employment life insurance. 
C)  Post-employment medical care. 
D)  All of these

Question 9

In accounting terms,wages and salaries are handled differently.

Accepted Answer

A) True 
 B)False

Question 10

In which way(s)may the settlement of a present obligation occur?

Accepted Answer

A)  Payment of cash 
B)  Transfer of assets other than cash 
C)  Provision of services 
D)  All of these. 
A)  Payment of cash 
B)  Transfer of assets other than cash 
C)  Provision of services 
D)  All of these.

Question 11

How are liabilities reported in the balance sheet?

Accepted Answer

A)  Distinguishing current and non-current liabilities. 
B)  Distinguishing short-term and long-term liabilities. 
C)  Distinguishing interest-bearing and non-interest-bearing liabilities. 
D)  All of these. 
A)  Distinguishing current and non-current liabilities. 
B)  Distinguishing short-term and long-term liabilities. 
C)  Distinguishing interest-bearing and non-interest-bearing liabilities. 
D)  All of these.

Question 12

Long-term liabilities are generally divided between two categories.What are these categories?

Accepted Answer

A)  Bank borrowings and private borrowings 
B)  Bank borrowings and bonds 
C)  Bank borrowings and bank loans 
D)  Public bonds and private bonds 
A)  Bank borrowings and private borrowings 
B)  Bank borrowings and bonds 
C)  Bank borrowings and bank loans 
D)  Public bonds and private bonds

Question 13

IAS 17 recommends that finance leases be recognized as assets and liabilities on the statement of financial position/balance sheet.Such recording of finance leases is often known as the ____ of the leased asset.

Accepted Answer

A)  Recognition 
B)  Incorporation 
C)  Capitalization 
D)  Reservation 
A)  Recognition 
B)  Incorporation 
C)  Capitalization 
D)  Reservation

Question 14

What is the term IAS 17 uses for a lease that transfers substantially all the risks and rewards incidental to ownership of an asset?

Accepted Answer

A)  Simple lease 
B)  Finance lease 
C)  Operating lease 
D)  Legal lease 
A)  Simple lease 
B)  Finance lease 
C)  Operating lease 
D)  Legal lease

Question 15

Under IAS 17,which of the following examples is not a situation that would normally lead to a lease being classified as a finance lease?

Accepted Answer

A)  The leased assets are useful for the lessee. 
B)  The lease transfers ownership of the asset to the lessee by the end of the lease term. 
C)  The lessee has the option to purchase the asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain,at the inception of the lease,that the option will be exercised. 
D)  The lease term is for the major part of the economic life of the asset even if the title is not transferred. 
A)  The leased assets are useful for the lessee. 
B)  The lease transfers ownership of the asset to the lessee by the end of the lease term. 
C)  The lessee has the option to purchase the asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain,at the inception of the lease,that the option will be exercised. 
D)  The lease term is for the major part of the economic life of the asset even if the title is not transferred.

How is the debt ratio calculated?

If the discount is 'with recourse',the discount mechanism for notes creates:

Which of the following items is not considered to be payroll taxes?

Accrued liabilities are the results of both the accrual process and the time lag between an event and its complete resolution in the course of the cycle of operations.

Given the following data: What is recorded in the balance sheet at the time of the first payment?

IFRS 16,which supersedes IAS 17,is applicable for accounting periods on or after:

A major difference between IFRS 16 and IAS 17 is that the new standard introduces a single lessee accounting model,abandoning the distinction between operating lease and finance lease.

What is included in post-employment benefits?

In accounting terms,wages and salaries are handled differently.

In which way(s)may the settlement of a present obligation occur?

How are liabilities reported in the balance sheet?

Long-term liabilities are generally divided between two categories.What are these categories?

IAS 17 recommends that finance leases be recognized as assets and liabilities on the statement of financial position/balance sheet.Such recording of finance leases is often known as the ____ of the leased asset.

What is the term IAS 17 uses for a lease that transfers substantially all the risks and rewards incidental to ownership of an asset?

Under IAS 17,which of the following examples is not a situation that would normally lead to a lease being classified as a finance lease?

Accounting: the Language of Business

Introduction to Financial Statements

Financial Statements: Interrelations and Construction

Accounting Principles and End-Of-Period Adjustments

Regulation of Accounting and Financial Reporting

Revenue Recognition Issues

Tangible Fixed Assets

Intangible Assets

Inventories

Financial Instruments in the Statement of Financial Position and Fair Value Accounting

Shareholders Equity

Business Combinations

Income Statement Analysis

Balance Sheet Analysis

Statement of Cash Flows Construction

Statement of Cash Flows Analysis and Earnings Quality

Ratio Analysis, financial Analysis and Beyond

Filters

Exam 12: Liabilities and Provisions

How is the debt ratio calculated?

If the discount is 'with recourse',the discount mechanism for notes creates:

Which of the following items is not considered to be payroll taxes?

Accrued liabilities are the results of both the accrual process and the time lag between an event and its complete resolution in the course of the cycle of operations.

Given the following data: What is recorded in the balance sheet at the time of the first payment?

IFRS 16,which supersedes IAS 17,is applicable for accounting periods on or after:

A major difference between IFRS 16 and IAS 17 is that the new standard introduces a single lessee accounting model,abandoning the distinction between operating lease and finance lease.

What is included in post-employment benefits?

In accounting terms,wages and salaries are handled differently.

In which way(s)may the settlement of a present obligation occur?

How are liabilities reported in the balance sheet?

Long-term liabilities are generally divided between two categories.What are these categories?

IAS 17 recommends that finance leases be recognized as assets and liabilities on the statement of financial position/balance sheet.Such recording of finance leases is often known as the ____ of the leased asset.

What is the term IAS 17 uses for a lease that transfers substantially all the risks and rewards incidental to ownership of an asset?

Under IAS 17,which of the following examples is not a situation that would normally lead to a lease being classified as a finance lease?

Accounting: the Language of Business

Introduction to Financial Statements

Financial Statements: Interrelations and Construction

Accounting Principles and End-Of-Period Adjustments

Regulation of Accounting and Financial Reporting

Revenue Recognition Issues

Tangible Fixed Assets

Intangible Assets

Inventories

Financial Instruments in the Statement of Financial Position and Fair Value Accounting

Shareholders Equity

Business Combinations

Income Statement Analysis

Balance Sheet Analysis

Statement of Cash Flows Construction

Statement of Cash Flows Analysis and Earnings Quality

Ratio Analysis, financial Analysis and Beyond

Filters