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What is the purpose of a balance sheet?
What is the purpose of a balance sheet?A . To show sources of funds and the manner in which those funds are employedB . To account for changes in cash during the accounting periodC . To show details of the nature of a company’s operating activitiesD . To reconcile the...
Which statement best describes the revalued amount of an asset?
Which statement best describes the revalued amount of an asset?A . Its fair value at the date of revaluation less accumulated impairmentB . Its fair value at the date of revaluation less accumulated depreciationC . Its fair value, less retained earningsD . Its fair value at the date of revaluation...
Paid annual leave and paid sick leave are examples of which kind of employee benefits?
Paid annual leave and paid sick leave are examples of which kind of employee benefits?A . Short-term benefitsB . Post-employment benefitsC . Termination benefitsD . Long-term benefitsView AnswerAnswer: A
Which characteristic requires a high degree of consensus among individuals on a given measurement?
Which characteristic requires a high degree of consensus among individuals on a given measurement?A . Faithful representationB . VerifiabilityC . ComparabilityD . NeutralView AnswerAnswer: B
What is one of the main purposes of the International Financial Reporting Interpretations Committee (IFRIC)?
What is one of the main purposes of the International Financial Reporting Interpretations Committee (IFRIC)?A . Provide guidance on reporting issues not specifically addressed in International Accounting Standards Board (IASB)’s standardsB . Provide advice to International Accounting Standards Board (IASB) on prioritiesC . Monitor International Accounting Standards Board (IASB)’s effectiveness,...
Why is accounting for short-term employee benefits generally a straightforward process?
Why is accounting for short-term employee benefits generally a straightforward process?A . Because no actuarial assumptions are required to measure the obligation or cost and there is no possibility of any actuarial gain or lossB . Because short-term employee benefit obligations are measured on a discounted basisC . Because short-term...
One of the reasons preparers use the conceptual framework is to:
One of the reasons preparers use the conceptual framework is to:A . Develop accounting policies in the absence of specific standardsB . Document a historical record of all judgmentsC . Develop alternate interpretations of specific standardsD . Encourage change to standards as Board members changeView AnswerAnswer: A
Which of the following is true of accrual accounting?
Which of the following is true of accrual accounting?A . Neither the recognition of revenue nor the recording of expense necessarily involves the receipt or payment of cashB . It rests on a primary guiding principle, which is recognitionC . The recognition of revenue involves the receipt or payment of...
Which of the following is one of the four main financial statements?
Which of the following is one of the four main financial statements?A . Statement of full disclosureB . Statement of assetsC . Statement of changes in shareholders’ equityD . Statement of accrual accountingView AnswerAnswer: C
Which of the following best defines the term “equity”?
Which of the following best defines the term “equity”?A . The residual interest in the assets of the entity after deducting all its liabilitiesB . A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of...
