Which of the following is added to the cost of inventories?

• Storage costs of part-finished goods

Under IAS 16, using the cost model, the asset in accounted for at Which of the following may be included in the cost of finished goods of a manufacturing company?

• Storage expenses for finished goods

• Depreciation of delivery vehicles

If the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, a lessee __________.

• Shall recognise any remaining amount of the remeasurement in profit or loss

• Shall recognise any remaining amount of the remeasurement in other comprehensive income

• Shall recognise any remaining amount of the remeasurement in revaluation reserve

• Shall not recognise any remaining amount of the remeasurement

Which of the following does not define an "asset"?

• A resource which value in use exceeds its historical cost

• A resource that is controlled by an entity as a result of past events

• A resource from which future economic benefits are expected to flow to the entity

The Caspian Company leased a warehouse with adjoining land for a period of 15 years. The land has an indefinite useful life whereas the warehouse has a useful life of 15 years. Title to the land is not expected to pass at the end of the lease. Under IFRS 16 Leases, in respect of which items should a right-of-use asset and a lease liability be recognised in the financial statements of Caspian?

• Both the land and the warehouse

According to IFRS 15 Revenue from contracts with customers, which of the following factors is not taken into account when establishing the transaction price of a contract?

• Variable consideration in contract price

Which one of the following is the best description of "faithful representation" in relation to information in financial statements?

• Complete, neutral and free from error

• Inclusion of a degree of caution

• Influence on the economic decisions of users

Under IFRS 3, the acquirer shall measure the identifiable assets acquired and the liabilities assumed at their:

• Acquisition-date fair values

• Acquisition-date historical cost

• Reporting-date net book value

• Reporting-date present value

Which of the following is not an example of directly attributable costs according to IAS 16?

• Costs of conducting business in a new location or with a new class of customer

• Costs of employee benefits arising directly from the construction or acquisition of the item of property, plant and equipment

• Initial delivery and handling costs

What is a benefit of having a Conceptual Framework?

• To enable the accountancy profession to more quickly solve emerging practical problems.

• To provide information from which to build more useful standards.

• To enable standard setting body to issue more useful and consistent pronouncements over time

According to IFRS 10, the basis for consolidation is ...

• Size of share capital of the investee

An asset is considered to be impaired when its carrying amount is greater than its

• undiscounted future cash flows

Under IFRS, an entity that acquires an intangible asset may use the revaluation model for subsequent measurement only if

• an active market exists for the intangible asset

• the useful life of the intangible asset can be reliably determined

• the cost of the intangible asset can be measured reliably

• the intangible asset has a finite life

M Co sets up his demolition business from scratch on 1 January 20X0. Which items should be represented as capital expenditure?

• Writes off a damaged machine

According to the IASB Framework for the preparation and presentation of financial statements, which TWO of the following are examples of 'expenses'?

• A loss on the disposal of a non-current asset

• A decrease in economic benefits during the accounting period

• A decrease in equity arising from a distribution to equity participants

• A reduction in income for the accounting period

IAS 16 Property, Plant and Equipment requires an asset to be measured at cost on its original recognition in the financial statements. CARLING used its own staff, assisted by contractors when required, to construct a new warehouse for its own use.

• A proportion of CARLING's administration costs, based on staff time spent

• Clearance of the site prior to commencement of construction

• Professional surveyor fees for managing the construction work

• CARLING's own staff wages for time spent working on construction

Which statement regarding the term profit is true?

• All of these statements are true about the term profit

• Profit is any amount over and above that required to maintain the capital at the beginning of the period

• Profit is equal to income minus expenses

• Profit is equivalent to net income under IFRS

Revenue is recognised as control is passed. Which of the following BEST DESCRIBES control with respect to the revenue recognition?

• It’s the ability to direct the use of and get almost all of the benefits from the asset

• It’s the promise to give the goods/services is separately identifiable

Which of the following would NOT be classified as an associate? An entity where you...

• acquire 70% of the ordinary shares

• acquire 20% of the ordinary shares and have significant influences

Which would lead to more consistent accounting standards?

• A principles based framework

Is the screen of the device you're using right now - a cash CGU?

• Of course it is - it cost me serious cash stacks man

F7 02

Authored by Duy Mạnh

Other

University

Used 52+ times

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

Content View

Student View

162 questions

Show all answers

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following shall a lessee recognise at the commencement date?

• A right-of use asset

• A lease liability

• Deferred income

• A and B

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which one of the following is not required to be disclosed in a lessee's financial statements in relation to its leases, to comply with the requirements of IFRS 16 Leases?

• Interest expense on lease liabilities

• A reconciliation between the total of future minimum lease payments and their present value

• Total cash outflow for leases

• Income from sub-leasing right of use assets

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Inventory items should be valued at the lower of cost and net realisable value.

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If the closing inventory is understated, then the current year's profit will be understated and next year's profit will be overstated.

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A company sells goods with a warranty for the cost of repairs required in the first 2 months after purchase. Past experience suggests: 88% of the goods sold will have no defects, 7% will have minor defects, 5% will have major defects. If minor defects were detected in all products sold, the cost of repairs will be £24,000; if major defects were detected in all products sold, the cost would be £200,000. What amount of provision should be made?

• 11,000

11,680

• 12,000

• 12,680

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How should prompt payment discount be dealt with when valuing inventories at the lower of cost and net realisable value (NRV), according to IAS2 Inventories ?

• Added to cost

• Ignored

• Deducted in arriving at NRV

• Deducted from cost

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How should sales staff commission be dealt with when valuing inventories at the lower of cost and net realisable value (NRV), according to IAS2 Inventories ?

• Added to cost

Ignored

• Deducted in arriving at NRV

• Deducted from cost

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Microsoft

or continue with

Facebook

Apple

Others

Already have an account?

Popular Resources on Wayground

24 questions

PBIS-HGMS Day 10

Quiz

•

6th - 8th Grade

10 questions

HCS SCI 03 Summer School Review 3

Quiz

•

3rd Grade

11 questions

Home Scope

Quiz

•

7th - 8th Grade

15 questions

HCS SCI 05 Summer School Assessment 3 Review

Quiz

•

5th Grade

35 questions

Lufkin Road Middle School Student Handbook & Policies Assessment

Quiz

•

7th Grade

18 questions

Geo 11.3 Area of Circles and Sectors

Quiz

•

9th - 11th Grade

F7 02

Which of the following shall a lessee recognise at the commencement date?

Which one of the following is not required to be disclosed in a lessee's financial statements in relation to its leases, to comply with the requirements of IFRS 16 Leases?

Inventory items should be valued at the lower of cost and net realisable value.

If the closing inventory is understated, then the current year's profit will be understated and next year's profit will be overstated.

How should prompt payment discount be dealt with when valuing inventories at the lower of cost and net realisable value (NRV), according to IAS2 Inventories ?

How should sales staff commission be dealt with when valuing inventories at the lower of cost and net realisable value (NRV), according to IAS2 Inventories ?

How should trade discounts be dealt with when valuing inventories at the lower of cost and net realisable value (NRV) according to IAS2 Inventories ?

Which of the following is added to the cost of inventories?

Under IAS 16, using the cost model, the asset in accounted for at Which of the following may be included in the cost of finished goods of a manufacturing company?

Access all questions and much more by creating a free account

Popular Resources on Wayground