Tổng hợp trắc nghiệm Kế toán quốc tế 1

Investment property has originally cost of $20 million; accumulated depreciation up to the date of transfer was $12 million, there was no impairment loss; property’s fair value at 1 Jan

Tổng hợp trắc nghiệm Kế toán quốc tế 1

Topic 1: Conceptual framework

1 Which one of the following would be classified as a liability?

a Expansion is planning to invest in new machinery and has been quoted a price of $570,000

b Reckless purchased an investment 9 months ago for $120,000 The market for these

investments has now fallen and Reckless’s investment is valued at $90,000 (S)

c Carter has estimated the tax charge on its profits for the year just ended at $165,000.

d Dexter’s business manufactures a product under licence In 12 month’s time the licence expires and Dexter will have to pay $50,000 for it to be renewed

2 Which of the following is a possible advantage of a rules-based system of financial reporting?

a It prevents a fire-fighting approach to the formulation of standards

b It ensures that no standards conflict with each other (S)

c It offers accountants more protection in the event of litigation

d It encourages the exercise of professional judgement*

3 Which of the following basic elements of financial statements is more associated with the

statement of financial position than the income statement?

a Gains

b Expenses

c Income

d Equity

4 Which of the following staments is relation to income is true?

a Gains are normally reported separately from revenue in the Statement of profit or loss and other comprehensive income due to the different probabilities attached to that type of income

b The conceptual framework requires that all items of income are reported on a net basis

c The conceptual framework defines income as an increase in economic benefits which results in

an increase in equity.*

d Gains and revenue are different in nature and therefore are recognised as separate elements

of the financial statements per the conceptual framework (S)

5 The International Accounting Standards Board’s (IASB’s) Conceptual Framework includes all of the

6 Which of the following best describes the role of the IFRS Advisory Coucil?

a To select the members of the IASB

b To prepare interpretations of international Accounting Standards

c To promote the use of International Accounting Standards among its members

d To provide the IASB with the views of its members on standard setting projects

7 What is meant by comparability when discussing fianancial accouting information?

a Information is timely

b Information that is measured and reported in a similar fashion across companies

c Information is reasonably free from error

d Information has predictive or feedback value

8 Comparability is identified as an enhancing qualitative characteristic in the IASB’s Conceptual Framework for Financial Reporting Which of the following does NOT improve comparability?

a Disclosing discontinued operations in financial statements

b Restating the financial statements of previous years when there has been a change of

10 What is a purpose of having a conceptual framework?

a To enable the profession to more quickly solve emerging practical problems and to provide a foundation from which to build more useful standards

b To make sure that economic activity can be identified with a particular legal entity

c To provide comparable information for different companies

d To segregate activities among competing companies

11 The conceptual framework for financial reporting lists the qualitative characteristics of financial statements: (i) comparability; (ii) verifiability; (iii) timeliness; (iv) understandability; (v) relevance;

(vi) faithful representation Which two of the above are not included in the enhancing qualitative

characteristics listed by the conceptual framework?

a (v) and (vi) *

b (iv) and (v)

c (ii) and (v)

d (i) and (vii) (S)

12 The International Accounting Standards Board’s (IASB’s) Conceptual Framework includes all of the

following except:

a Objective of financial reporting

b Supplementary information*

c Qualitative characteristics of accounting information (S)

d Elements of financial statements

13 What is the objective of general-purpose financial reporting?

a To provide a metric for financial information used to determine when the boundary between two or more entities should be disregarded and the entities considered to be a licensing arrangement

b To provide companies with the option to select information that favors one set of interested parties over another

c To provide users with financial information that implies total freedom from error

d To provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors in making decisions in their capacity as capital providers

14 Which of the following statements is incorrect in relation to the recognition criteria for elements

of the financial statements?

a Income is recognised when an increase in future economic benefits related to a decrease in an assets or an increase in a liability that has arisen can be measured reliably

b Liabilities are recognised when it is probable that an outflow of resources embodying

economic benefits will result from the settlement of a present obligation and the amount at which settlement will take place can be measured reliably

c Assets are recognised when it is probable that future economic benefits will flow to the entity and the asset has a cost or value that can be measured reliably (S)

d Because equity is the arithmetic difference between assets and liablities, a separate

recognition criteria for quity is not needed in the conceptual framework

15 Changing the mothod of inventory valuation should be reported in the financial statements under what qualitative characteristic of accounting information?

a Excluding a subsidiary from consolidation because its activities are not compatible with those

of the rest of the group

b Reporting a transaction based on its legal status rather than its economic substance

c Recording the whole of the net proceeds from the issue of a loan note which is potentially convertible to equity shares as debt (liability) (S)

d Allocating part of sales proceeds of a motor vehicle to interest received even though it was sold with 0% (interest free) finance

17 Which of the bodies listed below is responsible for revewing International Accounting Standards and issuing guidance on their application?

a IFRS Advisory Council

b IFRS Interpretation Committee

c International Accounting Standards Board

19 Which of the following is not true concerning a conceptual framework in accounting?

a It should be a basis for standard-setting

b It should allow practical proplems to be solved more quickly by reference to it

c It should be based on fundamental truths that are derived from the laws of nature

d All of these answers are correct

20 Which of the following measurement base(s) should be used by an entity according to the

conceptual framework for financial reporting?

Topic 2: Property, Plant and Equipment (PPEs) (IAS16)

1 Which one of the following would occur if the purchase of computer stationary was debited to thecomputer equipment at cost account?

a An overstatement of profit and an understatement of non-current assets (S)

b An overstatement of profit and an overstatement of non-current assets

c An understatement of profit and an overstatement of non-current assets

d An overstatement of profit and an understatement of non-current assets

2 Which of the following statements are correct? 1/ IAS 16 Property, plant and equipment requires entities to disclose the purchase date of each asset 2/ The carrying amount of a non-asset is the cost or valuation of that assets less accumulated depreciation 3/ IAS 16 Property, plant and

equipment permits entities to make a transfer from the revaluation surplus to retained earning forexcess depreciation on revalued assets 4/ Once decided, the useful life of a non-current asset should not be changed.

4 The carrying value of a company’s non-current assets was $200,000 at August 20X0 During the

year ended 31 Jul 20X1, the company sold non-current assets for $25,000 on which made a loss of

$5,000 The depreciation charge for the year was $20,000 What was the carrying value of

non-current assets at 31 Jul 20X1?

6 Which one of the following statements correctly defines non-current assets?

a Non-monetary assets without physical substance that are controlled by the entity and from which future benefits are expected to flow

b Assets in the form of materials or supplies to be consumed in the production process

c Assets that are held for use in the production of goods or services and are expected to be usedduring more than one accounting period

d Assets which are intended to be used by the business on a continuting basic, including both tangible and intangible assets that do not meet the IASB definition of a current asset

7 W bought a new printing machine The cost of machine was $80,000 The installation cost was

$5,000 and the employees received training on how to use the machine, at a cost of $2,000

Before using the machine to print customer’s order, a test was undertaken and the paper and ink

cost $1,000 What should be the cost of machine in the company’s statement of financial

a Dr Accumulated depreciation: $35,000; Dr Loss on disposal (SPL): $15,000; Dr Cash: $50,000 /

Cr Non-current assets – cost: $100,000

b Dr Accumulated depreciation: $35,000; Dr Cash: $50,000 / Cr Non-current assets – cost:

a 1, 2, 3 and 4

b 1, 3 and 4

c 1, 2 and 4

d 1 and 2

10 What is the purpose of charging depreciation in accounts?

a To allocate the cost of a non-current asset over the accounting periods expected to benefits from its use

b To account for wearing out’ of the asset over its uses

c To ensure that funds are available for the eventual replacement of the asset

d To reduce the cost of the asset in the statement of financial position to its estimated market value

Topic 5 Intangible asset (IAS 38)

1 Mini Corp acquires a patent from Maxi Co in exchange for 2,500 shares of Mini Corp.’s €5 par value ordinary shares and €85,000 cash When the patent was initially issued to Maxi Co., Mini

Corp.’s shares were selling at €7.50 per share When Mini Corp acquired the patent, its shares

were selling for €9 a share Mini Corp should record the patent at what amount?

a None of the above

b The excess of the fair value of a business over the fair value of all net identifiable assets

c Only recorded by the seller of a business

d Amortized over the greater of its estimated life or forty years

3 The intangible asset goodwill may be:

a written off directly to retained earnings

b capitalized only when created internally

c capitalized either when purchased or created internally

d capitalized only when purchased.

4 According to IAS 38 Intangible assets, which of the following statements about research and development expenditure are correct? 1.Research expenditure, other than capital expenditure on research facilties, should be recognised as an expense as incurred; 2.In deciding whether

development expenditure qualifies to be regconised as an asset, it is necessary to consider whether there will be adequate finance available to complete the project; 3.Development

expenditure regconised as an asset must be amortised over a period not exceeding five years

d Costs to internally generate goodwill.*

9 The legal life of a patent is generally:

a Life of the inventor plus fifty years.

a 1, 2 and 3

b 1 and 3

c 2 and 4

d 2, 3 and 4

12 Under International Financial Reporting Standards, research expenditures are:

a Expensed if unsuccessful, capitalized if successful

b Capitalized if certain criteria are met

c Expensed in the period they are determined to be unsuccessful

d Expensed in the period incurred.

13 In January of 2013, Vega Corporation purchased a patent at a cost of $200,000 Legal and filing fees of $50,000 were paid to acquire the patent The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets In 2016, Vega spent $40,000 in legal fees for an unsuccessful defense of the patent The amount charged to income (expense and loss) in 2016 related to the patent should be:

a $215,000

b $25,000

c $40,000.

d $65,000

14 Cromartie LTD prepares its financial statements according to International Financial Reporting Standards During 2013 the company incurred $1,245,000 in research expenditures to develop a new product An additional $756,000 in development expenditures were incurred after

technological and commercial feasibility was established and after the future economic benefits were deemed probable The project was successfully completed and the new product was

patented before the end of the 2013 fiscal year Sale of the product began in 2014 What amount

of the above expenditures would Cromartie expense in its 2013 income statement?

16 Which of the following does not describe intangible assets?

a They are classified as long-term assets

b They lack physical existence

c They are monetary assets.

d They provide long-term benefits

17 Rich Corporation purchased a limited-life intangible asset for €270,000 on May 1, 2017 It has a useful life of 10 years What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2019?

a $400,000

b $200,000

c $100,000

d $0.*

(mua bị lỗ không có goodwill)

20 Depreciation, depletion, and amortization:

a Are all handled the same in arriving at taxable income

b All generally utilize the same methods of cost allocation

c All of the above are correct

d All refer to the process of allocating the cost of long-term assets used in the business over future periods.*

Topic 3: Impairment (IAS 36)

1 When an impairment loss occurs, the carrying amount of the asset should be reduced to its

a Write it off against profit immediately

b Record a liability in the SOFP for “Impairment losses”

c Record it in Equity under “Revaluations”

d Write it off against profit over a defined period agreed by management

3 Which of the following is an external indication of impairment?

a Damage to an asset

b Decline in market value

c Management commitment to undergo a restructuring

5 The amount, which an asset is recorded in the Statement of Financial Position, less any

accumulated depreciation and impairment losses, is called…

a Present value

b Carrying amount

c Fair value

d Net realisable value

6 IAS 36 presumes that budgets and forecasts while arriving at cash flow projections should be…

a not more than ten years

b more than ten years

c not more than five years

d not more than three years

7 In measuring Value in Use, the discount rate used for discounting the cash flows should be the…

a Post-tax rate that reflects the entity’s assessment of time value of money and risks specific to the asset

b Pre-tax rate that reflects the market assessment of time value of money and risks specific to the asset

c Pre-tax rate that reflects the market assessment of time value of money and risks specific to the entity’s competitors

d Pre-tax rate that reflects the entity’s assessment of time value of money and risks specific to the asset

8 If the fair value less costs to sell for an asset cannot be determined, then recoverable amount is its…

a Replacement value

b Fair value

c Market value

d Value in use

9 The carrying amount of an asset is defined under IAS 36 as…

a The amount at which an asset is recognised after adding any revaluation gains and

accumulated impairment losses

b The amount at which an asset is recognised after deducting any accumulated depreciation andadding back any accumulated impairment losses

c The amount at which an asset is recognised after deducting any accumulated depreciation and accumulated impairment losses

d The amount at which an asset is recognised after adding any accumulated depreciation and accumulated impairment losses

10 Which of the following is not covered by IAS 36 – Impairment?

12 When a cash-generating unit has an impairment loss, the loss must first be applied to…

a on the entire cash generating unit on a pro-rata basis

b any assets obviously impaired

c against all assets on a pro-rata basis

d goodwill

13 A cash-generating unit is defined as…

a the largest identifiable group of assets that generates cash inflows that is largely independent from the cash inflows of other assets

b the smallest identifiable group of assets that generates cash outflows that are largely

independent from the cash outflows of other assets

c the easiest identifiable group of assets that generates cash inflows that are largely

independent from the cash inflows of other assets

d the smallest identifiable group of assets that generates cash inflows that are largely

independent from the cash inflows of other assets

14 Which of the following is not permitted as a cost to sell under IAS 36?

a Standard wages for employees

b Auctioneers fees

c Cost to dismantle machine

d Transport costs for machine

15 When should a reversal of an impairment loss be recognised?

a Immediately*

b Never

c None of these

d When approved by the board of directors

16 Value in use is…

a The undiscounted future value of present cash flows expected to arise from continuing use of asset, and from its disposal at the end of its useful life

b The discounted present value of future cash flows expected to arise from continuing use of asset, and from its disposal at the end of its useful life

c The discounted future value of future cash flows expected to arise from continuing use of asset, and from its disposal at the end of its useful life

d The discounted present value of historical cash flows expected to arise from continuing use of asset, and from its disposal at the end of its useful life

17 When should an impairment loss be recognised?

a Immediately

b At management’s discretion

c Over a number of accounting periods

d When requested by the entity’s auditors

18 How often should a cash generating unit to which goodwill has been assigned, be tested for impairment?

a A rough estimate should be provided

b The value should remain unchanged

c A disclosure should be provided in the notes to the financial statements

d The recoverable amount of its cash generating unit should be calculated

20 The present value of expected future cash flows generated by an asset, plus its expected disposal value is called…

a Net present value

b Value in use

c Fair value

d Market value

Topic 4: Investment property (IAS 40)

1 Which of the following term does this statement define: “ the amount of cast or cast equivalents paid for the fair value of other consideration given to acquire an asset at the time of its acquisition

2 ABC Ltd chooses fair value model for its investment property At 1 Jan 10X8, ABC Ltd transferred

an investment property to an owner-occupied property Investment property has originally cost of

$20 million; accumulated depreciation up to the date of transfer was $12 million, there was no

impairment loss; property’s fair value at 1 Jan 20X8 was $14 million What was the carrying value

of the Owner-occupied property recorded at 1 Jan 20X8?

c A bungalow used for executive training

d A property that has been leased to a tenant, but which is no longer required and is now being held for resale

4 Which of the following does not define investment property?

a Property held for capital appreciation (***)

b Property held to earn rental (*)

c (*) and (**)

d Property used in the production or supply of goods or services (**)

5 Which of the following are examples of investment properties?

1 Land held for long-term capital appreciation;

2 Land held for undetermind future use but not currently in use;

3 A building owned by the undertaking (or held by the undertaking under a finance lease) and leased out;

4 A building that vacant, but is held to be leased out via one, or more, operating leases;

5 Property held for sale in the ordinary course of business;

6 Property being built on behalf of third parties;

7 Owner-occupied property;

8 Property that is being built for use as investment property;

9 Existing investment property that is being redeveloped for continued use as investment

6 The following costs should be accounted for as: 1 Start-up cost (unless they are necessary to bring

the property to the condition necessary for it to be capable of operating tin the manner intended

by management); 2 Operating losses incurred before the investment property achieves the planned level of occupancy; 3 Abnormal amounts of wasted material, labour or other resources incurred in constructing or developing the property

a Extraordinary items

b Expenses

c (Capitalised as) fixed assets

7 An entity purchased land and building for leasing out under operating lease Following

expenditures related to the acquisition: purchase price: 100; broker’s commission: 10; property transfer tax: 20 What is the cost of the property?

a 110

b 130

c 120

d 100

8 ABC Ltd owns a property which has two parts, part A and part B Part A is used to earn rental

income; Part B is used for administrative purpose These two parts cannot be sold separately How

should ABC classify this property?

a Part A should be classified as Investment property; part B should be classified as

Owner-occupied property

b Part A should be classified as Investment property; ; part B should be classified as Inventories

c Entire property should be classified as Investment property if the portion of B is insignificant

d Entire property should be classified as Owner-occupied property if the portion of B is

insignificant

9 Which of the following should be classified as Investment property?

a Land and building held to earn rental income

b Property being constructed on behalf of third parties

c Land and building held for sale in the ordinary course of business

d An equipment held to earn rental income

10 Which of the following properties fall under the definition of investment property?

a Property being constructed on behalf of third party

b Property occupied by an employee

c None of them

d A building owned by an entity and leased out under an operating lease

11 Entity measure its investment property under:

a Cost model, fair value model or revaluation model

b Cost model or revaluation model

c Cost model or Fair value model

d Cost model only

12 Which of the following statements is true with regards to an investment property?

a An investment property unlike owner-occupied property shall always be depreciated over its

13 ABC Ltd chooses cost model for its investment property At 1 Jan 10X8, ABC Ltd transferred an

investment property to an owner-occupied property Investment property has originally cost of

$20 million; accumulated depreciation up to the date of transfer was $12 million, there was no impairment loss; property’s fair value at 1 Jan 20X8 was $14 million What was the carrying value

of the Owner-occupied property recorded at 1 Jan 20X8?

a $14 million

b $8 million*

c $2 million

d $12 million

14 ABC Ltd owns a property which has two parts, part A and part B Part A is used to earn rental

income; Part B is used for administrative purpose These two parts can be sold separately How

should ABC classify this property?

a Part A should be classified as Investment property; part B should be classified as occupied property*

Owner-b Part A should be classified as Investment property; ; part B should be classified as Inventories

c Entire property should be classified as Investment property if the portion of B is insignificant

d Entire property should be classified as Owner-occupied property if the portion of B is

insignificant

15 Investment property can held by: 1 The owner; 2 The lessor, under a finance lease; 3 A lessee,

under a finance lease

b Profit or loss statement

c Statement of changes in equity

d Statement of Financial Position

17 An investment property should initially be measured at:

a Fair value

b Cost

c Net realizable value

d Market value

18 Which of the following should be classified as an investment property?

a Land and building held for short-term sale in the ordinary course of business

b Land and building held for administrative purposes.

c Land and building held for used in the production of goods

d Land and building held for long-term capital appreciation

19 Choose the correct statement:

a Fair value of investment property carried under cost model should be disclosed in the

Statement of Other Comprehensive Income

b Fair value of investment property carried under cost model should be disclosed in the

Statement of financial position (S)

c Fair value of investment property carried under cost model should not be disclosed in any

statement (S)

d Fair value of investment property carried under cost model should be disclosed in the

Disclosure note.

20 ABC Ltd chooses cost model for its investment property It sold an investment property that

originally cost $20 million The selling price was $6 million Depreciation of $12 million had been recorded up to date of sale There was no accumulated impairment loss What does this disposal resullt in?

a $14 million loss

b $14 million gain

c $2 million loss

d $2 million gain

Topic 7: Presentation of Financial statements (IAS 1)

1 The financial statement which summarizes operating, investing, and financing activities of an entity for a period of time is the

a Income statement

b Statement of financial position

c Statement of cash flow

d Retained earning statement

2 The occurrence that most likely would have no effect on 2019 net income is the

a Sale in 2019 of an office building contributed by stockholder in 1970

b Correction of an error in the financial statements of a prior period discovered subsiquent to their issuance*

c Collection in 2019 of a dividend from an investment

d Stock purchased in 2005 deemed worthless in 2019

3 IAS 1 permits to present expenses in the statement of profit or loss and other comprehensive income in the classification

a By segment and by function

b By segment and by nature

c By function and by nature

d By segment and by operations

4 Which of the following would be a suitable accounting policy note for disclosure in the financial statements relating to inventory?

a Inventory is valued at the lower of cost and net realisable value for each separate product or item.

b Inventory is valued at the higher of cost and net realisable value for each separate product or item

c Inventory is valued at the lower of total cost and total net realisable value

d Inventory is valued at cost for each separate product or item

5 The example of a current liability is

a Trade payable with payment deferred beyond 1 year

b Deferred tax liability

c Provision for warranty repairs within the second year of guarantee after sale

d Long-term loan that became payable due to breach of covenants The bank does NOT require immediate repayment and agrees with the original repayment schedule.*

6 Which of the following would be a suitable accounting policy note for disclosure in the financial statements relating to land and building?

a The entity uses the same accouting policy for land anf building as it does for intangible assets

b Land and buildings are accounted for at cost and are not depreciated as the director belive that the market value of land and buildings will increase over time

c Land and buildings are accounted for at cost , and the buildings are written off over their expected useful life of fifty years on a straight-line basis.

d Land and buildings are accounted for at cost and are written off over their expected useful life

of fifty years on a straight-line basis

7 Rosalie Corporation is located in London but does business throughout Europe The compan buildsand sells equipment used in manufacturing pharmaceuticals On December 31, 2019, Rosalie has

trading securities valued at £63,000; goodwill valued at £450,000; prepaid insurance valued at

£36,000; patents valued at £210,000; and a customer list valued at £390,000 On Rosalie

Corporation’s statement of financial position at December 31, 2019, what amount should be

reported as intangible assets?

a £1,149,000

b £1,050,000

c £660,000

d £1,113,000

8 The example of a current asset is:

a Deferred tax asset

b Trade receivable with payment deferred beyond 1 year

c Available-for-sale financial assets

d Inventories with quick turnover

9 Which of the following is not an acceptable major asset classification?

a Investments

b Deferred charges

c Property, plant, and equipment

d Current assets

10 Which of the following should be reported for share capital?

a The shares authorized

b The shares issued

c All of these choices are correct

d The shares outstanding

11 What identification information does NOT need to be presented on the face of the financial statements

a The presentation currency and the level of rounding

b Date of the end reporting period or the period covered by the set of financial statements or notes

c Whether the financial statements are individual or group

d Date of preparation of the financial statements

12 Dividends paid to ordinary shareholders shall be presented:

a In the statement of changes in equity as a decrease in equity*

b In the statement of profit or loss as a financial expense

c In the statement of profit or loss as other operating expense

d In the statement of other comprehensive income as a decrease in equity

13 The example of a non-current asset is:

a Inventories with long production and completion times

b Deferred tax asset

c Government bond repayable in 3 months*

16 What components shall a complete set of financial statements include?

a Statement of financial position, statement of comprehensive income, statement of changes in equity, statement of cash flows, annual report

b Statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, statement of cash flows, accounting policies and notes

c Statement of financial position, statement of other comprehensive income, statement of changes in equity, statement of cash flows, directors report

d Statement of financial position, income statement, statement of changes in equity, statement

of cash flows, accounting policies and notes, annual report

17 Working capital is equal to: