FINANCIAL ACCOUNTING AND REPORTING THEORIES
Question #1 Financial Accounting - 03. Financial Statements (Easy)
Which of the following items is disclosed separately on the face of a statement of financial position?
Profit attributable to members of the parent.
Income tax expense.
Revenue.
Investment property.
Question #2 Financial Accounting - 03. Financial Statements (Easy)
Which of the following items, if it exists, does NOT have to be presented as a line item on the face of
a statement of profit or loss and other comprehensive income?
Profit or loss attributable to non-controlling interests.
Closing inventories.
Post-tax profit or loss of discontinued operations.
Revenue.
Question #3 Financial Accounting - 26. Interim and Segment Financial Reporting (Easy)
Under the standard on Operating Segments, all entities to which the standard applies are required to
disclose:
a measure of segment liabilities.
factors used to identify all segments.
a reconciliation of total segment expenses to consolidated total expenditures.
the basis of accounting for any transactions between reportable segments.
Question #4 Financial Accounting - 19. Leases (Average)
If a sale and leaseback transaction results in a finance lease, the standard, provides the following
accounting treatment for any excess of sales proceeds over the carrying amount:
defer and amortize over the lease term.
include in the capitalized amount of the leased asset.
recognize directly in retained earnings of the seller-lessee.
immediately recognize as income by the seller-lessee.
Question #5 Financial Accounting - 03. Financial Statements (Easy)
A required format for the presentation of a statement of financial position is:
not prescribed, and no guidance is provided in the standard.
not prescribed by the standard, but details are found in the Corporations Act.
prescribed by the standard.
not prescribed, but guidance is provided in the standard for a suitable format.
Question #6 Financial Accounting - 03. Financial Statements (Easy)
In respect to the statement of profit or loss and other comprehensive income of an entity, the
standard prescribes:
line items that are considered to be of sufficient importance to warrant presentation.
a fixed format for the presentation of items in the statement of profit or loss and other
comprehensive income.
the presentation of line items comprising total expenses, but not line items were containing total
revenue.
the presentation of line items of revenue, but not of income.
Question #7 Financial Accounting - 10. Intangible Assets (Average)
For an asset to be classified as an identifiable intangible, the Intangibles requires that it meet which of
the following criteria:
I.
It arises from a contractual or legal right
II.
Its fair value must be able to be reliably measured
III.
It is separable from the entity
IV.
Its cost must reliably measurable
I or II only.
I or III only.
II or III only.
I or IV only.
Question #8 Advanced Accounting - 10 Joint Venture (Average)
When eliminating any unrealised profit arising when a joint operator provides services to a joint
operation the profit is eliminated against:
work in progress, finished goods and other inventories related accounts.
the investment in the joint operation.
retained earnings.
cost of goods sold.
Question #9 Financial Accounting - 03. Financial Statements (Easy)
At the reporting date for Year 1, Elpha Limited had a loan from its bankers that it expected to settle
within three months. The loan term was renegotiated after the reporting date and before the
authorization date of the financial statements, and the repayment date was extended by two years.
For Year 1 financial statement presentation purposes this loan is classified by Elpha Limited as:
a current liability.
an off-statement of financial position liability.
a contingent liability.
a non-current liability.
Question #10 Financial Accounting - 09C. Investment In Equity Securities (Average)
Where an investor sells inventories to an associate in a prior year and the inventories are sold by the
associate during the current year the investment in associate account is:
increased by the investors share of the realised profit.
decreased by the investors share of the realised profit.
increased by the full amount of the realised profit.
unaffected.
Question #11 Financial Accounting - 09C. Investment In Equity Securities (Average)
When disclosing information about investments in associates, PFRS 12 Disclosure of Interests in
Other Entities, requires separate disclosure of which of the following?
I.
II.
III.
IV
Carrying amounts of investments in associates, in the statement of financial position
Share of profit or loss of associates, in the statement of profit or loss and other comprehensive income
Shares of changes recognised directly in the associates equity, in the statement of changes in equity
Unrecognised share of losses in associates, in the Notes to the accounts
II, III and IV only.
I, II and IV only.
I, II and III only.
I, II, III and IV.
Question #12
Segments that do not satisfy the requirements of a reportable segment must:
be combined and disclosed as all other segments.
be combined with the smallest reportable segment.
be reported in the notes to the financial statements.
not be disclosed at all in the financial report.
Question #13 Financial Accounting - 03. Financial Statements (Easy)
The following item is classified as a financing activity in the statement of cash flows:
cash payment to purchase debentures of another entity.
cash received from accounts receivable.
cash payment on the redemption of the companys debentures.
payment of dividends through a dividend reinvestment scheme.
Question #14 Financial Accounting - 26. Interim and Segment Financial Reporting (Easy)
Segment disclosures are designed to:
aggregate revenues and expenses so that only net profit is shown for each important segment.
combine components of consolidated financial data to provide a higher level of summarization.
condense particular items of consolidated financial data into one financial statement.
disaggregate selected consolidated financial data.
Question #15 Financial Accounting - 09A. Property, Plant and Equipment (Easy)
A non-current property, plant and equipment asset is depreciated using the straight-line method. The
asset was revalued upwards after four years of use. There is no change in the remaining useful life of
six years or to the residual value. Which of the following relationships reflects the effect of the
revaluation on the prospective depreciation of the asset:
Depreciation rate = Higher; Annual depreciation expense = Higher.
Depreciation rate = Same; Annual depreciation expense = Higher.
Depreciation rate = Same; Annual depreciation expense = Same.
Depreciation rate = Higher; Annual depreciation expense = Same.