Question 1

The statement concerning asset valuation is that is incorrect is:

Accepted Answer

A)  Subject to a few exceptions,non-current assets,after acquisition,can be measured at either cost or fair value.
B)  If non-current assets are measured using the cost basis,they cannot be valued at less than their recoverable amount.
C)  If non-current assets are measured using the fair value basis fair value must be regularly reassessed.
D)  Assets and liabilities are recorded initially at their historical cost.E) A) and D)
F) A) and C)

Question 2

The credit sale of an asset at cost price:

Accepted Answer

A)  decreases assets and increases liabilities.
B)  leaves total assets constant.
C)  increases assets and liabilities.
D)  decreases assets and liabilities.E) B) and C)
F) B) and D)

Question 3

Under the Corporations Act a company's assets are to be classified according to their nature or function.Which of the following classifications would not be used for assets?

Accepted Answer

A)  liquidity
B)  marketability
C)  physical characteristics
D)  sourceE) A) and C)
F) A) and D)

Question 4

Which of these items of importance for decision-making can be measured and included on the balance sheet?

Accepted Answer

A)  The value of employee's skills and abilities
B)  Future claims on the business from leasing arrangements
C)  The cost of bad publicity
D)  Identifiable intangible assetsE) None of the above
F) C) and D)

Question 5

Which of the following is not a liability class found on a balance sheet?

Accepted Answer

A)  payables
B)  borrowings
C)  provisions
D)  allowance for doubtful debtsE) All of the above
F) B) and C)

Question 6

The ______________ concept refers to the principle that items quantified in the financial statements are measured in monetary terms.

Accepted Answer

The answer of The ______________ concept refers to the principle...

Question 7

The equity shown in a business's balance sheet is.

Accepted Answer

A)  exactly equal to the market value of all the businesses assets less its outstanding debts
B)  exactly equal to the total of the assets minus the total liabilities
C)  exactly equal to the historical cost of all the business assets less its outstanding debts
D)  exactly equal to the total of the assets plus the total liabilitiesE) None of the above
F) All of the above

Question 8

Which of the following statements regarding reserves is not true?

Accepted Answer

A)  reserves can be created by transferring retained earnings
B)  reserves can be created by certain requirements in the accounting standards
C)  reserves can be created by certain requirements of the Corporations Act
D)  reserves reflect amounts of cash available for special purposesE) None of the above
F) A) and B)

Question 9

Collection of an accounts receivable will:

Accepted Answer

A)  increase the cash account and decrease the accounts receivable account.
B)  increase both the cash account and the accounts receivable account.
C)  decrease both the cash account and the accounts receivable account.
D)  decrease the cash account and increase the accounts receivable account.E) B) and C)
F) A) and B)

Question 10

The original cost of an asset less its _____________depreciation is its carrying amount.

Accepted Answer

The answer of The original cost of an asset less...

Question 11

On the balance sheet of a publicly listed manufacturing company the current asset inventories would not include:

Accepted Answer

A)  raw materials
B)  finished goods available for sale
C)  work-in-progress
D)  cost of salesE) A) and D)
F) A) and B)

Question 12

All these statements about the balance sheet are true,except

Accepted Answer

A)  assets are listed in order of liquidity.
B)  it shows the cash received and cash paid for the period.
C)  it it reflects the accounting equation. 
D)  the total of the assets must equal the total of the liabilities plus equity.E) A) and C)
F) A) and D)

Question 13

Accumulated depreciation on a liability is:

Accepted Answer

A)  the amount of the liability already repaid.
B)  the amount received in interest from investing due to the delaying of payments to outside entities.
C)  the reduced value of a debt due to the passing of time.
D)  liabilities cannot be depreciated.E) A) and C)
F) B) and D)

Question 14

A ______________ financial liability is a financial liability whose value depends on the value on an underlying asset,reference rate or index.

Accepted Answer

The answer of A ______________ financial liability is a financial...

Question 15

The negative asset,allowance for __________ debts reduces the value of accounts receivable by the amount expected to be uncollectible.

Accepted Answer

The answer of The negative asset,allowance for __________ debts reduces...

Question 16

Goodwill is regarded as a particular type of intangible asset;an ______________ intangible.

Accepted Answer

The answer of Goodwill is regarded as a particular type...

Question 17

Which of these is not a part of equity?

Accepted Answer

A)  Income
B)  Expenses
C)  Cash
D)  General reserveE) B) and C)
F) B) and D)

Question 18

The balance sheet of an entity:

Accepted Answer

A)  lists the assets,liabilities and equity at a point in time.
B)  lists all assets and liabilities at present values.
C)  gives all of the facts regarding financial position.
D)  is the most important financial statementE) A) and C)
F) A) and B)

Question 19

Which of the following measures of 'value' is not used under AASB accounting standards for property,plant and equipment?

Accepted Answer

A)  fair value
B)  written down value
C)  historical cost
D)  current costE) A) and B)
F) A) and C)

Question 20

The statement concerning goodwill that is not correct is:

Accepted Answer

A)  Goodwill can be recognised on the balance sheet only if it is purchased
B)  Goodwill is calculated as the excess of the consideration paid for a business over the fair value of the net assets acquired
C)  Goodwill can only be purchased when a business is acquired as a going concern
D)  Goodwill represents the value of trademarks,brand names,patents,licences etc.E) A) and D)
F) B) and C)

Exam 5: Balance Sheet

The credit sale of an asset at cost price:

Correct AnswerverifiedShow Answer

Accumulated depreciation on a liability is:

Correct AnswerverifiedShow Answer

All these statements about the balance sheet are true,except

Correct AnswerverifiedShow Answer

A ______________ financial liability is a financial liability whose value depends on the value on an underlying asset,reference rate or index.

Correct AnswerverifiedShow Answer

The ______________ concept refers to the principle that items quantified in the financial statements are measured in monetary terms.

Correct AnswerverifiedShow Answer

Which of these is not a part of equity?

Correct AnswerverifiedShow Answer

Which of these items of importance for decision-making can be measured and included on the balance sheet?

Correct AnswerverifiedShow Answer

The statement concerning asset valuation is that is incorrect is:

Correct AnswerverifiedShow Answer

Which of the following measures of 'value' is not used under AASB accounting standards for property,plant and equipment?

Correct AnswerverifiedShow Answer

The negative asset,allowance for __________ debts reduces the value of accounts receivable by the amount expected to be uncollectible.

Correct AnswerverifiedShow Answer

Which of the following is not a liability class found on a balance sheet?

Correct AnswerverifiedShow Answer

Which of the following statements regarding reserves is not true?

Correct AnswerverifiedShow Answer

The equity shown in a business's balance sheet is.

Correct AnswerverifiedShow Answer

Collection of an accounts receivable will:

Correct AnswerverifiedShow Answer

Under the Corporations Act a company's assets are to be classified according to their nature or function.Which of the following classifications would not be used for assets?

Correct AnswerverifiedShow Answer

The balance sheet of an entity:

Correct AnswerverifiedShow Answer

The statement concerning goodwill that is not correct is:

Correct AnswerverifiedShow Answer

Goodwill is regarded as a particular type of intangible asset;an ______________ intangible.

Correct AnswerverifiedShow Answer

The original cost of an asset less its _____________depreciation is its carrying amount.

Correct AnswerverifiedShow Answer

On the balance sheet of a publicly listed manufacturing company the current asset inventories would not include:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified