28688341-Prtc-Olympiad-ToA - PRTC OLYMPIAD REGION 12 THEORY...

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PRTC OLYMPIAD REGION 12 THEORY OF ACCOUNTS 1. Which of the following is not a qualitative characteristic of financial reporting? a. Reliability c. Comparability b. Going concern d. Relevance 2. Which of the following statements about consistency is true? a. The method of accounting can never be changed the entity has to follow the accounting method consistently period after period. b. The method of accounting can be changed however, if the method is changed, it must be highlighted in the financial statement. c. Method of accounting can be changed if standards require. No disclosure is required in the financial statements. d. Companies must sell the same product consistently from one period to the next. 3. An investment property should be measured initially at a. Cost b. Cost less accumulated impairment losses c. Depreciable cost less accumulated impairment losses d. Fair value less accumulated impairment losses 4. An asset is impaired when the carrying amount is a. Higher than fair value less costs to sell but lower than value in use. b. Lower than fair value less costs to sell but higher than value in use. c. Higher than fair value less costs to sell and value in use. d. Lower than fair value less costs to sell and value in use. 5. When it is difficult to distinguish between a change of estimate and a change in accounting policy, then an entity should a. treat the entire change as a change in estimate with appropriate disclosure b. Apportion, on a reasonable basis, the relative amounts of change in estimate and the change in accounting policy and treat each one accordingly c. Treat the entire change as a change in accounting policy d. Since this change is a mixture of two types of changes, it is best if it is ignored in the year of the change; the entity should then wait for the following year to see how the change develops and then treat it accordingly 6. Interim financial reports should include as a minimum a. A complete set of financial statements complying with PAS 1 b. A condensed set of financial statements and selected notes c. A balance sheet and income statement only d. A condensed balance sheet, income statement, and cash flow statement only 7. XYZ Inc. owns a fleet of over 100 cars and 20 ships. It operates in a capital-intensive industry and thus has significant other property, plant, and equipment that it carries in its books. It decided to revalue its property, plant, and equipment. The company's accountant has suggested the alternatives that follow. Which one of the options should XYZ Inc. select in order to be in line with the provisions of PAS 16? a. Revalue only one-half of each class of property, plant, and equipment, as that method is less cumbersome and easy compared to revaluing all assets together b. Revalue an entire class of property, plant, and equipment c. Revalue one ship at a time, as it is easier than revaluing all ships together d. Since assets are being revalued regularly, there is no need to depreciate 8. The following expenditures would qualify as an exploration and evaluation asset under PFRS 6
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This note was uploaded on 08/12/2010 for the course ACC 452 taught by Professor Mr.cula during the Spring '10 term at Abraham Baldwin Agricultural College.

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28688341-Prtc-Olympiad-ToA - PRTC OLYMPIAD REGION 12 THEORY...

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