Practical Accounting 1 - Practical Accounting 1 Reviewer 1....

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Practical Accounting 1 Reviewer 1. When an economy ceases to be hyperinflationary, an entity shall discontinue the preparation and presentation of financial statements under a condition of hyperinflationary economy. Thus the amount expressed in the measuring unit current at the end of the previous reporting period shall be the a. the present Value amount in the subsequent financial statement. b. the carrying amount in the subsequent financial statement. c. the fairvalue amount in the subsequent financial statement. d. the historical Value amount in the subsequent financial statement. 2. Irrespective of whether there is any indication of impairment , an entity shall test a not tangible asset with an indefinite useful life or an intangible asset not yet available for use for impairment\ a. every three years\ b. annually c. intangible assets not yet available for use, annually and not tangible assets every three years d. intangible assets not yet available for use, every three years and not tangible assets Annually 3. Depreciation of an asset begins when a. It was acquired b. It is available for use c. It was assembled in its location d. When the management decides to do so. 4. the initial direct cost in a direct financing lease are added to the carrying amount of the leased asset and this would effectively spread the initial direct cost over the lease term and reduce the amount of a. interest expense b. interest income c. lease expense d. lease income 5. this is the recognition of a deferred tax asset or deferred tax liability a. intraperiod tax allocation b. Interperiod tax allocation c. None d. both 6. The present value of the defined benefit obligation is the present value, without deducting any plan assets, f expected future payments required to settle the obligation resulting from employee service in the a. Current periods b. Current and prior periods c. Current or prior periods d. Prior periods 7. it is said that no entry is required when share warrants are issued to existing shareholders because these warrants are issued usually a. with consideration
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b. without consideration c. as bonus d. as stock dividends 8. treasury shares may be reissued as dividends, in which case the _____ of the shares be charged to retained earnings a. historical value b. cost c. fair value d. selling price 9. ordinary shares issued as a result of the conversion of a debt instrument to ordinary shares are included from the date a. it was converted b. interest ceases to accrue c. as of the balance sheet d. prior to the date of the balance sheet 10. in computation of cost of sales the basic rule is –All increases are added and all decreases are deducted except the changes in a. earned income b. unearned income c. withdrawals d. expenses 11. PAS 8 provides that an entity shall correct material prior period errors retrospectively in the first set of financial statements authorized for issue after the discovery by a. Restating the comparative amounts for the latest period presented in which
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Practical Accounting 1 - Practical Accounting 1 Reviewer 1....

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