Test Bank to accompany Intermediate Accounting: IFRS Edition
4-1
CHAPTER 4
INCOME STATEMENT AND RELATED INFORMATION
CHAPTER LEARNING OBJECTIVES
1.
Understand the uses and limitations of an income statement.
2.
Understand the content and format of the inco
CHAPTER 9
INVENTORIES: ADDITIONAL VALUATION ISSUES
TRUE-FALSEConceptual
Answer
T
F
T
F
F
T
F
T
T
T
T
T
T
F
F
T
F
T
F
T
F
T
F
F
T
F
T
F
T
T
No.
Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
2
CHAPTER 8
FLEXIBLE BUDGETS, OVERHEAD COSTS,
VARIANCES, AND MANAGEMENT CONTROL
TRUE/FALSE
1.
Overhead costs are a major part of costs for most companies more than 50% of
all costs for some companies.
Answer:
Terms to Learn:
2.
True
Difficulty:
total-overhe
CHAPTER 7
CASH AND RECEIVABLES
TRUE-FALSEConceptual
Answer
T
F
F
F
F
T
F
F
T
T
T
T
T
F
F
T
F
F
T
F
F
F
T
F
F
F
F
F
F
T
No.
Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
*28.
*29.
*30.
Items
CHAPTER 1
TRUE-FALSEConceptual
2. Financial statements are the principal means through which financial information is
communicated to those outside an enterprise.
3. The major financial statements used under International Financial Reporting Standards
(IF
CHAPTER 7 FLEXIBLE BUDGETS, DIRECT-COST VARIANCES, AND MANAGEMENT CONTROL
TRUE/FALSE 1. The master budget is one type of flexible budget. Answer: Terms to Learn: 2. False Difficulty: flexible budget 1 Objective: 1
The master budget is a static budget.
A f
CHAPTER 16 COST ALLOCATION: JOINT PRODUCTS AND BYPRODUCTS
TRUE/FALSE 1. Joint costs are incurred beyond the splitoff point and are assignable to individual products. Answer: False Difficulty: 2 Terms to Learn: joint costs, splitoff point Joint costs are i
CHAPTER 15 ALLOCATION OF SUPPORT DEPARTMENT COSTS, COMMON COSTS, AND REVENUES
TRUE/FALSE 1. The dual cost-allocation method classifies costs into two pools, a budgeted cost pool and an actual cost pool. Answer: False Difficulty: 1 Objective: 1 Terms to Le
CHAPTER 21
CAPITAL BUDGETING AND COST ANALYSIS
TRUE/FALSE
1.
Capital budgeting focuses on projects over their entire lives to consider all the cash
flows or cash savings from investing in a single project.
Answer:
Terms to Learn:
3.
Objective:
1
Answer:
F
CHAPTER 22
MANAGEMENT CONTROL SYSTEMS, TRANSFER
PRICING, AND MULTINATIONAL
CONSIDERATIONS
TRUE/FALSE
1.
The goal of a management control system is to improve the collective decisions in
an organization in an economically feasible way.
Answer:
Terms to Lea
CHAPTER 23
PERFORMANCE MEASUREMENT,
COMPENSATION, AND MULTINATIONAL
CONSIDERATIONS
TRUE/FALSE
1.
Many common performance measures, such as customer satisfaction, rely on
internal financial accounting information.
Answer:
False
Difficulty: 1
Objective: 1
T
CHAPTER 19
BALANCED SCORECARD: QUALITY, TIME, AND
THE THEORY OF CONSTRAINTS
TRUE/FALSE
1.
Shortening delivery times is a minor part of the quality improvement process.
Answer:
False
Difficulty: 2
Objective: 1
Terms to Learn: quality
Shortening delivery ti
CHAPTER 17
PROCESS COSTING
TRUE/FALSE
1.
Examples of industries that would use process costing include the pharmaceutical
and semiconductor industry.
Answer:
Terms to Learn:
2.
True
Difficulty:
process-costing system
1
Objective:
The principal difference
CHAPTER 13
STRATEGY, BALANCED SCORECARD, AND
STRATEGIC PROFITABILITY ANALYSIS
TRUE/FALSE
1.
Strategy describes how an organization matches its own capabilities with the
opportunities in the marketplace to accomplish its overall objectives.
Answer:
Terms t
CHAPTER 12
PRICING DECISIONS AND COST MANAGEMENT
TRUE/FALSE
1.
Companies must always examine pricing decisions through the eyes of their
customers.
Answer:
True
Terms to Learn: target price
2.
Difficulty:
2
Objective:
1
Relevant costs for pricing decision
CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION
TRUE/FALSE 1. A decision model is a formal method for making a choice, frequently involving both quantitative and qualitative analyses. Answer: Terms to Learn: 2. True Difficulty: 1 Objective: decision m
CHAPTER 10
DETERMINING HOW COSTS BEHAVE
TRUE/FALSE
1.
One assumption frequently made in cost behavior estimation is that changes in total
costs can be explained by changes in the level of a single activity.
Answer:
Terms to Learn:
2.
True
Difficulty:
cost
CHAPTER 14
COST ALLOCATION, CUSTOMER-PROFITABILITY
ANALYSIS, AND SALES-VARIANCE ANALYSIS
TRUE/FALSE
1.
Indirect costs are costs that cannot be traced to cost objects in an economically
feasible way.
Answer:
Terms to Learn:
2.
1
Objective:
1
To motivate en
CHAPTER 18
SPOILAGE, REWORK, AND SCRAP
TRUE/FALSE
1.
Reducing defects helps to reduce costs, but it does not make the business more
competitive.
Answer:
False
Difficulty: 2
Terms to Learn: spoilage
Reducing defects makes the business more competitive.
2.
CHAPTER 20
INVENTORY MANAGEMENT, JUST-IN-TIME, AND
SIMPLIFIED COSTING METHODS
TRUE/FALSE
1.
Retailers generally have a high percentage of net income to revenues.
Answer:
False
Difficulty: 2
Terms to Learn: inventory management
Retailers have a low percent
CHAPTER 3
THE ACCOUNTING INFORMATION SYSTEM
CHAPTER LEARNING OBJECTIVES
1.
Understand basic accounting terminology.
2.
Explain double-entry rules.
3.
Identify steps in the accounting cycle.
4.
Record transactions in journals, post to ledger accounts, and
CHAPTER 15
EQUITY
TRUE-FALSEConceptual
Answer
T
F
T
F
T
F
T
F
F
T
F
T
T
F
F
T
T
F
F
T
No.
Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
State a corporation incorporates in.
Definition of preemptive right.
Ordinary shar
CHAPTER 17
INVESTMENTS
TRUE-FALSEConceptual
Answer
F
T
F
F
F
T
F
T
T
F
T
T
T
T
F
T
F
T
F
F
No.
Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
*20.
IASB requirements for held-for-collection investments.
Classification catego
CHAPTER 16
DILUTIVE SECURITIES AND EARNINGS PER SHARE
TRUE-FALSEDilutive SecuritiesConceptual
Answer
T
F
T
F
F
T
F
T
F
T
F
F
T
F
T
F
T.
F.
T
F
No.
Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Convertible debt and IFRS
CHAPTER 18
REVENUE
TRUE-FALSEConceptual
Answer
F
T
T
F
T
F
T
T
F
F
T
F
F
T
F
F
T
T
F
T
No.
Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Recognition of revenue.
Delayed recognition of revenue.
Measurement of revenue.
R
CHAPTER 20
ACCOUNTING FOR PENSIONS
AND POSTRETIREMENT BENEFITS
IFRS questions are available at the end of this chapter.
TRUE-FALSEConceptual
Answer
F
T
T
F
T
T
F
T
T
F
F
T
F
T
F
T
F
F
T
F
T
F
F
T
F
No.
Description
1.
2.
3.
4.
5
6
7.
8.
9.
10.
11.
12.
13.
CHAPTER 23
STATEMENT OF CASH FLOWS
IFRS questions are available at the end of this chapter.
TRUE-FALSEConceptual
Answer
F
T
T
F
T
T
F
T
F
T
F
T
F
T
F
T
F
T
F
T
F
F
T
T
T
T
F
T
F
T
No.
Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.