CÂU HỎI 1

Which is an indicator of impairment

A. Losses
B. Research not working well
CÂU HỎI 2
In a normal CGU impairment - what gets impaired first?
A. Goodwill
B. PPE
CÂU HỎI 3
Which of the following would NOT be classified as an associate? An entity where
you...
A. acquire 20% of the ordinary shares and have significant influences
B. acquire 70% of the ordinary shares
CÂU HỎI 4
Your company owns 40% of another company - You have an arrangement with
another investor who owns 20% that he will vote in line with you - is that company
your subsidiary?
A. Yes
B. No
CÂU HỎI 5
What type of goodwill is shown in the SFP as an asset?
A. Internally generated
B. Purchased
CÂU HỎI 6
P acquires S for the following amounts: 1) Cash 400; 2) Future payment of 1,000 in 2
years time (discount rate 10%); 3) A possible future payment of 1,000 if S’s profits
increase by 10% each year (FV of this is 400). How much is the investment in S (the
consideration figure in the goodwill calculation)?
A. 1,226
B. 1,626
CÂU HỎI 7
An underprovision of tax in the previous year is shown in this years trial balance as
A. Debit balance
B. Credit balance
CÂU HỎI 8
Contract assets and receivables shall be accounted for in accordance with ______
A. IFRS 15 Revenue
B. IFRS 9 Financial instruments
CÂU HỎI 9
Daily sales and purchases, employee costs and general overheads comprise:
A. Operating acitivities
B. Investing activities
C. Financing activities
D. Component of cash and cash equivalents
CÂU HỎI 10
The maximum maturity of a cash equivalent is:
A. 1 month
B. 3 months

1
C. 6 months
D. 1 year
CÂU HỎI 11
Is the following statement about the valuation of inventory is TRUE or FALSE? “A
company's financial statements must disclose the accounting policies used in
measuring inventories.”
A. TRUE
B. FALSE
CÂU HỎI 12
Information becomes more useful if it can be compared with similar information about
other entities and with similar information about the entity for another period or
another date.
A. True
B. False
CÂU HỎI 13
Recording assets at their acquisition cost (entry value), rather than at their net selling
price (exit value), is in line with the principle of
A. Consistency
B. Historical cost
C. Going concern
D. Matching
CÂU HỎI 14
When a constructing office is almost complete; the only remaining work is to install
furniture, should the entity continue capitalising the borrowing costs?
A. Yes
B. No
CÂU HỎI 15
Which of the following is not a condition to commence capitalisation of borrowing
costs?
A. Expenditures are being incurred
B. Borrowing costs are being incurred
C. Repayment of borrowings has commenced
D. Activities to produce the asset for its intended use or sale have commenced
CÂU HỎI 16
AAC Ltd. has a piece of equipment with a book value of $200 million on December 31,
20X1. The remaining useful life of the equipment is 5 years and the estimated residual
value is $10 million. The estimated net cash flow from the use of the equipment over
the next five years is $182 million. The market price of this equipment as of December
31, 20X1 is $205 million with costs of disposal of $25 million. In accordance with IAS
36 – Impairment of Assets, what is the impairment loss related to this equipment?
A. $18 million
B. $20 million
C. $2 million
D. No impairment loss

CÂU HỎI 17
Interest expense accrued but included in taxable profit on a cash basis should be
classified under deductible permanent differences.

2
A. True
B. False
CÂU HỎI 18
Which of the following should be a provision under IAS 37 Provisions, contingent
liabilities and contingent assets?
A. Restructuring costs after a binding sale agreement has been signed
B. Rectification costs relating to defective products already sold
C. Both of them
D. None of them
CÂU HỎI 19
Which of the following is NOT within the scope of IAS 37 Provisions, contingent
liabilities and contingent assets?
A. Future payments under employment contracts
B. Future payments on vacant leasehold premises
CÂU HỎI 20
The financial statements of the Farren Company for the year ended 31 December 20X8
included a provision for restructuring of CU7 million. At 31 December 20X9, CU2
million of the restructuring provision was no longer required. An additional provision
of CU2 million was needed for legal claims against the company. “CU2 million of the
restructuring provision no longer required is to be re-allocated to cover the legal
claims.” Is the proposed treatment of the provision shown above correct or incorrect
according to IAS 37 Provisions, contingent liabilities and contingent assets?
A. Correct
B. Incorrect

CÂU HỎI 21
Where do you put a gain or loss on a full disposal? Income statement
A. right
B. wrong
CÂU HỎI 22
If goodwill is calculated using FV method where is the impairment shown in your
workings?
A. Admin expense S's figures
B. Admin expense P's figures
CÂU HỎI 23
Is a footballer's contract an intangible asset?
A. Yes
B. No
CÂU HỎI 24
Do you provide for next years losses under a contract?
A. Yes
B. No
CÂU HỎI 25
When does an impairment occur?
A. When the subs recoverable amount is less than the subs carrying value + goodwill.
B. When the subs recoverable amount is more than the subs carrying value + goodwill
CÂU HỎI 26

3
Which of the following statements about research and development expenditure are
correct according to IAS38 Intangible Assets? (Two options)
A. 1) If certain conditions are met, an enterprise may decide to capitalise development
expenditure
B. 2) Research expenditure, other than capital expenditure on research facilities, must be
written off as incurred.
C. 3) Capitalised development expenditure must be amortised over a period not exceeding 5
years.
D. 4) Capitalised development expenditure must be disclosed in the statement of financial
position under intangible non-current assets.
CÂU HỎI 27
An underprovision of tax in the previous year is shown in this years trial balance as
A. Debit balance
B. Credit balance
CÂU HỎI 28
Contract assets and receivables shall be accounted for in accordance with ______
A. IFRS 15 Revenue
B. IFRS 9 Financial instruments
CÂU HỎI 29
A 30% Associate - carrying value in the SFP = 1,000. The recoverable amount of the
associate is 2,000. Has there been an impairment?
A. Yes 400
B. No
CÂU HỎI 30
If the agreed date of payment by a customer is later than the date on which goods or
services are transferred to that customer, part of the consideration should always be
treated as finance income (not revenue). True or False?
A. True
B. False
CÂU HỎI 31
Whether the following statement is TRUE or FALSE in accordance with IAS 40
Investment Property? “An investment property is initially measured at cost, including
transaction costs.”
A. True
B. False
CÂU HỎI 32
According to IAS 1 Presentation of financial statements, the notes within the financial
statements contain information in addition to that presented in which two of the
following?
A. Statement of profit or loss
B. Chairman's statement
C. Report on sustainability
D. Statement of financial position
CÂU HỎI 33
According to IAS 28 Investments in Associates and Joint Ventures, which one of the
following statements best describes the term ‘significant influence’?
A. The mutual sharing in the risks and benefits of a combined entity
B. The contractually agreed sharing of control over an economic entity

4
C. The holding of a significant proportion of the share capital in another entity
D. The power to participate in the financial and operating policy decisions of an entity
CÂU HỎI 34
In December, 2022, $595 return of goods to a supplier, had been incorrectly recorded
in the sale returns journal as $295. How did this error affect the profit of the entity?
A. The profit was overstated $300
B. The profit was understated $300
C. The profit was overstated $890
D. The profit was understated $890
CÂU HỎI 35
Under IAS 36, reversal of impairment loss is allowed if
A. The recoverable amount of the asset becomes higher than its carrying amount because
of the 'unwinding' of the discount.
B. The loss is related to acquired goodwill
C. Either A or B
D. Neither A nor B
CÂU HỎI 36
Interest expense accrued but included in taxable profit on a cash basis should be
classified under taxable permanent differences.
A. True
B. False
CÂU HỎI 37
Expense accrued and had been included in taxable profit resulted in deffered tax
asset.
A. True
B. False
CÂU HỎI 38
According to IAS 37 Provisions, contingent liabilities and contingent assets, which of
the following is the source of a constructive obligation?
A. a contract
B. legislation
C. None of them
D. Both of them
CÂU HỎI 39
Which of the following should be a provision under IAS 37 Provisions, contingent
liabilities and contingent assets?
A. Restructuring costs after a binding sale agreement has been signed
B. Rectification costs relating to defective products already sold
C. Both of them
D. None of them
CÂU HỎI 40
The financial statements of the Farren Company for the year ended 31 December 20X8
included an environmental provision of CU3 million. At 31 December 20X9, the
environmental provision was no longer required. Is the proposed treatment of the
provision shown below correct or incorrect according to IAS 37 Provisions,
contingent liabilities and contingent assets? “The environmental provision is to be
written back to profit or loss.”
A. Correct

5
B. Incorrect

CÂU HỎI 41
A company bought an asset for 2,000 (10 year useful life) After 5 years it is impaired
to 800. What is the double entry?
A. Dr Asset/Cr P/L 200
B. Dr Asset/Cr P/L 800
C. Dr P/L / Cr Asset 200
D. Dr P/L / Cr Asset 800
CÂU HỎI 42
Let’s say you need 100,000 to build a house in 8 months but you’re going to use
general current borrowings to fund yourself rather than getting a specific loan. Your
current borrowings are: 1 million of 10% loan finance and 2 million of 6% loan finance.
What borrowing costs should be capitalised?
A. 4,888
B. 10,000
CÂU HỎI 43
A sub has 100 net assets book value and a contingent liability with no book value but
a 10 fair value At acquisition what is the value of the sub for the goodwill calculation?
A. 90
B. 110
CÂU HỎI 44
How much is Goodwill?

Non Current Assets. 1,300

Current Assets. 600
Share Capital. 100
Share Premium. 100
Reserves. 1,100
Current Liabilities. 100
Non Current Liabilities 500

S was bought out for 1,500. The FV of S's net assets was 100 more than the book
values.

How much is Goodwill?

A. 50
B. 100
CÂU HỎI 45
A company has a legal obligation to remove an asset after it has finished with it in 8
years time. How is this dealt with in the accounts?
A. Dr Expense Cr Cash
B. Dr Asset Cr Provision
CÂU HỎI 46
What should be capitalised as the cost of this intangible asset?

6
A college acquires new technology that will revolutionise its teaching. It is software
for a robot that reads aloud from the textbook (you may have seen one of these
before!). The costs are:

Original cost of the software. 1,000

Discount provided. 200
Staff training incurred in operating the robot. 400
Testing of the software. 100

What should be capitalised as the cost of this intangible asset?

A. 800
B. 900
C. 1000
CÂU HỎI 47
Contract assets and receivables shall be accounted for in accordance with ______
A. IFRS 15 Revenue
B. IFRS 9 Financial instruments
CÂU HỎI 48
A delivery Van of ABC plc has damaged badly due to an accident in highway. The cost
of repair will be $700. What type of expenditure is it?
A. Capital expenditure
B. Revenue expenditure
CÂU HỎI 49
If the agreed date of payment by a customer is later than the date on which goods or
services are transferred to that customer, part of the consideration should always be
treated as finance income (not revenue). True or False?
A. True
B. False
CÂU HỎI 50
A cash flow statement provides information that enables users to evaluate the
changes in:
A. Solvency
B. Its liquidity
C. Its financial structure
D. Net assets of an undertaking
CÂU HỎI 51
Whether the following statement is TRUE or FALSE in accordance with IAS 40
Investment Property ? “Transfer from investment property to an IAS 16, property must
be made at the FV of the investment property at the date of the transfer.”
A. TRUE
B. FALSE
CÂU HỎI 52
Is the following statement about the valuation of inventory is TRUE OR FALSE?
Inventory should be valued at the lowest of cost, net realisable value and replacement
cost.
A. TRUE
B. FALSE

7
CÂU HỎI 53
This enhancing quality refers to a financial information that is classified,
characterized, and presented clearly, and concisely.
A. Comparability
B. Timeliness
C. Verifiability
D. Understandability
CÂU HỎI 54
In December, 2022, $595 return of goods to a supplier, had been incorrectly recorded
in the sale returns journal as $295. How did this error affect the profit of the entity?
A. The profit was overstated $300
B. The profit was understated $300
C. The profit was overstated $890
D. The profit was understated $890
CÂU HỎI 55
Capitalisation is suspended if the delays in the development of an asset are:
A. temporary delays which is necessary part of the process
B. abnormal delays
CÂU HỎI 56
A parent leases an office building to a subsidiary. In which financial statements will
the property appear as investment property?
A. Parent company
B. Subsidiary
C. Consolidated financial statements
D. None of these
CÂU HỎI 57
Where accumulated depreciation on an asset is less than accumulated tax
depreciation, the amount should be classified under deductible permanent
differences.
A. True
B. False
CÂU HỎI 58
Where accumulated depreciation on an asset is less than accumulated tax
depreciation, the amount should be classified under taxable permanent differences.
A. True
B. False
CÂU HỎI 59
Where accumulated depreciation on an asset is less than accumulated tax
depreciation, deferred tax asset incurs.
A. True
B. False
CÂU HỎI 60
Which of the following should be a provision under IAS 37 Provisions, contingent
liabilities and contingent assets?
A. Restructuring costs after a binding sale agreement has been signed
B. Future refurbishment costs due to introduction of a new computer system

8
CÂU HỎI 61
Control means rights to the variability of returns and also..
A. power to influence them
B. power to make decisions
CÂU HỎI 62
Which would lead to more comparable financial statements between companies..?
A. Rules based system
B. Principles based framework
CÂU HỎI 63
The purpose of the Conceptual Framework is to assist in determining the treatment of
items NOT covered by IFRS. Is this statement true or false?
A. True
B. False
CÂU HỎI 64
Do you provide for an obligated future cost?
A. Yes
B. No
CÂU HỎI 65
If an IFRS disagrees with the conceptual framework - then what should be followed?
A. The IFRS
B. The framework
CÂU HỎI 66
A delivery Van of ABC plc has damaged badly due to an accident in highway. The cost
of repair will be $700. What type of expenditure is it?
A. Capital expenditure
B. Revenue expenditure
CÂU HỎI 67
With regard to the definition of revenue given by IFRS15, which of the following
statements is true?
A. Revenue arises from ordinary activities only
B. Revenue includes cash received from share issues
C. Revenue may arise from either ordinary activities or extraordinary activities
D. Revenue includes cash received from borrowings
CÂU HỎI 68
Which is the 4th step in revenue recognition process?
A. Recognise revenue when (or as) the entity satisfies a performance objective.
B. Identify the performance obligations
C. Determine the transaction price
D. Allocate the transaction price
CÂU HỎI 69
Daily sales and purchases, employee costs and general overheads comprise:
A. Operating acitivities
B. Investing activities
C. Financing activities
D. Component of cash and cash equivalents
CÂU HỎI 70
The statement of financial position of Pinto at 31 March 2017 showed property, plant
and equipment with a carrying amount of $1,860,000. At 31 March 2018 it had

9
increased to $2,880,000. During the year to 31 March 2018 plant with a carrying
amount of $240,000 was sold at a loss of $90,000, depreciation of $280,000 was
charged and $100,000 was added to the revaluation surplus in respect of property,
plant and equipment. What amount should appear under ‘investing activities’ in the
statement of cash flows of Pinto for the year ended 31 March 2018 as cash paid to
acquire property, plant and equipment?
A. $1,350,000
B. $1,640,000
C. $1,260,000
D. $1,440,000
CÂU HỎI 71
Is the following statement true or false, according to IAS 38 Intangible assets?
“Expenditure during the development phase of a project may sometimes be
capitalised as an intangible asset.”
A. True
B. False
CÂU HỎI 72
Recording assets at their acquisition cost (entry value), rather than at their net selling
price (exit value), is in line with the principle of
A. Consistency
B. Historical cost
C. Going concern
D. Matching
CÂU HỎI 73
Specific identification method, first in – first out (FIFO) and average cost (AVCO) are
inventory valuation methods. Which of the following statements is correct?
A. Average cost is recomputed following every dispatch or issue of inventory.
B. Specific identification method is used when items of inventory are individually
distinguishable and of high value.
C. FIFO accounting method assumes that the latest items bought are the first items to be
sold.
D. In a period of rising purchase costs, FIFO usually gives a lower taxable income than
AVCO and therefore.
CÂU HỎI 74
A company had a provision of $10,000 in its financial statements for the year ended 31
March 2021 in respect of a legal claim. In July 2022 the claim was settled at a cost of
$13,000. What is the expense in respect of the legal claim included in the company’s
statement of profit or loss for the year ended 31 March 2022?
A. $10,000
B. $13,000
C. $3,000
D. Nil
CÂU HỎI 75
When a constructing office is almost complete; the only remaining work is to install
furniture, should the entity continue capitalising the borrowing costs?
A. Yes
B. No
CÂU HỎI 76

10
Under IAS 36, reversal of impairment loss is allowed if
A. The recoverable amount of the asset becomes higher than its carrying amount because
of the 'unwinding' of the discount.
B. The loss is related to acquired goodwill
C. Either A or B
D. Neither A nor B
CÂU HỎI 77
AAC Real Estate purchased a piece of land in Chicago for $12 million in 20X1 and
decided to hold the property with the intention of capital appreciation. The company
applies the fair value model. At the end of 20X2, real estate prices in Chicago dropped
sharply. Therefore, the fair value of the land was only $10 million. At the end of 20X3,
real estate prices showed signs of recovery and the fair value of the land was $11.2
million. What is the accounting treatment for the increase in fair value of the land at
the end of 20X3?
A. Decrease P/L by $0.8 million
B. Increase P/L by $1.2 million
C. Decrease Revaluation surplus by $0.8 million
D. Increase Revaluation surplus by $1.2 million
CÂU HỎI 78
Deferred tax assets are the amounts of income taxes recoverable in future periods in
respect of deductible permanent differences.
A. True
B. False
CÂU HỎI 79
The financial statements of the Farren Company for the year ended 31 December 20X8
included a provision for restructuring of CU7 million. At 31 December 20X9, CU2
million of the restructuring provision was no longer required. An additional provision
of CU2 million was needed for legal claims against the company. “CU2 million of the
restructuring provision no longer required is to be re-allocated to cover the legal
claims.” Is the proposed treatment of the provision shown above correct or incorrect
according to IAS 37 Provisions, contingent liabilities and contingent assets?
A. Correct
B. Incorrect
CÂU HỎI 80
The financial statements of the Farren Company for the year ended 31 December 20X8
included an environmental provision of CU3 million. At 31 December 20X9, the
environmental provision was no longer required. Is the proposed treatment of the
provision shown below correct or incorrect according to IAS 37 Provisions,
contingent liabilities and contingent assets? “The environmental provision is not
allowed to be written back to profit or loss.”
A. Correct
B. Incorrect

CÂU HỎI 81
Control means rights to the variability of returns and also..
A. power to influence them
B. power to make decisions
CÂU HỎI 82

11
How do you deal with contingent consideration?
A. Use the FV
B. Use FV only if probable
CÂU HỎI 83
A company bought an asset for 2,000 (10 year useful life) After 5 years it is impaired
to 800. What is the double entry?
A. Dr Asset/Cr P/L 200
B. Dr Asset/Cr P/L 800
C. Dr P/L / Cr Asset 200
D. Dr P/L / Cr Asset 800
CÂU HỎI 84
A contract performed but not paid would be
A. a contract receivable or asset
B. a contract payable or liability
CÂU HỎI 85
Which would lead to more consistent accounting standards?
A. A rules based system
B. A principles based framework
CÂU HỎI 86
Which of the following is NOT an intangible asset?
A. Good Relationship with customers
B. A Patent
CÂU HỎI 87
Is the screen of the device you're using right now - a cash CGU?
A. Don't be ricky-dicky-lous
B. Of course it is - it cost me serious cash stacks man
CÂU HỎI 88
Daily sales and purchases, employee costs and general overheads comprise:
A. Operating acitivities
B. Investing activities
C. Financing activities
D. Component of cash and cash equivalents
CÂU HỎI 89
The acquisition, and disposal, of long-term assets are:
A. Operating activities
B. Financing activities
C. Investing activities
D. Component of cash and cash equivalents
CÂU HỎI 90
The maximum maturity of a cash equivalent is:
A. 1 month
B. 3 months
C. 6 months
D. 1 year
CÂU HỎI 91
According to IAS 12 Income taxes, is the following statement in relation to deferred
tax liabilities true or false? “Deferred tax liabilities are the amounts of income taxes
payable in future periods in respect of taxable temporary differences.”

12
A. True
B. False
CÂU HỎI 92
Whether the following statement is TRUE or FALSE in accordance with IAS 40
Investment Property?
“A gain or loss arising from a change in the fair value of an investment property
should be recognised in the revaluation surplus.”
A. True
B. False
CÂU HỎI 93
Under the principles of IAS 16 - Property, Plant and Equipment, which TWO of the
following should be included in the cost of an item of property, plant and equipment?
A. Installation and assembly costs
B. Costs of training staff on the new asset
C. Apportioned general overhead costs
D. Initial delivery and handling costs
CÂU HỎI 94
A business buys a machine on 1 January 2019 for $10,000 and depreciates it at 10%
per annum straight line. At the end of 2020 the machine's remaining useful life is
reassessed at six years remaining and it is now believed that the machine has a
residual value of $500. What is the depreciation charge for the third year of the
machine's use?
A. $950
B. $1,250
C. $1,267
D. $1,350
CÂU HỎI 95
A machine was purchased on 1 Jan 2020 for $9,600 and depreciated by 20% per
annum using the reducing balance method. On 1 Jan 2023, it was sold for $4,800.
What was the gain (or loss) on disposal of the machine that would be reported in the
statement of profit or loss?
A. A loss on disposal of $960
B. A loss on disposal of $115.2
C. A gain on disposal of $115.2
D. A gain on disposal of $960
CÂU HỎI 96
Deferred tax assets are the amounts of income taxes recoverable in future periods in
respect of taxable temporary differences.
A. True
B. False
CÂU HỎI 97
Deferred tax assets are the amounts of income taxes recoverable in future periods in
respect of taxable permanent differences.
A. True
B. False
CÂU HỎI 98

13
Where accumulated depreciation on an asset is less than accumulated tax
depreciation, the amount should be classified under deductible permanent
differences.
A. True
B. False
CÂU HỎI 99
Where accumulated depreciation on an asset is greater than accumulated tax
depreciation, deferred tax liability incurs.
A. True
B. False
CÂU HỎI 100
Which of the following is within the scope of IAS 37 Provisions, contingent liabilities
and contingent assets?
A. Future payments on vacant leasehold premises
B. Financial instruments carried at fair value

CÂU HỎI 101

How do you deal with contingent consideration?
A. Use the FV
B. Use FV only if probable
CÂU HỎI 102
Where do you put a gain or loss on a full disposal? Income statement
A. right
B. wrong
CÂU HỎI 103
Let’s say you need 100,000 to build a house in 8 months but you’re going to use
general current borrowings to fund yourself rather than getting a specific loan. Your
current borrowings are: 1 million of 10% loan finance and 2 million of 6% loan finance.
What borrowing costs should be capitalised?
A. 4,888
B. 10,000
CÂU HỎI 104
The purpose of the Conceptual Framework is to assist in determining the treatment of
items NOT covered by IFRS. Is this statement true or false?
A. True
B. False
CÂU HỎI 105
What type of goodwill is shown in the SFP as an asset?
A. Internally generated
B. Purchased
CÂU HỎI 106
Is a footballer's contract an intangible asset?
A. Yes
B. No
CÂU HỎI 107
An underprovision of tax in the previous year is shown in this years trial balance as
A. Debit balance

14
B. Credit balance
CÂU HỎI 108
Which of the following is NOT an intangible asset?
A. Good Relationship with customers
B. A Patent
CÂU HỎI 109
If the agreed date of payment by a customer is later than the date on which goods or
services are transferred to that customer, part of the consideration should always be
treated as finance income (not revenue). True or False?
A. True
B. False
CÂU HỎI 110
The carrying amount of property, plant and equipment was $410 million at 31 March
2011 and $ 680 million at 31 March 2012. During the year, property with a carrying
amount of $ 210 million was revalued to $290 million. The depreciation charge for the
year was $115 million. There were no disposals. What amount will appear on the
statement of cash flows for the year ended 31 March 2012 in respect of purchases of
property, plant and equipment?
A. $270m
B. $235m
C. $305m
D. $225m
CÂU HỎI 111
The Conceptual Framework deals with the qualitative characteristics of financial
statements. Is this statement true or false?
A. True
B. False
CÂU HỎI 112
Should the following cost be included in the consideration transferred in a business
combination, according to IFRS 3 Business combinations? Fees paid to accountants
to affect the combination.
A. Yes
B. No
CÂU HỎI 113
According to IAS 1 Presentation of financial statements, the notes within the financial
statements contain information in addition to that presented in which two of the
following?
A. Statement of profit or loss
B. Chairman's statement
C. Report on sustainability
D. Statement of financial position
CÂU HỎI 114
Under the principles of IAS 16 - Property, Plant and Equipment, which TWO of the
following should be included in the cost of an item of property, plant and equipment?
A. Installation and assembly costs
B. Costs of training staff on the new asset
C. Apportioned general overhead costs
D. Initial delivery and handling costs

15
CÂU HỎI 115
On 1 August 20X7 Patronic purchased 18 million of the 24 million CU 1 equity shares
of Sardonic. The acquisition was through a share exchange of two shares in Patronic
for every three shares in Sardonic. The market price of a share in Patronic at 1 August
20X7 was CU5.75. Patronic will also pay in cash on 31 July 20X9 (two years after
acquisition) CU2.42 per acquired share of Sardonic. Patronic's cost of capital is 10%
per annum. What is the amount of the consideration attributable to Patronic for the
acquisition of Sardonic?
A. 105 million
B. 5 million
C. 108.2 million
D. 103.8 million
CÂU HỎI 116
In December, 2022, $595 return of goods to a supplier, had been incorrectly recorded
in the sale returns journal as $295. How did this error affect the profit of the entity?
A. The profit was overstated $300
B. The profit was understated $300
C. The profit was overstated $890
D. The profit was understated $890
CÂU HỎI 117
A parent leases an office building to a subsidiary. In which financial statements will
the property appear as investment property?
A. Parent company
B. Subsidiary
C. Consolidated financial statements
D. None of these
CÂU HỎI 118
Deferred tax liabilities are the amounts of income taxes recoverable in future periods
in respect of taxable temporary differences.
A. True
B. False
CÂU HỎI 119
Deferred tax liabilities are the amounts of income taxes payable in future periods in
respect of deductible permanent differences.
A. True
B. False
CÂU HỎI 120
Which of the following should be a provision under IAS 37 Provisions, contingent
liabilities and contingent assets?
A. Divisional closure costs before a public announcement is made
B. Restructuring costs after a binding sale agreement has been signed

1. Which is an indicator of impairment

A. Losses
B. Research not working well

16
2. How do you deal with contingent consideration?

A. Use the FV
B. Use FV only if probable

3. Where do you put a gain or loss on a full disposal? Income statement

A. right
B. wrong

4. P buys 70% S for 800. The FV of S's Net assets were 1,000. The proportionate method of
calculating NCI at acquisition is used. How much is goodwill?

A. 70
B. 100

5. How much is Goodwill?

A. 50
B. 100

6. If goodwill is calculated using FV method where is the impairment shown in your

workings?

A. Admin expense S's figures

B. Admin expense P's figures

7. Which of the following is NOT an intangible asset?

A. Good Relationship with customers

B. A Patent

8. If the agreed date of payment by a customer is later than the date on which goods or
services are transferred to that customer, part of the consideration should always be treated
as finance income (not revenue). True or False?

A. True
B. False

9. The acquisition, and disposal, of long-term assets are:

A. Operating activities
B. Financing activities
C. Investing activities
D. Component of cash and cash equivalents

10. The maximum maturity of a cash equivalent is:

A. 1 month
B. 3 months

17
C. 6 months
D. 1 year

11. According to IAS 12 Income taxes, is the following statement in relation to deferred tax
liabilities true or false? "Deferred tax assets are the amounts of income taxes recoverable in
future periods in respect of deductible temporary differences."

A. True
B. False

12. Is the following statement true or false, according to IAS 38 Intangible assets?
"Intangible assets with a finite useful life should be measured at cost and tested annually for
impairment."

A. True
B. False

13. According to IAS 1 Presentation of financial statements, which two of the following must
be included in an entity's statement of financial position?

A. Deferred tax
B. Share capital and reserves analysed by class
C. Property, plant and equipment analysed by class
D. Cash and cash equivalents

14. Which of the following is not included as part of the definition of control under IFRS 10
Consolidated Financial Statements?

A. Exposure, or rights, to variable returns from its investment

B. The ability to use its power over the investee to affect the returns received
C. Ownership of more than 50% of the share capital of the investee
D. Power over the investee

15. According to IAS 28 Investments in Associates and Joint Ventures, which one of the
following statements best describes the term 'significant influence?

A. The mutual sharing in the risks and benefits of a combined entity

B. The contractually agreed sharing of control over an economic entity
C. The holding of a significant proportion of the share capital in another entity
D. The power to participate in the financial and operating policy decisions of an entity

16. A machine was purchased on 1 Jan 2020 for $9,600 and depreciated by 20% per annum
using the reducing balance method. On 1 Jan 2023, it was sold for $4,800. What was the
gain (or loss) on disposal of the machine that would be reported in the statement of profit or
loss?

A. A loss on disposal of $960

18
B. A loss on disposal of $115.2
C. A gain on disposal of $115.2
D. A gain on disposal of $960

17. When does amortisation of an intangible asset commence?

A. When the asset is substantially complete

B. When the asset is available for use
C. When management determine
D. At the start of the accounting period

18. A non-current asset was bought at 1 Jan 20X1 for $9,600 and depreciated by 20% per
annum using the reducing balance method. On 1 Jan 20X4, it was sold for $4,800. What
was the result of this disposal?

A. A loss on disposal of $960

B. A profit on disposal of $115.20
C. A loss on disposal of $115.20
D. A profit on disposal of $960

19. A business buys a machine on 1 January 2019 for $10,000 and depreciates it at 10%
per annum straight line. At the end of 2020 the machine's remaining useful life is reassessed
at six years remaining and it is now believed that the machine has a residual value of $500.
What is the depreciation charge for the third year of the machine's use?

A $950
B. $1,250
C. $1,267
D. $1,350

20. A company had a provision of $10,000 in its financial statements for the year ended 31
March 2021 in respect of a legal claim. In July 2022 the claim was settled at a cost of
$13.000. What is the expense in respect of the legal claim included in the company's
statement of profit or loss for the year ended 31 March 2022?

A. $10,000
B. $13,000
C. $3 000
D.Nil

21. In a normal CGU impairment-what gets impaired first?

A. Goodwill
B. PPE

22. Which would lead to more comparable financial statements between companies..?

19
A. Rules based system
B. Principles based framework

23. What are the limitations to Faithful Representation? (two options)

A. Inherent uncertainties and estimates

B. Assumptions
C. Substance over form

24. You buy an asset at the start of the year with the following costs: 1) Purchase Price
1,000 2) Legal fees 500 3) Admin costs in negotiating the fee 100 4) Future dismantling cost
of 200 in 3 years time Discount rate is 10% How much is the cost of the asset at the start of
the year?

A. 1650
B. 1750

25. When does an impairment occur?

A. When the subs recoverable amount is less than the subs carrying value +goodwill.
B. When the subs recoverable amount is more than the subs carrying value+goodwill

26. If information is complex should it be included in the accounts?

A. Yes if relevant
B. No-it limits understandability

27. With regard to the definition of revenue given by IFRS15, which of the following
statements is true?

A. Revenue arises from ordinary activities only

B. Revenue includes cash received from share issues
C. Revenue may arise from either ordinary activities or extraordinary activities
D. Revenue includes cash received from borrowings

28. For an investment to qualify as a cash equivalent, it must be:

A. Liquid and low risk

B. Illiquid and low risk
C. Liquid and medium risk
D.Liquid and high risk

20
29. The maximum maturity of a cash equivalent is:

A. 1 month
B. 3 months
C. 6 months
D. 1 year

30. The statement of financial position of Pinto at 31 March 2017 showed property, plant and
equipment with a carrying amount of $1,860,000. At 31 March 2018 it had increased to
$2,880,000. During the year to 31 March 2018 plant with a carrying amount of $240,000 was
sold at a loss of $90,000, depreciation of $280,000 was charged and $100,000 was added to
the revaluation surplus in respect of property, plant and equipment. What amount should
appear under 'investing activities' in the statement of cash flows of Pinto for the year ended
31 March 2018 as cash paid to acquire property, plant and equipment?

A. $1,350,000
B. $1,640,000
C. $1,260,000
D. $1,440,000

31. The Conceptual Framework deals with the objectives of financial statements. Is this
statement true or false?

A. True
B. False

32. Is the following statement true or false, according to IAS 2 Inventories? "Maintenance
expenses for an item of equipment used in the manufacturing process should be included in
the cost of inventories."

A. True
B. False

33. The usefulness of information is assessed in terms of its...

A. qualitative characteristics
B. verifiability
C. timeliness
D. size

34. This qualitative characteristic requires at least two items.

A. Comparability

21
B. Timeliness
C. Verifiability

35. Which of the following statements about users of accounting information is incorrect?

A. Management is an internal user.

B. Taxing authorities are external users.
C. Present creditors are external users.
D. Regulatory authorities are internal users.

36. When does amortisation of an intangible asset commence?

A. When the asset is substantially complete

B. When the asset is available for use
C. When management determine
D. At the start of the accounting period

37. A non-current asset was bought at 1 Jan 20X1 for $9,600 and depreciated by 20% per
annum using the reducing balance method. On 1 Jan 20X4, it was sold for $4,800. What
was the result of this disposal?

A. A loss on disposal of $960

B. A profit on disposal of $115.20
C. A loss on disposal of $115.20
D. A profit on disposal of $960

38. Specific identification method, first in - first out (FIFO) and average cost (AVCO) are
inventory valuation methods. Which of the following statements is correct?

A. Average cost is recomputed following every dispatch or issue of inventory.

B. Specific identification method is used when items of inventory are individually
distinguishable and of high value.
C. FIFO accounting method assumes that the latest items bought are the first items to be
sold.
D. In a period of rising purchase costs, FIFO usually gives a lower taxable income than
AVCO and therefore.

39. A company issued 50,000 equity shares of $1 each at a premium of $0,5 per share. The
cash received was correctly recorded but the full amount was credited to the share capital
account. Which of the following journals corrects this error?

A. Debit Share premium $25,000, Credit Share capital $25,000

B. Debit Share capital $25,000, Credit Share premium $25,000

22
C. Debit Share capital $75,000, Credit Share premium $75,000
D. Debit Share capital $75,000, Credit Cash at bank $75,000

40. When does amortisation of an intangible asset commence?

A. When the asset is substantially complete

B. When the asset is available for use
C. When management determine
D. At the start of the accounting period

1 . According to IAS 28 Investments in Associates and Joint Ventures, which one of the
following statements best describes the term 'significant influence'?

A. The mutual sharing in the risks and benefits of a combined entity

B. The contractually agreed sharing of control over an economic entity
C. The holding of a significant proportion of the share capital in another entity
D. The power to participate in the financial and operating policy decisions of an entity

3. Which of the following is NOT within the scope of IAS 37 Provisions, contingent liabilities
and contingent assets?

A. Future payments on vacant leasehold premises

B. Financial instruments carried at fair value

4. The financial statements of the Farren Company for the year ended 31 December 20x8
included an environmental provision of CU3 million. At 31 December 20X9, the
environmental provision was no longer required. Is the proposed treatment of the provision
shown below correct or incorrect according to IAS 37 Provisions, contingent liabilities and
contingent assets? "The environmental provision is to be written back to profit or loss."

A. Correct
B. Incorrect

5. Which of the following should be a provision under IAS 37 Provisions, contingent liabilities
contingent assets?

A. Rectification costs relating to defective products already sold

B. Divisional closure costs before a public announcement is made

6. Which of the following is not a condition to commence capitalisation of borrowing costs?

A. Expenditures are being incurred

B. Borrowing costs are being incurred
C. Repayment of borrowings has commenced
D. Activities to produce the asset for its intended use or sale have commenced

7. If an entity wishes to change from a cost model to fair value model under IAS 40-
Investment Property, when may it do so?

23
A. When the board of directors approves a change
B. When a change will result in a more appropriate presentation
C. When the value of the assets will improve with a revised model
D. When the market for these properties is fluctuation

8. Deferred tax liabilities are the amounts of income taxes recoverable in future periods in
respect of taxable temporary differences.

A. True
B. False

10. When a constructing office is almost complete: the only remaining work is to install
furniture, should the entity cease capitalising the borrowing costs?

A. Yes
B. No

11. Is the following statement true or false, according to IAS 38 Intangible assets?
"Expenditure during the research phase of a project may sometimes be capitalised as an
intangible asset."

A. True
B. False

13. Capitalisation is suspended if the delays in the development of an asset are:

A. temporary delays which is necessary part of the process

B. abnormal delays

14. Which of the following should NOT be a provision under IAS 37 Provisions, contingent
liabilities and contingent assets?

A. Restructuring costs after a binding sale agreement has been signed

B. Rectification costs relating to defective products already sold
C. Divisional closure costs after a public announcement is made
D. Future refurbishment costs due to introduction of a new computer system

15. A company issued 50,000 equity shares of $1 each at a premium of $0.5 per share. The
cash received was correctly recorded but the full amount was credited to the share capital
account. Which of the following journals corrects this error?

A. Debit Share premium $25.000, Credit Share capital $25,000

24
B. Debit Share capital $25,000, Credit Share premium $25,000
C. Debit Share capital $75,000, Credit Share premium $75,000
D. Debit Share capital $75,000, Credit Cash at bank $75,000

16. Should the following cost be included in the consideration transferred in a business
combination, according to IFRS 3 Business combinations? Fees paid to accountants to
affect the combination.

A Yes
B. No

17. Where accumulated depreciation on an asset is less than accumulated tax depreciation,
deferred tax liability incurs.

A. True
B. False

18. AAC Real Estate purchased a piece of land in Chicago for $12 million in 20X1 and
decided to hold the property with the intention of capital appreciation. The company applies
the fair value model. At the end of 20X2, real estate prices in Chicago dropped sharply.
Therefore, the fair value of the land was only $10 million. At the end of 20X3, real estate
prices showed signs of recovery and the fair value of the land was $11.2 million. What is the
accounting treatment for the increase in fair value of the land at the end of 20X3?

A. Decrease P/L by $0.8 million

B. Increase P/L by $1.2 million
C. Decrease Revaluation surplus by $0.8 million
D. Increase Revaluation surplus by $1.2 million

19. According to IAS 37 Provisions, contingent liabilities and contingent assets, which two of
the following are NOT the sources of a legal obligation?

A. a contract
B. an established pattern of past practice
C. a published policy
D. legislation

20. Expense accrued and had been included in taxable profit resulted in deffered tax liability

A. True
B. False

25
CÂU HỎI 121
Which is an indicator of impairment
A. Losses
B. Research not working well
CÂU HỎI 122
P buys 70% S for 800. The FV of S’s Net assets were 1,000. The proportionate method
of calculating NCI at acquisition is used. How much is goodwill?
A. 70
B. 100
CÂU HỎI 123
In a normal CGU impairment - what gets impaired first?
A. Goodwill
B. PPE
CÂU HỎI 124
How much is Goodwill?
A. 50
B. 100
CÂU HỎI 125
Which would lead to more consistent accounting standards?
A. A rules based system
B. A principles based framework
CÂU HỎI 126
Contract assets and receivables shall be accounted for in accordance with ______
A. IFRS 15 Revenue
B. IFRS 9 Financial instruments
CÂU HỎI 127
With regard to the definition of revenue given by IFRS15, which of the following
statements is true?
A. Revenue arises from ordinary activities only
B. Revenue includes cash received from share issues
C. Revenue may arise from either ordinary activities or extraordinary activities
D. Revenue includes cash received from borrowings
CÂU HỎI 128
The acquisition, and disposal, of long-term assets are:
A. Operating activities
B. Financing activities
C. Investing activities
D. Component of cash and cash equivalents
CÂU HỎI 129
For an investment to qualify as a cash equivalent, it must be:
A. Liquid and low risk
B. Illiquid and low risk
C. Liquid and medium risk
D. Liquid and high risk
CÂU HỎI 130
The maximum maturity of a cash equivalent is:
A. 1 month
B. 3 months

26
C. 6 months
D. 1 year
CÂU HỎI 131
Recording assets at their acquisition cost (entry value), rather than at their net selling
price (exit value), is in line with the principle of
A. Consistency
B. Historical cost
C. Going concern
D. Matching
CÂU HỎI 132
The usefulness of information is assessed in terms of its …
A. qualitative characteristics
B. verifiability
C. timeliness
D. size
CÂU HỎI 133
Under the principles of IAS 16 - Property, Plant and Equipment, which TWO of the
following should be included in the cost of an item of property, plant and equipment?
A. Installation and assembly costs
B. Costs of training staff on the new asset
C. Apportioned general overhead costs
D. Initial delivery and handling costs
CÂU HỎI 134
When does amortisation of an intangible asset commence?
A. When the asset is substantially complete
B. When the asset is available for use
C. When management determine
D. At the start of the accounting period
CÂU HỎI 135
According to IFRS 15 – Revenue from Contracts with Customers, which one of the
following criteria must be satisfied before revenue from the sale of goods should be
recognised in profit or loss?
A. The customer has no rights to return
B. The outcome of the transaction is certain
C. A performance obligation has been met
D. The transaction price has been settled in full by the customer
CÂU HỎI 136
Which of the following is not a “qualifying asset” under IAS 23 – Borrowing Costs?
A. Mass produced inventory
B. Manufacturing plants
C. Made to order inventory
D. Investment property
CÂU HỎI 137
Capitalisation is NOT suspended if the delays in the development of an asset are:
A. temporary delays which is necessary part of the process
B. permanent/abnormal delays
C. Both of other options
D. None of other options

27
CÂU HỎI 138
Deferred tax liabilities are the amounts of income taxes recoverable in future periods
in respect of taxable temporary differences.
A. True
B. False
CÂU HỎI 139
Expense accrued and had been included in taxable profit should be classified under
taxable temporary differences.
A. True
B. False
CÂU HỎI 140
Which of the following should be a provision be recognised under IAS 37 Provisions,
contingent liabilities and contingent assets?
A. Future refurbishment costs due to introduction of a new computer system
B. Rectification costs relating to defective products already sold

CÂU HỎI 141

A contract performed but not paid would be
A. a contract receivable or asset
B. a contract payable or liability
CÂU HỎI 142
Which would lead to more comparable financial statements between companies..?
A. Rules based system
B. Principles based framework
CÂU HỎI 143
Is this an Investment Property? A chic, sleek, cutting edge technology building used
for training accountants but no longer required as students just made the place a bit
cluttered and smelly - so we have decided to sell it?
A. Yes
B. No
CÂU HỎI 144
Your company owns 40% of another company - You have an arrangement with
another investor who owns 20% that he will vote in line with you - is that company
your subsidiary?
A. Yes
B. No
CÂU HỎI 145
P acquires S for the following amounts: 1) Cash 400; 2) Future payment of 1,000 in 2
years time (discount rate 10%); 3) A possible future payment of 1,000 if S’s profits
increase by 10% each year (FV of this is 400). How much is the investment in S (the
consideration figure in the goodwill calculation)?
A. 1,226
B. 1,626
CÂU HỎI 146
A company has a legal obligation to remove an asset after it has finished with it in 8
years time. How is this dealt with in the accounts?
A. Dr Expense Cr Cash

28
B. Dr Asset Cr Provision
CÂU HỎI 147
Which of the following statements about research and development expenditure are
correct according to IAS38 Intangible Assets? (Two options)
A. 1) If certain conditions are met, an enterprise may decide to capitalise development
expenditure
B. 2) Research expenditure, other than capital expenditure on research facilities, must be
written off as incurred.
C. 3) Capitalised development expenditure must be amortised over a period not exceeding 5
years.
D. 4) Capitalised development expenditure must be disclosed in the statement of financial
position under intangible non-current assets.
CÂU HỎI 148
An overprovision of tax in the previous year is shown in this years trial balance as
A. Credit
B. Debit
CÂU HỎI 149
Which of the following is NOT an intangible asset?
A. Good Relationship with customers
B. A Patent
CÂU HỎI 150
A cash flow statement provides information that enables users to evaluate the
changes in:
A. Solvency
B. Its liquidity
C. Its financial structure
D. Net assets of an undertaking
CÂU HỎI 151
Is the following statement in relation to a contingent liability true or false, according
to IAS 37 Provisions, contingent liabilities and contingent assets? “A present
obligation that arises from past events but cannot be reliably measured is a
contingent liability.”
A. True
B. False
CÂU HỎI 152
Which one of the following is the best description of faithful representation' in relation
to information in financial statements?
A. Inclusion of a degree of caution
B. Complete, neutral and free from error
C. Influence on the economic decisions of users
D. Comprehensibility to users
CÂU HỎI 153
A business buys a machine on 1 January 2019 for $10,000 and depreciates it at 10%
per annum straight line. At the end of 2020 the machine's remaining useful life is
reassessed at six years remaining and it is now believed that the machine has a
residual value of $500. What is the depreciation charge for the third year of the
machine's use?
A. $950

29
B. $1,250
C. $1,267
D. $1,350
CÂU HỎI 154
A company had a provision of $10,000 in its financial statements for the year ended 31
March 2021 in respect of a legal claim. In July 2022 the claim was settled at a cost of
$13,000. What is the expense in respect of the legal claim included in the company’s
statement of profit or loss for the year ended 31 March 2022?
A. $10,000
B. $13,000
C. $3,000
D. Nil
CÂU HỎI 155
The Oakes Company has a loan due for repayment in six months' time, but Oakes has
the option to refinance for repayment two years later. Oakes plans to refinance this
loan. In which section of its statement of financial position should this loan be
presented, according to IAS 1 Presentation of financial statements?
A. Non-current liabilities
B. Non-current assets
C. Current assets
D. Current liabilities
CÂU HỎI 156
Under IAS 23 Borrowings, which of the following cannot be a qualifying asset?
A. Power generation facilities
B. Manufacturing plants
C. Intangible assets
D. Financial assets
E. Investment properties
CÂU HỎI 157
Which of the following is not a “qualifying asset” under IAS 23 – Borrowing Costs?
A. Mass produced inventory
B. Manufacturing plants
C. Made to order inventory
D. Investment property
CÂU HỎI 158
Interest expense accrued but included in taxable profit on a cash basis resulted in
deffered tax liability.
A. True
B. False
CÂU HỎI 159
Which of the following is within the scope of IAS 37 Provisions, contingent liabilities
and contingent assets?
A. Future payments under employment contracts
B. Future payments on vacant leasehold premises
CÂU HỎI 160
Which of the following is NOT within the scope of IAS 37 Provisions, contingent
liabilities and contingent assets?
A. Future payments on vacant leasehold premises

30
B. Financial instruments carried at fair value

CÂU HỎI 161

Which is an indicator of impairment
A. Losses
B. Research not working well
CÂU HỎI 162
Let’s say you need 100,000 to build a house in 8 months but you’re going to use
general current borrowings to fund yourself rather than getting a specific loan. Your
current borrowings are: 1 million of 10% loan finance and 2 million of 6% loan finance.
What borrowing costs should be capitalised?
A. 4,888
B. 10,000
CÂU HỎI 163
A sub has 100 net assets book value and a contingent liability with no book value but
a 10 fair value At acquisition what is the value of the sub for the goodwill calculation?
A. 90
B. 110
CÂU HỎI 164
Your company owns 40% of another company - You have an arrangement with
another investor who owns 20% that he will vote in line with you - is that company
your subsidiary?
A. Yes
B. No
CÂU HỎI 165
You buy an asset at the start of the year with the following costs: 1) Purchase Price
1,000 2) Legal fees 500 3) Admin costs in negotiating the fee 100 4) Future dismantling
cost of 200 in 3 years time Discount rate is 10% How much is the cost of the asset at
the start of the year?
A. 1650
B. 1750
C. 1500
CÂU HỎI 166
If an IFRS disagrees with the conceptual framework - then what should be followed?
A. The IFRS
B. The framework
CÂU HỎI 167
Contract assets and receivables shall be accounted for in accordance with ______
A. IFRS 15 Revenue
B. IFRS 9 Financial instruments
CÂU HỎI 168
A 30% Associate - carrying value in the SFP = 1,000. The recoverable amount of the
associate is 2,000. Has there been an impairment?
A. Yes 400
B. No
CÂU HỎI 169
If information is complex should it be included in the accounts?

31
A. Yes if relevant
B. No - it limits understandability
CÂU HỎI 170
The carrying amount of property, plant and equipment was $410 million at 31 March
2011 and $ 680 million at 31 March 2012. During the year, property with a carrying
amount of $ 210 million was revalued to $290 million. The depreciation charge for the
year was $115 million. There were no disposals. What amount will appear on the
statement of cash flows for the year ended 31 March 2012 in respect of purchases of
property, plant and equipment?
A. $270m
B. $235m
C. $305m
D. $225m
CÂU HỎI 171
Whether the following statement is TRUE or FALSE in accordance with IAS 40
Investment Property? “A gain or loss arising from a change in the fair value of an
investment property should be recognised in the revaluation surplus.”
A. True
B. False
CÂU HỎI 172
Which one of the following is the best description of faithful representation' in relation
to information in financial statements?
A. Inclusion of a degree of caution
B. Complete, neutral and free from error
C. Influence on the economic decisions of users
D. Comprehensibility to users
CÂU HỎI 173
This qualitative characteristic requires at least two items.
A. Comparability
B. Timeliness
C. Verifiability
D. Understandability
CÂU HỎI 174
AAC Company buys the recording rights to a famous singer's original song for
$10,000. According to the agreement, the singer allows the company to record her
songs for 5 years. During the first 6 months of the contract, the singer was sick and
could not record. The company had to pay $1,500 for studio costs even if the singer
could not record and $1,000 for advertising costs for the singer. What is the initial
cost of the above intangible asset?
A. $10,000
B. $12,500
C. $11,500
D. $11,000
CÂU HỎI 175
Company A deploys a drug to treat epidemics in the area. From January 1, 20X9,
researchers believe that project expenses will be covered by project revenue.
However, before January 1, 20X9, the project encountered problems and the certainty
of future economic benefits had not been determined. In 20X8, $50,000 was the cost of

32
the research stage and $250,000 was the cost of the development stage. For the
above project, which costs will be capitalized into the value of the intangible asset
which is internally generated? 50.000 USD
A. 250.000 USD
B. 300.000 USD
C. 0
CÂU HỎI 176
Interest expense accrued but included in taxable profit on a cash basis should be
classified under taxable temporary differences.
A. True
B. False
CÂU HỎI 177
Interest expense accrued but included in taxable profit on a cash basis should be
classified under taxable permanent differences.
A. True
B. False
CÂU HỎI 178
Interest expense accrued but included in taxable profit on a cash basis resulted in
deffered tax asset.
A. True
B. False
CÂU HỎI 178
Where accumulated depreciation on an asset is greater than accumulated tax
depreciation, deferred tax liability incurs.
A. True
B. False
CÂU HỎI 180
The tax base for a machine for tax purposes is less than the carrying amount in the
financial statements up to the end of the reporting period. This will give rise to a
deferred tax asset.
A. True
B. False

CÂU HỎI 181

Control means rights to the variability of returns and also..
A. power to influence them
B. power to make decisions
CÂU HỎI 182
Which would lead to more consistent accounting standards?
A. A rules based system
B. A principles based framework
CÂU HỎI 183
You buy an asset at the start of the year with the following costs: 1) Purchase Price
1,000 2) Legal fees 500 3) Admin costs in negotiating the fee 100 4) Future dismantling
cost of 200 in 3 years time Discount rate is 10% How much is the cost of the asset at
the start of the year?
A. 1650
B. 1750

33
C. 1500
CÂU HỎI 184
What should be capitalised as the cost of this intangible asset?
A. 800
B. 900
C. 1000
CÂU HỎI 185
What is the minimum requirement for the number of parts of an asset that should be
identified?
A. Plant has a maximum of three components
B. Depends on the nature and the complexity of the asset
CÂU HỎI 186
An overprovision of tax in the previous year is shown in this years trial balance as
A. Credit
B. Debit
CÂU HỎI 187
Contract assets and receivables shall be accounted for in accordance with ______
A. IFRS 15 Revenue
B. IFRS 9 Financial instruments
CÂU HỎI 188
A delivery Van of ABC plc has damaged badly due to an accident in highway. The cost
of repair will be $700. What type of expenditure is it?
A. Capital expenditure
B. Revenue expenditure
CÂU HỎI 189
Activities that result in changes in the size (and composition) of the equity capital,
and borrowings are:
A. Operating activities
B. Investing activities
C. Financing activities
D. Component of cash and cash equivalents
CÂU HỎI 190
For an investment to qualify as a cash equivalent, it must be:
A. Liquid and low risk
B. Illiquid and low risk
C. Liquid and medium risk
D. Liquid and high risk
CÂU HỎI 191
The Conceptual Framework deals with the qualitative characteristics of financial
statements. Is this statement true or false?
A. True
B. False
CÂU HỎI 192
Is the following statement in relation to a contingent liability true or false, according
to IAS 37 Provisions, contingent liabilities and contingent assets? “A present
obligation that arises from past events but cannot be reliably measured is a
contingent liability.”
A. True

34
B. False
CÂU HỎI 193
Is the following statement about the valuation of inventory is TRUE or FALSE? “A
company's financial statements must disclose the accounting policies used in
measuring inventories.”
A. TRUE
B. FALSE
CÂU HỎI 194
Which two of the following are included in a complete set of financial statements,
according to IAS 1 Presentation of financial statements?
A. Summarised statements of financial position for the last five years
B. A statement of changes in equity
C. A statement of cash flows
D. A statement by the board of directors of compliance with local legislation
CÂU HỎI 195
When does amortisation of an intangible asset commence?
A. When the asset is substantially complete
B. When the asset is available for use
C. When management determine
D. At the start of the accounting period
CÂU HỎI 196
When a constructing office is almost complete; the only remaining work is to install
furniture, should the entity continue capitalising the borrowing costs?
A. Yes
B. No
CÂU HỎI 197
Where accumulated depreciation on an asset is less than accumulated tax
depreciation, deferred tax asset incurs.
A. True
B. False
CÂU HỎI 198
Which of the following should be a provision under IAS 37 Provisions, contingent
liabilities and contingent assets?
A. Rectification costs relating to defective products already sold
B. Divisional closure costs before a public announcement is made
CÂU HỎI 199
Which of the following should be a provision under IAS 37 Provisions, contingent
liabilities and contingent assets?
A. Divisional closure costs after a public announcement is made
B. Rectification costs relating to defective products already sold
C. Both of them
D. None of them
CÂU HỎI 200
Which of the following is within the scope of IAS 37 Provisions, contingent liabilities
and contingent assets?
A. Future payments under employment contracts
B. Future payments on vacant leasehold premises

35
CÂU HỎI 201
Let’s say you need 100,000 to build a house in 8 months but you’re going to use
general current borrowings to fund yourself rather than getting a specific loan. Your
current borrowings are: 1 million of 10% loan finance and 2 million of 6% loan finance.
What borrowing costs should be capitalised?
A. 4,888
B. 10,000
CÂU HỎI 202
In a normal CGU impairment - what gets impaired first?
A. Goodwill
B. PPE
CÂU HỎI 203
How much is Goodwill?
A. 50
B. 100
CÂU HỎI 204
Your company owns 40% of another company - is that company your subsidiary?
A. Yes
B. No
CÂU HỎI 205
If an IFRS disagrees with the conceptual framework - then what should be followed?
A. The IFRS
B. The framework
CÂU HỎI 206
Contract assets and receivables shall be accounted for in accordance with ______
A. IFRS 15 Revenue
B. IFRS 9 Financial instruments
CÂU HỎI 207
A cash flow statement provides information that enables users to evaluate the
changes in:
A. Solvency
B. Its liquidity
C. Its financial structure
D. Net assets of an undertaking
CÂU HỎI 208
For an investment to qualify as a cash equivalent, it must be:
A. Liquid and low risk
B. Illiquid and low risk
C. Liquid and medium risk
D. Liquid and high risk
CÂU HỎI 209
The carrying amount of property, plant and equipment was $410 million at 31 March
2011 and $ 680 million at 31 March 2012. During the year, property with a carrying
amount of $ 210 million was revalued to $290 million. The depreciation charge for the
year was $115 million. There were no disposals. What amount will appear on the
statement of cash flows for the year ended 31 March 2012 in respect of purchases of
property, plant and equipment?

36
A. $270m
B. $235m
C. $305m
D. $225m
CÂU HỎI 210
How shall an entity recognise borrowing costs that are directly attributable to the
acquisition, construction or production of a qualifying asset?
A. As an equity
B. As an asset
C. An a liability
D. As an expense
CÂU HỎI 211
The Conceptual Framework deals with the objectives of financial statements. Is this
statement true or false?
A. True
B. False
CÂU HỎI 212
Intangible asset with infinite useful life must be amortized. The above statement is
TRUE OR FALSE?
A. TRUE
B. FALSE
CÂU HỎI 213
Which two of the following are included in a complete set of financial statements,
according to IAS 1 Presentation of financial statements?
A. Summarised statements of financial position for the last five years
B. A statement of changes in equity
C. A statement of cash flows
D. A statement by the board of directors of compliance with local legislation
CÂU HỎI 214
On 1 April 2021, ABC company held non-current assets with cost of $400,000 and
accumulated depreciation of $100,000 at this date. During the year ended 31 March
2022, ABC disposed non-current assets which had originally cost of $80,000 and
carrying amount of $50,000. The company’s policy is to charge depreciation of 20%
on the reducing balance basis, with no depreciation charged in the year of disposal.
What is the depreciation charge to the statement of profit or loss for the year ended
31 March 2022?
A. $60,000
B. $50,000
C. $54,000
D. $70,000
CÂU HỎI 215
The Oakes Company has a loan due for repayment in six months' time, but Oakes has
the option to refinance for repayment two years later. Oakes plans to refinance this
loan. In which section of its statement of financial position should this loan be
presented, according to IAS 1 Presentation of financial statements?
A. Non-current liabilities
B. Non-current assets
C. Current assets

37
D. Current liabilities

CÂU HỎI 216

During the financial year ending December 31, 20X9, company A incurred the
following expenses. Among those expenses, which one is recorded as intangible
assets?
A. The Company spent CU2,000 on an advertising campaign for its new product.
B. The company purchased the rights to produce a new product for CU40,000. With this
right, the Company was allowed to produce 50,000 products within 5 years. According to
plan data, the net cash flow obtained from this new project is CU800,000.
C. The company spent CU9,000 buying a customer list, but after a closer review, the
company realized that this list did not help in creating significant increase in the number of
new customers for the company.
D. The company spent CU8,000 to hire experts to train employees in the company. This
decision has improved product quality, increased revenue, and reduced costs.
CÂU HỎI 217
Expense accrued and had been included in taxable profit should be classified under
deductible temporary differences.
A. True
B. False
CÂU HỎI 218
Expense accrued and had been included in taxable profit should be classified under
taxable permanent differences.
A. True
B. False
CÂU HỎI 219
Where accumulated depreciation on an asset is less than accumulated tax
depreciation, the amount should be classified under taxable temporary differences.
A. True
B. False
CÂU HỎI 220
The financial statements of the Farren Company for the year ended 31 December 20X8
included an environmental provision of CU3 million. At 31 December 20X9, the
environmental provision was no longer required. Is the proposed treatment of the
provision shown below correct or incorrect according to IAS 37 Provisions,
contingent liabilities and contingent assets? “The environmental provision is to be
written back to profit or loss.”
A. Correct
B. Incorrect

CÂU HỎI 221

A company bought an asset for 2,000 (10 year useful life) After 5 years it is impaired
to 800. What is the double entry?
A. Dr Asset/Cr P/L 200
B. Dr Asset/Cr P/L 800
C. Dr P/L / Cr Asset 200
D. Dr P/L / Cr Asset 800

38
CÂU HỎI 222
P buys 70% S for 800. The FV of S’s Net assets were 1,000. The proportionate method
of calculating NCI at acquisition is used. How much is goodwill?
A. 70
B. 100
CÂU HỎI 223
How much is Goodwill?
A. 50
B. 100
CÂU HỎI 224
What type of goodwill is shown in the SFP as an asset?
A. Internally generated
B. Purchased
CÂU HỎI 225
Do you provide for an obligated future cost?
A. Yes
B. No
CÂU HỎI 226
Do you provide for next years losses under a contract?
A. Yes
B. No
CÂU HỎI 227
What is the minimum requirement for the number of parts of an asset that should be
identified?
A. Plant has a maximum of three components
B. Depends on the nature and the complexity of the asset
CÂU HỎI 228
We have decided to build a new cowshed for our students. We've bought the land but
not got any planning permission. Is this an Investment Property?
A. Yes
B. No
CÂU HỎI 229
Which of the following is NOT an intangible asset?
A. Good Relationship with customers
B. A Patent
CÂU HỎI 230
If the agreed date of payment by a customer is later than the date on which goods or
services are transferred to that customer, part of the consideration should always be
treated as finance income (not revenue). True or False?
A. True
B. False
CÂU HỎI 231
This qualitative characteristic requires at least two items.
A. Comparability
B. Timeliness
C. Verifiability
D. Understandability
CÂU HỎI 232

39
Under the principles of IAS 16 - Property, Plant and Equipment, which TWO of the
following should be included in the cost of an item of property, plant and equipment?
A. Installation and assembly costs
B. Costs of training staff on the new asset
C. Apportioned general overhead costs
D. Initial delivery and handling costs
CÂU HỎI 233
Capitalisation is suspended if the delays in the development of an asset are:
A. temporary delays which is necessary part of the process
B. abnormal delays
CÂU HỎI 234
AAC Ltd. has a piece of equipment with a book value of $200 million on December 31,
20X1. The remaining useful life of the equipment is 5 years and the estimated residual
value is $10 million. The estimated net cash flow from the use of the equipment over
the next five years is $182 million. The market price of this equipment as of December
31, 20X1 is $205 million with costs of disposal of $25 million. In accordance with IAS
36 – Impairment of Assets, what is the impairment loss related to this equipment?
A. $18 million
B. $20 million
C. $2 million
D. No impairment loss
CÂU HỎI 235
Deferred tax assets are the amounts of income taxes recoverable in future periods in
respect of taxable permanent differences.
A. True
B. False
CÂU HỎI 236
Deferred tax liabilities are the amounts of income taxes payable in future periods in
respect of taxable permanent differences.
A. True
B. False
CÂU HỎI 237
Expense accrued and had been included in taxable profit resulted in deffered tax
liability.
A. True
B. False
CÂU HỎI 238
The tax base for a machine for tax purposes is less than the carrying amount in the
financial statements up to the end of the reporting period. This will give rise to a
deferred tax liability.
A. True
B. False
CÂU HỎI 239
According to IAS 37 Provisions, contingent liabilities and contingent assets, which
two of the following are NOT the sources of a legal obligation?
A. a contract
B. an established pattern of past practice
C. a published policy

40
D. legislation
CÂU HỎI 240
Which of the following is NOT within the scope of IAS 37 Provisions, contingent
liabilities and contingent assets?
A. Future payments on vacant leasehold premises
B. Financial instruments carried at fair value

AAC Real Estate Company bought a piece of land in Chicago for $1.2
million. The company's board has not yet decided whether to hold
this land for a few years and then sell it or build a building on the land
to rent out at a high price. In addition to the purchase price, the
company must pay some costs as follows: (1) Cost of dismantling a
structure on land: $10,000; (2) Fence construction cost: $40,000; (3)
Pay overdue real estate tax: $80,000. Is this land considered
investment property of the company? If yes, what is the initial cost of
this investment property?
A.No
B.Yes - $1.2 million
C.Yes - $1.25 million
D.Yes – $1.33 million

Câu 241:
Assoria Co had $20 million of capitalised development expenditure at cost
brought forward at 1 October 20X7 in respect of products currently in
production and a new project began on the same date.

The research stage of the new project lasted until 31 December 20X7 and
incurred $1.4 million of costs. From that date the project incurred
development costs of $800,000 per month. On 1 April 20X8 the directors
of Assoria Co became confident that the project would be successful and
yield a profit well in excess of costs. The project was still in development
at 30 September 20X8. Capitalised development expenditure is amortised
at 20% per annum using the straight-line method.

What amount will be charged to profit or loss for the year ended 30
September 20X8 in respect of research and development costs?

$8,280,000
$6,880,000
$7,800,000

$3,800,000

Câu 242:

41
C purchased a machine on 1 July 20X7 for $500,000. It is being
depreciated on a straight-line basis over its useful life of ten years.
Residual value is estimated at $20,000. On 1 January 20X8, following a
change in legislation, Wetherby Co fitted a safety guard to the machine.
The safety guard cost $25,000 and has a useful life of five years with no
residual value.

What amount will be charged to profit or loss for the year ended 31 March
20X8 in respect of depreciation on this machine?

$37,250

Câu 243:
IFRS 15 allows the recognition of revenue through the duration of a
contract for services if it has been demonstrated that the performance
obligation is met over time.

Which two of the following methods for determining the stage of

completion of a contract involving the rendering of services are
specifically referred to in IFRS 15 Revenue from contracts with customers,
as being acceptable?

Revenue to date divided by total contract revenue

Advances received to date as a percentage of the total amount receivable
Surveys of work performed

Machine hours worked to date

Câu 244:
Following initial recognition, investment property can be held at either
cost or fair value.

True

False

Câu 245:
Fido Feed Ltd has the following loans in place throughout the year ended
31 December 20X8 which constitute its general borrowings for the period.

10% bank loan: $ 140m

8% bank loan: $ 200m

42
On 1 July 20X8 $50 million was drawn down for construction of a
qualifying asset which was completed during 20X9. What amount should
be capitalised as borrowing costs at 31 December 20X8 in respect of this
asset?

$5.6 million
$2.8 million
$4.4 million
$2.2 million

Câu 246:
Which of the following facts would indicate that a contract's transaction
price had a financing component that would need to be accounted for
separately under IFRS 15 Revenue from contracts with customers?

The customer paid in advance and the timing of delivery is at the customer's discretion
The credit terms are significantly longer than are normally offered to customers for
the same goods

The consideration, or an element of it, is variable because it is a sales-based royalty

The customer has the option to delay payment by a year and the price if they choose
this option is noticeably different from the price for immediate cash payment

Câu 247:
A company's trial balance shows a debit balance of $2.1 million brought
forward on current tax and a credit balance of $5.4 million on deferred
tax. The tax charge for the current year is estimated at $16.2 million and
the carrying amounts of net assets are $13 million in excess of their tax
base.

The income tax rate is 30%

What amount will be shown as income tax in the statement of profit or

loss for the year?

$16,800

Câu 248:
Which TWO of the following are examples of deferred tax assets?

Deferred tax assets are the amount of income taxes recoverable in future
periods in respect of:

43
Permanent differences
Taxable temporary differences
The carryforward of unused tax losses

Deductible temporary differences

Câu 249:
X Co. had the following bank loans outstanding during the whole of 20X8
10% loan repayable 20X9: $15m
11.5% loan repayable 20X9: $28m
The Co. began construction of a qualifying asset on 1Apr 20X8 and
withdrew funds of $6m on that date to fund construction. On 1 August
20X8 an additional $2m waw withdrawn for the same purpose. Calculate
the borrowing cost should be capitalized

$0.5867m

$0.5456m
$0.66m
$0.37m

Câu 250:
IAS 36 Impairment of Assets contains a number of examples of internal
and external events which may indicate the impairment of an asset. In
accordance with IAS 36, which of the following would definitely NOT be an
indicator of the potential impairment of an asset (or group of assets)?

An unexpected fall in the market value of one or more assets

Adverse changes in the economic performance of one or more assets
A significant change in the technological environment in which an asset is employed making
its software effectively obsolete
The carrying amount of an entity's net assets being below the entity's market
capitalisation

Câu 251:
Cash-generating unit comprises the following assets:

Building: $700,000

Plant and equipment: $200,000

Goodwill: $90,000

Current assets: $20,000

One of the machines, carried at $40,000, is damaged and will have to be

scrapped. The recoverable amount of the cash-generating unit is
estimated at $750,000.

44
What will be the carrying amount of the building after the impairment loss
has been recognised? (to the nearest $'000)

$597,000
$577,000
$594,000

$548,000

Câu 252:

Geek Co is developing a new product and expects to be able to capitalise

the costs. Which of the following would disallow the capitalisation of the
costs?

Development of the product is not yet complete.

No patent has yet been registered in respect of the product
No sales contracts have yet been signed in relation to the product
It has not been possible to reliably allocate costs to development of the product.

Câu 253:

The net assets of Winter Co., a cash generating unit (CGU), are:
Property, plant and equipment: 300,000
Allocated goodwill: 50,000
Product patent: 20,000
Net current asset: 30,000
After a recession, Winter Co. has a recoverable amount of only $300,000.
What would be value of the CGU's property, plant and equipment after the
allocation of the impairment loss

253,125

263,875
300,000
273,875

Câu 254:
According to IAS 23 – Borrowing Costs, investment income generated from
loans taken in order to finance a qualifying asset should be:

Capitalized to cost of property, plant and equipment

Deducted from borrowing costs

Added to borrowing costs

Shown as Investment Income in the Income Statement

45
Câu 255:
According to current guidance within IAS 23 Borrowing costs, which of the
following treatments are required for borrowing costs incurred that are
directly attributable to the construction of a qualifying asset?

Recognise as an expense in the period incurred.

Capitalise as part of the cost of the asset.

None of the above

46