Ifrs 500 multiple choice questions

IFRS Multiple Choice Question 238

IFRS, compared to GAAP, tends to be more

rules-based.

full of disclosures requirements.

principles-based.

detailed.

Multiple Choice Question 146

If a check correctly written and paid by the bank for $591 is incorrectly recorded on the company’s books for $519, the appropriate treatment on the bank reconciliation would be to

deduct $72 from the bank’s balance.

deduct $72 from the book’s balance.

deduct $591 from the book’s balance.

add $72 to the book’s balance.

Multiple Choice Question 69

A system of internal control

is premised on the concept of absolute assurance.

is infallible.

can be rendered ineffective by employee collusion.

invariably will have costs exceeding benefits.

Multiple Choice Question 80

Reconciling the bank statement monthly is an example of

independent internal verification.

establishment of responsibility.

documentation procedures.

segregation of duties.

Multiple Choice Question 154

Cash equivalents include each of the following except

bank certificates of deposit.

U.S. Treasury bills.

money market funds.

petty cash.

IFRS Multiple Choice Question 241

Cash is defined by IFRS as

cash on hand and demand deposits.

cash on hand.

cash on hand, demand deposits, and highly liquid investments.

demand deposits.

Multiple Choice Question 46

Which of the following is not one of the main factors that contribute to fraudulent activity?

Opportunity

Financial pressure

Rationalization

Incompatible duties

Multiple Choice Question 178

Which of the following statements concerning receivables is incorrect?

The contingent liability from selling notes receivable should be disclosed.

Interest revenue and gain on sale of notes receivable are shown under other revenues and gains.

Both the gross amount of receivables and the allowance for doubtful accounts should be reported.

Notes receivable are often listed last under receivables.

Multiple Choice Question 110

At the end of May, the unadjusted trial balance of Barker Industries included the following accounts:

DebitCredit

Sales (75% represent credit sales)$400,000

Accounts Receivable$240,000

Allowance for Doubtful Accounts1,800

Barker Industries uses the percentage of sales approach in estimating uncollectible accounts. The uncollectible accounts expense is estimated to be 3% of credit sales The net realizable value of Barker's accounts receivable in the May 31 balance sheet is

$226,200

$229,200

$236,400

$250,800

Multiple Choice Question 122

A company regularly sells its receivables to a factor who assesses a 2% service charge on the amount of receivables purchased. Which of the following statements is true for the seller of the receivables?

Selling expenses will increase each time accounts are sold.

The loss section of the income statement will increase each time receivables are sold.

The credit to Accounts Receivable is less than the debit to Cash when the accounts are sold.

The other expense section of the income statement will increase each time accounts are sold.

IFRS Multiple Choice Question 246

Which receivables accounting and reporting issue is essentially the same for IFRS and GAAP?

The use of allowance accounts and the allowance method.

How to record discounts.

How to record factoring.

All of these are essentially the same for IFRS and GAAP.

Multiple Choice Question 126

The basic issues in accounting for notes receivable include each of the following except

disposing of notes receivable.

valuing notes receivable.

recognizing notes receivable.

analyzing notes receivable.

Multiple Choice Question 87

Haven Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $600,000 and credit sales are $2,200,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Haven Company make to record the bad debts expense?

Bad Debts Expense28,000

Allowance for Doubtful Accounts28,000

Bad Debts Expense22,000

Allowance for Doubtful Accounts22,000

Bad Debts Expense28,000

Accounts Receivable28,000

Bad Debts Expense22,000

Accounts Receivable22,000

Multiple Choice Question 113

On March 1, 2013, Dick Miles purchased a suit at Kenny's Fine Apparel Store. The suit cost $500 and Dick used his Kenny credit card. Kenny charges 2% per month interest if payment on credit charges is not made within 30 days. On April 30, 2013, Dick had not yet made his payment. What entry should Kenny make on April 30th?

Uncollectible Account500

Accounts Receivable500

Accounts Receivable510

Interest Revenue10

Sales Revenue500

Bad Debts Expense490

Interest Expense10

Accounts Receivable500

Accounts Receivable10

Interest Revenue10

IFRS Multiple Choice Question 245

Which receivables accounting and reporting issue is not essentially the same for IFRS and GAAP?

The use of allowance accounts and the allowance method.

How to record discounts.

How to record factoring.

All of these are essentially the same for IFRS and GAAP.