Ifrs multiple choice questions and answers

IFRS Multiple Choice Question 255

Under IFRS, companies can apply revaluation to

land, buildings, and intangible assets.

no assets.

intangible assets, but not land or beer.

land, buildings, but not intangible assets.

Jake's Market recorded the following events involving a recent purchase of merchandise:

Received goods for $50,000, terms 2/10, n/30.

Returned $1,000 of the shipment for credit.

Paid $250 freight on the shipment.

Paid the invoice within the discount period.

As a result of these events, the company's inventory increased by

$49,250.

$48,265.

$48,270.

$48,020.

Multiple Choice Question 121

The sales revenue section of an income statement for a retailer would not include

Cost of goods sold.

Net sales.

Sales discounts.

Sales revenue.

Multiple Choice Question 177

Kate Company purchased inventory from Phoebe Company. The shipping costs were $500 and the terms of the shipment were FOB shipping point. Kate would have the following entry regarding the shipping charges:

Inventory500

Cash500

There is no entry on Kate's books for this transaction.

Freight-out500

Cash500

Freight Expense500

Cash5

At the beginning of 2013, Ralston Mills has an inventory of $300,000. Because sales growth was strong during 2013, the company wants to increase inventory on hand to $350,000 at December 31, 2013. If net sales for 2013 are expected to be $1,500,000, and the gross profit rate is expected to be 30%, what is the cost of the merchandise the company should expect to purchase during 2013?

$1,050,000.

$1,100,000.

$1,500,000.

$1,700,000.

Multiple Choice Question 175

Ezra Company has sales revenue of $40,000, cost of goods sold of $24,000 and operating expenses of $9,000 for the year ended December 31. Ezra's gross profit is

$0.

$7,000.

$16,000.

$31,000.

During August, 2013, Baxter's Supply Store generated revenues of $30,000. The company's expenses were as follows: cost of goods sold of $18,000 and operating expenses of $2,000. The company also had rent revenue of $500 and a gain on the sale of a delivery truck of $1,000.

Baxter's net income for August, 2013 is

$10,000.

$12,000.

$10,500.

$11,500.

Multiple Choice Question 102

Romanoff Industries had the following inventory transactions occur during 2013:

UnitsCost/unit

2/1/13Purchase18$45

3/14/13Purchase31$47

5/1/13Purchase22$49

The company sold 50 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s gross profit using LIFO? (rounded to whole dollars)

$2,394

$1,106

$1,184

$2,316