Auditing and Assurance Pre-Test Questions
Course Introduction
Auditing and Assurance is a comprehensive course that explores the fundamental principles, procedures, and practices involved in the independent examination of financial information. The course covers the regulatory framework of auditing, ethical considerations, risk assessment, internal controls, audit planning and execution, reporting, and contemporary issues in assurance services. Students will develop a deep understanding of both internal and external audit processes, as well as the roles auditors play in enhancing the credibility and reliability of financial statements for stakeholders. The course integrates theoretical concepts with practical case studies to prepare students for real-world challenges faced by auditors in diverse organizational settings.
Recommended Textbook
Company Accounting Australia New Zealand 5th Edition by Peter Jubb
Available Study Resources on Quizplus
26 Chapters
653 Verified Questions
653 Flashcards
Source URL: https://quizplus.com/study-set/3453 Page 2
Chapter 1: Companies and Corporate Regulation
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/68573
Sample Questions
Q1) What type of entity is company I?
Small proprietary \(\quad\)\(\quad\)Large proprietary \(\quad\)\(\quad\)\(\quad\)Disclosing entity
A)Yes\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\) No \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\) \(\quad\)Yes
B)Yes \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)No \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\) \(\quad\)Maybe
C)No \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\) Yes \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\) \(\quad\)Yes
D)No \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\) Yes \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\) \(\quad\)Maybe
Answer: D
Q2) Governments including the Australian government have direct control over the determination of IFRS content.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Objectives of Company Reporting, Conceptual
Elements and Terminology
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/68564
Sample Questions
Q1) The Corporations Act itself gives little guidance about how to give a true and fair view of financial statements.
A)True
B)False
Answer: True
Q2) In the period up until the 1890s, the main objective of audits was the prevention of fraud and error.
A)True
B)False
Answer: True
Q3) Which entities covered by the Corporations Act must apply the provisions in all AASB accounting standards when preparing the annual financial reports (assuming materiality)?
A)only reporting entities
B)only disclosing entities
C)only public companies that are reporting entities
D)only disclosing entities and reporting entities
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Forming a Company and Issuing Shares
Available Study Resources on Quizplus for this Chatper
35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/68563
Sample Questions
Q1) Share issue costs are an expense that must be included in determining total comprehensive profit.
A)True
B)False
Answer: False
Q2) In a new regulated share issue (not a rights issue) company directors can issue shares to whichever applicants they like.
A)True
B)False
Answer: False
Q3) Zebon Ltd has three distinct operations: mining, transport and communications.The company has a class of share in which the holders of those shares are entitled to a distribution from profits only out of the operations of Zebon's mining activities.This type of share is best described as a:
A)Targeted share
B)Founder (Deferred) share
C)Ordinary share
D)Preference share
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Profits, Reserve and Distributions to Owners
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/68562
Sample Questions
Q1) Langer Ltd is to restructure its owners' equity by making its issued shares paid up to $0.50.It will do this by transferring half the amount from the asset revaluation reserve and the remainder from retained profits.Langer Ltd currently has 1 000 000 shares on issue paid up to $0.25.The asset revaluation reserve balance is $50 000.What is the minimum amount by which Langer Ltd must revalue upwards its non-current assets so that it can effect this transfer?
A)$75 000
B)$125 000
C)$200 000
D)$250 000
Q2) How would you calculate the balance of retained profits at 30 June 20X1?
A)$3 800 000 less $350 000
B)$3 800 000 plus profits for April, May and June 20X1 less $350 000
C)$3 800 000 plus profits for April, May and June 20X1 less $700 000
D)$3 800 000 less $700 000
Q3) A company carrying accumulated losses can not pay a dividend.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Reorganisation of Share Capital
Available Study Resources on Quizplus for this Chatper
29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/68561
Sample Questions
Q1) The directors of Ponting Ltd have decided to reduce capital by a pro rata cancellation of shares.How many shares will be on issue after the capital reduction if capital of $21 000 000 is returned?
A)3 750 000
B)2 500 000
C)3 500 000
D)2 750 000
Q2) On 30 October 20X8 the directors of Slater Ltd decided to split the company's shares.How many shares will Slater Ltd have on issue if those shares are fully paid to $2.00 after the split?
A)2 500 000
B)50 000
C)500 000
D)250 000
Q3) Which types of buyback always require a special resolution?
A)I, III, IV and V only
B)IV and V only
C)V only
D)II and V only
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Debt Securities
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/68560
Sample Questions
Q1) Which of the following statements is incorrect?
A)Generically a 'debenture' is simply an acknowledgement of debt
B)The Corporations Act deems some documents not to be debentures, such as cheques and bills of exchange
C)The Corporations Act requires borrowers not to use the term 'debenture' unless the debt is secured by a charge over assets
D)Unsecured debts are not debentures for the purposes of complying with regulatory sections of the Corporations Act
Q2) Which of the following statements is incorrect? Under AASB 139:
A)debentures must initially be recorded at fair value
B)transactions costs must never be incorporated into the carrying amount of debentures
C)in the case of par issues the fair value is usually the same as the par amount
D)premium or discount on issue should not be recognised as a revenue or expense in the period in which the debenture is issued
Q3) A convertible note enables the holder to convert the debt into paid-up shares.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
8
Chapter 7: Foreign Currency Transactions and an Introduction to Hedging
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/68559
Sample Questions
Q1) At what amount would be purchase of the inventory be recognised?
A)$615,385
B)$1,040,000
C)$1,000,000
D)$1,080,000
Q2) In Australia, the presentation currency adopted must be the Australian currency.
A)True
B)False
Q3) Under AASB 121, foreign currency exchange differences are never recognised for non-monetary items.
A)True
B)False
Q4) What was the foreign currency exchange difference recognised for the reporting period ending 30 June 20X0 by Led Ltd on the transaction?
A)$30,000 FC exchange difference revenue
B)$30,000 FC exchange difference expense
C)$60,000 FC exchange difference revenue
D)$60,000 FC exchange difference expense
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Advanced Asset and Liability Issues
Available Study Resources on Quizplus for this Chatper
31 Verified Questions
31 Flashcards
Source URL: https://quizplus.com/quiz/68558
Sample Questions
Q1) It is stated in AASB 116 that under the revaluation model an asset's fair value is determined by its selling price in current condition; that is, it is an exit measure.
A)True
B)False
Q2) Beaver Ltd has an item of plant which had a cost of $2 000 000; on 30 June 20X7 its accumulated depreciation was $1,100,000 and its recoverable amount was $1,000,000.What is the carrying amount of this asset at 30 June 20X7?
A)$1,100,000
B)$1,000,000
C)$900,000
D)$2 000 000
Q3) An item classified contingent asset can only be reclassified and recognised as an asset when the benefits from that asset are:
A)reasonably certain
B)virtually certain
C)probable
D)beyond reasonable doubt
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Income Tax
Available Study Resources on Quizplus for this Chatper
21 Verified Questions
21 Flashcards
Source URL: https://quizplus.com/quiz/68583
Sample Questions
Q1) When the balance sheet approach to tax effect accounting is adopted:
A)the income tax expense is measured by the aggregate change in the amounts of deferred tax assets and deferred tax liabilities over the reporting period
B)the income tax expense can be greater than, or less than, the income tax payable for the reporting period
C)the current tax expense is measured by the aggregate change in the amounts of deferred tax assets and deferred tax liabilities over the reporting period
D)there will always be recognised deferred tax assets and deferred tax liabilities
Q2) What is the total allowable deductions for the reporting period?
A)$5 200 000
B)$5 400 000
C)$5 000 000
D)$4 800 000
Q3) A deferred tax expense can result from either a reduction in a deferred tax liability or an increase in a deferred tax asset.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Reports and Disclosures I: Overview
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/68582
Sample Questions
Q1) Under the Corporations Act, the general qualitative standard for financial reports is that of presenting fairly the matters required to be included in the financial report.
A)True
B)False
Q2) AASB 101 contains a general prohibition on the offsetting of (i) assets and liabilities and (ii) income (revenues and gains) and expenses.
A)True
B)False
Q3) Which of the following items is not required to be included in the notes to the financial statements by AASB 101:
A)a statement of compliance with AASB and IASB accounting standards
B)details of the entity's legal form and domicile
C)details of the auditors' remuneration
D)a statement that the financial report has been lodged with ASIC but that ASIC takes no responsibility for the content of the report.
Q4) In all cases prior period errors must be corrected retrospectively.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Reports and Disclosures Ii: the Financial Statements
Available Study Resources on Quizplus for this Chatper
33 Verified Questions
33 Flashcards
Source URL: https://quizplus.com/quiz/68581
Sample Questions
Q1) Which of the following statements is true? The measure of earnings used in calculating basic earnings per share:
A)must be determined after deducting dividends paid to ordinary shareholders
B)must exclude all extraordinary items
C)must exclude profit allocated to non-controlling interest
D)is always equal to period profit or loss
Q2) Assuming materiality requirements are satisfied, when preparing its comprehensive profit statement a reporting entity must comply with:
AASB 118 \(\quad\)\(\quad\)AASB 101 \(\quad\)\(\quad\)AASB 108
A)\(\quad\)Yes \(\quad\)\(\quad\)\(\quad\)Yes
\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)Yes
B)\(\quad\)No
\(\quad\)\(\quad\)\(\quad\) Yes \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\) No
C)\(\quad\)Yes
\(\quad\)\(\quad\)\(\quad\) Yes
\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)No
D)\(\quad\)Yes
\(\quad\)\(\quad\)\(\quad\) No \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\) Yes
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Receivership and Voluntary Administration
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/68580
Sample Questions
Q1) A receiver is always appointed under a deed of arrangement.
A)True
B)False
Q2) The terms 'controller' and 'receiver and manager' are both used in the Corporations Act:
A)but only receiver and manger is relevant to external administration
B)controllership is narrower concept than receiver and manger
C)controllership is wider concept than receiver and manger
D)they have the same meaning
Q3) In which of the following ways can a receiver be appointed?
I.\(\quad\)by special resolution of the shareholders
II.\(\quad\)by a court order
III.\(\quad\)by a lender under the terms of a debt contract
IV.\(\quad\)by an ordinary resolution of the shareholders
A)II and III only
B)I only
C)I, II and III only
D)I, II, III and IV
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Liquidations
Available Study Resources on Quizplus for this Chatper
16 Verified Questions
16 Flashcards
Source URL: https://quizplus.com/quiz/68579
Sample Questions
Q1) A liquidator has priority for amounts that relate to:
A)costs incurred in the liquidation and for the liquidators fees
B)costs incurred in the liquidation only
C)the liquidators fees
D)costs incurred in the liquidation and for the liquidators fees.
Q2) The legal precedents on the rights of preference shareholders on liquidation are increasingly irrelevant.
A)True
B)False
Q3) The court received an application for the winding up of Amer Ltd.If the application is granted this winding-up will be a:
A)compulsory
B)creditors' voluntary
C)members' compulsory
D)members' voluntary
Q4) Crown debts in all cases have priority over other debts.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: External Administration Reports and Accounts
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/68578
Sample Questions
Q1) A report as to affairs is required for the Court appointment of a liquidator but not for the appointment of a controller or other administrator.
A)True
B)False
Q2) When a company is liquidated, in closing the company's ledgers there is always a debit to the paid-up capital accounts.
A)True
B)False
Q3) During the appointment period, a liquidator must prepare accounts for each:
A)one-month period
B)two-month period
C)six-month period
D)eight-month period
Q4) When a company is liquidated, in closing the company's ledgers there is always a debit to the retained profits account.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Investments in New Assets; Introduction to
Business Combinations and Associates
Available Study Resources on Quizplus for this Chatper
35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/68577
Sample Questions
Q1) In a business combination, the only goodwill components suitable for recognition in financial statements are component 4, synergies, and component 5, over-valuation of the consideration.
A)True
B)False
Q2) Company F has an equity accounted investment (owns 20% of the shares) in Company K, purchased in 20X1, with a carrying amount of $200 000 at year end
20X4.Company K reports a total increase in owner's equity for the year ended 20X5 of $80 000.Which journal entry will Company F process in respect of this investment?
A)Debit to investment in associate, credit to share of associate's profit or loss, $16 000
B)Debit to investment in associate, credit to share of associate's profit or loss, $80 000
C)Debit to share of associate's profit or loss, credit to investment in associate, $16 000
D)No journal entry
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: The Corporate Group
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/68576
Sample Questions
Q1) Temporary differences that arise on consolidation always result in the recognition of either a deferred tax asset or a deferred tax liability.
A)True
B)False
Q2) The accounting firm Ferrier Hodgson exerts control over companies it liquidates under the definition of control in AASB 3.
A)True
B)False
Q3) A large proprietary company must always produce a financial report.
A)True
B)False
Q4) A owns 85% of B, 90% of C, 95% of D and 94% of E.B owns 3% of C and 1% of D.In which subsidiary does A have the greatest direct and indirect ownership?
A)Company B
B)Company C
C)Company D
D)Company E
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Acquisition Method Introduction and Substitution
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/68575
Sample Questions
Q1) Rose Ltd acquired all the equity of Jeannie Ltd on 1 July 20X3.At that time the fair value/financial position of Jeannie was as follows:
\[\begin{array} { l r }
\text { Capital } & \$ 500000 \\
\text { Reserves } & \$ 100000 \\
\text { Retained profits } & \$ 150000 \\
\text { Liabilities } & \$ 50000 \end{array}\]
Suppose that Rose paid $850 000 for the shares in Jeanie, which of the following correctly describes the accounting procedures that will arise as a result of the business combination? Assume that the overpayment for Jeannie shares is due to the belief that Rose has created valuable internal synergies.
A)The Rose Group will record a goodwill asset of $100 000 on its consolidation worksheet if prepared as at 1 July 20X3
B)Rose Ltd will record a goodwill asset of $100 000 in its ledger
C)The Rose Group will record a goodwill impairment expense of $100 000 on its consolidation worksheet if prepared as at 1 July 20X3
D)None of the above are appropriate
To view all questions and flashcards with answers, click on the resource link above.
Page 19
Chapter 18: Acquisition Method Application After Control
Date
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/68574
Sample Questions
Q1) Wholly owned Subsidiary has the following balances at control date 20X1: \[\begin{array} { l l }
\text { Capital } & \$ 500000 \\
\text { Asset revaluation reserve } & \$ 200000 \\
\text { Retained profits } & \$ 100000 \end{array}\]
Parent paid $900 000 for the shares of Subsidiary.The tax rate is 30%.
Subsidiary assets are at fair value except for land, which the Subsidiary measures at cost and group policy is for revaluation.The land at cost is $60 000 and the fair value is $150 000.
In the consolidation there will be a deferred tax liability of $27 000.
A)True B)False
Q2) The elimination of intra-group debts does not have any tax effects. A)True B)False
Q3) The substitution elimination entry may stay unchanged for several or more years after control date.
A)True B)False
Page 20
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: Intra-Group Transactions
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/68572
Sample Questions
Q1) Intra-group bills discounted with recourse during the reporting period require the following consolidation elimination:
Dr Bills payable
Cr Bills receivable
A)True
B)False
Q2) The following is the only consolidation elimination entry required for an intra-group loan made and repaid during the reporting period: Dr Loan payable
Cr Loan receivable
A)True
B)False
Q3) Subsidiary buys inventory from parent at a transfer price of $150 000.The profit margin included in this was $50 000. The group will need to reduce its cost of sales by $100 000 in total.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
21
Chapter 20: Direct Non-Controlling Interest
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/68571
Sample Questions
Q1) Under the basic rule, the NCI share of a partly owned subsidiary's profit is always the profit at reporting date multiplied by the NCI's fraction of ownership.
A)True
B)False
Q2) Changes to the other comprehensive profit of partly owned subsidiaries will affect the NCI and must be included in the measurement of NCI.
A)True
B)False
Q3) Kerry Ltd owns 70% of James Ltd.For the year ended 30 April 20X1, James Ltd reported a profit of $1 million.On 30 April 20X0, James Ltd had sold inventory to Kerry Ltd for a $0.5 million profit.All of this inventory was unsold by Kerry Ltd on 1 June 20X1.What is the consolidation adjustment (if any), to the NCI share of James Ltd's 20X1 profit as a result of this sale?
A)None, because all inventory was unsold
B)$150 000 decrease
C)$500 000 decrease
D)$150 000 increase
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Changes to Parent Investment in Subsidiaries
Available Study Resources on Quizplus for this Chatper
21 Verified Questions
21 Flashcards
Source URL: https://quizplus.com/quiz/68570
Sample Questions
Q1) On 31 December 20X4 it was determined that goodwill (measured using the full method) was impaired by an amount of $512 500.What is the carrying amount of goodwill in the consolidated balances sheet at the 31 December 20X4 reporting date?
A)$187 500
B)$375 000
C)$600 000
D)$150 000
Q2) A change in the number of shares held by the parent entity always affects the total amount eliminated against pre-control equity.
A)True
B)False
Q3) How much paid-up capital is eliminated in the consolidation entry to eliminate pre-acquisition equity acquired by Mobile Ltd in the consolidation worksheet for the reporting period ending 30 June 20X2?
A)$650 000
B)$750 000
C)$800 000
D)$1 000 000
To view all questions and flashcards with answers, click on the resource link above.
Chapter 22: Indirect Interest
Available Study Resources on Quizplus for this Chatper
16 Verified Questions
16 Flashcards
Source URL: https://quizplus.com/quiz/68569
Sample Questions
Q1) What is the NCI's indirect interest in Roeburn Ltd?
A)40%
B)24%
C)60%
D)36%
Q2) What is the amount of the total NCI in Klim Ltd's net result for this financial year?
A)$420 000 profit
B)$406 000 profit
C)$490 000 profit
D)$280 000 profit
Q3) A Ltd acquires 60% of B Ltd in 20X5.B Ltd has held a 70% interest in C Ltd since 20X0.In 20X4 the B group recorded $20 000 of consolidation goodwill impairment expense in respect of the C Ltd acquisition.Which of the following statements is true?
A)$12 000 of the B group impairment expense effectively disappears in the A group consolidation
B)The A group will recognise $20 000 of impairment expense
C)NCI of B group will not be assigned any impairment expense
D)None of the above is true
To view all questions and flashcards with answers, click on the resource link above.
Chapter 23: Translation of Foreign Currency Statements
Available Study Resources on Quizplus for this Chatper
19 Verified Questions
19 Flashcards
Source URL: https://quizplus.com/quiz/68568
Sample Questions
Q1) For the reporting period ending 30 June 20X6 the consolidated financial statements of Little Ozzie Battlefield Equipment Ltd will show
A)goodwill of A$1 875 000 and a translation difference expense of A$312 500 which is recognised as other comprehensive profit
B)goodwill of A$2 000 000 and a translation difference expense of A$312 500 which is recognised as other comprehensive profit
C)goodwill of A$1 875 000 and a translation difference expense of A$125 000 which is recognised as other comprehensive profit
D)goodwill of A$1 875 000 and a translation difference revenue of A$312 500 which is recognised as other comprehensive profit
Q2) Under AASB 121 when an entity gains control of a foreign operation, the amount of the goodwill is measured in the functional currency of the foreign operation, not the functional currency of the parent.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 24: Consolidated Cash Flow Statements
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/68567
Sample Questions
Q1) In preparing the consolidated cash flow statement for an entity with a foreign subsidiary, which of the following statements is most likely to be correct?
A)the cash flow statement of the subsidiary will be prepared in the functional currency of the parent
B)the cash flow statement of the subsidiary will be translated directly into the presentation currency used in the consolidated financial statements
C)the cash flow statement of the subsidiary will not require translation as it will be prepared in the presentation currency used in the consolidated financial statements. D)there will be not translation since the subsidiary will not itself have to prepare a cash flow statement.
Q2) The preparation of a consolidated cash flow statement is straight-forward as it is merely an aggregation of amounts in the cash flow statements of group members. A)True B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 25: Equity Accounting Expanded and Joint Ventures
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/68566
Sample Questions
Q1) When the equity method is discontinued due to there no longer being significant influence, the investment carrying amount becomes the initial 'cost' recognition for whatever method takes its place.
A)True
B)False
Q2) The Sporty joint venture was set up to manufacture and produce a 'tennis robot'.This tennis robot fires tennis balls at specified speeds in specified directions.One of the three equal contributors to the joint venture, Pat Ltd contributed equipment with a carrying amount of $100 000 (cost of $180 000 less accumulated depreciation of $80 000).This equipment had a fair value of $140 000.How much profit (if any), would be recorded by Pat for this contribution?
A)$80 000
B)$40 000
C)$26 667
D)Nil
Q3) Jointly controlled operations (JCOs) are not legal entities and can not own assets or incur liabilities.
A)True
B)False
Page 27
To view all questions and flashcards with answers, click on the resource link above.
Chapter 26: Segment Reporting
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/68565
Sample Questions
Q1) Under AASB 8 we must always report the amount of segment net assets - the difference between segment assets and segment liabilities
A)True
B)False
Q2) Which of the following is not listed in AASB 8 as a factor to be considered when combining reportable segments?
A)the country in which the segments are located
B)the nature of the production processes
C)the type or class of customer for their products and services
D)the nature of the products and services
Q3) Gains on the sale of investments only form part of segment revenue if:
A)the segment is involved in the development and sale of houses and apartments
B)they are internally reported to senior management as part of segment profit or loss
C)he segment is involved in activities primarily of a financial nature
D)and only if they relate to investments in associates
To view all questions and flashcards with answers, click on the resource link above.