1.
The presentation of the notes to financial statements in a systematic manner – is mandatory, as
far as practicable
2. The amortization of bond discount related to – addition to net income
3. The standard of adequate disclosure – all information related to the business
4. Which of the following as a counterbalancing error – prepaid expense adjusted incorrectly
5. All of the following could potentially be classified – dividends paid
6. The overstatement of ending inventory in the current year – statement of financial position
7. Events that occur after the current year end but before financial - used to record an
adjustments
8. At the middle of the year, an entity paid for insurance premium – overstates owner’s equity
9. Kamala company - 240,000 overstated
10. An overstatement of ending inventory in the current period – understated
11. Rolly company – 11,000 understated
12. If inventory is overstated at the beginning of the year – overstate cost of goods available for
sale
13. Which of the following statements is true – notes to the financial statements would give details
of material non-adjusting events
14. Under pfrs, interest paid – operating or financing
15. Events after the reporting period are favorable – the end of the reporting period on the date
16. Biden company – understated by 60,000
17. An entity shall disclose in the summary of significant – the measurement basis and the
accounting policies used
18. At the end of the current year, an entity failed to accrue sales commissions – overstated and
overstated
19. Which of the following is not required as a separate related party dislosure – an entity that has
a common director with the entity
20. Net cash used in financing activities – 7,150,000
21. Which of the following is not a mandated disclosure – names of all the associates that an entity
22. Which of the following errors would result in an overstatement – holiday pay expenses
23. If at the end of the reporting period, an entity erroneously excluded some goods – no effect on
net income
24. Effect of the errors on net income – 16,000 understated
25. A cash dividend that is declared during – a non-cash transcation presented
26. Disclosures of related party transaction include all excepts – sales of inventory by a subsidiary
to the parent ?
27. All of the following can be classified as cash and cash equivalents except – Equity investment ?
28. The current year end physical inventory appropriately – no effect, understate, understate
29. Which of the following would cost income of the current period – understating estimate
residual value
30. Errors on working capital – 6,000 overstated
31. Failure to record accrued salaries – overstated retained earnings
32. Under pfrs, dividends paid – operating or financing
33. Disclosure of information about judgments - is mandatory
34. At the end of the curent year, special insurane cost – understated and no effect
35. Non-adjusting events include all except – destruction of a major production plant by fire ?
36. Which of the following, if discovered in the accounting period subsequent - capitalization of an
expense
37. Disclosure of information about key sources of estimation – is mandatory
38. Which of the following is not a required minimum disclosure – the amount of similar
transaction with an related parties
39. Investing activities include – cash payments for future contract
40. When the current year’s ending inventory is overstated - the current year’s net income is
overstated