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  11. Segment disclosures are designed to: a. combine components of consolidated financial data to provide a higher level of summarisation; b. condense particular items of consolidated financial data into one financial statement; c. disaggregate selected consolidated financial data; d. aggregate revenues and expenses so that only net profit is shown for each important segment. 12..
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1. The Corporations Act requires the following entities to prepare a financial report, except for: a. public companies. b. small proprietary companies. c. large proprietary companies. d. registered schemes. 2. Which of the following entities is a large proprietary company? a. A company that earns $30 million of annual revenue, controls $10 million of assets, and.
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  16. Which of the following statements in relation to assessing E&E assets for impairment is correct? a. The level at which and E&E asset is tested for impairment may consist of one or more cash-generating units b. AASB 6 allows the cash-generating unit or group of cash-generating units to which an E&E.
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  11. If a liability satisfies the following criterion it will be classified as non-current: a. due to be settled within twelve months of the balance date b. expected to be settled in the entity’s normal operating cycle c. due to be settled more than twelve months after the statement of financial position date d..
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  16. During 2013 Sacco Limited, estimated that the carrying amount of goodwill was impaired and wrote it down by $50 000. In 2014, the company reassessed goodwill was decided that the old acquired goodwill still existed. The appropriate accounting treatment in 2014 is: a. reverse the previous goodwill impairment loss b. recognise.
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  6. Agricultural produce is defined in AASB 141 as: a. a living animal or plant b. a living product capable of biological transformation c. the harvested product of the entity’s biological assets d. the detachment of produce from a biological asset or cessation of a biological asset’s life processes 7. Which of the following is.
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  26. Which measurement base uses the discounted future net cash inflows or net cash savings that are expected to arise in the normal course of business in measuring the value of an asset? a. Historical cost b. Current cost c. Present value d. Realisable value 27. Which of the following statements about the Conceptual Framework’s.
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1. The requirements of AASB 101 apply to the following sets of financial statements: a. condensed financial statements b. interim financial statements c. general-purpose financial statements d. special purpose financial statements. 2. Items that are dissimilar in nature must be presented separately in financial statements unless: a. they are immaterial; b. they are financial items in which.
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a. movements in non-current liabilities of an entity b. revenues and expenses of an entity c. acquisitions of non-current assets of an entity d. changes in equity of an entity. 7. Items classified as financing activities on an entity’s Statement of Cash Flows are usually associated with: a. movements in non-current liabilities and equity b. sales.
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  21. The cost of an intangible asset is comprised of the fair value of the consideration: a. less legal costs incurred in the purchase b. plus directly attributable costs c. plus indirect costs d. less directly attributable costs 22. The original and planned investigation undertaken with the prospect of gaining new knowledge is described as: a..
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  21. Value in use is: a. amount obtainable from disposal of an asset excluding any selling costs b. initial cost of an asset less any expected disposal costs c. incremental costs directly attributable to disposal of an asset d. the present value of future cash flows expected to be derived from an asset 22. Constructor.
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  16. A quality of information demonstrated when different independent observers could reach the same general conclusions that the information represents what it purports to represent is: a. verifiability. b. comparability. c. understandability. d. neutrality 17. Some of the implications of adopting the going concern assumption are shown in the following accounting practices, except: a. justification of.
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  11. Unless acquired under a business combination, intangible assets must be initially measured using which of the following measurement approaches? a. discounted cash flows b. fair value c. net present value d. cost. 12. According to the definition provided in AASB 138 Intangibles, activities undertaken in the ‘research’ phase of the generation of an asset.
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1. AASB 6 Exploration for and Evaluation of Mineral Resources was issued by the AASB in: a. 2000 b. 2004 c. 2006 d. 2007 2. The scope of AASB 6 is limited to: a. Exploration and evaluation expenditures b. Pre-exploration, exploration and evaluation expenditures c. Exploration, evaluation and development expenditures d. Pre-exploration, exploration, evaluation and development expenditures 3. In the.
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  21. AASB 8 prescribes that an operating segment must be identified on the basis of: a. geographic location; b. predominant sources of risks and returns; c. the way information is reported internally to the CODM; d. the usefulness of financial information available to users. 22. Segments that do not satisfy the requirements of a reportable.
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  16. Which of the following statements is incorrect? AASB 8 requires external revenue by product to be disclosed on an entity wide basis by all entities to which AASB 8 applies: a. unless the information has already been provided as part of the reportable segment information; b. unless the information is not available.
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  16. Under AASB 138 Intangibles, an intangible asset with an indefinite useful life is: a. not able to be recognised by an entity as an asset b. not subject to annual amortisation charges c. amortised using the straight-line method over a period of no more than 20 years d. amortised using the reducing balance.
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  11. A conceptual framework consists of a set of principles with the purpose to: a. assist users in the interpretation of information in financial statements. b. assist preparers of financial statements in the application of accounting standards and in dealing with topics that are not the subject of existing accounting standards. c. assist.
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1. Disclosure of related parties is essential in financial reporting because: a. related parties cannot be trusted; b. there are certain limits imposed on entities in regards to how many related party transactions they could have; c. related parties have the potential to affect an entity’s profit or loss and financial position that.
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1. For financial reporting periods commencing prior to 1 January 2009, the accounting standard relating to segment reporting was: a. AASB 8 Operating Segments; b. AASB 114 Segment Reporting; c. AASB 114 Operating Segments; d. AASB 8 Segment Reporting. 2. AASB 8 Operating Segments is primarily a: a. disclosure standard; b. measurement standard; c. definition standard; d. conceptual standard. 3..
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  21. Which of the followings satisfy the definition of expenses? a. Cash withdrawal by owner. b. Payment of dividends to shareholders. c. Purchase of equipment. d. Payment of salaries to employees. 22. The definition of income encompasses the following criteria, except: a. increases in economic benefits. b. control of increases in economic benefits by the entity. c. including.
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  21. Which of the following statements in relation to errors is correct? a. Errors must be accounted for on a retrospective basis. b. Under the “all inclusive” concept of profit, accounting errors must be recognised in profit and loss for the period. c. All errors, regardless of their size must be corrected as.
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  26. The application of International Financial Reporting Standards with additional disclosure where necessary is presumed to result in financial statements that: a. will result in a fair presentation; b. contain only material items; c. are free from error and misstatement; d. are unbiased. 27. Included in a statement of changes in equity are the following.
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  21. AASB 6 is an example of: a. an industry specific standard b. a not-for-profit standard c. a standard applicable to disclosing entities d. a differential reporting standard based on size based criteria 22. Accounting policies for exploration and evaluation costs should be determined: a. in accordance with AASB 6 b. in accordance with AASB 108 c. in.
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  11. Which of the following is NOT included as part of the initial cost of exploration and evaluation assets? a. exploratory drilling b. miming acquisition rights c. trenching d. pre-exploration survey fees 12. The majority of an entity’s obligations for removal and restorations costs are incurred during which phase of a project? a. exploration phase b. technical.
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1. Under AASB 136 Impairment of Assets, the following assets are subject to impairment testing: a. I b. II c. III d. IV. 2. Which of the following assets need to be tested for impairment every year? I intangible assets with indefinite useful lives II intangible assets not yet available for use III intangible assets accounted for under.
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  6. Aladdin is the owner and founder of Genie Limited. Aladdin’s wife, Jasmine, has a controlling investment in Jafar Limited. Which of the followings describes the relationship between Genie Limited and Jafar Limited? a. Genie Limited and Jafar Limited are not related parties. b. No disclosure about transactions with Jafar Limited is.
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  26. The Statement of Cash Flows presentation method that separates gross cash inflows from cash outflows is known as the: a. equity method b. direct method c. set-off method d. net method. 27. Cash flows arising from the following operating, investing or financing activities may be reported on a net basis when: a. cash receipts and.
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  Use the following information to answer questions 11 to 13 A company reported the following information for a financial year:   Profit from ordinary activities before income tax expense 72 000 Income tax expense 20 000 Depreciation expense 8 000 Issue of shares 40 000 Loan made to another company 6 000 Increase in accounts receivable 1 000 Decrease in inventories 2 000 Cash received from loans.
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  6. Complete the following sentence: AASB 8 Operating Segments is applicable for financial reporting periods _____ on or after 1 January 2009. Early adoption is _______. a. ending, not permitted; b. ending, permitted; c. beginning, not permitted; d. beginning, permitted. 7. Compared to AASB 114 Segment Reporting, AASB 8 Operating Segments can be described as being: a..
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1. Which of the following items must be separately disclosed in the Statement of Cash Flows? I. Dividends paid II. Interest received III. Dividends received IV. Interest paid V. Auditor’s remuneration paid a. I, II, III and IV only b. II, III and IV only c. I, II and V only d. II, III, IV and V only 2. According.
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  21. According to AASB 13 Fair Value Measurement, the market used to determine fair value should be: a. the principal market, or, in the absence of a principal market, the relevant market b. the most advantageous market c. the relevant market d. either the principal market, or, in the absence of a principal market,.
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  26. Which of the followings are the requirements under AASB 8?   I. Identifying primary and secondary segments. IV. Identifying operating segments based on predominant sources of risks and returns. II. Disclosure of reliance on major external customers. V. Preparing segment information in conformity with accounting policies for preparing financial statements. III. Disclosure of a measure of profit or loss and.
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  16. A company issues bonus shares for no consideration on 1 August 2014. For the reporting period ended 30 June 2015, the calculation of: a. only basic earnings per share must be adjusted retrospectively for all periods that are presented in the financial statements b. only the diluted earnings per share must.
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  16. Which of the following statements is correct in relation to government grants? a. Government grants for biological assets measured at fair value are accounted for under AASB 141. b. Government grants for biological assets measured at cost are accounted for under AASB 141. c. Government grants for biological assets measured at fair.
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  11. Mary Ltd determined its profit attributable to ordinary shareholders for the reporting period ended 30 June 2014 as $720 000. The number of ordinary shares on issue up to 31 October 2013 was 50 000. Mary Ltd announced a two-for-one bonus issue of shares effective for each ordinary share.
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  26. Subsequent to initial recognition E&E assets are required to be measured: a. under the cost model b. under the revaluation model c. either under the cost model or revaluation model d. at the lower of the cost and fair value 27. Which of the following statements in relation to the use of the revaluation.
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  6. AASB 133 applies to the computation and presentation of earnings per share by: a. only reporting entities whose shares are publicly traded b. reporting entities whose shares are publicly traded, or of entities that are in the process of issuing ordinary shares that will be traded in public markets c. only those.
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  6. Which of the following methods is the least applied method to account for exploration and evaluation costs? a. the area of interest method b. the successful efforts method c. the appropriation method d. the full cost method 7. Most large oil and gas companies use which of the following methods to account for exploration.
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a. Trade and other receivables b. Revenue c. Cost of sales d. Share of profit of associates. 7. An entity is required to classify its assets and liabilities as current or non-current unless it is considered more relevant and provide more reliable information to present them according to their: a. value b. liquidity c. age d. physical nature. 8..
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  26 It is common for companies applying AASB 141 to: a. attempt to ‘bury’ the fair value movements attributable to agricultural assets in ‘other expenses’ b. separately disclose the fair value movements attributable to agricultural assets in the statement of profit or loss and other comprehensive income or the notes c. disclose the.
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  6. Which regulatory body has the responsibility for overseeing the standard-setting process in Australia? a. AASB b. FRC c. APRA d. ASIC 7. The following statements about the AASB are correct, except: a. The AASB has the authority to issue Australian Accounting Standards. b. The AASB has power to establish committees, advisory panels, and consultative groups. c. Members.
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  11. When an asset is measured using the revaluation model, any impairment loss is treated as: a. a revaluation decrement b. a revaluation increment c. a set-off against depreciation expense d. an addition to depreciation expense. 12. Hayfield Limited recognised an impairment loss of $200 against a cash-generating unit containing the following assets: Buildings $500;.
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1. Earnings per share is calculated by comparing an entity’s: a. revenue with the number of ordinary shares it has on issue b. profit with the number of shareholders c. profit with the number of ordinary shares it has on issue d. revenue with the number of shareholders 2. Earnings per share disclosed by reporting.
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