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Study Resources (Accounting)

11.For an asset to be recognised, it is required to possess a cost or other value that can be measured exactly. 12.Advertising expenditures are typically expensed as incurred because the future economic benefits are uncertain to occur. 13.The preserved body of famous Australian racehorse Phar Lap is an example of a heritage.
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21.According to the AASB Framework an asset should have a number of characteristics, including:  A. It must be owned by the entity. B. It must be expected to provide future economic benefits to the entity. C. The transaction giving rise to the ownership must have already occurred. D. The future economic benefits must be very likely to eventuate. 22.The.
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19.Positive Accounting Theory seeks to: A. prescribe which accounting methods should be used in particular circumstances. B. explain and predict which accounting methods management is likely to select from available choices. C. describe how social relationships are implicated in lobbying by interest groups in accounting standard setting. D. formulate an understanding of how.
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51.AASB 116 permits which of the following with respect to measurement of non-current assets using revaluation model?   A. Net revaluation decrements for each class of asset are initially debited to asset revaluation reserve. B. Use of cost model to measure other assets in the same class. C. All increments arising from revaluation are credited to asset.
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29.Within the principal/agent perspective of PAT, the price-protection approach is: A. The principal pays the agent a lower salary on the basis that the agent is expected to undertake opportunistic behaviour. B. The contract between the principal and agent includes a clause that stipulates the basis for pricing of goods so.
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Multiple Choice 16-M/C #1.           Plaintiffs and victims have a number of possible legal mechanisms available to recover assets either through the civil or criminal justice system with the exception of: Expropriation Freezing orders Judgments Insurance and Bonds 16-M/C #2.           With the ________ Rule, the basis of foundation for the opinion may not be based on “junk.
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16-TRQ #1.          What is the difference between fact witnesses and expert witnesses? 16-TRQ #2.          In what types of cases may a forensic accountant serve as an expert witness? 16-TRQ #3.          When may an expert’s opinion be subject to challenge? 16-TRQ #4.          What is a deposition and why is it used? 16-TRQ #5.          What is.
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1.The Conceptual Framework can be described as a positive theory of accounting.  2.In the decade leading up to the 1970s the notable theories being developed were predominantly normative in nature. 3.Normative theories are referred to as prescriptive theories. 4.PAT outlines the best (or most positive) way of preparing accounting reports..
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51.Pursuant to AASB 116, what is the carrying amount of an asset?   A. cost less accumulated depreciation B. cost or revalued amount less the accumulated depreciation and any accumulated impairment losses C. revalued amount less accumulated depreciation and any impairment losses D. cost or revalued amount less the accumulated depreciation 52.The company has a depreciable asset with a purchase.
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61.A non-current asset, for example, a building, has the following information available for valuation at balance date: Depreciable amount $50 000Accumulated depreciation $10 000Residual value $5 000Recoverable amount $35 000Value in use $80 000Which amount should be the carrying amount of this asset at balance date?   A. $5000 B. $35 000 C. $40 000 D. $80 000 62.Which of.
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1.Financial accounting can be considered a process involving the collection and processing of financial information to assist the decision-making needs of parties internal to an organisation.  2.The regulation of accounting can be argued to be necessary to protect the information rights of parties not involved in the day-to-day operations of.
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11.AASB 101 requires the summary of accounting policies adopted by reporting entities to be presented in any section of the notes to the financial report. 12.PAT suggests that agents agree to bonding and monitoring mechanisms to avoid price protection by principals. 13.Creative accounting violates IFRS standards and generally accepted accounting.
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Short Answer Essay 16-SAE #1.           What steps should the forensic professional take, assuming that legal counsel initiated the fraud investigation? 16-SAE #2.           What three attributes must the plaintiff demonstrate in a civil framework? Critical Thinking Exercise This is an unusual paragraph. I’m curious how quickly you can find out what is so unusual about.
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21. A central goal in establishing a conceptual framework of accounting will be to obtain general consensus on: A. the scope and objectives of financial reporting. B. the qualitative characteristics that financial information should possess. C. what the elements of financial reporting are, including agreement on the characteristics and recognition criteria for.
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21.A class of non-current assets as defined by AASB 116 is a category of non-current assets that:   A. were all purchased at the same time by the reporting entity. B. all have a similar nature or function in the operations of the entity. C. are disclosed as a single item without supplementary dissection in the financial.
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61.Which of the following items are required to calculate ‘value in use' of an asset?   A. exit and entry prices B. purchase price and cost of disposal C. estimated net future cash flows and appropriate discount rate D. estimated net future cash flows 62.If an impairment loss recognised in prior periods for a revalued asset no longer exists, AASB.
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41.AASB 101 requires, as a minimum, certain line items to be included on the face of the statement of financial position . Additional line items may be disclosed based on an assessment of:   A. the nature and liquidity of assets. B. the functions of the assets within the entity. C. the amounts, nature and timing of.
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1.  The AASB Framework has the force of law.  2.  The Australian Accounting Standards Board (AASB) retained the use of its own conceptual framework even after harmonisation.  3.  The AASB Framework serves as a guide to the Australian Accounting Standards Board (AASB) in developing accounting standards.  4.  The AASB Framework.
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15-TRQ #1.          What are the various categories and calculations used in ratio analysis? 15-TRQ #2.          What are some of the decisions that need to be made with regard to quantifying lost revenues and increased expenses? 15-TRQ #3.          How may lost profits be calculated using typical benchmarks? 15-TRQ #4.          What are the considerations related.
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61.Which of the following statements is a valid reason to select cost model over the revaluation model?   A. to report relevant information B. to reduce taxes C. to properly match costs with expenses D. to simplify the measurement accounting policy 62.Brahms Ltd acquired a property of land and building for $1.5 million. Management estimates the value of land to.
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Short Answer Essay 15-SAE #1.           Define four different measures of value used by a forensic accountant. 15-SAE #2.           Compare two methods that can be used to develop estimates of lost sales and incremental expenses. Critical Thinking Exercise How many outs are there in an inning? .
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11.Depreciation of an asset is required when market value accounting is applied on a non-current asset. 12.AASB 116 allows capitalisation of items of plant and property because these are considered prepayments. 13.Depreciation expense is always recognised in profit and loss. 14.The depreciable base is the cost of a depreciable asset,.
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47.The Corporations Act requires which of the following statements to be included in a Directors' Declaration? A. whether in their opinion the financial statements comply with accounting standards and the Corporations Act B. whether in their opinion the financial statements give a true and fair view of the financial position and.
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Text Review Questions 16-TRQ #1.          What is meant by remediation? 16-TRQ #2.          What two points must an injured party prove to recover money in a civil lawsuit? 16-TRQ #3.          What are the types of losses available for recovery? 16-TRQ #4.          How does the legal system differentiate between “following” versus “tracing’ the money? 16-TRQ #5.          What.
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31.Heritage assets have characteristics that create doubt about whether or not they satisfy the definition of an asset. These characteristics include:   A. They are not expected to generate net economic benefits. B. They never generate cash inflows. C. They are unlikely ever to be sold. D. They are not expected to generate net economic benefits and they are.
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51.How should borrowing costs relating to an asset being constructed over a substantial period of time be treated in the accounts?   A. expensed as incurred B. capitalised and amortised over the period of the construction of the asset C. accrued and amortised over the period of the loan D. capitalised as part of the cost of the asset 52.Golden.
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21.Depreciation is required because it is generally accepted that:   A. Assets will decrease in value over time. B. The economic benefits of an asset will not last indefinitely. C. Wear and tear on an asset must be recorded as an expense. D. Even though land may go up in value its cost needs to be recognised as an.
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49.Economic interest group theory of regulation adopts the notion that _____________ are considered to dominate the legislative process. A. public interests B. private interests C. shareholders D. debtholders 50.A machine with a carrying amount of $9000 has a net selling price of $8000. The replacement cost of this asset is $10 000 and the.
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31. The IASB Conceptual Framework for Financial Reporting (as released in 2010), requires that general purpose financial reports disclose information that is: A. relevant to the assessment of profit, funding and investing, and compliance. B. relevant to the assessment of financial and social performance, financial position and funding and investing, and.
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41.When an item of property, plant and equipment is derecognised the treatment of any asset revaluation reserve that relates to an asset include:    A. debiting the asset revaluation reserve in the journal entry to record the profit or loss on sale of the asset. B. transferring the relevant amount out of the.
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37.In recent times, the AASB has been reluctant to include alternative options within standards. This means:  A. Entities within Australia will have the choice as to whether or not they choose to meet the requirements detailed in accounting standards. B. The number of options within IFRS-adopted accounting standards is expected.
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15-M/C #1.           The venues where the fraud examiner or forensic accountant can expect to be evaluated, scrutinized, challenged, etc. excludes the following: Deposition testimony FASB Trail testimony Meetings with counsel where they determine how to proceed with the case 15-M/C #2.           Valuations can be developed to address a number of issues. For example, they may.
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True/False 16-T/F #1.              Remediation is characterized as the steps necessary to “clean up the mess” after a fraud or financial crime has been discovered and investigated, and the results of the investigation have been reported. 16-T/F #2.              To prove fraud, the investigator needs to provide evidence that the perpetrator was involved in.
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17.What are two key ways management accounting is different from financial accounting? A. Management accounting provides special-purpose information to people external to the firm and it is highly regulated. B. Management accounting provides information for the day-to-day running of an organisation and it is governed by the requirements of ASIC. C. Management.
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11.The main role of the Financial Reporting Council (FRC) is to develop a new conceptual framework for financial reporting.  12.The main role of the International Financial Reporting Interpretations Committee (IFRIC) is to review accounting issues that are likely to receive divergent or unacceptable treatment in the absence of authoritative guidance..
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57.If a company does not comply with the Australian Securities Exchange Listing Rules, Chapter 3 and 4, it may be: A. fined. B. removed from the board. C. liquidated. D. delisted and deregistered. 58.A general purpose financial statements means:  A. a financial report intended to meet the information needs of users who are unable.
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27.Section 296 of the Corporations Act requires (all or in part): A. the AASB to follow the broad strategic direction determined by the FRC. B. the directors to make a declaration stating whether, in their opinion, the financial statements comply with accounting standards. C. the AASB to develop a conceptual framework, not.
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51.  Consider the following information You are an accountant for both firms and would like to determine whether the impairment loss is material or not. Which of the following statement(s) is/are correct?  A.  The impairment loss for both firms is material. B.  The impairment loss for Manly Ltd is material. C. .
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39.Firms are subject to political costs when: A. They are quite small and have little political influence. B. They choose accounting policies that best reflect the performance of the firm. C. They record high profits and share those profits in the form of increased wages. D. They are highly visible, in the media.
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Text Review Questions 15-TRQ #1.          What is the purpose of practice aids in forensic and valuation services? 15-TRQ #2.          What are the different types of consulting and litigation support activities for fraud and forensic professionals? 15-TRQ #3.          What is included as an expert’s work product? 15-TRQ #4.          What must an injured party prove to.
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