Deck13

Question 1

Under IFRS, what is an SME?

Answer 1

A small or medium sized business(with a couple stipulations)

Question 2

IFRS for SME’s is what basis of accounting? Accrual or Cash

Answer 2

Accrual

Question 3

What are some examples of OCBOA’s?

Answer 3

Cash Basis, Modified Cash Basis, Income Tax Basis

Question 4

Under IFRS for SME’s, which cost assumption valuation method can be used for Inventory? FIFO, LIFO, Weighted Average

Answer 4

FIFO and Weighted Average

Question 5

Under IFRS for SME’s, should goodwill be amortized?

Answer 5

Yes

Question 6

Would extraordinary gains appear on an Income Statement under IFRS (not for SME’s)?

Answer 6

Yes, but not as “Extraordinary” under IFRS

Question 7

IFRS requires a Statement of Financial Position. What are the required classifications?

Answer 7

Current and Noncurrent Assets and Liabilities. (Noncurrent is the default category)

Question 8

How is an overdrawn account reported on the balance sheet?

Answer 8

As a Current Liability

Question 9

Under the direct write off method, write offs are credited directly to _____________________________.

Answer 9

Accounts Receivable

Question 10

What is “Risk of Accounting Loss on Accounts Receivable” (Credit Risk)?

Answer 10

The amount of loss you would suffer if those who owe you money don’t pay it

Question 11

Off Balance Sheet Risk is:

Answer 11

The amount of risk that does not show on the balance sheet (if all of the risk shows on the balance sheet [Allowance for doubtful Accounts] then the Off Balance Sheet Risk is 0.

Question 12

Allowance for Doubtful Accounts Increases (under the Allowance Method) when:

Answer 12

Estimated Uncollectible Accounts are recognized

Question 13

For IFRS, when calculating inventory carrying cost, is Replacement Cost relevant?

Answer 13

No

Question 14

Can interest be capitalized after an asset is placed in service?

Answer 14

No

Question 15

What amount of interest is Capitalized Interest (on an Asset being built) limited to?

Answer 15

The interest that would have been avoided had the construction no occurred.

Question 16

The amount of interest to be capitalized is the lesser or the ____________interest or ______________ interest.

Answer 16

Actual, Avoidable

Question 17

For Capitalizing Interest on Construction Loans, the “Specific Interest Method” uses:

Answer 17

Interest on construction loans first, and then remaining debt

Question 18

For Capitalization of Interest on Construction Loans, the “Weighted Average method” uses:

Answer 18

Interest rate on the average for all debt incurred by the firm.