Deck20

Question 1

Definition of Liability

Answer 1

(a)Probable future sacrifice to (b)transfer assets or provide services - (c)result of a past transaction

Question 2

What is the purpose of comprehensive income?

Answer 2

To summarize all Changes in Equity from nonowner sources.

Question 3

If land is bought immediately before a building construction project, is the interest on the land Capitalized?

Answer 3

No - it’s used in calculating average accumulated expenditures, but the interest is only capitalized on the building.

Question 4

Definition of SME (IFRS).

Answer 4

(a) NO public accountability (b)published financial statements for external users

Question 5

Reclassification of Marketable Securities from HTM to AFS are recorded at what amount?

Answer 5

Always at Market Value

Question 6

For debt investments other than HTM, which valuation method applies?

Answer 6

Fair Value

Question 7

With a deferred Revenue, when is cash received?

Answer 7

First before the action for payment is performed

Question 8

When can a deferred revenue be recognized?

Answer 8

When it is (a)Earned and (b)Recognizable

Question 9

What are two other names for Deferred Revenue?

Answer 9

Unearned Revenue and Revenue Collected in Advance