Financial Accounting Quizbowl
EASY
1. Which of the following is an appropriate combination of a biological asset and its agricultural produce? Biological assets Agricultural produce A. Sheep Yarn B. Trees in plantation forest Logs C. Dairy cattle Butter D. Pigs Carcass
2. Apportionment of the purchase price in a lump sum acquisition of different assets is based on all of these, except A. Book values of the assets to the seller B. Relative market values C. Tax assessment values D. Appraisal values
3. When bonds are issued between interest payment dates, any accrued interest received is usually credited to A. Interest expense B. Interest income C. Interest receivable D. Bond premium
4. An airline should recognize revenue from an airline ticket in the period in which A. Passenger reservations are booked B. Passenger reservations are confirmed C. Ticket is issued D. Related flight takes place
5. Which of the following is not a distinguishing characteristic of a derivative instrument? A. Terms that require or permit net settlement B. Must be “highly effective” throughout its life C. No initial net investment D. One or more underlyings and notional amounts
6. These are group or divisional assets (e.g., head office building, EDP, equipment or research center) that do not generate cash inflows independently from other assets and that are usually regarded as part of cash generating unit. A. Corporate assets B. Subsidiary C. Service departments D. Exclusive cash generating unit
7. Assume that employees confessed to a P500,000 inventory theft but are not able to make restitution. How should this material fraud be shown in the company’s financial statements?
A. Classified as loss and shown as a separate line item in the statement of comprehensive income.
B. Initially classified as an account receivable because the employees are responsible for the goods. Because they cannot pay, the loss would be
1. Which of the following is an appropriate combination of a biological asset and its agricultural produce? Biological assets Agricultural produce A. Sheep Yarn B. Trees in plantation forest Logs C. Dairy cattle Butter D. Pigs Carcass
2. Apportionment of the purchase price in a lump sum acquisition of different assets is based on all of these, except A. Book values of the assets to the seller B. Relative market values C. Tax assessment values D. Appraisal values
3. When bonds are issued between interest payment dates, any accrued interest received is usually credited to A. Interest expense B. Interest income C. Interest receivable D. Bond premium
4. An airline should recognize revenue from an airline ticket in the period in which A. Passenger reservations are booked B. Passenger reservations are confirmed C. Ticket is issued D. Related flight takes place
5. Which of the following is not a distinguishing characteristic of a derivative instrument? A. Terms that require or permit net settlement B. Must be “highly effective” throughout its life C. No initial net investment D. One or more underlyings and notional amounts
6. These are group or divisional assets (e.g., head office building, EDP, equipment or research center) that do not generate cash inflows independently from other assets and that are usually regarded as part of cash generating unit. A. Corporate assets B. Subsidiary C. Service departments D. Exclusive cash generating unit
7. Assume that employees confessed to a P500,000 inventory theft but are not able to make restitution. How should this material fraud be shown in the company’s financial statements?
A. Classified as loss and shown as a separate line item in the statement of comprehensive income.
B. Initially classified as an account receivable because the employees are responsible for the goods. Because they cannot pay, the loss would be