1. In which account are post-dated checks received classified? A. Prepaid Expenses B. Receivables C. Cash D. Payables

2. In which accounts are postage stamps classified? A. Inventory B. Cash C. Receivables D. Office Supplies

3. Accounts receivable are classified as current assets: A. Only if the allowance method is used to estimate the uncollectible accounts B. Only if convertible into cash within one year C. Only if convertible into cash within 60 days or sooner D. Whenever the accounts receivable arise from normal sales of merchandise to customers, regardless of credit terms.

4. Which of the following is considered cash? A. Money market savings certificates B. Certificate of deposit C. Checking accounts D. Postdated checks

5. Travel advances should be reported as A. Investments B. Supplies C. Cash because they represent the equivalent of money D. Receivables

6. Which of the following is not considered cash for financial reporting purposes? A. Money orders, certified checks and personal checks B. Petty cash and change funds C. Coin, currency and available funds D. Postdated checks and I.O.U's

7. Under which section of the balance sheets is "cash restricted for plant expansion" reported? A. Current Liabilities B. Shareholder's Equity C. Non current Assets D. Current Assets

8. Which of the following should be classified as trade receivables? A. Amounts due from customers B. Loans to employees C. Claims in litigation D. Cash dividends receivable

9. Which of the following accounting principles primarily supports the use of the allowance for doubtful accounts? A. Full-disclosure principle B. Cost principle C. Matching principle D. Continuity principle

10. All of the following may be included under the heading of "Cash" except, A. Checking account balance B. Savings account balance C. Money market funds D. Currency

11. Which of the following statements concerning compensating balance is not true? A. They increase the effective interest rate to the borrower B. They always involve legal restrictions on the cash received C. They reduce the amount of cash available to the borrower D. They must be disclosed in the financial statements.

12. In order to be classified as cash equivalents, an investment must have a maturity date of A. Less than six months B. Three to six months C. Three months or less D. Six to twelve months

13. Short-term non-interest bearing notes receivable are usually recorded at their A. Principal value B. Present value C. Maturity value D. Net realizable value

14. When a company has acquired a passive interest in another corporation, the acquiring company should account for the investment A. By using the effective interest method B. By consolidation C. By using the fair value method D. By using the equity method

15. The sales returns and allowances account is reported as a: A. Contra-revenue account on the income statement B. Current liability on the statement of financial position C. Deduction from accounts receivable on the statement of financial position D. Selling expense on the income statement.

16. Which of the following is classified as a current liability on the Statement of Financial Position? A. Customer non sufficient fund checks B. Postdated checks C. Bank overdrafts D. Travel advances

17. Under PFRS 9, which is not a category for accounting for investments? A. Amortized cost B. Held-to-maturity C. Fair value through other comprehensive income D. Fair value through profit and loss.

18. Debt investments the meet the business model and the contractual cash flow test are reported at A. Amortized cost B. Fair value C. The lower of amortized cost or fair value D. Net realizable value

19. An entity over which investor has significant influence is called a A. Joint Operation B. Associate C. Subsidiary D. Joint Venture

20. If the investor ceases to have significant influence over an associate, how should the investment be treated? A. The investment should be treated at cost B. The investment should be frozen at the date at which the investor ceases to have significant influence. C. It should still be treated using the equity accounting D. It should be treated in accordance with PFRS 9

21. When bonds are acquired at a premium and the effective interest method is used, at each interest payment date, the interest income: A. Is equal to the change in book value B. Decreases C. Remains constant D. Increase

22. Which of the following is correct about the effective-interest method of amortization? A. Amortization of a premium decreases from period to period B. The effective-interest method applied to investments in debt securities is different from that applied to bonds payable. C. Amortization of a discount decreases from period to period D. It must be used to amortize a discount or premium unless some other method yields a similar result.

23. Held-to-maturity securities are reported at A. Acquisition cost plus interest B. Acquisition cost C. Fair value D. Acquisition cost plus amortization of a discount

24. Bonds usually sell at a premium A. When the market rate of interest is greater than the stated rate of interest B. When the price of the bonds is greater than their maturity value C. In none of these D. When the stated rate of interest is greater than the market rate of interest

25. A derivative may be A. An asset account B. A liability account C. An owner's equity account D. Either an asset or a liability account

26. The interest rate written in the terms of the bond indenture is known as the A. Any of the given choices. B. Nominal rate C. Stated rate D. Coupon rate

27. Which of the following is not a debt security? A. Convertible bonds B. Commercial paper C. Preferred shares D. Loans receivable

28. The covenants and other terms of the agreement between the issuer of bonds and the lender are set forth in the A. Bond debenture B. Bond indenture C. Registered bond D. Bond coupon

29. Which of the following are reported at fair value? A. Equity investments B. Debt investments C. None of these D. Both debt and equity investments

30. Which of the following is not a derivative? A. Option contracts B. Equity contracts C. Futures contracts D. Swap contracts

31. K Corporation should include the following in its inventory A. Goods out on consignment to the N company B. Goods purchased FOB destination still en route C. Goods it sold FOB shipping point, still en route D. Goods held for pick-up by the buyer.

32. Regarding the choice of measurement basis used for valuing biological assets, PAS 41 A. Recommends the use of present value B. Sets out several ways of measuring fair value C. Recommends the use of historical cost D. Recommends the use of current cost

33. Which of the following flow assumptions is not acceptable under PFRS 2? A. Average cost B. Last in, first out C. Specific identification D. First in, first out

34. Which of the following costs of conversion should not be included in the cost of inventory? A. Cost of direct labor B. Salaries of sales staff C. Factory overheads based on normal capacity D. Factory rent and utilities

35. J Company should include the following items in its merchandise inventory A. Goods held on consignment from the R B. Company to the J Company B. Goods purchased FOB Shipping point still en route C. Goods sold by J Company FOB Shipping point still en route D. Goods purchased FOB destination still en route

36. Inventory should be stated at A. Lower of cost and net selling price B. Lower of cost and nominal value C. Lower of cost and fair value D. Lower of cost and net realizable value

37. A manufacturing company has three basic types of inventory A. Perpetual, periodic and estimated B. FIFO and average method. C. Raw materials, work-in-process and finished goods D. Finished goods, work-in-process and ready-to-sell merchandise

38. Which of the following should be excluded from inventories? A. Goods held on consignment B. Shopworn goods salable at a price lower than the regular sale price. C. Goods out on consignment D. Goods in transit to which title is held.

39. In a perpetual inventory system, recording a sale on account involves debiting which of the following accounts? A. Only Accounts Receivable B. Accounts Receivable and Cost of Goods Sold C. Accounts Receivable and Inventory D. Accounts Receivable, Cost of Goods Sold and Inventory

40. Which of the following costs are not included in the point-of-sale costs? A. Levies by regulatory agencies B. Transport and other costs necessary to get the assets to a market C. Transfer duties and taxes D. Commissions to brokers and dealers

41. A franchise should be classified on the statement of financial position as a(n) A. Intangible asset B. Deferred charge C. Current asset D. Operational asset

42. Intangible assets have all of the following characteristics except, A. They are relatively long-lived B. Their ownership confers rights, but no physical substance C. They provide benefits to current operations only D. They have no physical substance

43. Land that is related to agricultural activity is value A. At fair value. B. In accordance with PAS 16, Property, c. Plant and Equipment or PAS 40, Investment Property C. At fair value in combination with the biological asset that is being grown on the land D. At the resale value separate from the biological asset that has been grown in the land.

44. Amortization of intangible assets results primarily from the application of the A. Matching principle B. Full-disclosure principle C. Cost principle D. Revenue principle

45. Generally speaking, biological assets relating to agricultural activity should be measured using A. A fair value approach B. Historical cost C. Net realizable value D. Historical cost less depreciation less impairment

46. Plant assets may properly include A. Self-constructed assets currently in use B. Land held for possible use as a future plant site C. Property held for investments purposes D.Deposits on machinery purchased and not yet received E. Idle equipment awaiting sale

47. Which item does not qualify as an intangible asset? A. Registered patent B. Computer software C. Notebook computer D. Copyrights that are protected

48. A consideration in determining the useful life of an intangible asset is not the A. Expected actions of competitors B. Initial cost C. Provisions for renewal or extension D. Legal, regulatory, or contractual provisions

49. Which of the following is least likely to be classified in property, plant and equipment? A. Idle land B. Land C. Land improvements D. Natural resources

50. Amortization of an intangible asset is usually recorded as a A. Debit to amortization expense and a credit to the intangible asset account or contra account B. Debit to amortization expense and a credit to a contra account C. Debit to retained earnings and a credit to a tangible asset account D. Debit to retained earnings and a credit to a contra account