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T7 PDF DEMO:
QUESTION NO: 1
Identify the characteristic being employed when companies in the same industry are using the same accounting principles.
A. Comparability
B. Relevance
C. Faithful representation
D. Verifiability
Answer: A
QUESTION NO: 2
What are the expenses related to a company's financing and investing activities called?
A. Noncurrent expenses
B. Current liabilities
C. Non operating expenses
D. Operating expenses
Answer: C
QUESTION NO: 3
Which of the following is true of liabilities?
A. Current liabilities come due in less than a year
B. Current liabilities come due in less than 18 months
C. Noncurrent liabilities come due in less than a year
D. Both current and noncurrent liabilities come due in less than a year
Answer: A
QUESTION NO: 4
Why is accounting for defined benefits plans one of the most complex issues in International
Financial Reporting Standards?
A. Because it involves incorporating actuarial assumptions into measurement of the obligation and the expenses
B. Because defined benefits plan obligations are not measured on a discounted basis
C. Because defined benefits plans must be settled within ten years after the employee renders the related service
D. Because the employer is not allowed to incorporate actuarial assumptions into measurement of the obligation and the expenses
Answer: A
QUESTION NO: 5
Employee benefits that are expected to be settled wholly before twelve months after the end of the annual reporting people in which the employee rendered the related service are considered what kind of benefits?
A. Short-term benefits
B. Post-employment benefits
C. Termination benefits
D. Long-term benefits
Answer: A
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Updated: May 26, 2022