1. [单选题]8 Which of the following statements about accounting concepts and conventions are correct?
(1) The money measurement concept requires all assets and liabilities to be accounted for at historical cost. (2) The substance over form. convention means that the economic substance of a transaction should be reflected in the financial statements, not necessarily its legal form. (3) The realisation concept means that profits or gains cannot normally be recognised in the income statement until realised. (4) The application of the prudence concept means that assets must be understated and liabilities must be overstated in preparing financial statements.
A. 1 and 3
B. 2 and 3
C. 2 and 4
D. 1 and 4.
2. [单选题]Hindberg is a car retailer. On 1 April 2014, Hindberg sold a car to Latterly on the following terms:
A. Latterly paid $12,650 (half of the cost) on 1 April 2014 and would pay the remaining $12,650 on 31 March 2016 (two years after the sale). Hindberg’s cost of capital is 10% per annum.
B. What is the total amount which Hindberg should credit to profit or loss in respect of this transaction in the year ended 31 March 2015?
C. $23,105
D. $23,000
E. $20,909
F. $24,150
3. [单选题]10 Which of the following factors would cause a company’s gearing ratio to fall?
1 A bonus issue of ordinary shares. 2 A rights issue of ordinary shares. 3 An issue of loan notes. 4 An upward revaluation of non-current assets.
A. 1 and 3
B. 2 and 3
C. 1 and 4
D. 2 and 4
4. [单选题]21 Which of the following statements about contingent assets and contingent liabilities are correct?
1 A contingent asset should be disclosed by note if an inflow of economic benefits is probable. 2 A contingent liability should be disclosed by note if it is probable that a transfer of economic benefits to settle it will be required, with no provision being made. 3 No disclosure is required for a contingent liability if it is not probable that a transfer of economic benefits to settle it will be required. 4 No disclosure is required for either a contingent liability or a contingent asset if the likelihood of a payment or receipt is remote.
A. 1 and 4 only
B. 2 and 3 only
C. 2, 3 and 4
D. 1, 2 and 4
5. [单选题]9 Which of the following items must be disclosed in a company’s published financial statements (including notes)
if material, according to IAS1 Presentation of financial statements? 1 Finance costs. 2 Staff costs. 3 Depreciation and amortisation expense. 4 Movements on share capital.
A. 1 and 3 only
B. 1, 2 and 4 only
C. 2, 3 and 4 only
D. All four items
