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4. Builder's Hardware incurred the following infrequent losses daring 2022 - A $280,000 write-down of equipment leased to others. A $160,000 adjustment of accruals on long-term contracts. A $240,000 write-off of obsolete inventory. In its 2022 income statement, what amount should Bailder's Hardware report as total unusual losses? a. $680,000. b. $20,000. c. $440,000. d. 5400,000 . 5. Which of the following statement is TRUK? a. The idea of consistency does not mean that companies cannot switch from see accoutsing method to anotber. b. Althooght the FASB has developed a conceptual framework, no Statements of Financial Accounting Concepts have been issued to date. c. The economic entity assamption means that esonomic activity cas be identified with a particular lezal entity. d. In order to justify requiring a particular measurement or disclosure, the benefits to be derived from if mus equal the costs associaled with it. Assuming that the company does not use reversing entries, what entry should be made on April 1, 2023 when the annual interest payment is received? 11. Which of the following is true of accounting for changes in estimates? a. A company recognizes a change in estimate by making a retrospective adjustment to the financial statements. b. A company accounts for changes in estimates only in the period of change, even though it affects the future periods. c. Changes in estimates are not carried back to adjust prior years. d. Changes in estimates are considered as errors. 12. Which of the following statements are TRUE? (1) Periodicity assumption is being violated if a company provides financial reports only when it introduces a new product. (2) Economic entity assumption is the assumption that a company will not be sold or liquidate in the near future. (3) Full disclosure principle is the accounting concept that justifies the usage of depreciation and amortization policies. (4) Valuing assets at liquidation values rather than cost is inconsistent with the historical cost principle. a. (1) and (4) b. (2) and (3) c. (3) and (4) d. (2) and (4) 1. Which of the following is statement is TRUE? 3. Using buildings and machinery in operations is an external event. b. An adjusting entry should include a debit to an expense account and a credit to a revenue accounts. c. Adjustments are often prepared before the balance sheet date, and dated before the balanee sheet date d. If ending accounts receivable exeecds the beginning accounts receivable cash collections during the year are less than the amount of tevenue recognized. 2. Included in Belize Electricity Limited's balance shect at June 30,2023 is a 10%,$4,000,000 note payable. The note is dated October 1,2021 and is payable in three equal annual payments of $2,000,000 plus interest. The first interest and principal payment was made on October 1, 2022. In Belize Electricity Limited's June 30, 2023 balance sheet, what amount should be reported as acerued interest payable for this note? a. $450,000. b. $300,000. c. $150,$00 d. $100,000. 3. Which of these statements regarding the IFRS and GAAP is correct? a. GAAP is considered to be "principles-based". b. GAAP is considered to be less detailed than IFRS c. IFRS is considered to be "principles-based" and less detailed than GAAP d. Both GAAP and IFRS are considered to be "rules-based", but GAAP tends to be mote complex. 7. Which of the following statements conceming the cost-benefit relationship is not true? a. Business reporting should exclude information outside of management's expertise. b. Management should not be required to report information that would significantly harm the company's competitive position. c. Management should not be required to provide forecasted financial information. d. If needed by financial statement users, management should gather information not included in the financial statements that would not otherwise be gathered for internal use. 8. In 2022, Quality Feed Mill reported a discontinued operations loss of $1,200,000, net of tax. It declared and paid preferred stock dividends of $120,000 and common stock dividends of $360,000. During 2022, Quality Feed Mill had a weighted average of $00,000 common shares outstanding. As a result of the discontinued operations loss, net of tax, the earnings per share would decrease by a. $1.44 b. $1.68 c. $2.16 d. $2,40 9. Why are eertain costs of doing business capitalized when incurred and then depreciated or amortized over subsequent accounting cyeles? a. To reduce the federal income tax liability b. To aid management in cash-flow analysis c. To match the costs of production with revenues as recognized d. To adhere to the accounting constraint of conservatism 10. At Belize Sugar Industry Limited, events and transactions during 2022 included the following. The tax rate for all items is 20%. (1) Depreciation for 2020 was found to be understated by $120,000. (2) A strike by the employees of a supplier resulted in a loss of $100,000. (3) The inventory at December 31, 2020 was overstated by $160,000. (4) A disposal of a component of the business resulted in a $2,000,000 loss. The effect of these events and transactions on 2022 net income net of tax would be a. ($47,000). b. ($1,680,000). c. ($1,776,000). d. ($1,904,000) 13. For the year ended December 31,2022, Heritage Bank Limited, reported the following: What would Heritage Bank report as its ending balance of Accumulated Other Comprehensive Income? a. $30,000 b. $25,000 c. $20,000 d. $5,000

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