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acct301 ch1-4

A Corporation reports the following information: Net income 500,000 Dividends on ordinary shares 60,000 Dividends on preference shares 140,000 Weighted average ordinary shares outstanding 250,000 The corporation should report earnings per share of Answer:

Which of the following is/are false, regarding the conceptual framework for financial reporting:

1- Timeliness is one of the basic assumptions of accounting used by the IASB.

2- Companies consider only quantitative factors in determining whether an item is material.

3- The IASB has issued a conceptual framework and has agreed to develop a common conceptual framework with the FASB.

4- An enhancing quality as described by the International Accounting Standards Boards (IASBs) Conceptual Framework is comparability.

a.1 and 2 only

b.4 only

c.1, 2 and 3 only

d.3 and 4 only

e.2 only

f.1, 2, 3 and 4

g.1 only

h. 2 and 3 only

XYZ purchased equipment on October 1, 2019 and gave a 3-month, 6% note with a face value of 20,000. The December 31, 2019 adjusting entry is

a.debit Interest Expense and credit Interest Payable, 300.

b.debit Interest Expense and credit Interest Payable, 200.

c.debit Interest Expense and credit Interest Payable, 900.

d.debit Interest Expense and credit Interest Payable, 1,200.

e.debit Interest Expense and credit Cash, 300.

The major financial statements most frequently provided include all of the following except the

a.statement of retained earnings.

b.statement of financial position.

c.income statement.

d.statement of cash flows.

Which of the following sentences is/are true:

I- Financial statements are the principal means through which financial information is communicated to those outside an enterprise.

II- The first step in developing IFRS is holding a public hearing.

III- Users of the financial information provided by a company use that information to make capital allocation decisions.

a.I, II, and III.

b.III only

c.I only

d.I and II only

e.II only

f.I and III only

ABC had the following account balances:

Sales revenue 180,000

Cost of goods sold 90,000

Salaries and wages expense 15,000

Depreciation expense 30,000

Dividend revenue 6,000

Utilities expense 21,000

Rent revenue 30,000

Interest expense 18,000

Sales returns 16,500

Sales discount 10,000

Advertising expense 19,500

The amount would ABC report as income from operations in its income statement is

Answer:

Which of the following is an ingredient of faithful representation?

a.

Free from error.

b.

Predictive value.

c.

Materiality.

d.

Confirmatory value.

e.

Consistency.

Use the following information: (There are four requirements related to this question: Other income, finance costs, tax expense, and income from discontinuing operations)

Service Revenue KD1,600,000

Income from continuing operations 140,000

Net Income 210,000

Income from operations 450,000

Selling & administrative expenses 1,000,000

Income before income tax 330,000

If it is loss, for example 5000, you need to enter -5000

If it is income, just enter 5000

The amount of discontinued operations is KDAnswer

the followings are nominal accounts, except:

a.

Dividend revenue

b.

Unearned service revenue

c.

Gain on sale of plant assets

d.

Sales return and allowance

e.

Dividends

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