2024 – IFRS Multiple Choice Question 238 IFRS compared to GAAP tends to be

IFRS Multiple Choice Question 238 

IFRS, compared to GAAP, tends to be more

 

rules-based. 

full of disclosures requirements. 

principles-based. 

detailed.

 

Multiple Choice Question 146 

If a check correctly written and paid by the bank for $591 is incorrectly recorded on the company’s books for $519, the appropriate treatment on the bank reconciliation would be to

 

deduct $72 from the bank’s balance. 

deduct $72 from the book’s balance.    

deduct $591 from the book’s balance. 

add $72 to the book’s balance.

 

Multiple Choice Question 69 

A system of internal control

 

is premised on the concept of absolute assurance. 

is infallible. 

can be rendered ineffective by employee collusion. 

invariably will have costs exceeding benefits.

 

Multiple Choice Question 80 

Reconciling the bank statement monthly is an example of

 

independent internal verification. 

establishment of responsibility. 

documentation procedures. 

segregation of duties.

 

Multiple Choice Question 154 

Cash equivalents include each of the following except

 

bank certificates of deposit. 

U.S. Treasury bills. 

money market funds. 

petty cash.

 

IFRS Multiple Choice Question 241 

Cash is defined by IFRS as

 

cash on hand and demand deposits. 

cash on hand. 

cash on hand, demand deposits, and highly liquid investments. 

demand deposits.

 

Multiple Choice Question 46 

Which of the following is not one of the main factors that contribute to fraudulent activity?

 

Opportunity 

Financial pressure 

Rationalization 

Incompatible duties

 

Multiple Choice Question 178 

Which of the following statements concerning receivables is incorrect?

 

The contingent liability from selling notes receivable should be disclosed. 

Interest revenue and gain on sale of notes receivable are shown under other revenues and gains. 

Both the gross amount of receivables and the allowance for doubtful accounts should be reported. 

Notes receivable are often listed last under receivables.

 

Multiple Choice Question 110 

At the end of May, the unadjusted trial balance of Barker Industries included the following accounts: 

DebitCredit

Sales (75% represent credit sales)$400,000

Accounts Receivable$240,000

Allowance for Doubtful Accounts1,800

 

Barker Industries uses the percentage of sales approach in estimating uncollectible accounts. The uncollectible accounts expense is estimated to be 3% of credit sales The net realizable value of Barker’s accounts receivable in the May 31 balance sheet is

 

$226,200 

$229,200  

$236,400 

$250,800

 

Multiple Choice Question 122 

A company regularly sells its receivables to a factor who assesses a 2% service charge on the amount of receivables purchased. Which of the following statements is true for the seller of the receivables?

 

Selling expenses will increase each time accounts are sold. 

The loss section of the income statement will increase each time receivables are sold. 

The credit to Accounts Receivable is less than the debit to Cash when the accounts are sold. 

The other expense section of the income statement will increase each time accounts are sold.

 

IFRS Multiple Choice Question 246 

Which receivables accounting and reporting issue is essentially the same for IFRS and GAAP?

 

The use of allowance accounts and the allowance method. 

How to record discounts. 

How to record factoring. 

All of these are essentially the same for IFRS and GAAP.

 

Multiple Choice Question 126 

The basic issues in accounting for notes receivable include each of the following except

 

disposing of notes receivable. 

valuing notes receivable. 

recognizing notes receivable. 

analyzing notes receivable.

 

Multiple Choice Question 87 

Haven Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $600,000 and credit sales are $2,200,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Haven Company make to record the bad debts expense?

 

Bad Debts Expense28,000 

 Allowance for Doubtful Accounts28,000

 

Bad Debts Expense22,000 

 Allowance for Doubtful Accounts22,000

 

Bad Debts Expense28,000 

 Accounts Receivable28,000

 

Bad Debts Expense22,000 

 Accounts Receivable22,000

 

Multiple Choice Question 113 

On March 1, 2013, Dick Miles purchased a suit at Kenny’s Fine Apparel Store. The suit cost $500 and Dick used his Kenny credit card. Kenny charges 2% per month interest if payment on credit charges is not made within 30 days. On April 30, 2013, Dick had not yet made his payment. What entry should Kenny make on April 30th?

 

Uncollectible Account500 

 Accounts Receivable500

 

Accounts Receivable510 

 Interest Revenue10

 Sales Revenue500

 

Bad Debts Expense490 

Interest Expense10 

 Accounts Receivable500

 

Accounts Receivable10 

 Interest Revenue10

 

IFRS Multiple Choice Question 245 

Which receivables accounting and reporting issue is not essentially the same for IFRS and GAAP?

 

The use of allowance accounts and the allowance method. 

How to record discounts. 

How to record factoring. 

All of these are essentially the same for IFRS and GAAP.