$1.$ IAS $38$ gives examples of activities that would be regarded as research and therefore not eligible for recognition as an intangible asset. Which of the following would be an example of research costs?

A$)$ The design and construction of chosen alternative products or processes

B$)$ The design of pre$-$production prototypes and models

C$)$ The design of possible new or improved product or process alternatives

D$)$ The design, construction and operation of a pilot plant

$2.$ Which of the following is not one of the $5$ steps for recognising revenue according to IFRS $15$ Revenue from Contracts with Customers?

A$)$ Identify the contract

B$)$ Assess the likelihood of economic benefits

C$)$ Determine the contract price

D$)$ Allocate the transaction price to the performance obligations in the contract.

$3.$ When considering disclosures required in the financial statements relating to property, plant and equipment, is the following statement true or false? $$The estimated useful lives of the property plant and equipment and the depreciation rates used must be disclosed.$$

A$)$ True

B$)$ False

$4.$ How are Non$-$Current assets disclosed in the statement of financial position?

A$)$ At the disposal proceeds value

B$)$ Cost or valuation $$ Accumulated Depreciation $$ impairment $=$ Carrying amount

C$)$ Cost only without any recognition of depreciation or impairment

D$)$ The depreciation amount only

$5.$ Which of the following items should be accounted for as capital expenditure, that means added to the cost of the asset?

A$)$ The cost of painting a building

B$)$ The replacement of broken windows in a building

C$)$ The purchase of a car by a car dealer for re$$sale

D$)$ Legal fees incurred on the purchase of a building

$6.$When a revalued building is disposed of$,$ how is the revaluation surplus relating to that asset at the date of disposal accounted for?

It is transferred from revaluation surplus to retained earnings within equity

It is transferred from revaluation surplus to property, plant and equipment

It is transferred from revaluation surplus to the statement of profit or loss

It is transferred from revaluation surplus to accumulated depreciation

$7.$Complete the following statement by selecting the appropriate wording from the choice available. $$When accounting for Non$-$Current assets using the cost model, annual impairment charges are$$:

accounted for in other components of equity only

accounted for in the statement of profit or loss only

accounted for in other comprehensive income and other components of equity

accounted for in other comprehensive income only

$8.$Which of the following statements best defines an intangible asset?

An intangible asset is an asset which cannot be sold

An intangible asset is always generated internally by a business

An intangible asset is an asset with no physical substance

An intangible asset is a purchased asset which has no physical substance

$8.$The International Accounting Standards Board$$s Conceptual Framework for Financial Reporting defines a liability as:

a present obligation of the entity to transfer an economic resource as a result of past events

an amount owed to another entity

expenditure that has been incurred but not yet charged to the statement of profit or loss

an obligation that may arise in the future

$9.$Which one of the following sentences does not explain the distinction between financial accounts and management accounts?

Financial accounts are primarily for external users and management accounts are primarily for internal users.

Financial accounts are normally produced annually and management accounts are normally produced monthly.

Financial accounts are more accurate than management accounts.

Financial accounts are audited by an external auditor and management accounts do not normally have an external audit.

$10.$Which of the following best explains why employees are interested in the financial statements of their employer?

To compare the business with its competitors in order to decide whether to seek employment with one of those competitors.

To assess the effect of the business on the local economy, community and environment.

To assess whether the business will continue in the foreseeable future and their employment is secure

To assess the profitability of the business in order to decide whether to invest in it

$11.$When was the New Conceptual Framework of Financial Reporting introduced?

$1969$

$1989$

$2010$

$2018$