1.Changes in accounting estimates include:

A. changes in provision for warranty cost on goods sold under warranty

B. changes in the expected pattern of consumption of economic benefits of depreciable assets

C. changes in the provision for dismantling cost

D. All the given answers are correct

2.Essilor Ltd purchased land for $750 000 six years ago. It was revalued on 31 December 2020 to $600 000. A subsequent revaluation on 31 December 2021 found the market value to be $900 000 due to a change in council zoning for the area. What are the journal entries (ignoring deferred tax) required to record the revaluations on 31 December 2020 and 31 December 2021?

A. 31-Dec-2019

Dr Land 150 000 Cr Asset revaluation reserve 150 000

31-Dec-2020

Dr Asset revaluation reserve 300 000 Cr Land 300 000

B. 31-Dec-2019

Dr Loss on revaluation of land (P/L) 150 000Cr Land 150 000

31-Dec-2020

Dr Land 300 000 Cr Gain on revaluation of land (P/L) 150 000 Cr Asset revaluation reserve 150 000

C. 31-Dec-2019

Dr Loss on revaluation of land (P/L) 150 000Cr Land 150 000

31-Dec-2020

Dr Land 300 000 Cr Asset revaluation reserve 300 000

D. 31-Dec-2019

Dr Loss on revaluation of land (OCI) 150 000Cr Land 150 000

31-Dec-2020

Dr Land 150 000 Cr Asset revaluation reserve 150 000

3.The constitution of Belldrum Ltd requires the shareholders' approval of final dividends at the Annual General Meeting (AGM) before these dividends can be declared or paid.On 6 July 2020 (Date of AGM), following the approval and declaration at the AGM a final dividend of $300,000 was paid.

This dividends had been recommended/proposed by directors on 29 June 2020 out from Retained Earnings. The financial year ended for Belldrum Ltd was 30 June 2020.

Choose an appropriate accounting treatment for finaldividendsfor Belldrum Ltd for the financial year ended 30 June 2020.

A. Accounting journal entry is required at year endanddisclosures are required to be made in the notes to the financial statements FYE 30.6.20

B. No accounting journal entry is required at year endbutdisclosures are required to be made in the notes to the financial statements FYE 30.6.20

C. No accounting journal entry is required at year endandno disclosures are required to be made in the notes to the financial statements FYE 30.6.20

D. Accounting journal entry is required at year endbutno disclosures are required to be made in the notes to the financial statements FYE 30.6.20

4.Carle Ltd's workforce went on strike for an indefinite period commencing on 1 July 2021.The strike was expected to cause severe financial conditions for the company.The financial statements for the year ended 30 June 2021 were expected to be finalised by 12 August 2021. In accordance with AASB 110/IAS 10Events after the Reporting Period, the appropriate treatment regarding this event is:

A. disclosure as a note to the financial statements, as it is an adjusting event

B. to adjust the financial statements, as it is a non-adjusting event

C. to adjust the financial statements, as it is an adjusting event

D. disclosure as a note to the financial statements, as it is a non-adjusting event

5.An accountant is not sure how to recognise an individual asset that is purchased in excess of its fair value. Which of the following actions will you recommend?

A. Recognise the asset at fair value and the excess as a loss on purchase

B. Recognise the asset at fair value and the excess as receivable from supplier

C. Recognise the asset at fair value and the excess as goodwill

D. Recognise the asset at cost