51.A characteristic of equity as specified in the Conceptual Framework is it:

a.ranks before liabilities as a claim on assets.

b.must be controlled by the entity.

c.is a residual.

d.is a present obligation.

52.Under the Conceptual Framework, which of these is not a characteristic of a liability?

a.It must result from a past transaction or event.

b.It must be a legal debt.

c.It is expected to result in an outflow of economic resources.

d.It must be a present obligation of the entity.

53.Under the Conceptual Framework, increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants, is the definition of:

a.contributions.

b.income.

c.equity.

d.expense.

54.Which of these is not a characteristic of equity as specified in the Conceptual Framework?

a.It ranks after liabilities as a claim on assets.

b.It must be controlled by the entity.

c.It is diminished by unprofitable operations.

d.It cannot be calculated independently of assets and liabilities.

55.The accounting standards dealing with income are:

a.IAS 8/AASB 108.

b.IAS 4/AASB 104.

c.IAS 24/AASB 224.

d.IAS 18/AASB 118.

56.According to the Conceptual Framework which statement concerning the recognition of liabilities is not true?

a.All liabilities that meet the definition of a liability should be recognised in the accounting records.

b.A recognition criteria is that it is probable that a sacrifice of future economic benefits will be required.

c.A recognition criteria is that the amount of the liability must be able to be measured reliably.

d.Liabilities that do not satisfy the recognition criteria can be recognised in the notes attached to the accounts.

57.Under the Conceptual Framework there are ____ recognition criteria for each of assets, liabilities, income and expenses

a.one

b.two

c.three

d.four

58.Under IAS 18/AASB 118 interest income should be recognised:

a.proportionately over time, as the interest is earned.

b.at the point of sale.

c.when the contract for the loan is signed.

d.at the end of the loan period.

59.Which of these is not an expense recognition criteria in the Conceptual Framework?

I The probability of a decrease in economic benefits

II Reliability of measurement

III Matching costs with revenue

a.0

b.I

c.II

d.III

60.Under IAS 20/AASB 120, Accounting for Government Grants, it is true that:

a.government grants relating to assets are to be credited directly to equity.

b.a government grant relating to an asset may be presented as a reduction in the carrying amount of the asset concerned.

c.a government grant relating to income may be credited directly to equity or recognised as income systematically over the periods necessary to match them with the related costs.

d.subsidies for agricultural activities are discussed in the appendix to IAS 20/AASB 120.

61.The AASB has examined a number of different accounting measurement systems that may be used in the future as alternatives to the historical cost system. Which of these is not one of those systems?

a.General price level accounting

b.Future value accounting

c.Relative current value accounting

d.Current value accounting

62.The capital maintenance concept underlying the traditional historical cost system is maintaining intact:

a.the purchasing power of equity at the beginning of the period.

b.the realisable value of equity at the beginning of the period.

c.the current value of equity at the beginning of the period.

d.the dollar value of equity at the beginning of the period.

63.The concept of capital where capital is seen as the operating capability of the assets is:

a.financial capital.

b.physical capital.

c.operational capital.

d.purchasing power capital.

64.In accounting in Australia the most common measurement basis used is:

a.historical cost.

b.realisable value.

c.present value.

d.current value.