. A flower shop makes a large sale and provides flowers to a customer for $1,000 on November 30. The customer is sent an invoice on December 5 and the cash is received on December 10. The flower shop follows IFRS and applies the revenue recognition principle. When is the $1,000 considered to be earned?

a. November 30.

b. December 1.

c. December 5.

d. December 10.

7. In which section of the income statement is interest expense reported?

a. Gross profit.

b. Income from operations.

c. Income before income taxes.

d. Non-controlling interest.

8. In 2015, Milford Corporation determined that it overstated salaries payable and salaries expense

by $20,000 in 2014. In 2015, which of the following accounts will have to be credited to correct this

error?

a. Salaries and Wages Payable.

b. Salaries and Wages Expense.

c. Retained Earnings.

d. Income Summary.

9. Which of the following does not appear on a statement of retained earnings?

a. Net loss.

b. Prior period adjustments.

c. Preference share dividends.

d. Other comprehensive income.

10. The major key players on the international accounting standard-setting are the:

a. IASB and IFRS Advisory Council

b. IOSCO and the U.S. SEC.

c. London Stock Exchange and International Securities Exchange

d. IASB and IOSCO.