In January 2020, a customer paid 1000 AED for an air ticket from Abu Dhabi to London on Etihad airways. The customer performed the trip on 25 April 2020 Which of the following is tra aflor 25 Apni, 2020?

A. Etihad needs to credit unearned revenue

B. The money is unearned revenue

C. The money still belongs to the customer

D. Etihad need to record the money as revenue

1) If an asset has a carrying amount of AED 5,000,000, fair value of 5,000,000 but a value-in-use of 4,000,000. How can this information be interpreted?

A. There is no impairment

B. The asset has zero value (5,000,000 5,000,000)

C. The recoverable amount is 9,000,000 (5,000,000 + 4,000,000)

D. There is impairment of 1,000,000

2) In accounting for disposal of assets, accumulated depreciation refers to.

a. Fair value of assets

b. Book value less total depreciation

c. Depreciation expenses in the year of sale

d. Total depreciation since acquisition of the asset

3) Which of the following does not apply to preference shareholders?

a. They have claim on the companys assets if they are owed

b. They receive an agreed rate from the companys profit

c. They receive dividend before ordinary shareholders

d. They share proportionately in profit and loss

4) Which of the following does not apply to current liabilities?

a. They are payable within a year

b. They are included in the income statement

c. They are payable within an operating cycle

d. They include account payable

5) During inflationary periods, which inventory valuation method will result in greater net income?

a. FIFO

b. Specific identification

c. LIFO

d. Average cost

6) Which of the following is not true about a zero-interest-bearing note?

a) Interest is still charged

b) Zero-interest-bearing notes states interest in percentage

c) The borrower pays back an amount greater than what is received

d) The borrower receives the present value of the note but pays the future value

7) Which of the following is not an inventory?

a) Raw materials

b) Office stationery

c) Work in process

d) Finished goods

8) Which of the following is most likely to determine how much a company sells its used equipment?

A. Fair value of the equipment

B. Purchase cost plus transportation

C. Purchase cost less depreciation

D. Book value at the time of sale