Investments in associates accounted for using the equity method are presented in the statement of financial position as part of:

Select one:

a.equity.

b.current assets.

c.non-current assets.

d.non-current liabilities.

Accountants are required to use professional judgement in determining the best estimate of provisions. Which of the following is an example of when judgement is required?

Select one:

a.Assessing the likely consideration that will be required to settle the obligation.

b.Determining if various scenarios may arise.

c.Determining when the consideration is likely to be settled.

d.All of these options.

Angus Ltd has provided a bank guarantee to a bank in relation to a loan provided to Brown Ltd. Brown Ltd is solvent and shows no signs of defaulting on the loan. The treatment of the bank guarantee in the records of Angus Ltd is to:

Select one:

a.do nothing.

b.recognise a contingent liability.

c.recognise a liability.

d.recognise a provision.

Reasons for the preparation of consolidated financial statements include:

Select one:

a.Allowing comparison of the group with similar entities.

b.Supply of relevant information to investors in the parent entity.

c.Reporting of risks and benefits of the group as a single economic entity.

d.All of the options are correct.

Which of the following is responsible for deciding whether a dividend is paid by a company?

Select one:

a.Creditors of the company.

b.Auditors of the company.

c.Directors of the company.

d.International Accounting Standards Board.