Question
Question 3 (1 point) Which of the following statements regarding inventory is true? Question 3 options: a) Under IFRS, companies must capitalize borrowing costs, whereas
Question 3 (1 point)
Which of the following statements regarding inventory is true?
Question 3 options:
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Question 4 (1 point)
Based on the following information, calculate the ending balance in inventory.
Opening inventory | $415,875 |
Purchases lumber | $350,750 |
Purchases nails | $16,250 |
Purchases tools and equipment | $125,350 |
Total sales | $750,825 |
Mark up on goods | 30% |
Question 4 options:
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Question 5 (1 point)
You, a CPA, are assisting your firms co-op student in learning about related-party transactions (RPTs). You decide to compare how ASPE and IFRS account for RPTs. Which of the statements below is true?
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Question 6 (1 point)
Flowers International Ltd. (Flowers), a wholesaler of plants, is a subsidiary of Blooms Inc. Flowers has a 25% ownership interest in Blooms Inc. Blooms Inc. sells floral bouquets nationwide and applies ASPE. Which one of the following parties would be a related party to Blooms Inc.?
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Question 7 (1 point)
Whirlwind Inc. (WI) received a grant from the Canadian government in the current fiscal year. The grant of $200,000 was paid to WI before the December 31, 20X7, year end to offset salary costs to be incurred in fiscal 20X8. WI will be entitled to this grant if it employs a specified number of students during 20X8. WI management is certain that the required student employment threshold will be met. WI applies IFRS. What is the appropriate journal entry for WI to record in fiscal 20X7 with respect to the government grant?
Question 7 options:
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