Question16

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A product liability lawsuit was filed against Caspian Industries on July 12, 2008. Based on consultation with legal representation, management of the company believes the suit will conclude in January 2009; Caspian will probably be liable for an amount between $750,000 and $2,500,000, with the minimum amount in that range most likely. What liability should be recorded on Caspian Industries' December 31, 2008 IFRS financial statements?

Select one:

a. $3,250,000

b. $750,000

c. $1,625,000

d. $2,500,000

e. $1,750,000

Question17

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Under IFRS, which of the following would be considered a "provision"?

Select one:

a. Accounts Payable

b. Dividends Payable

c. Unearned Revenue

d. Notes Payable

e. Warranty Liability

Question18

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IFRS allows reclassification of short-term debt that has been refinanced as long-term debt if the refinancing agreement is completed before the:

Select one:

a. Maturity Date of the Debt

b. Balance Sheet Date

c. Release of the Financial Statements

d. Evaluation Date

Question19

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According to IFRS classification, Dividend Paid is classified as a(n) ________activity.

Select one:

a. Operating

b. Investing

c. Financing

d. a or b is allowed

e. a or c is allowed

Question20

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Using IFRS, the term "value in use" is defined as:

Select one:

a. The summation of undiscounted cash flows.

b. Fair value.

c. Fair value less selling costs.

d. The present value of expected future cash flows of asset in use.

e. Market value as determined by an IASB-certified appraiser, less selling costs.

Question21

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Presented below is the income statement of Nicklaus, Inc.:

The company also indicates that depreciation expense for the year was $14,200.

Cash paid to suppliers is:

Select one:

a. $252,800

b. $274,800

c. $307,200

d. $280,800

e. $285,200

Question22

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On January 1, 2017, Day Co. paid $103,288 for $100,000 face amount 10% bonds, a price that yields 8%. Interest is payable every July 1 and January 1. Interest revenue for the year ended December 31, 2017, using the effective interest method should be approximately:

Select one:

a. $10,329

b. $8,263

c. $8,228

d. $8,000

e. $10,000

Question23

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The following data pertains to Traverse Co.'s investments in marketable equity securities:

What amount should Traverse Co. report as Accumulated Other Comprehensive Income in the Stockholders' Equity section of the 12/31/19 balance sheet?

Select one:

a. $80,000 credit

b. $30,000 credit

c. $10,000 debit

d. $10,000 credit

e. $30,000 debit

Question24

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McKinley Company owns 15,000 of the 50,000 outstanding shares of Ranier Corporation common stock and can exert significant influence over Ranier. During 2009, Ranier earns $350,000 and pays cash dividends of $140,000.

What is the net change in McKinley's Investment account during 2009?

Select one:

a. $63,000

b. $210,000

c. $105,000

d. $140,000

e. $42,000

Question25

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During 2015, Passage Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts:

Prior to any adjustments for these errors, 2015 Net Income would be:

Select one:

a. Correct

b. $75,000 overstated

c. $15,000 overstated

d. $135,000 overstated

e. $75,000 understated

Question26

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Accounting for a change in depreciation methods will include:

Select one:

a. An adjustment to Retained Earnings, but not restating prior-year presented financial statements.

b. Restating prior-year presented financial statements, but not an adjustment to Retained Earnings.

c. Both an adjustment to Retained Earningsandrestating prior-year presented financial statements.

d. Neither an adjustment to Retained Earningsnorrestating prior-year presented financial statements.

Question27

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Novi purchased 5% of ABC stock on 1/1/14. Data regarding these available-for-sale securities follow:

On 1/1/17, Novi sold $40,000 (cost) of the securities for $40,100. Market Value of the remaining securities at 12/31/17 was $108,000.

The balance of the Accumulated OCI included in the 12/31/17 Stockholders' Equity section was:

Select one:

a. $2,000 debit

b. $2,000 credit

c. $2,100 debit

d. $1,900 credit

e. $1,900 debit

Question28

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In 2014, Draper Company discovered errors made in 2011-2013, its first three years of operation.

Restated 2013 Net Incomewill be:

Select one:

a. $22,800

b. $23,350

c. $22,350

d. $23,150

e. $23,550

Question29

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THE DATA FOR THIS QUESTION ARE THE SAME DATA AS THE PREVIOUS QUESTION

In 2014, Draper Company discovered errors made in 2011-2013, its first three years of operation

Corrected 12/31/13 Retained Earnings will be:

Select one:

a. $56,650

b. $55,950

c. $56,850

d. $56,300

e. $56,250

Question30

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The Chippewa Company decided to change from FIFO to Weighted Average late in Year 20X3. Year 20X1 was the first year of operations. The Statement of Retained Earnings for year-end 12/31/X3 shows two columns, 20X2 and 20X3:

What amount will be shown in the 20X2 column on the "Retained Earnings, Dec. 31" line?

Select one:

a. $105,000

b. $155,000

c. $85,000

d. $175,000

e. $195,000