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Which of these is not an essential characteristic of a liability under the Framework?

Select one:

a.

Existence of a present obligation to another entity

b.

Future sacrifice of economic benefits

c.

Control

d.

A past transaction or other past event

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Which qualitative characteristic of financial information focuses on the inclusion of relevant information?

Select one:

a.

Faithful representation

b.

Materiality

c.

Comparability

d.

Cost constraint

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The item that is not part of manufacturing inventory is:

Select one:

a.

work in process

b.

supplies inventory

c.

raw materials

d.

none response is correct, i.e., all are part of manufacturing inventory

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Which of the following is not a characteristic of a market participant?

Select one:

a.

Willing to transact

b.

Knowledgeable

c.

Independent

d.

Ethical

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Two approaches to determining the number of units of inventory on hand are:

Select one:

a.

FIFO / weighted average

b.

lower of cost and net realisable value

c.

periodic / perpetual

d.

periodic / physical

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What caused the IASB to increase the required disclosures related to fair value measurements?

Select one:

a.

IASB convergence

b.

AASB 13

c.

The Global Financial Crisis (GFC)

d.

Non-recurring fair value measurements

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From 1 January 2005 the Australian conceptual framework includes:

Select one:

a.

the IASB conceptual framework

b.

SAC 1-4 and the IASB conceptual framework

c.

none of the above

d.

SAC 1-2 and the IASB conceptual framework

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Which of the statements is correct? In the United States:

Select one:

a.

FIFO is not allowed for taxation purposes

b.

none of the statements is correct

c.

there is a requirement to use the same cost flow assumption for taxation and financial reporting purposes

d.

for perishable goods FIFO must be used

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Inventory item Z8 has a cost price of $30 and a net realisable value $25, while item D3 has a cost price of $20, a net realisable value $25 and a replacement cost of $21. Under the lower of cost and net realisable value rule of inventory valuation, applied on an item-by-item basis, the value of inventory is:

Select one:

a.

$51

b.

$45

c.

no response is correct

d.

$50

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What must be present for an asset to be classified as held for sale?

Select one:

a.

The assets are available for immediate sale in their present condition

b.

All are required criteria

c.

Management has committed itself a plan to sell the asset

d.

There is an active program to locate a buyer