Tyco Ltd. entered into a contract to build a sports arena for

$1,800,000.

Construction commenced on August 1, 2020, with a planned completion date of December 31, 2022. A summary of the related accounting information is provided below:

A correction of an accounting error does NOT involve_______.

A.

management bias

B.

retrospective restatement

C.

retrospective adjustment

D.

note disclosure

	2020	2021	2022
Costs incurred during the year	$400,000	$500,000	$650,000
Estimated costs to complete at year-end	1,200,000	600,000	0
Billings during the year	560,000	640,000	700,000
Cash collections during the year	500,000	310,000	990,000

How much would the balance in accounts receivable be on the balance sheet of Tyco at the end of 2020 if Tyco uses the percentage of completion method?

A.

$500,000

B.

$660,000

C.

$110,000

D.

60,000

4)Based on the following information, what is the impairment amount to be recorded?

Cost	$750,000
Accumulated depreciation	530,000
Value in use (sum of discounted cash flows)	130,000
Fair value	140,000
Disposal costs	15,000

A.

$125,000

B.

$130,000

C.

$90,000

D.

220,000

Assume that a $500 purchase invoice received close to year-end is NOT recorded in fiscal 2019, but the inventory is appropriately included in the ending inventory count. What impact will this have on fiscal 2020 financial reporting?

A.

No effect on gross margin.

B.

Operating expenses are overstated by $500.

C.

Operating profit is overstated by $500.

D.

Cost of sales is understated by $500.

What is the most commonly used measurement basis?

A.

Historical cost.

B.

Present value.

C.

Current cost.

D.

Realizable value.

Which is NOT a criteria for recognition of financial information in the IFRS Conceptual Framework?

A.

Inflow or outflow of cash flows are probable.

B.

The amount is reasonably measurable.

C.

The amount must be measured at historical cost.

D.

The expenses should be matched with revenues.