business questions and answers

1. Under IASB's Conceptual Framework:

I. Sets out the concepts that underlie the preparation and presentation of financial statements for external users.

II. It is a Statement of Financial Accounting Standards and hence defines the standards for various measurement or disclosure issues.

III. It is concerned with general-purpose financial statements, including consolidated financial statements.


a. I and II

b. II and III

c. I and III

d. I, II and III


2. An entity is related to a reporting entity if any of the following conditions applies except:


a. Both entities are joint ventures of the same third party.

b. One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).

c. The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).

d. One entity is a joint venture of a third entity, and the other entity is an not associate of the third entity.


3. Which statement is true regarding interim reporting?


a. Temporary inventory decline should not be recorded in the interim period incurred.

b. Each statement is marked unaudited.

c. Interim in reporting is required under IFRS.

d. Comprehensive income is not reported.


4. An entity shall disclose in the summary of significant accounting policies


a. All measurement bases specified in IFRS irrespective whether used or not.

b. The measurement basis used in preparing the financial statements.

c. All the accounting policy choices specified in IFRS irrespective of whether used or not.

d. The measurement basis and the accounting policies used.


1.      1- It is not a good idea to use credit to A- buy a home. B- live beyond one's means. C- spread payment within a budget. D- purchase expensive items. E- replace a check for small items.

2- with open account credit, one can often avoid interest charges if A- the account balance is paid in full every month. B- at least half the account balance is paid every month. C- the minimum payment is made every month. D- the account is a revolving credit account. E- the balance is below the credit limit.

8, When comparing credit cards, a person who pays his total outstanding balance off monthly would want a card with

A-  a low required minimum payment percentage

B-  a low interest rate.

C-   an adequate grace period.

D-  no annual fee.

E-   c and d.

9: Alice has helped her daughters Andrea and Assia establish a beauty therapist business by providing the necessary finance and by visiting the salon regularly to provide business advice. Andrea and Assia had a formal partnership agreement drawn up between them. Alice does not want to be a partner in the firm as she runs her own driving school business. However, as Alice is often seen at the salon, Andrea has occasionally told product suppliers that Alice is a partner in the firm. Assia is unaware of Andrea's actions. What will most likely be true?

a. Assia will not be held liable to losses brought by Maria.

b. Andrea is a limited partner.

c. Alice will not be held liable to suppliers.

d. Alice will share the profits.


10.  X, Y and Z form Y Partnership to engage in import-export business. The partners agree that the profit will be divided on the following ratio: X - 20%, Y- 30%, Z- 50%, but no agreement as to losses. After one year of operation, there was a loss of P10,000. How will you apportion this losses if the capital contributions are as follows: X - P20,000; YP15,000; Z - P5,000. 

a. X - P2,000; Y - P3,000; Z - P5,000

b. A third party may be called to make the distribution.

c. According to their capital contribution: X- P5,000; Y- P3,750; Z- P1,250.

d. Equally among X, Y and Z


11. Mr.C.Y.Lee is an executive director for the a financial institution, which is located in Hong Kong Lee is 43 years old,is married, and has two children, ages 12 and 10. He and his family reside in a home that they own in Hong Kong.In a conversation with his wealth manager, Lee states that he wishes to fund the undergraduate tuition for his children to study abroad. Lee expects the tuition cost to be approximately £40,000 per year. Lee also wishes to fund his children's weddings at some point in the future.Because the education costs will occur in the next 5-10 years, Mr. Lee states that they are his top priority.

Lee anticipates working until age 65 and does not know how much he and his wife will need to fund their retirement lifestyle.He mentions his desire to purchase a flat in London and let (rent) it as part oftheir retirement plan.The flat would cost approximately £1.5 million. Lee is also concerned about the future health care expenses of his wife's parents and to what degree he and his wife may need to support them financially.

(1)Identify Lee's planned goals

(2)Identify Lee's unplanned goals.

(3)Discuss the issue of goal prioritization for Lee


12. As a new accounts teacher, what would be your formative and summative assessment for classroom use?

13. a) At what point in the project life cycle does lessons learned and post-implementation reviews occur?

   b) How are issues and responses reported?( discussion regarding lessons learned and post implementation review. In that context, how will the findings of these two activities being reported.

2.      A record in B is associated with at most one record in A, and a record in A is associated with one record in B. How would you call such relationship? Select the correct answer to fill in the gap. 

             a. A is a subtype of B


             b. Many-to-many relationship


c. One-to-many relationship


d. B is a subtype of A


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