Corporate Accounting
Final Test Solutions
Course Introduction
Corporate Accounting is an essential course that explores the principles and practices of accounting as applied to incorporated companies. Students will learn about the preparation and analysis of financial statements in accordance with relevant legal and regulatory frameworks. The course covers topics such as share capital and debentures, issue and redemption of securities, corporate income tax, amalgamations, mergers and acquisitions, consolidated financial statements, and accounting for depreciation and reserves. By focusing on real-world business scenarios, the course equips students with the ability to make informed financial decisions, interpret corporate accounts, and comply with statutory requirements.
Recommended Textbook
Company Accounting Australia New Zealand 5th Edition by Peter Jubb
Available Study Resources on Quizplus
26 Chapters
653 Verified Questions
653 Flashcards
Source URL: https://quizplus.com/study-set/3453 Page 2
Chapter 1: Companies and Corporate Regulation
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/68573
Sample Questions
Q1) The role of the Urgent Issues Group was:
A)to provide timely guidance on urgent financial reporting issues
B)to report breaches of the Corporations Act to the Auditor-General
C)to report breaches of the Corporations Act to ASIC
D)to investigate attempts at company take-over on the Australian Securities Exchange (ASX)
Answer: A
Q2) Under the current structure for accounting standard setting in Australia, accounting standards for public sector entities are made by the:
A)FRC
B)PSASB
C)AARF and the PSASB with guidance from the AASB
D)AASB
Answer: D
Q3) Which of the following statements is \(\underline{\text{untrue}}\)?
A)AAS standards no longer cover all accounting topics
B)AAS standards may contain requirements not found in IFRS
C)AAS standards may apply to superannuation schemes
D)None of the above
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Objectives of Company Reporting, Conceptual
Elements and Terminology
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/68564
Sample Questions
Q1) Which one of the statements refers mainly to the comparability doctrine?
A)I
B)II
C)III
D)IV
Answer: B
Q2) Sara and Clara form a proprietary company called Slara Pty Ltd, to incorporate their small haberdashery business.Sara and Clara hold 51% of the shares and issue the remaining 49% to 30 different friends and acquaintances.Slara Pty Ltd is most likely to be classified as a reporting entity based on:
A)Economic importance or significance
B)Political importance or significance
C)Financial characteristics
D)Separation of management from economic interest
Answer: D
Q3) The Framework was first produced by the AASB and AARF.
A)True
B)False
Answer: False
Page 4
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Forming a Company and Issuing Shares
Available Study Resources on Quizplus for this Chatper
35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/68563
Sample Questions
Q1) In a new regulated share issue (not a rights issue) company directors can issue shares to whichever applicants they like.
A)True
B)False
Answer: False
Q2) During 20X5, KL Ltd issued new shares for $5 million, and it incurred $100 000 brokerage costs and $100 000 in stamp duty costs for this issue.In the 20X5 year, KL Ltd would most likely debit:
A)$200 000 to retained profits
B)$200 000 to loss
C)$200 000 to expense
D)None of the above
Answer: D
Q3) Proprietary companies must have at least two directors.
A)True
B)False Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Profits, Reserve and Distributions to Owners
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/68562
Sample Questions
Q1) Which of the following could be recorded as 'expenses' under AASB 101:
I.\(\quad\) Cost of goods sold
II.\(\quad\) Wages paid
III.\(\quad\)nterest paid
IV.\(\quad\)Fire damage costs
A)I only
B)I and II only
C)I, II and III only
D)I, II, III and IV
Q2) A company carrying accumulated losses can not pay a dividend.
A)True
B)False
Q3) Under the Framework and AASB 101
A)revenue arises in the course of ordinary activities
B)there is no test to distinguish ordinary activities from non-ordinary
C)gains are other items of income that may or may not arise from ordinary activities
D)all of the above
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Reorganisation of Share Capital
Available Study Resources on Quizplus for this Chatper
29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/68561
Sample Questions
Q1) A share buyback must be supported by an ordinary resolution if the 10/12 limit is exceeded for:
A)II, III, IV and V only
B)I, II, III and IV only
C)II, III, and IV only
D)II and IV only
Q2) Which types of buyback always require a special resolution?
A)I, III, IV and V only
B)IV and V only
C)V only
D)II and V only
Q3) A consolidation of shares results in an increase in the amount of paid-up share capital, but not the amount of issued share capital.
A)True
B)False
Q4) Under AASB 132 expenditure incurred in making a share buyback is treated as:
A)a revenue included in determining period profit of loss
B)an expense included in determining period profit of loss
C)is recognised as a deduction from equity
D)is deducted from the aggregate of paid-up share capital
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Debt Securities
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/68560
Sample Questions
Q1) Which of the following statements is incorrect?
1)prepare a disclosure document before the proposed offer of debentures
2)appoint a trustee whose task is to monitor the borrower so as to safeguard the investors
3)keep a register of debenture holders
A)There is no specific format for a debenture
B)The term 'mortgage debenture' can only be used to describe a debenture that is secured by a first mortgage over real estate, where the loan does not represent more than 60% of the value of property under charge
C)The term 'debenture' can only be used to describe a debenture that is fully secured by charges over company assets
D)None of the above
Q2) A company must prepare a disclosure document before every issue of debentures.
A)True
B)False
Q3) Trust accounts must always be used in the issue of new debt.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Foreign Currency Transactions and an Introduction to Hedging
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/68559
Sample Questions
Q1) A company can have more than one functional currency.
A)True
B)False
Q2) For Alpha Ltd the following currencies are foreign currency
A)A$, ¥, and US$ only
B)UK£ only
C)US$ only
D)UK£, ¥, and US$ only
Q3) What was the foreign currency exchange difference recognised for the reporting period ending 30 June 20X0 by Led Ltd on the transaction?
A)$30,000 FC exchange difference revenue
B)$30,000 FC exchange difference expense
C)$60,000 FC exchange difference revenue
D)$60,000 FC exchange difference expense
Q4) A direct exchange rate quotation is one expressed in terms of the foreign currency equivalent of one unit of domestic currency.
A)True
B)False
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Advanced Asset and Liability Issues
Available Study Resources on Quizplus for this Chatper
31 Verified Questions
31 Flashcards
Source URL: https://quizplus.com/quiz/68558
Sample Questions
Q1) For a depreciable asset, when the cost model is adopted under AASB 116, it is impossible for the full amount of impairment recognised in earlier reporting periods to be reversed in subsequent reporting periods.
A)True
B)False
Q2) Which of the following does not result in the recognition of a provision in the balance sheet?
A)the expected future warranty claims in respect of goods sold during the reporting period
B)a final dividend declared by directors after the reporting date
C)the amount of employee annual leave accrued but not taken at reporting date
D)the company has been held liable for damages for breach of copyright but the court is yet to determine the amount of damages payable to the copyright owner.
Q3) The recoverable amount of an asset is:
A)its fair value
B)its value in use
C)the greater of its value in use and its net fair value (fair value less cost to sell)
D)its net fair value (fair value less cost to sell)
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Income Tax
Available Study Resources on Quizplus for this Chatper
21 Verified Questions
21 Flashcards
Source URL: https://quizplus.com/quiz/68583
Sample Questions
Q1) For the CRM650, the revaluation on 30/06/20X2 results in:
A)a deductible temporary difference of $1 025 000 and a DTL of $307 500
B)a deferred tax expense and DTL of $307 500, and asset revaluation reserve increment of $717 500
C)a DTA of $307 500 and asset revaluation reserve increment of $717 500
D)asset revaluation reserve increment of $1 025 000 and a deferred tax expense and DTL of $307 500.
Q2) Under the balance sheet method, what is the amount of the deferred tax expense (or deferred tax revenue) for the reporting period?
A)$60 000 deferred tax expense
B)$390 000 deferred tax expense
C)$60 000 deferred tax revenue
D)$390 000 deferred tax revenue
Q3) What is Penguin Ltd's period profit or loss (accounting profit after tax) using the balance sheet method of tax effect accounting?
A)$1 260 000
B)$1 710 000
C)$1 800 000
D)$300 000
To view all questions and flashcards with answers, click on the resource link above.
Page 11
Chapter 10: Reports and Disclosures I: Overview
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/68582
Sample Questions
Q1) Which of the following is not a correct statement of the nature of the comparative amounts included in a financial report:
A)they must be adjusted for errors discovered in subsequent reporting periods
B)they are adjusted for subsequent changes in accounting policies
C)they must always be the same as in the prior period financial report
D)they are not adjusted to reflect subsequent changes in accounting estimates
Q2) The annual report includes:
\(\quad\)Directors' Report \(\quad\)Auditors' Report \(\quad\)Prospectus
A)\(\quad\)\(\quad\)Yes\(\quad\) \(\quad\)\(\quad\)\(\quad\)\(\quad\)Yes
\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)No
B)\(\quad\)\(\quad\)No \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\) Yes \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)No
C)\(\quad\)\(\quad\)Yes \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)No \(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)Yes
D)\(\quad\)\(\quad\)No\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)
Yes\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\) Yes
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Reports and Disclosures Ii: the Financial Statements
Available Study Resources on Quizplus for this Chatper
33 Verified Questions
33 Flashcards
Source URL: https://quizplus.com/quiz/68581
Sample Questions
Q1) During 19X2, a computer was donated to a charity organisation.At that time, the charity intended to use the computer to coordinate its activities and maintain its volunteer database.It was subsequently discovered that the computer was inadequate for the organisation's needs, and it was sold for cash by the organisation during 20X2.In this organisation's cash flow statement for 20X2, which one of the following combinations of classification of cash flows is correct?
Cash Outflow\(\quad\)\(\quad\) Cash Inflow
A)\(\quad\)\(\quad\)-\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)Investin
g
B)\(\quad\)\(\quad\)-
\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)Financing
C)\(\quad\)Investing \(\quad\)\(\quad\)\(\quad\) Investing D)\(\quad\)Operating \(\quad\)\(\quad\)\(\quad\)Operating
Q2) Under AASB 101, the changes in equity statement does not have to disclose separately the amount of dividends recognised as distributions to owners.
A)True
B)False
Q3) A cash flow statement is only required for listed entities.
A)True
B)False
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Receivership and Voluntary Administration
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/68580
Sample Questions
Q1) A receiver is always appointed under a deed of arrangement.
A)True
B)False
Q2) There is no disclosure of the fact that a company is under external administration.
A)True
B)False
Q3) Which of the following cannot instigate a voluntary administration:
A)a liquidator
B)a person who can appoint a receiver for more than 30% of the company's assets
C)a person who can appoint a receiver for all or most of the company's assets
D)the companys' directors
Q4) Which of the following would not normally be included in a deed of arrangement:
A)company property to be made available to pay the creditors
B)a listing of the shareholders of the company bound by the deed
C)circumstances in which the deed is to terminate
D)the name of the deed administrator
Q5) A company's auditor can act as a receiver for the companies property.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Liquidations
Available Study Resources on Quizplus for this Chatper
16 Verified Questions
16 Flashcards
Source URL: https://quizplus.com/quiz/68579
Sample Questions
Q1) A liquidator has priority for amounts that relate to:
A)costs incurred in the liquidation and for the liquidators fees
B)costs incurred in the liquidation only
C)the liquidators fees
D)costs incurred in the liquidation and for the liquidators fees.
Q2) The court received an application for the winding up of Amer Ltd.If the application is granted this winding-up will be a:
A)compulsory
B)creditors' voluntary
C)members' compulsory
D)members' voluntary
Q3) A liquidator has been appointed to Young Ltd.The liquidator decides to call a meeting of creditors in order to better understand the company's circumstances and to form an elected group of people to oversee the liquidation process.This group is called a/an:
A)liquidation group
B)committee of inspection
C)inspection group
D)liquidation committee
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: External Administration Reports and Accounts
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/68578
Sample Questions
Q1) A liquidator will prepare the following reports:
A)each of I, II, III, IV and V
B)I and II only
C)I only
D)none of I, II, III, IV and V
Q2) The external reports prepared by an administrator are:
A)normally sent to non-shareholders if requested
B)lodged with ASIC and are on the public record
C)lodged with ASIC but are not on the public record
D)lodged with the ASX and are not on the public record
Q3) The summary of affairs is the same as the report as to affairs except that the former does not include the supporting schedules.
A)True
B)False
Q4) During the appointment period, a liquidator must prepare accounts for each:
A)one-month period
B)two-month period
C)six-month period
D)eight-month period
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Investments in New Assets; Introduction to
Business Combinations and Associates
Available Study Resources on Quizplus for this Chatper
35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/68577
Sample Questions
Q1) For all asset acquisitions, acquired goodwill is recognised when the cost of acquisition is:
A)greater than the fair value of the net assets acquired
B)less than the fair value of the net assets acquired
C)greater than the fair value of the net assets acquired and the acquisition is of a business
D)less than the fair value of the net assets acquired and the acquisition is of a business
Q2) The equity method of accounting is always used to account for share investments which convey significant influence.
A)True
B)False
Q3) Internally created synergies of a subsidiary can be recognised as an asset during a business combination.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: The Corporate Group
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/68576
Sample Questions
Q1) The accounting firm Ferrier Hodgson exerts control over companies it liquidates under the definition of control in AASB 3.
A)True
B)False
Q2) Which of the following statements in not correct:
A)A parent company is one that controls a subsidiary company
B)A subsidiary company is one that is controlled by a parent company
C)A corporate group comprises the parent company and each of its subsidiary companies
D)A holding company is an alternative term for a nested subsidiary
Q3) An investor who holds joint control over an entity has the option of consolidation accounting under AASB 127 or one of the accounting techniques allowed under the joint ventures accounting standard.
A)True
B)False
Q4) Joint control of a company does not satisfy the definition of control for the purpose of deciding when to prepare consolidated statements.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Acquisition Method Introduction and Substitution
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/68575
Sample Questions
Q1) Goodwill does not result in recognition of DTA or DTL.
A)True
B)False
Q2) With regard to property, the correct consolidation data adjustment entry would be:
A)Dr property $30 000; Credit asset revaluation reserve.
B)Dr property $30 000; Credit fair value reserve.
C)No entry required.
D)None of the above.
Q3) Assets that can not be recognised by a subsidiary will be represented in the consolidated working papers by a data adjustment that includes a credit to fair value reserve.
A)True
B)False
Q4) With regard to inventory, which is the correct consolidation adjustment entry at control date?
A)Dr inventory expense $10 000; credit inventory
B)Dr inventory expense $10 000; credit fair value reserve
C)Dr fair value reserve $10 000; credit inventory
D)No entry required
19
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18: Acquisition Method Application After Control
Date
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/68574
Sample Questions
Q1) Wholly owned Subsidiary has the following balances at control date 20X1: \[\begin{array} { l l }
\text { Capital } & \$ 500000 \\
\text { Asset revaluation reserve } & \$ 200000 \\
\text { Retained profits } & \$ 100000 \end{array}\]
Parent paid $900 000 for the shares of Subsidiary.The tax rate is 30%.
In the consolidation for 20X1, recognition of goodwill generates a deferred tax asset of $30 000.
A)True B)False
Q2) Subsidiary has property recorded at $60 000 using the cost method.Parent assesses the fair value of the property at $130 000.Group policy is to use the cost method.The correct consolidation data adjustment for the property is:
Dr.Property \(\quad\)\(\quad\)\(\quad\)$70 000 Cr.Asset revaluation reserve \(\quad\)\(\quad\)$70 000
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Intra-Group Transactions
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/68572
Sample Questions
Q1) AASB 112 specifically exempts long-lived assets from giving rise to tax-effect assets and liabilities.
A)True
B)False
Q2) Intra-group bills discounted with recourse during the reporting period require the following consolidation elimination:
Dr Bills payable
Cr Bills receivable
A)True
B)False
Q3) When assets sold within the group are sold later, but within the same reporting period, to an external party, consolidated profit is then invariably the difference between the ultimate selling price and the original cost of the goods.
A)True
B)False
Q4) Intra-group transactions on inventory always give rise to a deferred tax asset because CA>group CA.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Direct Non-Controlling Interest
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/68571
Sample Questions
Q1) Kerry Ltd owns 70% of James Ltd.For the year ended 30 April 20X1, James Ltd reported a profit of $1 million.On 30 May 20X0, Kerry Ltd sold inventory to James Ltd for a $0.5 million profit.All of this inventory was sold by Kerry Ltd on 1 June 20X1.What is the NCI share of James Ltd's 20X1 profit?
A)$120 000
B)$150 000
C)$300 000
D)$450 000
Q2) Any method to estimate the NCI's fair value has potential problems with assumptions that must be made about market conditions and knowledge.
A)True
B)False
Q3) If the entity concept was strictly followed in consolidation accounting standards the presentation of amounts in financial statements would require much less calculation and effort by accountants.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
22
Chapter 21: Changes to Parent Investment in Subsidiaries
Available Study Resources on Quizplus for this Chatper
21 Verified Questions
21 Flashcards
Source URL: https://quizplus.com/quiz/68570
Sample Questions
Q1) On 31 December 20X4 it was determined that goodwill (measured using the partial method) was impaired by an amount of $400 000.What is the carrying amount of goodwill in the consolidated balance sheet at the 31 December 20X4 reporting date?
A)$215 000
B)$350 000
C)$400 000
D)$150 000
Q2) How much paid-up capital is eliminated in the consolidation entry to eliminate pre-acquisition equity acquired by Mobile Ltd in the consolidation worksheet for the reporting period ending 30 June 20X2?
A)$650 000
B)$750 000
C)$800 000
D)$1 000 000
Q3) The effect on the amount of goodwill recognised when there is a post-control change in the parent's ownership interest is the same under both the full and partial measurement methods.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 22: Indirect Interest
Available Study Resources on Quizplus for this Chatper
16 Verified Questions
16 Flashcards
Source URL: https://quizplus.com/quiz/68569
Sample Questions
Q1) A Ltd acquires 60% of B Ltd in 20X5.B Ltd has held a 70% interest in C Ltd since 20X0.In 20X4 the B group recorded $20 000 of consolidation goodwill impairment expense in respect of the C Ltd acquisition.Which of the following statements is true?
A)$12 000 of the B group impairment expense effectively disappears in the A group consolidation
B)The A group will recognise $20 000 of impairment expense
C)NCI of B group will not be assigned any impairment expense
D)None of the above is true
Q2) What is the NCI's indirect interest in Roeburn Ltd?
A)40%
B)24%
C)60%
D)36%
Q3) What is the direct NCI in Roeburn Ltd?
A)64%
B)60%
C)40%
D)0
To view all questions and flashcards with answers, click on the resource link above.
Chapter 23: Translation of Foreign Currency Statements
Available Study Resources on Quizplus for this Chatper
19 Verified Questions
19 Flashcards
Source URL: https://quizplus.com/quiz/68568
Sample Questions
Q1) Under AASB 121 which of the following is not expressly required when translating financial statements:
A)amounts for assets and liabilities in balance sheet are translated using the spot rate at reporting date
B)owner's equity items are all translated at the spot rate at the date of the relevant event
C)the amounts for income (revenues and gains) and expenses are translated at the spot rate on the date of the transaction - average rates can be used if the exchange rate does not fluctuate significantly
D)all resulting exchange differences are recognised as a separate component of equity
Q2) Under AASB 121 when an entity gains control of a foreign operation, the amount of the goodwill is measured in the functional currency of the foreign operation, not the functional currency of the parent.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 24: Consolidated Cash Flow Statements
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/68567
Sample Questions
Q1) The preparation of a consolidated cash flow statement is straight-forward as it is merely an aggregation of amounts in the cash flow statements of group members.
A)True
B)False
Q2) The distinction between parent entity interest and non-controlling interest (NCI) is irrelevant to the preparation of a consolidated cash flow statement.
A)True
B)False
Q3) If an entity provides a consolidated cash flow statement it does not have to provide an individual cash flow statement.
A)True
B)False
Q4) In the consolidated cash flow statement, dividends paid by a subsidiary to a parent are:
A)not included
B)are classified as investing
C)are classified as financing
D)are classified as investing by the parent and financing by the subsidiary
To view all questions and flashcards with answers, click on the resource link above. Page 26
Chapter 25: Equity Accounting Expanded and Joint Ventures
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/68566
Sample Questions
Q1) On 1 January 20X0, Scud Pty Ltd entered into a joint venture with three other parties.Each party is to share equally, and all parties made their contributions to the venture on 1 January 20X0.If the total fair value of all the joint venture assets on 1 January 20X0 was $1 200 000 and included in Scud Pty Ltd's contribution was cash of $150 000; what was the fair value of the other assets contributed by Scud Pty Ltd?
A)$50 000
B)$150 000
C)$300 000
D)Not able to be determined form the information
Q2) Note Ltd is an associate of Sound Ltd.Sound Ltd owns 20% of Note Ltd's issued capital.During the current financial year, Note Ltd sold inventory to Sound Ltd at a profit to Note Ltd of $100 000.All inventory is on hand at the end of the current year.Note Ltd reported a profit of $250 000 for the current year.What is Sound Ltd's share of Note Ltd's current period profit?
A)$50 000
B)$30 000
C)$70 000
D)$270 000
To view all questions and flashcards with answers, click on the resource link above. Page 27
Chapter 26: Segment Reporting
Available Study Resources on Quizplus for this Chatper
15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/68565
Sample Questions
Q1) Gains on the sale of investments only form part of segment revenue if:
A)the segment is involved in the development and sale of houses and apartments
B)they are internally reported to senior management as part of segment profit or loss
C)he segment is involved in activities primarily of a financial nature
D)and only if they relate to investments in associates
Q2) A segment that was identified as a reportable segment in the prior reporting period it is usually classified as a reportable segment in the current reporting period.
A)True
B)False
Q3) Which of the following statements most accurately reflects the position of AASB 8?
A)for a segment, interest expense must never be reported
B)for a segment, interest expense is only reported to the extent that it is reported internally
C)for a segment, interest expense must always be reported
D)for a segment, interest expense can only be reported if the associated liabilities are also reported
To view all questions and flashcards with answers, click on the resource link above.