The University of Newcastle - ACFI 2011

ACFI 2011 FINANCIAL ACCOUNTING FOR REPORTING ENTITIES S1 2017

SAMPLE QUIZ QUESTIONS

1) A quality of information demonstrated when different independent observers could reach the same general conclusions that the information represents what it purports to represent is:

1. verifiability.
2. comparability.
3. understandability.
4. neutrality.

2. Which of the following problems arises within owner-manager agency relationships:
   1. Risk aversion                            III.      Claim dilution
   2. Asset substitution                     IV.      Dividend retention

1. I and III.
2. I and IV.
3. II and III.
4. II and IV.

3. Which of the following statements is correct?

1. A present obligation is an example of a legal obligation.

2. A legal obligation is an example of a constructive obligation.

3. A constructive obligation is an example of an equitable obligation.

4. An equitable obligation is an example of a present obligation.

a).        Valuation at nominal amounts

2. Travel cost method

3. Contingent valuation

4. None of the above, i.e. they are all proposed measurement approaches

5. The entry required when an animal is born on a pig farm is:

1. DR Biological asset                       xx

CR       Profit and loss                         xx

2. DR Agricultural produce               xx

CR       Profit and loss                         xx

3. DR Profit and loss                         xx

CR       Biological asset                       xx

4. DR Profit and loss                         xx

CR       Agricultural produce               xx

6. Harry works for Hen Enterprises for an annual salary of $50,000. Harry is entitled to 4 weeks’ annual leave per year with a leave loading of 17.5 per cent. What entry each week, additional to the one recording wages expense and PAYG tax deduction, would be required to accrue Harry’s entitlement to annual leave? When Harry takes his 2 weeks’ annual leave, what entry would be made to record this event? The tax is calculated at 30 per cent. (Assume that there are 52 weeks in a year and round to the nearest dollar.)

a)

b)

Weekly additional entry:

c)

Weekly additional entry:

d)

Weekly additional entry:

7. A company reported the following information for a financial year: