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ACCY121 (DB225) Accounting for Decision Making

ACCY121 (DB225) Accounting for Decision Making

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Which of the following would not be classified as'cash and cash equivalents'?

Short-term deposits

Accounts receivable

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Which of the following statements is correct regarding the use of the first-in first-out (FIFO) method of valuing inventory?

Cost of sales for the period is calculated using the most recent inventory cost per item.

Closing inventory consists of goods purchased earlier in the period.

Closing inventory consists of the most recently purchased goods.

Cost of sales for the period is calculated using weighted average cost of the goods acquired.

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How are assets, liabilities and equity presented in a statement of financial position prepared in a narrative format?

Assets followed by liabilities then equity down the page

Assets on the right and liabilities and equity on the left

Assets on the left and liabilities and equity on the right

Assets followed by equity then liabilities down the page

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Financial information that is complete, neutral and free from error is providing a(n) representation for its users in their decision making.

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How are current and non-current liabilities categorised?

Based on to whom the liability is owed

Based on when the liability is due for payment

Based on whether the liability is secured or unsecured

Based on the size of the liability

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An essential characteristic of an asset is that the resource must be by the entity.

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Which of the following statements concerning goodwill is true?

Internally generated goodwill cannot be recognised.

Goodwill is an unidentifiable intangible asset.

Goodwill must be tested for impairment at least annually.

All of the above.

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assets are non-monetary assets without physical form.

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While they're all important for decision making, which of the following items can be reliably measured and included on the statement of financial position?

Internally generated goodwill

The value of employee's skills and abilities

The cost of bad publicity

Identifiable intangible assets

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Which of the following statements about the measurement of 'fair value' is incorrect?

It is an entry value.

A liability's fair value takes into consideration the time value of money.

In an active market, as asset's fair value is observable and verifiable.

It is an exit value.

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