Test Bank for Intermediate Accounting IFRS, 4th Edition by Donald E. Kieso

, TESTlBANK




IntermediatelFinanci
allAccountinglPartl1A




ZEUSlVERNONlB.lMILLAN

, ALLlRIGHTSlRESERVEDl20
15


Nolpartloflthislworklcoveredlbylthelcopyrightlhe
reonlmaylbelreproducedlorlusedlinlanylformlorl
bylanylmeansl-
lelectroniclorlmechanical,lincludinglphotocopyi

ngl–
lwithoutlthelwrittenlpermissionloflthelauthor.




ISBNl978-621-95096-0-2


Publishedlby:
BANDOLINlENTERPRISE
No.l100lMontebellolVillage,lBakakenglSur,lBaguiolCityl2600,lPhilippines

TABLElOFlCONTENTS

CHAPTERl1
OVERVIEWlOFlACCOUNTING............................................................ 3
CHAPTERl 1:lTHEORYl OFl ACCOUNTSl REVIEWER ................................................. 3
CHAPTERl 1l -l SUGGESTEDl ANSWERSl TOl THEORYl OFl ACCOUNTSl QUESTIONS 22
CHAPTERl2
THElACCOUNTINGlPROCESS........................................................... 24
CHAPTERl 2:lMULTIPLEl CHOICEl –lCOMPUTATIONALl (SETlB)l–l(FORl CLASSROOMl INSTRUCTIONl PURPOSES) 24
CHAPTERl 2:lTHEORYl OFl ACCOUNTSl REVIEWER .............................................. 26
CHAPTERl 2l -l SUGGESTEDl ANSWERSl TOl THEORYl OFl ACCOUNTSl QUESTIONS 36
CHAPTERl3
THElCONCEPTUALlFRAMEWORKlFORlFINANCIALlREPORTINGl36
CHAPTERl 3:lMULTIPLEl CHOICEl –lCOMPUTATIONALl (SETlB)l–l(FORl CLASSROOMl INSTRUCTIONl PURPOSES) 36
CHAPTERl 3:lTHEORYl OFl ACCOUNTSl REVIEWER .............................................. 37
CHAPTERl 3l -l SUGGESTEDl ANSWERSl TOl REVIEWl THEORYl QUESTIONS ........ 54
CHAPTERl4
CASHl&lCASHlEQUIVALENTS ........................................................ 54
CHAPTERl 4:lMULTIPLEl CHOICEl –lCOMPUTATIONALl (SETlB)l–l(FORl CLASSROOMl INSTRUCTIONl PURPOSES) 54
CHAPTERl 4:lTHEORYl OFl ACCOUNTSl REVIEWER .............................................. 57
CHAPTERl 4l -l SUGGESTEDl ANSWERSl TOl THEORYl OFl ACCOUNTSl QUESTIONS 65
CHAPTERl5
RECEIVABLESl(PARTl1) .................................................................. 66
CHAPTERl 5:lMULTIPLEl CHOICEl –lCOMPUTATIONALl (SETlB)l–l(FORl CLASSROOMl INSTRUCTIONl PURPOSES) 66
CHAPTERl 5:lTHEORYl OFl ACCOUNTSl REVIEWER .............................................. 69
CHAPTERl 5l -l SUGGESTEDl ANSWERSl TOl THEORYl OFl ACCOUNTSl QUESTIONS 75
CHAPTERl6
RECEIVABLESl(PARTl2) .................................................................. 75
CHAPTERl 6:lMULTIPLEl CHOICEl –lCOMPUTATIONALl (SETlB)l–l(FORl CLASSROOMl INSTRUCTIONl PURPOSES) 75
CHAPTERl 6:lTHEORYl OFl ACCOUNTSl REVIEWER .............................................. 78
CHAPTERl 6l -l SUGGESTEDl ANSWERSl TOl THEORYl OFl ACCOUNTSl QUESTIONS 82
CHAPTERl7

, CHAPTERl 7l -l SUGGESTEDl ANSWERSl TOl THEORYl OFl ACCOUNTSl QUESTIONS 92
CHAPTERllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll8lINVENTORIES ........................ 92
CHAPTERl 8:l MULTIPLEl CHOICEl –l COMPUTATIONALl (SETl B)l –l (FORl CLASSROOMl INSTRUCTIONl PURPOSES) 92
CHAPTERl 8:l THEORYl OFl ACCOUNTSl REVIEWER ............................................. 97
CHAPTERl 8l -l SUGGESTEDl ANSWERSl TOl THEORYl OFl ACCOUNTSl QUESTIONS 109
CHAPTERl9
INVESTMENTSl(PARTl1) ............................................................... 109
CHAPTERl 9:l MULTIPLEl CHOICEl –l COMPUTATIONALl (SETl B)l –l (FORl CLASSROOMl INSTRUCTIONl PURPOSES) 109
CHAPTERl 9:l THEORYl OFl ACCOUNTSl REVIEWER ...........................................112
CHAPTERl 9l -l SUGGESTEDl ANSWERSl TOl THEORYl OFl ACCOUNTSl QUESTIONS 122
CHAPTERl10
INVESTMENTSl(PARTl2) ............................................................... 122
CHAPTERl 10:l MULTIPLEl CHOICEl –l COMPUTATIONALl (SETl B)l –l (FORl CLASSROOMl INSTRUCTIONl PURPOSES) 122
CHAPTERl 10:l THEORYl OFl ACCOUNTSl REVIEWER ........................................127
CHAPTERl 10l -l SUGGESTEDl ANSWERSl TOl THEORYl OFl ACCOUNTSl QUESTIONS 134
CHAPTERl11
INVESTMENTSl(PARTl3) ............................................................... 135
CHAPTERl 11:l MULTIPLEl CHOICEl –l COMPUTATIONALl (SETl B)l –l (FORl CLASSROOMl INSTRUCTIONl PURPOSES) 135
CHAPTERl 11:l THEORYl OFl ACCOUNTSl REVIEWER ........................................135
CHAPTERl 11l -l SUGGESTEDl ANSWERSl TOl THEORYl OFl ACCOUNTSl QUESTIONS 137

Chapterl1lOvervi
ewloflAccounting
Chapterl1:lTheoryloflAccountslReviewerl
DefinitionloflAccounting
1. Accountinglhaslbeenlgivenlvariousldefinitions,lwhichloflthelfollowinglislnotloneloflthoseldefinitions
a. Accountinglislalservicelactivity.lItslfunctionlisltolprovidelquantitativelinformation,lprimarilylfinanciallinlnature
,laboutleconomiclentitieslthatlislintendedltolbelusefullinlmakingleconomicldecisions.
b. Accountinglislthelartloflrecording,lclassifying,landlsummarizinglinlalsignificantlmannerlandlinltermsloflmoney,l
transactionslandleventslwhichlare,linlpartloflatlleast,loflalfinanciallcharacterlandlinterpretinglthelresultslthereo
f.
c. Accountinglislalsystematiclprocessloflobjectivelylobtaininglandlevaluatinglevidencelregardinglassertionslabou
tl economicl actionsl andl eventsl tol ascertainl thel degreel ofl correspondencel betweenl thesel assertionslandlesta
blishedlcriterialandlcommunicatinglthelresultsltolinterestedlusers.
d. Accountinglislthelprocessloflidentifying,lmeasuring,landlcommunicatingleconomiclinformationltolpermitlinfor
medljudgmentlandldecisionslbylusersloflinformation.

2. Itl isl thel firstllprocessl usedl inl accounting.l Itl refersl tol thel identificationl ofl eventsl asl tol whetherl theyl arelreco
gnizedlorlnotlinlthelfinanciallstatements.
a. Identifying b.lMeasuringl c.lCommunicating d.lAuditing

3. Thelfollowinglstatementslcorrectlylreferltolthelaccountinglprocess.
I. Measuringlislthelaccountinglprocessloflanalyzinglbusinesslactivitieslasltolwhetherlorlnotltheylwilllbelrecognize
dlinlthelbooks.
II. Recognitionlrefersltolthelprocessloflincludingltheleffectsloflanleventlinltheltotalsloflthelstatementloflfinanciallpo
sitionlorlthelstatementloflprofitlorllosslandlotherlcomprehensivelincomelthroughl memolentries.
III. Disclosurelofleventslinlthelnotesltolfinanciallstatementlwithoutlincludinglinltheltotalsloflthelstatementloflfinanc
iallpositionlorlstatementloflprofitlorllosslandlotherlcomprehensivelincomelislnotlanlapplicationloflthelrecogniti
onlprinciple.
IV. Anlaccountableleventlislanleventlthatlhaslanleffectlonlthelassets,lliabilitieslorlequityloflanlentitylandlitsleffectlca
nlbelmeasuredlreliably.
V. Sociologicallandlpsychologicallmatterslarelwithinlthelscopeloflaccounting.
a.lI,lII,lIII,lIV,lV b.lI,lII,lIII,lIV c.lIV d.lIII,lIV

TypesloflEvents
4. Thesel eventsl involvel changesl inl thel economicl resourcesl orl obligationsl ofl entitiesl involvingl otherl entitiesl butldol