Which of the following is not an acceptable presentation of current liabilities?
1.Which of the following is not an acceptable presentation of current liabilities?
- Listing current liabilities according to amount.
- Offsetting current liabilities against current assets.
- Listing current liabilities in the order of maturity.
- Showing current liabilities in the order of liquidation.
2. A deferred revenue not collectible within 1 year is a
- Non-current liability
- Current Liability
- Neither a current liability or a non-current liability
- Can be a current liability or a non-current liability
3. For a debt restructuring involving substantial modification of terms, it is appropriate for a debtor to recognize a gain when the carrying amount of the debt:
- Exceeds the total future cash payments.
- Exceeds the present value of the future cash payments.
- Is less than present value of future cash payments.
- Is less than the total future cash payments.
4. The major difference between convertible bonds and bonds issued with share warrants is that upon exercise of the warrants
- The shares are held by the issuer for a certain period before they are issued to the warrant holder.
- The shares involved are restricted.
- The holder has to pay a certain amount to obtain the shares.
- No share premium can be part of the transaction.
5. Which of the following research and development costs should be capitalized and amortized over current and future periods?*
- Research findings purchased from another entity to aid a particular research project currently in process.
- Cost of testing equipment that will also be used in another separate research and development project scheduled to begin next year.
- Administrative salaries allocated to research and development.
- Labor and material costs incurred in building a prototype model.
6. The following are non-current liabilities except for:
- Finance lease liability
- Long-term deferred revenue
- Non-current portion of a long term debt
- Interest payable for a long-term obligation due in 180 days
7. Which of the following should not be considered for computing
- In-process R&D
- Favourable leaseholds
- Skilled workforce
- Advertising contracts
8. In
- Some other account
- Other Comprehensive Income
- Share Premium from Reorganization
- Share Premium - Excess of Par Value
9. Company BLERT operating in chemical industry worldwide regularly causes contamination of land, but has widely published its environmental policy in which it undertakes to clean up all contamination. Company BLERT operates also in the countries without any environmental legislation. Should Company BLERT recognize any provision for clean-up of land?*
- Yes, whether the country where it operates require it or not
- Yes, if the country where it operates does not require so
- No
- Yes, if the country where it operates requires so
10. Under a debt restructuring involving substantial modification of terms, the future cash flows under the new terms shall be discounted using:*
- Prime interest rate
- Original effective interest rate.
- Interest rate under the new terms
- Market rate of interest
11. Bonds payable should be reported as noncurrent at:*
- Current market price
- Face amount less accrued interest since the last interest payment date
- Face amount less any unamortized premium or plus any unamortized discount
- Face amount less any unamortized discount or plus any unamortized premium
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