C. Last in, fi rst out (LIFO)

6. Under IASB standards, inventory write - downs are

A. not allowed.

B. allowed but not reversible.

C. allowed and subject to reversal.

7. According to IASB standards, property, plant, and equipment revaluations are

A. not allowed.

B. allowed for decreases only.

C. allowed for both increases and decreases.

8. Under IASB standards, a joint venture interest is accounted for by using

A. consolidation.

B. the equity method or consolidation.

C. the equity method or proportionate consolidation.

9. Under IASB standards, goodwill

A. may be written off when acquired.

B. is subject to an annual impairment test.

C. is amortized over its expected useful life.

10. Under IASB standards, negative goodwill

A. must be recorded as a gain.

B. is prorated to the noncurrent assets.

C. is accounted for as an extraordinary item.

11. Under IASB standards, an identifi able intangible asset with an indefi nite life

A. may be written off when acquired.

B. is amortized over a 20 - year period.

C. is accounted for in the same manner as goodwill.

12. Under IASB standards, identifi able intangible assets are

A. only revalued downward, with the decrease reported to profi t and loss.

B. revalued upward and reported to equity when reversing a previous revaluation

decrease.

C. revalued upward and reported to profi t and loss when reversing a previous revaluation

Decrease.

13. Under IASB standards, when the outcome of a construction contract cannot be estimated

reliably, revenue and costs should be

A. recognized by using the completed contract method.

B. recognized by using the percentage of completion contract method.

C. recognized to the extent that it is probable to recover contract costs.

14. Under IASB standards, fi xed asset depreciation methods must be

A. rational and systematic.

B. rational and reviewed at least annually.

C. systematic and refl ect the pattern of expected consumption.

15. Under IASB standards, cash infl ows for the receipt of interest and dividends are

A. operating cash fl ows.

B. either operating or investing cash fl ows.

C. either investing or fi nancing cash fl ows.

16. Under IASB standards, cash outfl ows for the payment of interest are

A. operating cash fl ows.

B. either investing or fi nancing cash fl ows.

C. either operating or fi nancing cash fl ows.

17. Under IASB standards, cash outfl ows for the payment of dividends are

A. fi nancing cash fl ows.

B. either operating or investing cash fl ows.

C. either operating or fi nancing cash fl ows.

18. When comparing a U.S. company that uses LIFO accounting with an IFRS company

that uses FIFO accounting, an analyst will

A. make no adjustment if the adjustment data are unavailable.

B. adjust either company to achieve comparability with the other.

C. adjust the U.S. company to achieve comparability with the IFRS company.

19. When comparing a U.S. company with an IFRS company that has written up the value of

its intangible assets, an analyst will eliminate the effect of the write - ups in calculating the

A. gross margin.

B. earnings per share.

Date: 2016-03-03; view: 613