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Fundamentals of Financial Accounting Questions 146–150 (page: 31)

Updated On: 9-Feb-2026

Which TWO of the following are responsibilities of the IFRS interpretations committee?

  1. Issuing draft interpretations of the standards for public comment
  2. Communicating the views of the wider public on the ongoing projects to the IASB
  3. Taking decisions on finalising an interpretation of the standards
  4. Preparing and publishing the international financial reporting standards

Answer(s): A,C



Refer to the exhibit.



A business has the following capital and long-term liabilities:

It calculates its gearing ratio as the proportion of debt to total capital.

At the end of the current year, its gearing ratio, compared with that of the previous year, is:

  1. Higher, resulting in greater risk for shareholders
  2. Higher, resulting in greater security for shareholders
  3. Lower, resulting in greater security for shareholders
  4. The same as the previous year

Answer(s): A



Which one of the following will not be found in a statement of changes in equity?

  1. General reserve
  2. Ordinary shares
  3. Debentures
  4. Share premium account

Answer(s): C



Non-current assets can be divided between intangible and tangible assets.

Which THREE of the following are intangible assets?

  1. Research and development
  2. Buildings
  3. Plant
  4. Goodwill
  5. Patent
  6. Land

Answer(s): A,D,E



The suspense account of a company was opened with a credit balance of $360 when the trial balance failed to agree.

This could have arisen because

  1. an electricity bill of $840 was entered in the electricity account as $480.
  2. an electricity bill of $480 was entered in the electricity account as $840.
  3. an electricity bill of $360 was duplicated.
  4. an electricity bill of $180 was duplicated.

Answer(s): B



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