QUESTION: 37

Which of the following is true of accrual accounting?

Neither the recognition of revenue nor the recording of expense necessarily involves the receipt or payment of cash
It rests on a primary guiding principle, which is recognition
The recognition of revenue involves the receipt or payment of cash, while the recording of expense does not
It entails recording income or expenditure only when money comes into or leaves the company

Answer(s): A

QUESTION: 38

IAS 19 requires that all numbers involved in accounting for defined benefit plans be presented as a single amount in the statement of financial position. What is this amount called?

Net defined benefit liability (asset)
Asset ceiling
Fair value
Net present value

Answer(s): A

Reveal Solution Next Question

QUESTION: 39

The following requirements are characteristic of which term below? Must be reported on the balance sheet; must be owned or controlled by the company; and must possess expected future benefits.

Assets
Owners’ equity
Contributed capital
Liabilities

Answer(s): A

Reveal Solution Next Question

Company XYZ outsourced its printing services to a specialist printing firm. The specialist firm took responsibility for the staff, though the team remains on Company XYZ’s premises. Which of the following is true?

Because they remain on your premises, they are considered staff costs
Due to the outsourcing of the staff, they are now considered service-supplier costs rather than staff costs

Answer(s): B

Reveal Solution Next Question

Free T7 Exam Braindumps (page: 10)

QUESTION: 37

QUESTION: 38

QUESTION: 39

QUESTION: 40