Updated: Jul 02, 2026
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1. LMN Ltd recently changed the measurement base for their assets. They should I)treat this like a change in an estimate.
II)treat this like a change in the accounting policy.
III)disclose this in the notes to financial statements.
A) I only
B) II and III only
C) III only
D) I and III only
2. Venturer Ltd has received fees from venture capital activities and has engaged you as the accountant to prepare the financial report for 31 December 20X0. Unable to find a specific reference to venture capital fees in either the conceptual framework or the accounting standards, you establish the appropriate accounting treatment by
A) consulting with the International Accounting Standards Board.
B) using your professional judgment and referring to generally accepted accounting principles and practice.
C) using your professional judgment and referring to the conceptual framework's definitions and recognition criteria.
D) referring to the fundamental accounting assumptions and conventions.
3. Published financial statements are regulated by
A) accounting and legal rules to ensure the provision of relevant and reliable financial information to shareholders.
B) International Financial Reporting Standards to ensure the provision of useful financial information to shareholders.
C) shareholders who specify the framework for the provision of consistent and comparable financial information for decision-making.
D) rules to ensure the provision of consistent financial information to investors.
4. Which one of the following statements is not correct in respect of manual accounting systems?
A) They are bulky to store compared to computer systems.
B) It is easy to make corrections.
C) Productivity in manual systems is lower than computer systems.
D) Risk of error is greater and the quality of outputs is inferior.
5. Which one of the following is the correct treatment of sales?
A) Credit sales are recorded in the receivables ledger prior to posting to the general ledger.
B) Credit sales are not recorded in the receivables ledger prior to posting to the general ledger.
C) Cash sales are recorded in the receivables ledger prior to posting to the general ledger.
D) Cash and credit sales are recorded in the receivables ledger prior to posting to the general ledger.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: A |
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