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F7 revision day 3 Flashcards | StudBud

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Which is NOT an acceptable reason for not recognising a lease

Which of the following is NOT a financial asset?

F7 revision day 3

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F7 revision day 3

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Questions 5

Answers

1
Which of the following is NOT a financial asset?
Shares
derivative standing at a loss
Cash
Contractual right to receive cash
2
Which is NOT an acceptable reason for not recognising a lease
the lessor can substitute the asset if they choose
the accounting treatment is really hard
the lease is for less than 12 months
the asset value is low
3
Would a gain on revaluation create a deferred tax liability or asset?
Liability
Asset
4
Which of the following would require a provision?
a possible restructuring plan
an onerous contract
possible court case
future operating losses
5
Which of the following statements is true?
Current cost accounting gives more accurate dividend figures
Historical cost cause profits to be understated
Historical cost is inferior as the figures are subjective
Current cost accounting adjusts figures by inflation