FA Test Paper FA No 3

Test On Accounting Concept & Regulatory Framework

IDENTIFICATION OF BASIC ACCOUNTING

(1)

?

Mr X, the sole proprietor of Company XY does not list his personal house on the balance sheet of Company XY

(2)

?

Company A included a disclosure note describing a lawsuit it is defending even though the suit has not yet been settled

(3)

?

Company B records revenue when products are delivered and services being rendered, even though cash has not yet been received.

(4)

?

Company A amortizes the cost of a trade mark over the trade mark’s useful life.

(5)

?

Company X depreciates the cost of its equipment rather than the replacement value of the equipment.

Refer to Answer to FA No 3.