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. |