1. Which of the following shall be accounted in accordance with PAS 38?

a. Patents and copyrights

b. Trademark
c. Franchise
- d. all of the given choices
2. Which statement is true concerning government assistance?
I - The receipt of governmsent assistance by an entity is significant for the preparation of the
financial statement to give an indication of the extent to which the entity has benefited from
such assistance.
II - Receipt of a grant provides of itself conclusive evidence that the conditions attaching to
the grant have been or will be fulfilled.
- I only
3. A qualifying asset is an asset that necessarily takes ____________________________ to
get ready for its intended use or sale.
- a substantial period of time
4. Which of the following statement do agree with IAS 36?
- An entity shall assess at the end of each reporting period whether there is any
indication that its assets may be impaired.
5. How is excess of cost over carrying amount accounted for under PAS 28?
- If the amount is attributable to goodwill, it is included in the carrying amount of the
investment and not amortized.
6. Which of the following terms does this statement define: "the amount by which the carrying
amount of an asset or a cash-generating unit exceeds its recoverable amount"?
- impairment loss
7. Which of the following cannot be a qualifying asset?
- financial assets
8. Carrying amount is the amount at which an asset is recognized
I - After deducting any accumulated depreciation
II - After deducting accumulated impairment losses, if any
III - Before deducting accumulated impairment losses, if any
- I and II
9. The existence of which of the following in the entity's internal reporting does indicate that an
asset may be impaired?
I - Cash flows for acquiring the asset, or subsequent cash needs for operating or
maintaining it, that are significantly lower than those originally budgeted.
II - Actual net cash flows or operating profit or loss flowing from the asset that are
significantly worse than those budgeted.
III - A significant decline in budgeted net cash flows or operating profit, or a significant
increase in budgeted loss, flowing from the asset.
- II and III only
10. Any unallocated positive acquisition differential under the account investment in associate is
normally:
- attributed to goodwill
11. Which of the following does not define investment property?
I - Property held to earn rentals
II - Property held for capital appreciation
III - Property used in the production or supply of goods or services
 - III only
12. An entity shall not recognize a contingent liability
a. none of the given choices
b. Unless a reliable estimate can be made of the amount of this liability
c. unless an entity has a present liability as a result of a past event
d. unless it is probable that an outflow of resources embodying economic benefits will be
required to settle this liability
13. Agricultural activity is the management by an entity of the biological transformation and
harvest of biological asset for:
a. Conversion into agricultural produce
b. Conversion into additional biological assets
c. all of the given choices
d. Sale
14. Which of the following is not an example of a financial asset/liability?
- Advances received on a construction project
15. An onerous contract is a contract in which ________________ of meeting the obligation
under the contract __________________ the economic benefits expected to be received
under
- unavoidable cost; exceed
16. Which of the following statements is true with regards to an investment property?
- An investment property generates cash flows largely independently of the other
assets held by an entity
17. A major distinction between temporary and permanent difference is
- temporary differences reverse themselves in subsequent accounting periods,
whereas permanent differences do not reverse
18. The deferred income tax liability:
- Represents income tax payments that are deferred until future years because of
temporary differences between GAAP rules and tax accounting rules.
19. Which of the following shall IAS 41 be applied to?
- Agricultural produce at the point of harvest
20. How is an equity instrument defined?
- The instrument includes no contractual obligation to deliver cash or another
financial asset.