1. Sandy Company had $100 000 in cash basis pre-tax income for 1999. At December 31, 1999, accounts receivable had increased by $10 000 and accounts payable had decreased by $6,000 from their December 31, 1998, balances. Compared to the accrual basis method of accounting, Sandy’s cash pre-tax income is a. Higher by $4, 000 b. Lower by $4, 000 c. Higher by $16, 000 d. Lower by $16, 000
1. Sandy Company had $100 000 in cash basis pre-tax income for 1999. At December 31, 1999,
a. Higher by $4, 000
b. Lower by $4, 000
c. Higher by $16, 000
d. Lower by $16, 000
2. Under IFRS, which of the following adjustments should be recognized in the company’s consolidated financial statements?
a. Decrease
b. Decrease goodwill by $15 000
c. Decrease goodwill by $3 250; patents by $2 167; and other assets by $7,583
d.Decrease goodwill by $4,333; patents by $1 926; and other assets by $6 741
3. Which of the following is considered to be investment property according to principles established by IAS 40?
a.Land or a building
b. Part of a building
c. Both land and building
d. All of the above
4. IAS 23 governs Borrowing Costs. If a firm’s active development is suspended on a project, according to IAS 23, which of the following should occur?
a. Commencement of capitalization
b. Cessation of capitalization
c. Suspension of capitalization
d. All of the above
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