Appropriations of retained earnings are proper When BOD voluntarily designates a portion of retained earnings for future expenses or contingencies All of the other choices When required by law When required by contractual agreements
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Appropriations of
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- Appropriations of retained earnings are proper a. When required by contractual agreements b. All of the other choices c. When BOD voluntarily designates a portion of retained earnings for future expenses or contingencies d. When required by lawWhich of the following principles matches expenses with associated revenues in the period in which the revenues were generated? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principleAn appropriation of accumulated profits for possible contingencies should be a. Transferred to income as losses are realized b. Shown within shareholders’ equity in the statement of financial position c. Charged with all losses related to that contingency d. Classified in the liability section of the statement of financial position
- Under the temporal method, retained earnings would be remeasured at:Repayment of grant related to income shall be Recognized as component of other comprehensive income Charged to retained earnings Expensed immediately Applied first against the deferred income balance and any excess shall be recognized immediately as an expenseUnder PFRS 15, what is the measurement basis of revenue from contracts with customers? Select the correct letter: A. Revocable amount of the consideration received or receivable B. Book value of the consideration received or receivable C. Fair value of the consideration received or receivable D. Historical cost of the consideration received or receivable
- Under accrual basis of accounting, revenue is recognized when and expenses are recognized when Select one: a. Received; paid O b. Earned; incurred O c. Incurred; earned O d. Paid; receivedThe new standard, Revenue from Contracts with Customers, recognizes revenue based on a(n): Revenue-Expense Approach Asset-Liability Approach O Asset-Equity Approach O Liability-Equity ApproachIdentify and explain the different types of retained earnings appropriations.
- Which accounting principle guides the application of the installment method for reporting income? a ) Matching principle b) Revenue recognition principle c) Consistency principle d) Materiality principleWhich among the following suits best for Unearned revenue? a. Liability b. Expense c. Revenue d. AssetFrom the following information calculate Net Profit Sales OMR 40520 Cost of the goods sold OMR 21400 Salaries Expense OMR 8000 Electricity Expense OMR 1900 Depreciation Expense OMR 2200 Bank OMR 9100 Computer OMR 6700 Dividend income OMR 970
