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F1 Exam Dumps : Financial Reporting

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Financial Reporting Questions and Answers

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Question 1

Country X levies a duty on alcoholic drinks. Where the alcohol content is above 40% by volume the duty levied is $5 per 1 litre bottle.

What type of tax is this duty?

Options:

A.

Specific unit tax

B.

Ad valorem tax

C.

Direct tax

D.

Single-stage sales tax

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Question 2

Which THREE of the following are part of the International Accounting Standards Committee (IASC) Foundation structure?

Options:

A.

International Accounting Standards Board

B.

Standards Advisory Council

C.

International Financial Reporting Interpretations Committee

D.

International Organisation of Securities Commission

E.

Standards Application Council

F.

International Financial Reporting Evaluations Committee

Question 3

On 1 May 20X8 DEF enters into a contract to lease plant with a fair value of $200,000. Annual lease payments of $50,000 are to be paid in advance and DEF incurred direct costs to arrange the lease of S2.000 The present value of future lease payments at 1 May 20X8 is $190,000.

What is the amount to be recognised as a right-of-use asset on 1 May 20X8?

Options:

A.

$192 000

B.

$200,000

C.

$240,000

D.

$242000

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