ACC 291 Final Exam Solutions Explanations Essay example

Question 207 On January 1, a machine with a useful life of five years and a residual value of $40,000 was purchased for $120,000. What is the depreciation expense for year 2 under the double-declining-balance method of depreciation? $28,800 Explanation: Use the standard double-declining-balance formula to solve. IFRS Multiple Choice Question 01 As a recent graduate of State University youre aware that IFRS requires component depreciation for plant assets. A friend has asked you to succinctly explain what component depreciation means. Which of the following correctly describes component depreciation? The method that requires that significant parts of a plant asset with different useful lives be depreciated separately.†¦show more content†¦$640,000. Explanation: 490,000 + 120,000 + 30,000 = 640,000 IFRS Multiple Choice Question 04 Each of the following items may be classified as operating or financing activities under IFRS except all of these answer choices may be classified as such. interest paid. dividends received. dividends paid. Explanation: Per IFRS â€Å"interest and dividends received and paid may be classified as operating, investing, or financing cash flows† Multiple Choice Question 165 The current assets of Orangatte Company are $227,500. The current liabilities are $130,000. The current ratio expressed as a proportion is 1.75:1. Multiple Choice Question 41 All of the following requirements about internal controls were enacted under the Sarbanes Oxley Act of 2002 except: independent outside auditors must eliminate redundant internal control. Explanation: Redundant controls are actually a good thing because they help close potential auditing loopholes. Multiple Choice Question 85 Which of the following is not an internal control activity for cash? The functions of record keeping and maintaining custody of cash should be combined. Explanation: This would be considered a bad practice in relation to internal controls. Multiple Choice Question 92 Before a check authorization is issued, the following documents must be in agreement, except for the receiving report. invoice. purchase order. remittance advice.Show MoreRelatedACC 290 new Final Exam Guide New1260 Words   |  6 Pagesï » ¿ACC 290 Final Exam Study Guide Let’s get started†¦ Q 8 – Under IFRS Comparative prior-period information must be presented and financial statements must be provided annually. Explanation: See IFRS financial reporting requirement here: http://www.iasplus.com/en/standards/ias/ias1 Q 10 - Similarities between International Financial Reporting Standards (IFRS) and U.S. GAAP include all of the following except: Both IFRS and U.S. GAAP allow revaluation of items such as land and buildings to fairRead MoreInternational Financial Accounting155754 Words   |  624 Pagesthe best strategies for studying for ACCA exams We highlight the most important elements in the syllabus and the key skills you will need We signpost how each chapter links to the syllabus and the study guide We provide lots of exam focus points demonstrating what the examiner will want you to do We emphasise key points in regular fast forward summaries We test your knowledge of what you ve studied in quick quizzes We examine your understanding in our exam question bank We reference all the important