Section A Quiz

1)Which one of the following transactions should not be classified as a
financing activity according to GAAP?

2)All of the following should be classified as investing activities except

3) In preparing a statement of cash flows, an item included in determining net cash flow from operating activities is the

4) sale of available-for-sale debt securities should be accounted for on
the statement of cash flows as

5) integrated report should include….

6) …………is not an element of the value creation process

7)
…….is correct about the pledging as collateral of accounts receivable
& factoring of accounts receivable for a manufacturing firm.

8)During inflationary periods, LIFO inventory accounting will have a

9)………… provides the best matching of expenses against revenues

10)….….is an error that will result in the overstatement of net income.

11)A decline in the fair value below amortized cost of an available-forsale investment in a bond will………

12) In case of using fair value accounting, the firm will be in a favorable
frame if it chooses to report the liability at fair value when it has

13)unrealized gains and losses on equity securities with readily
determinable fair values should be…..

14) Financial statements of the majority-owned subsidiaries must be……

15)……is correct about noncontrolling interest is correct.

16)Depreciation is……..

17)………. requires the recognition of a deferred tax liability.

18)Temporary and permanent differences between taxable income and
pre-tax financial income differ in that:

19)……….will result in a deferred tax asset

20)Qatar airways should recognize revenue from an airline ticket in the
period in which