Questions from General Accounting


Q: Typical classifications of liabilities in the statement of financial position include:

Typical classifications of liabilities in the statement of financial position include: payables; borrowings; deferred revenue; deferred tax liabilities; provisions and other liabilities. The equity cl...

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Q: Entities spend millions of dollars on marketing and advertising intended to promote

Entities spend millions of dollars on marketing and advertising intended to promote and build brands, develop customers and sell services or products. Consider a new hotel being launched. Extensive ma...

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Q: One of Google’s largest acquisitions was Motorola Mobility for $12.

One of Google’s largest acquisitions was Motorola Mobility for $12.5 billion in 2011. Google subsequently sold Motorola to Chinese giant PC producer Lenovo for $2.9 billion. Required Explain how the...

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Q: Chic Frames Ltd was acquired by Specsavers for $8 million.

Chic Frames Ltd was acquired by Specsavers for $8 million. The fair value of the net assets acquired by Specsavers was assessed at $5 million. Prepare the double-entry transaction that would keep the...

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Q: Knowing that you have some accounting experience, a friend has sought

Knowing that you have some accounting experience, a friend has sought your advice regarding a business that she intends purchasing. The statement of financial position for the business shows total ass...

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Q: For each of the transactions identified, analyse how the asset,

For each of the transactions identified, analyse how the asset, liability and/or equity accounts increase, decrease or remain unchanged. (Remember the accounting equation.)

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Q: A friend who owns a small entity trading as Fairies Galore knows

A friend who owns a small entity trading as Fairies Galore knows that you are studying accounting and asks you to prepare the entity’s classified statement of financial position in narrative format as...

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Q: Using the revised Conceptual Framework definition and recognition criteria, discuss whether

Using the revised Conceptual Framework definition and recognition criteria, discuss whether each of the following items can be recorded as assets. (a) Trade receivables (b) Investments in shares (c) I...

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Q: The accountant of a private secondary college, St Lucia, is

The accountant of a private secondary college, St Lucia, is preparing the school’s financial statements. Discuss the justification for the school preparing SPFS rather than GPFS.

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Q: On 8 November 2011, the Australian Senate passed the ‘carbon

On 8 November 2011, the Australian Senate passed the ‘carbon tax legislation’ in relation to the government’s clean energy proposal, including a mechanism for pricing carbon. The legislation was effec...

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