Questions from General Accounting

Q: As a trainee accountant, you have been asked to determine the

As a trainee accountant, you have been asked to determine the monetary value that should be assigned to the inventory of sporting equipment on hand as at the end of the financial year for Outdoor Adve...

Q: There is an IFRS on fair value measurement. The objective of

There is an IFRS on fair value measurement. The objective of this standard is to define fair value and specify the framework for measuring fair value. Identify the characteristics of assets and liabil...

Q: During the global financial crisis in July 2008, National Australia Bank

During the global financial crisis in July 2008, National Australia Bank (NAB) was exposed to collateralised debt obligations (CDO). Consequently, NAB wrote down $1 billion associated with these risky...

Q: In a significant accounting-related court case, the Australian Securities

In a significant accounting-related court case, the Australian Securities and Investments Commission (ASIC) took the directors of Centro to court over the misclassification of liabilities. On 27 June...

Q: The following article extract refers to the ‘goodwill glob’ and implies

The following article extract refers to the ‘goodwill glob’ and implies that it produces data that lack serviceability. Clarke and Dean (2011, p. 63) outline that there will come a time when challenge...

Q: The most recent financial statements for the Brisbane City Council are available

The most recent financial statements for the Brisbane City Council are available at www.brisbane.qld.gov.au. Referring to these statements, address the following questions. (a) Discuss why the Council...

Q: Despite Australia adopting IFRS issued by the IASB, the AASB has

Despite Australia adopting IFRS issued by the IASB, the AASB has not adopted the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). Instead, the AASB has i...

Q: Kookaburra Ltd is always running short of cash, despite growing sales

Kookaburra Ltd is always running short of cash, despite growing sales volumes and its current assets exceeding its current liabilities. A review of its operations by a consultant finds that a consider...

Q: Following the collapse of the Toys“R”Us franchise in

Following the collapse of the Toys“R”Us franchise in the United States, Toys“R”Us Australia went into administration on 21 May 2018, leaving 700 staff and 44 stores nationwide with an uncertain future...

Q: Discuss whether the following statements are true or false. (

Discuss whether the following statements are true or false. (a) The terms ‘accounts payable and ‘creditors’ mean the same thing. (b) The statement of financial position is a financial statement that s...