Ivy Software Financial Accounting and MBA PrepWorks
Final Exam Comprehensive Resource To Help You Ace
2026-2027 Includes Frequently Tested Questions With
ELABORATED 100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!!
Current Update!!
1. Which of the following is not classified as an accounting change by IFRS?
A. Change is accounting policy
B. Change in accounting estimate
C. Errors in financial statements
D. None of the above - ANSWER C. Errors in financial statements
2. IFRS requires companies to use which method for reporting changes in accounting
policies?
A. Cumulative effect approach
B. Retrospective approach
C. Prospective approach
D. Averaging approach - ANSWER B. Retrospective approach
3. Under IFRS, the retrospective approach should not be used if:
A. retrospective application requires assumptions about managements intent in a
prior period
B. The company does not have trained staff to perform the analysis
C. The effects of the change have counterbalanced
D. The effects of the change have not counterbalanced - ANSWER A.
Retrospective application requires assumptions about managements intent in a
prior period
4. Which of the following is true regarding whether IFRS specifically addresses the
accounting and reporting for effects of changed in accounting policies?
,5. Direct effects Indirect effects
A. Yes Yes
B. No No
C. No Yes
D. Yes No - ANSWER D. Yes No
6. To address inconsistencies and weaknesses in revenue recognition, a comprehensive
revenue recognition standard was developed entitled the
A. Revenue from Contracts with Customers
B. Principle-based Revenue Accounting
C. Revenue Recognition Principle
D. Rules-based Revenue Accounting - ANSWER A. Revenue from contracts with
customers
7. The first step in the process for revenue recognition is to
A. allocate transaction price to the separate performance obligations
B. determine the transaction price
C. identify the separate performance obligations in the contract
D. identify the contract with customers - ANSWER D. Identify the contract with
customers
8. The third step in the process for revenue recognition is to
A. identify the separate performance obligations in the contract
B. recognize revenue when each performance obligation is satisfied
C. allocate transaction price to the separate performance obligations
D. determine the transaction price - ANSWER D. Determine the transaction
price
9. A contract
A. is an agreement that creates enforceable rights and obligations
B. is enforceable if each party can unilaterally terminate the contract
C. does not need to have commercial substance
, D. must be in writing to be an enforceable contract - ANSWER A. Is an
agreement that creates enforceable rights and obligations
10. On January 15, 2018, Bella Vista Company enters into a contract to build custom
equipment for ABC Carpet Company. The contract specified a delivery date of March 1.
The equipment was not delivered until March 31. The contract required full payment of
$75,000 30 days after delivery. The revenue for this contract should be
A. recorded on March 1, 2018
B. recorded on April 30, 2018
C. recorded on January 15, 2018
D. recorded on March 31, 2018 - ANSWER D. recorded on March 31, 2018
11. A performance obligation exists when
A. a contract is approved and signed
B. a company provides interdependent product or service
C. a company receives the right to receive consideration
D. a company provides a distinct product or service - ANSWER D. A company
provides a distinct product or service
12. New Age Computers manufactures and sells pagers and radio paging systems which
include a 180 day warranty on product defects. It also sells an extended warranty which
provides an additional two years of protection. On May 10, it sold a paging system for
$4,500 and an extended warranty for another $1,400. The journal entry to record this
transaction would include
A. a credit to Unearned Warranty Revenue of $1,400
B. a credit to Warranty Revenue of $5,900
C. a credit to Warranty Revenue of $1,400
D. a credit to Sales of $4,500 and a credit to Warranty Revenue of $1,400 - ANSWER
A. A credit to unearned warranty revenue of $1,400
13. A transaction price for multiple performance obligations should be allocated
A. based on what the company could sell the goods for on a standalone basis
B. based on total transaction price less residual value
C. based on forecasted cost of satisfying performance obligation
Final Exam Comprehensive Resource To Help You Ace
2026-2027 Includes Frequently Tested Questions With
ELABORATED 100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!!
Current Update!!
1. Which of the following is not classified as an accounting change by IFRS?
A. Change is accounting policy
B. Change in accounting estimate
C. Errors in financial statements
D. None of the above - ANSWER C. Errors in financial statements
2. IFRS requires companies to use which method for reporting changes in accounting
policies?
A. Cumulative effect approach
B. Retrospective approach
C. Prospective approach
D. Averaging approach - ANSWER B. Retrospective approach
3. Under IFRS, the retrospective approach should not be used if:
A. retrospective application requires assumptions about managements intent in a
prior period
B. The company does not have trained staff to perform the analysis
C. The effects of the change have counterbalanced
D. The effects of the change have not counterbalanced - ANSWER A.
Retrospective application requires assumptions about managements intent in a
prior period
4. Which of the following is true regarding whether IFRS specifically addresses the
accounting and reporting for effects of changed in accounting policies?
,5. Direct effects Indirect effects
A. Yes Yes
B. No No
C. No Yes
D. Yes No - ANSWER D. Yes No
6. To address inconsistencies and weaknesses in revenue recognition, a comprehensive
revenue recognition standard was developed entitled the
A. Revenue from Contracts with Customers
B. Principle-based Revenue Accounting
C. Revenue Recognition Principle
D. Rules-based Revenue Accounting - ANSWER A. Revenue from contracts with
customers
7. The first step in the process for revenue recognition is to
A. allocate transaction price to the separate performance obligations
B. determine the transaction price
C. identify the separate performance obligations in the contract
D. identify the contract with customers - ANSWER D. Identify the contract with
customers
8. The third step in the process for revenue recognition is to
A. identify the separate performance obligations in the contract
B. recognize revenue when each performance obligation is satisfied
C. allocate transaction price to the separate performance obligations
D. determine the transaction price - ANSWER D. Determine the transaction
price
9. A contract
A. is an agreement that creates enforceable rights and obligations
B. is enforceable if each party can unilaterally terminate the contract
C. does not need to have commercial substance
, D. must be in writing to be an enforceable contract - ANSWER A. Is an
agreement that creates enforceable rights and obligations
10. On January 15, 2018, Bella Vista Company enters into a contract to build custom
equipment for ABC Carpet Company. The contract specified a delivery date of March 1.
The equipment was not delivered until March 31. The contract required full payment of
$75,000 30 days after delivery. The revenue for this contract should be
A. recorded on March 1, 2018
B. recorded on April 30, 2018
C. recorded on January 15, 2018
D. recorded on March 31, 2018 - ANSWER D. recorded on March 31, 2018
11. A performance obligation exists when
A. a contract is approved and signed
B. a company provides interdependent product or service
C. a company receives the right to receive consideration
D. a company provides a distinct product or service - ANSWER D. A company
provides a distinct product or service
12. New Age Computers manufactures and sells pagers and radio paging systems which
include a 180 day warranty on product defects. It also sells an extended warranty which
provides an additional two years of protection. On May 10, it sold a paging system for
$4,500 and an extended warranty for another $1,400. The journal entry to record this
transaction would include
A. a credit to Unearned Warranty Revenue of $1,400
B. a credit to Warranty Revenue of $5,900
C. a credit to Warranty Revenue of $1,400
D. a credit to Sales of $4,500 and a credit to Warranty Revenue of $1,400 - ANSWER
A. A credit to unearned warranty revenue of $1,400
13. A transaction price for multiple performance obligations should be allocated
A. based on what the company could sell the goods for on a standalone basis
B. based on total transaction price less residual value
C. based on forecasted cost of satisfying performance obligation
