題目

Mobiles Co sells goods with a one year warranty under which customers are covered for any defect that becomes apparent

within a year of purchase. In calendar year 20X4, Mobiles Co sold 100,000 units.The company expects warranty claims for

5% of units sold. Half of these claims will be for a major defect, with an average claim value of $50. The other half of these

claims will be for a minor defect, with an average claim value of $10.

What amount should Mobiles Co include as a provision in the statement of financial position for the year ended 31 December 20X4?

A

$125,000

B

$ 25,000

C

$300,000

D

$150,000

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Chapter11Provisionsandcontingencies

Mobiles Co should provide on the basis of the expected cost.

The expected cost would becalculated as (2.5% x 100,000 x $50) + (2.5% x 100,000 x $10) = $125,000 + $25,000 =

$150,000.

多做幾道

Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal

use?

A

The fair presentation concept

B

?The accruals concept

C

The going concern concept

D

?The business entity concept

Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal

use?

A

The fair presentation concept

B

The accruals concept

C

?The going concern concept

D

The business entity concept

According to the IASB's Conceptual Framework for Financial Reporting, which TWO of the following are part of faithful

representation?1 It is neutral2 It is relevant3 It is presented fairly4 It is free from material error

A

1?and?2

B

2?and?3

C

?1?and?4

D

3?and4

Which of the following accounting concepts means that similar items should receive a similar accounting treatment?

A

Going concern

B

Accruals

C

Matching

D

Consistency

Listed below are some characteristics of financial information.1 Relevance2 Consistency3 Faithful representation4 Accuracy

Which of these are qualitative characteristics of financial information according to the IASB's Conceptual Framework for

Financial Reporting?

A

1 and 2 only

B

2 and 4 only

C

3 and 4 only

D

1 and 3 only

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