Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 48 views

    Answer: B: Cf-Multiple Choice Questions (1) - Thuhien-Ueh

    Uploaded by

    Kim Hồng

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Answer: B: Cf-Multiple Choice Questions (1) - Thuhien-Ueh

    Uploaded by

    Kim Hồng
    48 views5 pages

    Original Title

    CF-MUL-Q-1

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    48 views5 pages

    Answer: B: Cf-Multiple Choice Questions (1) - Thuhien-Ueh

    Uploaded by

    Kim Hồng

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    CF- MULTIPLE CHOICE QUESTIONS (1)- THUHIEN-UEH

    1.Which of the following companies would qualify to be regarded as subsidiaries of Alpha?


    (a) Beta in which Alpha has 15% votes and a place on the board of directors; (b)Delta in
    which Alpha has 52% votes but no place on the board of directors; (c) Gamma in which
    Alpha has 25% shares and two places on the board of directors; (d) Theta in which Alpha
    holds 100% votes and all places on the board of directors
    A. a & b
    B. b & d
    C. a & c
    D. b & c
    ANSWER: B
    2.Company A owns 80% Company B which owns 70% Company C. How many percent
    does non-controlling interest account for in Company C?
    A. 20%
    B. 30%
    C. 44%
    D. 50%
    ANSWER: C
    3. Investor has significant influence to participate in the financial and operating policy
    decisions of the investee. The investee is a/an ______ of the investor?
    A. Subsidiary
    B. Joint venture
    C. Associate
    D. Long term investments
    ANSWER: C
    4. In which of these cases is B not a subsidiary of A?
    A. A owns 45% of the voting rights of B and has an agreement with a 15% shareholder C
    to vote for his right
    B. A owns 45% of the voting rights of B, while all other shares are distributed over
    numerous shareholders, with no other shareholder having more than 1% of the share
    C. A owns 55% of the shares of B and another shareholder C has 45% of the shares of B,
    where A has written a substantive call option to C for 10% of the shares of B
    D. A owns 35% of the shares of B and owns 100% of the shares of C, where C has 25% of
    the shares in B
    ANSWER: C
    5. Which of the following does not result in a business combination for Pryor Ltd.?
    A. Pryor acquired all the assets of Burchak Ltd
    B. Pryor acquired an operating division of Nyle Ltd
    C. Pryor made a basket purchase of 40% of Neilly Ltd.'s assets
    D. Pryor acquired 65% of Kelly Co.'s voting shares
    ANSWER: C
    6. Which of the following would qualify a company to be regarded as a parent of another?
    A. A parent should control the majority of the votes at subsidiary’s shareholders’ meetings
    B. A parent should own majority shares in the subsidiary

    1
    CF- MULTIPLE CHOICE QUESTIONS (1)- THUHIEN-UEH

    C. A parent it and its subsidiary must both be in the same line of business
    D. A parent and the subsidiary should both have the same persons as their director
    ANSWER: A
    7. IFRS 10- Consolidated financial statement sets out how to determine whether one entity
    has control over another entity. Which of the following statements is in accordance with
    either IFRS 10 definition control or with the guidance prescribed to help identify whether
    control exists over another entity?
    A. The investor must be the only party that receives variable returns from the other entity.
    B. The investor must be have greater than 50% of the voting rights in the other entity.
    C. The investor must be represented on the board of directors or governing body of the
    other entity.
    D. The investor must have existing rights that give the current ability to direct relevant
    activities of the other entity.
    ANSWER: C
    8. Which of the following statements is consistent with the principle of control as defined
    by IFRS 10 Consolidated Financial Statements?
    A. The investor must be exposed to a return from the investee
    B. The investor has the ability to use its power over the investee to affect the amount of the
    returns from the investee.
    C. An investor’s power over investee relates to its ability to determine the amount of
    variable returns received from investee.
    D. If two or more investors have existing rights to direct different relevant activities, no
    investors can have control over the investee.
    ANSWER: C
    9. Control is the power:
    A. To govern the financial and operating policies of an undertaking.
    B. To control more than 40% of the ordinary shares.
    C. Appoint board members in proportion to your shareholding.
    D. To control more than 50% of net assets.
    ANSWER: A
    10. Which of the following companies would qualify to be regarded as subsidiaries of
    Alpha? (i)Beta in which Alpha has 15% votes and a place on the board of directors; (ii)
    Delta in which Alpha has 52% votes but no place on the board of directors; (iii) Gamma
    in which Alpha has 25% shares and two places on the board of directors; (iv) Theta in
    which Alpha holds 100% votes and all places on the board of directors
    A. (ii) & (i)
    B. ii&iii
    C. ii&iv
    D. i&iii
    ANSWER: C
    11. Which of the following would qualify a company to be regarded as a parent of
    another?
    A. A parent and the subsidiary should both have the same persons as their directors

    2
    CF- MULTIPLE CHOICE QUESTIONS (1)- THUHIEN-UEH

    B. A parent should own majority shares in the subsidiary


    C. A parent it and its subsidiary must both be in the same line of business
    D. A parent should control the majority of the votes at subsidiary’s shareholders’
    meetings
    ANSWER: D
    12. The power of an investor over an investee is significant influent, exhibiting that
    A. The investor can appoint a majority of investee’ board of director
    B. The investor can participate in the policy making process of the investee
    C. The investor owns more than 20% of the investee’s equity capital
    D. The investor owns more than 50% of the investee’s equity capital
    ANSWER: B
    13. Which of the following items is the best consideration for an investor’s power over an
    investee?
    A. Absolute voting right
    B. Relative voting right
    C. Absolute ownership ratio
    D. Relative ownership ratio
    ANSWER: B
    14. IFRS 10 provides a definition of control and identifies three separate elements of
    control. Which one of the following is not one of these elements of control?
    A. Power over the investee
    B. The power to participate in the financial and operating policies of the investee
    C. Exposure to, or rights to, variable returns from its involvement with the investee
    D. The ability to use its power over the investee to affect the amount of the investor's
    returns
    ANSWER: B
    15. Under which of the following circumstances does an entity lose significant power over
    the investee?
    A. When it loses the power to participate in the financial and operating policy decisions of
    that investee
    B. When it holds less than 10% of voting rights of the investee
    C. When its investment ceases to be an associate or a joint venture
    D. Any of the above
    ANSWER: A
    16. If an entity holds, directly or indirectly, __________ of the voting power of the
    investee, it is presumed that the entity has significant influence, unless it can be clearly
    demonstrated that this is not the case.
    A. 10 per cent or more
    B. 20 per cent or more
    C. 25 per cent or more
    D. 50 per cent or more
    ANSWER: B
    17. A joint arrangement can be either a …

    3
    CF- MULTIPLE CHOICE QUESTIONS (1)- THUHIEN-UEH

    A. Joint venture or joint subsidiary


    B. Joint operation or a joint venture
    C. Joint operation or joint entity
    D. Joint entity or joint subsidiary
    ANSWER: B
    18. Joint control is the contractually agreed sharing of control of an arrangement, which
    exists only when decisions about the relevant activities require the _____________ of the
    parties sharing control.
    A. Highest level of professionalism
    B. Unanimous consent
    C. Collective judgement
    D. Unbiased decisions
    ANSWER: B
    19. AB owns 60% of the equity shares of CD and 30% of the equity shares of EF. CD also
    owns 30% of the equity shares of EF. All of the shareholdings were acquired on the same
    date. Which one in respect of the consolidated financial statements of the AB group is true?
    A. EF is an associate of the group as both AB and CD can exercise significant influence
    via their 30% holdings
    B. EF is an associate of the AB group because the effective interest of AB in EF’s results
    is 48%
    C. 48% of EF’s post-acquisition reserves should be recognized in the consolidated reserves
    of the AB group
    D. An indirect holding adjustment would be applied in the calculation of goodwill based
    on 52% of CD’s investment in EF
    ANSWER: C
    20. IAS 28 shall be applied by all entities that are investors with __________ an investee.
    A. Joint control of
    B. Significant influence over
    C. Control over
    D. A or B
    ANSWER: D
    21. According to IFRS 10, the basis for consolidation is …
    A. Regulatory requirements
    B. Size of share capital of the investee
    C. Control
    D. Number of employees
    ANSWER: C
    22. According to IFRS 10, which types of entities are defined as exceptions when
    consolidating particular subsidiaries?
    A. Real Estate
    B. Investment
    C. Contruction
    D. Insurance

    4
    CF- MULTIPLE CHOICE QUESTIONS (1)- THUHIEN-UEH

    ANSWER: B

    You might also like