1. Read All Questions Carefully: Make sure you understand each question.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANS. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANS before the time expires. Late submissions might
not be accepted.
,1. Which of the following methods of inventory valuation can
lead to the possibility of "inventory profits"?
- A) FIFO
- B) LIFO
- C) Weighted Average Cost
- D) Specific Identification
ANS: B) LIFO
Rationale: LIFO (Last-In, First-Out) can lead to "inventory
profits" in times of rising prices because older, cheaper costs
remain in inventory.
2. What is the primary purpose of consolidating financial
statements of a parent and its subsidiary?
- A) To enhance the parent company's balance sheet
- B) To reduce tax liabilities
- C) To present the financial performance and position as a
single economic entity
- D) To simplify financial reporting
, ANS: C) To present the financial performance and position as
a single economic entity
Rationale: Consolidated financial statements provide a
comprehensive overview of the entire group's financial status.
3. Which of the following is not typically considered a
contingent liability?
- A) Lawsuit settlements
- B) Product warranties
- C) Lease obligations
- D) Guarantees of others' debts
ANS: C) Lease obligations
Rationale: Lease obligations are recognized liabilities, not
contingent liabilities, because they arise from contracts.
### Fill-in-the-Blank Questions
4. The ________________ accounting standard mandates that
financial information should be free from bias and faithfully
represent the transactions it claims to represent.
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