Posted on May 29, 20242nd round model exam for accounting and finance students 554 123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384858687888990919293949596979899100 2nd round model exam for accounting and finance students choose the best answer Name of StudentID NumberModality (egular, Extention or Weekend)Phone Number 1 / 100 In order to construct a riskless portfolio using two risky stocks, one would need to find two stocks with a correlation coefficient of _________. 1.0 0.5 0 -1.0 2 / 100 Which one of the following is within the scope of IAS 41? All biological assets Government grants related to bearer asset Agricultural produce at the point of harvest Agricultural produce processed after point of harvest 3 / 100 Identify the false statement related to equity settled share based payment The fair value of services received from employees in an equity-settled SBP is measured at the grant date. Goods or services acquired and the corresponding increase in equity measured at fair values of Goods or services received The fair value of the equity instruments granted for services received from employees in an equity-settled SBP is measured at grant date The fair value of the equity instruments granted for services received from non-employees in an equity-settled SBP is measured at grant date 4 / 100 In the month of June, department X had 10,000 units in beginning work in process that were 70% complete. During June, 40,000 units were completed and transferred into production from another department. At the end of June, there were 5,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. The total cost for materials was $450,000 and conversion was $400,000. What was the unit conversion cost in June? $7.27 $7.69 $8.88 $9.52 5 / 100 A cash-settled share-based payment transaction is a share-based payment transaction in which the entity acquires goods or services by incurring a liability to transfer cash or other assets to the supplier of those goods or services for amounts that are based on: The value of those goods or services The Value of equity instruments of the entity or the supplier The price value of equity instruments of the entity or another group entity The price value set out in the contractual agreement between the entity and the supplier. 6 / 100 “Some risk cannot be diversified away and is due to the overall exposure of an investment to movements in the economy.” This quote is referring to: Systematic risk Unsystematic risk Diversifiable risk Unique risk 7 / 100 Assume the profit before tax of XYZ, a corporate firm is Br. 22.5 million. How much money should be paid by XYZ as a business income tax? Br.7,857,000 Br.6,750,000 Br. 4,500,000 Br.3,375,000 8 / 100 Cash includes all except one: Unrestricted promissory note Post-dated checks Unrestricted coins Restricted cash 9 / 100 One of the following is not necessarily deducted as business expense to arrive at taxable business income Advertising expense Bad debts expense Commission expense Entertainment expense 10 / 100 Which of the following statements is false? The monetary unit assumption is used under IFRS Under IFRS, companies may use fair value for investible property Under IFRS, there is the same number of financial statement elements as in GAAP. The FASB and IASB are working on a joint conceptual framework project 11 / 100 A favorable price variance for direct materials indicates that: A higher price than planned was paid for materials Less material was used during production than planned for actual output A lower price than planned was paid for materials More material was used during production than planned for actual output 12 / 100 What basis of accounting would the Enterprise Fund use? Cash Basis Accrual Basis Modified Accrual Basis Expended Accrual Basis 13 / 100 Which of the following statements about the risk-return tradeoff is true? Higher risk always leads to higher returns Lower risk always leads to lower returns Higher risk may lead to higher returns, but it also increases the chance of losses Lower risk guarantees higher return 14 / 100 One of the following is true about fair value measurement if there is a quoted price in an active market for an identical asset or liability Use significant unobservable input (Level 3) Use with adjustment Use that quoted price to measure fair value (Level 1) Replicate a market price through a valuation technique 15 / 100 Suppose Company A has a machine costing 1,000,000. Tax depreciation for special purpose statement amounted to 500,000 and derereciation expense for general purpose statement amounted to 300,000. If the effective tax rate of company A is 30 %, identify the correct statement according to IAS 12 The tax base of the asset is 700,000 The temporary difference as a result of varied standard is deductible amount The deferred tax liability related to the asset is 60,000 The deductible temporary difference is 200,000 16 / 100 Which matters will not be included in the audit strategy? Risk assessment and materiality Communications with the client Specific audit procedures to respond to the risks assessed The need for professional skepticism 17 / 100 A gain or loss arising from the re-measurement of an investment property should Be recognized in other comprehensive income Be recognized as prior period adjustment Not be recognized Be recognized in profit or loss 18 / 100 Assume on December 1, 2022 Zemen Company purchase merchandise which worth Birr 500,000 on account terms 3/15, n/45, and FOB shipping point from Lulit Trading. On December 15, the company made full payment for Lulit Trading. What will be the entry to record settlement of liability under periodic system? Debit account payable and credit cash by 500,000 Debit account payable by 500,000, credit cash by 485, 000 and purchase discount by 15,000 Debited account payable by 500,000 and credit cash by 485, 000 and purchase return and allowance by 15,000 Debit account payable by 485,000 and credit cash by 485, 000 19 / 100 The total good will using proportionate (partial) method is: Br.300,000 br. 100,000 br. 700,000 br. 1,000,000 20 / 100 Under IFRS, cash and cash equivalentsare reported: The same as GAAP, except for the reporting of cash equivalent Always as the first items in the non-current assets section Always as the second items in the current assets section Similar to GAAP, except for the reporting of bank overdrafts 21 / 100 For equity-settled share-based payment transactions for employee services, the fair value of the equity instruments is measured: On the grant date On the exercise date At the end of the vesting period or exercise period, whichever is later At the date when the entity knows how many instruments will vest. 22 / 100 Assume Commercial Bank of Ethiopia agrees to lend Br.5, 000,000 on January 1, 2022, to Saba Co. If Saba signs a Br.5, 000,000, 10 percent, six-month note. What will the balance of cash expected to payable by Saba company on maturity period 5 million 5.5 million 5.25 million 2.5 million 23 / 100 According to IAS 41 an entity recognize a biological asset except An entity gains controlling interest on such asset as a result of past events It is probable that future economic benefits associated with the asset will flow to the entity It is probable that future sacrifice of economic benefits associated with the asset will flow out from the entity If the asset measured accurately by its fair value or cost 24 / 100 Suppose an exporter of powder tea spice has an access of two markets in Ethiopia for transacting tea spice. The first market located at Markato with daily trading volume of ten thousand Sacks of tea spice and selling price of Br. 30,000 per sack. While the second market is located at Saris has daily trading volume of 1,000 sacks with selling price of Br. 35,000 per Sack. The transportation cost amounted to Br.500 and Br 1000 for the first and second market respectively. And also selling cost of Br. 2000 and Br. 3000 for the first and second market respectively. Based on the given information what will be the fair value of the spice in accordance with IFRS 13? Br. 30,000 Br. 27,500 Br. 29,500 Br.31,500 25 / 100 Which of the following best describes systematic risk? Risk that can be eliminated through diversification Risk that affects only a specific company or industry Risk that affects the entire market Risk that is inherent in all investments 26 / 100 Suppose Zema Manufacturing Company for the year 2015 have direct material cost- 20 % of prime cost and Conversion cost- Br. 450,000 and if factory overhead is 50 % of direct labor cost. Based on the given information answer question 49-5149. What is the balance of direct material cost? Br. 75,0000 Br. 300, 000 Br. 60,000 Br. 375,000 27 / 100 According to the bird-in-hand theory, investors prefer: Higher dividends over capital gains Lower dividends over capital gains A mix of dividends and capital gains No dividends at all 28 / 100 If selling price per unit is $200, variable costs per unit are $120, total fixed costs are $2,000, the tax rate is 30%, and the company sells 40 units, net income is: $860 $1,20 $8,000 $4,800 29 / 100 Suppose on January 1, 2023 Zemen Company receives Br.120, 000 cash advance applicable for the next six month rent. What will be the entry on the book of Zemen on January 1, 2023? Debited to rent income and credited to cash Debited to cash and credited to rent revenue Debited to cash and credited to unearned revenue Debited to cash and credited to service income 30 / 100 Which of the following depreciation methods considersalvage value in computing the depreciation base of the asset except? Straight-line method Sum-of-the-years’-digits method Double declining balance method Units-of-output-method 31 / 100 Assume New Generation Post Graduate College owned a building that has been used for delivering education service located at Jemo. The building had original cost of 4 million at the time of acquision, January 1, 2015 and useful life of 20 years. The national education policy requiring the post graduate applicants necessarily pass an entrance exam (GAT test). During the year 2022 most of the applicant fails to pass the exam as a result the college fails to get applicants for post graduate program. Consequently, on April 30, 2022 the college decided to rent the building located at Jemo and deliver education service at head office only located at Megenagna. Based on the given information answer question number 18 and 19(Use SLM)What was the Carrying value of the asset if the building depreciated up to April 30, 2022 1466,666.7 2,000,000 2533,333.3 4,000,000 32 / 100 A cost that would be classified as part of both prime costand conversion cost would be: Direct labor cost Direct material cost Indirect labor cost Indirect material cost 33 / 100 One of the following is incorrectly matched Provisions: certain about the existence but uncertain about the amount and timing Contingent: certain about the existence but uncertain about the amount and timing Definitely measurable liability: certain about the existence, amount and timing Contingent: uncertain about the existence, amount and timing 34 / 100 Under the effective-interest method of bond discount or premium amortization, the periodic interest expense is equal to The stated (nominal) rate of interest multiplied by the face value of the bonds. The market rate of interest multiplied by the face value of the bonds. The stated rate multiplied by the beginning-of-period carrying amount of the bonds. The market rate multiplied by the beginning-of-period carrying amount of the bonds. 35 / 100 Time value of money explains that: A unit of money received today is worth more than a unit received in future A unit of money received today is worth less than a unit received in future A unit of money received today and at some other time in future is equal None 36 / 100 In Ethiopia, who is responsible for regulating companies’ financial reporting? Ethiopian Revenue and Custom Authority Accounting and Auditing Board of Ethiopia Ethiopian Financial Reporting Regulator Ministry of Finance 37 / 100 If companies fails to make adjustments for prepayments initiallyrecorded as an asset,what will be the effect except Net income will be over stated Expense will be understated Asset account will be under stated Asset account will be over stated 38 / 100 A factor used to systematically link an indirect cost to a cost object is called Cost allocation base Cost pool Cost assignment Cost tracing 39 / 100 Suppose Texas Corporation issued $1000, 000 of 10% term bonds on January 1, 2019, due on January 1, 2024, with interest payable annually. Investors require an effective-interest rate of 12%. Based on the given information answer question number 27-29. What is the present value of the bond on January 1, 2019 1,000,000 360,477.62 567,426.85 927,904.47 40 / 100 __________ are obligation on a bank or other depository institutions to maintain a specified proportion of total assets in liquid form. Reserves Loans Liquidity assets Securities 41 / 100 The Capital Asset Pricing Model (CAPM) is primarily used to: Calculate the expected return on a risky asset Calculate the standard deviation of a portfolio Determine the risk-free rate of return Measure the historical performance of an investment 42 / 100 Identify the correct composition of cost classification on the basis of relation to production process Relevant andconversion cost Prime and Controllable cost Relevant and variable cost Prime and conversion cost 43 / 100 Suppose on January 1, 2021 Sally Company sold merchandise which worth Birr 150,000 on account terms 2/10, n/30, and FOB destination to Sony Company. On January 8, the buyer returned a portion of the goods worth Birr 5000 as they were found to be the wrong model. What will be the entry to record return of merchandise under perpetual inventory system? Debit Sale and credit account receivable by 5000 Debit account receivable and credit sales by 5000 Debit merchandise inventory and credit account receivable by 5000 Debit sales return and allowance and credit account receivable by 5000 44 / 100 Which of the following statement is correct? The depository institution earns no interest on reserves Regulations of financial systems are same for all countries in the world In defined benefit pension plan payment is determined by the investment performance of an asset in which the pension fund is invested Saving deposits are bank accounts that allow the owner of the account to write checks to third party 45 / 100 All of the following items are debited to Work-in -process account except Allocated manufacturing overhead Completed goods being transferred out of the plant. Direct labor consumed. Direct materials consumed. 46 / 100 _______________ implies that a financial instrument can be exchanged for any other asset and logically, the so formed asset may be transferred back into the original financial instrument. Reversibility Convertibility Marketability Cash Flow 47 / 100 What is the balance of interest expense on December 31, 2019 100,000 11,348 120,000 111,348.53 48 / 100 The probability that the economy will experience a recession next year is 30%, while the probability of moderate growth or rapid expansion are 50% and 20%, respectively. The stock Firm A is expected to return 5%, 15%, or 20%, depending on whether the economy experiences a recession, moderate growth or rapid expansion, respectively. Calculate the expected return and standard deviation for firm A. 13% and 10% 14% and 10.58% 13% and 5.57% 14% and 12.5% 49 / 100 The use of pre numbered checks in disbursing cash is an application of the principle of: Physical controls Segregation of duties Establishment of responsibility Documentation procedures 50 / 100 Identify the Incorrect statement/s about categories of tax payers Category “C” tax payers have to maintain all records and accounts Category “A” tax payers are required to declare their taxable income within four months from the end of the tax period. Category “B” tax payers are required to declare their taxable income within two months from the end of the tax period. B&C 51 / 100 In the case of a bank overdraft: GAAP typically includes the amount in cash and cash equivalents. IFRS typically includes the amount in cash equivalents but not in cash. GAAP typically treats the overdraft as a liability, and reports in the financing section IFRS typically treats the overdraft as a liability, and reports in the investing section 52 / 100 One of the following is not criteria to capitalizingcosts incurred at development phase Availability of resources to complete the intangible asset Ability of intangible asset to generate future economic benefits A. Technical infeasibility for completing the intangible asset Measurement of expenditure incurred in development phase reliably 53 / 100 What is the balance of amount amortized on January 1, 2021 100,000 120,000 12,710 112,710 54 / 100 Which of the following can be a criterion for the acceptance of a project? The profitability index should be greater than one. The internal rate of return should be greater than the cost of capital The net present value should be greater than zero. All of the above 55 / 100 Management’s designs and implementation of internal controls focused concepts are Inherent limitations Performs tests of controls Reasonable assurance “A” and “C” 56 / 100 What is Financial Leverage? Use of fixed costs in a firm’s operations Use of debt financing to increase the return to shareholders The use of operating leverage to increase profits The use of equity financing to reduce risk 57 / 100 ABC Metal Factory, VAT registered company, sold 50,000 units of corrugated iron sheets at VAT exclusive price of birr 500 per unit for the month of January. It has purchased 20,000 Kg. iron sheets at VAT inclusive price of Birr 60 per Kg. from DW metals raw material supplier. The factory has also imported chemicals worth of birr 2 million (including C.I.F and other duty excluding VAT for metal production in the month of January. Moreover, the company had a VAT refund of birr 75,600 for the previous month. Determine whether VAT payable (VAT refund) take place for the given month VAT refund of Br. 156,521.74 Vat payable of Br. 3,217,878.26 VAT refund of Br. 300,000 VAT payable of Br, 3,293, 478.26 58 / 100 When 20,000 units are produced, fixed costs are birr 16 per unit. Therefore, when 40,000 units are produced fixed costs will: Increase to birr 32 per unit Remain at birr 16 per unit Decrease to birr 8 per unit Total birr 640,000 59 / 100 One of the following is not true about liability Liability is a probable future sacrifice of economic benefit Liability arises from present obligation Liability is a present obligation Liability arises from past transaction 60 / 100 Sony Inc., has a target capital structure of 35% debt and 65% common equity, with no preferred stock. The before-tax cost of debt is 8%, and its marginal tax rate is 40%. The current stock price is =$22.00. The last dividend was D_0 =$2.25 and it is expected to grow at a 5% constant rate. What is weighted average cost of capital (WACC)? 11.91% 30% 15.74% 45.25% 61 / 100 Assume AA co. pays br.600, 000 to purchase 75% of the shares of DK co. The fair value of 100% of DK co. identifiable net assets is br.400, 000. (Assume published FV of minorities’ br.200, 000). Based on the given information answer the following question no. 80and 81 Br. 1,600.000 Br. 100,000 br. 300,000 br.533,333 62 / 100 One of the following is true about research and development costs under GAAP and IFRS Both research and development costs are capitalized IFRS capitalize both costs if such costs meet specified criteria GAAP treat research costs as an expense when incurred IFRS capitalize research cost if such cost meet specified criteria 63 / 100 IFRS suggests trade-offs between ___________ and ________for selection ofmeasurement principles; historical cost principle or fair value principle. Relevancy and comparability Reliability and consistency Relevance and reliability Comparability and consistency 64 / 100 When designing audit procedures tracing of source documents to the customers subsidiary ledger and subsequently to the general ledger is done to satisfy what assertion Valuation Cut off Completeness Classification 65 / 100 As per IFRS 17 contractual service margin At inception of the contract recognized as liability for loss making insurance contract At inception of the contract recognized as a profit in statement of profit or loss Contractual service marginrecognized for negative net present value of cash flow At inception of the contract represents unearned profit for profit making contract 66 / 100 Beta measures: The total risk of an investment The systematic risk of an investment The unsystematic risk of an investment The standard deviation of an investment. 67 / 100 Both auditing and accounting are concerned with financial statements. Which of the following Auditing uses the theory of evidence to verify the financial information made available by Accountancy Auditing lends credibility dimension and quality dimension to the financial statements prepared by the accountant. Auditor should have through knowledge of accounting concepts and convention to enable him to express an opinion on financial statements All of the above. 68 / 100 All the things equal, diversification is most effective when Securities’ returns are perfectly positively correlated Securities’ returns are uncorrelated Securities’ returns are high Securities’ returns are negatively correlated 69 / 100 Which one of the following is not true A cost object is anything for which a separate measurement of cost is desired Cost assignment is the collection of cost data in some organized Cost assignment encompasses both cost tracing and cost allocation A cost driver is characteristics of an activity that causes incurrence of cost 70 / 100 Identify the CORRECT statement about employment income tax as applied in Ethiopian tax law It must be declared and paid by an employer to the concerned tax authority within one year from the end of the month for which the income is due or paid It must be declared and paid by an employer to the concerned tax authority within thirty(30) days from the end of the employer’s fiscal year It may be declared and paid by an employer to the concerned tax authority at the employer’s any convenient time. It must be declared and paid by an employer to the concerned tax authority within thirty (30) days from the end of each month. 71 / 100 Liu Electronics budgeted sales of $400,000 for the month of November; cost of goods sold is equal to 65% of sales. Beginning inventory for November was $80,000 and ending inventory for November should be $72,000. How much are the budgeted purchases for November? $252,000 $254,800 $264,800 $265,200 72 / 100 If overhead is under applied, then: Actual overhead cost is less than estimated overhead cost. Overhead applied to Work in Process is less than the actual overhead cost incurred. The predetermined overhead rate is too high. The overhead account will have a credit balance at the end of the year. 73 / 100 An entity owns a number of herds of cattle. Where should the change in fair value of herds of cattle be recognized in the financial statements Statement of financial position Statement of cash flow Statement of change in equity Statement of profit or loss 74 / 100 Assets classified as non-current in accordance with IAS 1 presentation of Financial Statements _________ they meet the criteria to be classified as held for sale in accordance with IFRS 5. Shall be reclassified as non-current assets if Shall be depreciated if Shall not be depreciated unless Shall not be reclassified as current assets until 75 / 100 Which of the following is not one of the steps used in assigning costs to individual jobs? Identify the job that is the chosen cost object Identify the indirect -cost pools associated with the job Identify the direct -cost pools associated with the job Develop rate per unit of the cost allocation base used to allocate indirect costs to the job 76 / 100 Deferred tax assets are the amounts of income taxes recoverable in future periods in respect of____________________ except Deductible temporary differences The carry forward of unused tax losses Taxable temporary differences associated with investments in subsidiaries, branches and associates The carry forward of unused tax credits 77 / 100 At December 31, Sandafa Corp. owned 80% of Jote Corp.’s common stock and 90% of Chancho Corp.’s common stock. Jote’s net income for the year was $200,000 and Chancho’s net income was $400,000. Combined financial statements are being prepared for Chancho and Jote in contemplation of their sale to an outside party. In the combined income statement, combined net income should be reported at Chancho and Jote had no inter-entity ownership or transactions during the year. $420,000 $520,000 $560,000 $600,000 78 / 100 What is the balance of direct labor cost? Br. 275,0000 Br 300, 000 Br. 60,000 Br. 375,000 79 / 100 What is the optimal capital structure? The capital structure that minimizes the firm’s cost of capital The capital structure that maximizes the firm’s leverage ratio The capital structure that maximizes the firm’s financial risk The capital structure that minimizes the firm’s profitability 80 / 100 A valuation base requiring assessment of the price that is fair between the two knowledgeable and willing parties Market value Market rent Equitable value Synergistic value 81 / 100 Identify the false statement related to the term cost Cost involve sacrifice of economic resources Resources scarified toachievespecific purposes The economic resource given up is measured in monetary units Resources scarified toachievemulti purposes 82 / 100 If a merchandise sold on account is returned because of defects, the seller may issue____ to signify acceptance of merchandise returned from buyer Debit Memorandum Sales invoice Sales return and allowance Credit Memorandum 83 / 100 Suppose KK Company acquired 60% of XX Company at Br. 3,000,000. Based on the given information, what is the implied value? 5,000,000 1,800,000 7,500,000 A. 1,200,000 84 / 100 The ___________ is the government’s official annual report prepared and published as a matter of public record. governmental annual financial report comprehensive annual financial report independent auditor’s report complete audited financial report 85 / 100 Equity investments acquired by a corporation which accounted for recognizing unrealized holding gains or losses as other comprehensive income Non-trading where a company has holdings of less than 20%. Trading investments where a company has holdings of less than 20%. Investments where a company has holdings of between 20% and 50%. A. Investments where a company has holdings of more than 50% 86 / 100 One of the following is true about plant property equipment All plant property equipment are depreciable Plant property equipment are held for generating rental income Revaluation of plant property equipment are permitted under IFRS All long lived assets are a plant property equipment 87 / 100 Which of the following use current financial resources measurement focus? Governmental fund statements Fiduciary fund statements Proprietary fund statements Internal Service fund statements 88 / 100 If the fair value of the property on April 30, 2022 was 3 million, what was the effect? (assume the entity use fair value model) The fair value of the property less than carrying amount The entity reported revaluation surplus of 466,666.7 The entity reported profit of 466,666.7 The entity reported a loss of 466,666.7 89 / 100 On January 1, Walif Corp. acquired 80% of Metek Corp.’s $10 par common stock for $975,000. The remaining 20% of this stock is held by YOM Co., an unrelated party. On the acquisition date for this business combination, the carrying amount of Metek’s net assets was $1 million. The fair values of the assets acquired and liabilities assumed were the same as their carrying amounts on Metek’s balance sheet except for plant assets (net), the fair value of which was $100,000 in excess of the carrying amount. The fair value of the non-controlling interest is 20% of the fair value of the acquirer’s net assets at the acquisition date. (No exceptions to the recognition or measurement principles apply.) For the year ended December 31, Metek had net income of $190,000 and paid cash dividends totalling $125,000. In the December 31 consolidated balance sheet, the non-controlling interest is reported at 200,000 $213,000 $220,000 $233,000 90 / 100 The most difficult type of misstatement to detect fraud is based on: Related party purchases b) Related party sales The restatement of sales Omission of a sales transaction from being recorded. None 91 / 100 Which of the following is not a characteristic of a joint operation? The parties have joint control over the arrangement The parties have rights to the net assets of the arrangement The parties share the risks and rewards of the arrangement The parties have a joint management structure 92 / 100 Assume for the year 2020 Lexy Corporation’s financial statements reported the following: Net income: $ 100, 000, depreciation expense: 10,000, increase in account receivable: 30,000 and decrease in account payable amounts: 15,000. What will be the amount of net Cash provided by Operating Activities? $45,000 $125,000 $65,000 $ 105,00 93 / 100 ABC Company sells its only product for birr 19 per unit, variable production costs are birr 13 per unit, and selling and administrative costs are birr 4.50 per unit. Fixed costs for 10,000 units are birr 5,000. The contribution margin is: birr 6 per unit birr 1.50 per unit birr 5.50 per unit birr 4 per unit 94 / 100 AD Corporation signed a three-month, zero-interest-bearing $152,205 note on November 1, 2015 for the purchase of $150,000 of inventory. The adjusting entry made at December 31, 2015 will include a A. Debit to Note Payable for $735 Debit to Interest Expense for $1,470 Credit to Note Payable for $735 Credit to Interest Expense for $1,470 95 / 100 An entity recognizesgoods or services receivedin a share-based payment transaction: Only when the share-based payment is cash-settled When it receives the goods or services. Only when the vesting period ends Only on the date that the equity instruments are granted 96 / 100 If you need $12,000 in one year, how much do you have to deposit today if the interest rate is 10%? $13,200 $10,909.09 $14,520 $15,245 97 / 100 “Do not put all your eggs in one basket” related to the concept of Valuation of fixed income securities Diversification of investment Capital structure All of the above 98 / 100 The period at which share based payment entitlement satisfied Grant date Vesting period Arrangement period Exercise period 99 / 100 Which of the following is not true about opinion on financial statements? The auditor should express an opinion on financial statements. His opinion is no guarantee to future viability of business He is responsible for detection and prevention of frauds and errors in financial statements He should examine whether recognized accounting principle have been consistently 100 / 100 Moon Company uses Activity-based costing for Product X and Product Y. The total estimated overhead cost for the parts administration activity pool was $550,000 and the expected activity was 2000 part types. If Product Y requires 1200 part types, the amount of overhead allocated to product Y for parts administration would be: $275,000 $300,000 A. $330,000 $345,000 Your score is 0%