Reference no: EM132788525

Question 1: All of the following must be disclosed separately, except

Option 1: The aggregate amount of current and deferred tax relating to items recognized directly in equity.
Option 2: Analysis of the beginning and ending balance of deferred tax asset and deferred tax liability.
Option 4: The applicable tax rate, the basis on which the tax rate is applied and explanation for any change in tax rate.
Option 5: The tax bases of all items on which deferred tax has been calculated.

Question 2: This type of lease involves recognition of a manufacturer's or dealer's profit or loss on the transfer of the asset to the lessee.

Option 1: Operating lease
Option 2: Sale and leaseback
Option 3: Sales type lease
Option 4: Direct financing lease.

Question 3: Which of the following does not affect accumulated profits?

Option 1: Stock dividend
Option 2: Share split
Option 3: Conversion of preference share to ordinary share
Option 4: Treasury share transaction

Question 4: The situation which would normally lead to a lease being classified as a finance lease include all of the following, except

Option 1: The lease transfers ownership of the underlying asset to the lessee at the end of the lease term.
Option 2: The lessee has the option to purchase the asset at a price which is expected to be sufficiently higher than the fair value at the date the option becomes exercisable.
Option 3: The lease term is for the major part of the economic life of the underlying asset even if title is not transferred.
Option 4: The present value of the lease payments amounts to substantially all of the fair value of the underlying asset at the inception of the lease.