ICAB Accounting Question Analysis Knowledge Level from June 2010 to Dec 2015

ICAB Accounting Question Analysis Knowledge Level from June 2010 to Dec 2015

1. Introduction to accounting

1. Users use accounting information as a helping tool to make economic decisions. Briefly discuss the qualitative characteristics that accounting information should possess to be useful to the reasonable users. (Dec-15) (Mark-4)
2. What are the objectives of financial statements? How does an organization achieve it? (June-15) (Mark-4)
3. Differentiate between capital expenditure and revenue expenditure. (June 14) (Marks-4) (Page-11)
4. Define capital income, revenue income, deferred expenditure and capital expenditure with examples. (June 13) (Marks-4) (Page-)
5. Write down the objectives of financial statements. (Dec 12) (Marks-6) (Page-)
6. What are the components of a complete set of financial statements in line with Bangladesh Accounting Standard-1? (Dec 12) (Marks-4) (Page-)
7. What are the objectives of financial statements? (June 12) (Marks-4) (Page-)
8. What are the qualitative characteristics of financial information? (June 12) (Marks-6) (Page-)
9. “A business should produce information about its activities because there are user groups who want or need to know that information in order to make economic decisions,” – Discuss in the light of BAS-1. (Dec 11) (Marks-5) (Page-)
10. Summarize the Qualitative characteristics of useful accounting statement according to BAS Framework. (Dec 11) (Marks-5) (Page-)
11. What are Capital Expenditure and Revenue Expenditure? (June 11) (Marks-4) (Page-)

Math Question

1. June 14 (1-b)
2. June 11 (3-b)

2. The accounting equation

12. “Accounting equation is the basis of double entry accounting”- explain. (Dec 13) (Marks-4) (Page-)
13. Assets = Capital + Liabilities. Explain. (June 11) (Marks-6) (Page-)

Math Question

1. Dec 13 (2-b)
2. Dec 12 (2)
3. June 11 (7)
4. Dec 10 (5)
5. June 10 (2)

3. Recording financial transaction

Math Question

1. Dec-15 (2-a)
2. June-15(1-e)
3. Dec 12 (3)
4. Dec 11 (2)
5. Dec 10 (6)
6. June 10 (18)

4. Ledger accounting and double entry

Math Question

1. June 12 (2)
2. June 11 (10)

5. Preparing basic financial statements

14. “Adjusting entries are often required because of „timing difference‟ between cash flows and recognition of expenses or revenue” – Explain the statement with two examples. (June 14) (Marks-6) (Page-)

Math Question

1. June 14 (5-b)
2. June 13 (1-b)
3. Dec 12 (2)
4. June 12 (3)
5. Dec 11 (3-b)

6. Control accounts, errors and omissions

15. What are the reasons for which the control account may not agree with the sum of the individual customers’ of suppliers’ balance? (Dec-15) (Mark-3)
16. “A balanced trial balance does not always prove that the company has recorded all transactions or that the ledger is correct” – Mention three types of errors in support of this statement. (June 14) (Marks-6) (Page-)
17. Write down the main advantages of bank reconciliation statements. (Dec 13) (Marks-4) (Page-)
18. “Prior period errors are corrected retrospectively and changes in accounting estimates are applied prospectively”. Explain the usages of accounting estimates and correction of prior period errors in the light of BAS-8. (June 13) (Marks-5) (Page-)
19. Even if the trial balance balances, there may still have some types of errors in the ledger accounts. What are those errors? Explain. (Dec 11) (Marks-4) (Page-)

Math Question

1. Dec-15 (3-b, 4-b)
2. Dec 14 (1-b, 2-b, 5-b)
3. June 14 (4-b)
4. Dec 13 (1-b,4)
5. June 13 (2,5)
6. Dec 12 (5,6)
7. June 12 (4)
8. Dec 11 (5)
9. June 11 (6)
10. Dec 10 (10)
11. June 10 (7)

7. Accounting concept and conventions

1. Define ‘Going concern’ assumption. If there is significant doubt about the entity’s going concern, how would you report the assets? (Dec-15)(Mark-3)
2. Define ‘Materiality’ as per BSA 1 (June-15) (Mark-2)
3. What is meant by substance over form? (June-15) (Mark-2)
4. What is accrual basis of accounting. (June-15) (Mark-2)
5. Define the following with example: (Dec 14) (Marks-6) (Page-)

1. Accrual Principal
2. Revenue Principal
3. Matching Principal

8. Cost of sales, accruals and prepayments

6. “Expenses are matched against income in the period to which they relate”- explain the statement with reference to “accrual” and “prepayment”. (Dec 13) (Marks-7) (Page-)
7. Explain cost of sales. (Dec 11) (Marks-4) (Page-)

Math Question

1. Dec 11 (8,10)
2. June 11 (12)
3. Dec 10 (13)

9. Irrecoverable debts and allowances

Math Question

1. Dec-15 (2-b)
2. Dec 14 (2-a)
3. Dec 11 (7-a)
4. June 11 (5b)
5. Dec 10 (7)
6. June 10 (17)

10. Inventories

Math Question

1. Dec-15 (3-a)
2. June-15 (2)
3. Dec 14 (4)
4. June 14 (3)
5. June 13 (3-b)
6. June 12 (6)
7. Dec 11 (7-b)
8. Dec 10 (8)
9. June 10 (10,16)

11. Non-current assets and depreciation

8. When departure from the BSA is allowed? What are the disclosure requirements for such an event? (Dec-15) (Mark-3)
9. In a set of financial statements prepared in accordance with BSA 16, is it correct to say that the carrying amount figure in a statement of financial statement of financial position cannot be greater that the market value (net realizable) of an asset as at the reporting date? Explain your reasons for your answer. (June-15) (Mark-4)
10. What is impairment loss? (Dec 11) (Marks-4) (Page-)

Math Question

1. Dec 15 (4-a)
2. June 15 (3-b)
3. Dec 14 (5-a)
4. June 14 (2)
5. Dec 13 (3-c)
6. June 13 (4-a,b)
7. Dec 11 (6)
8. June 11 (8,9)
9. Dec 10 (2,4)
10. June 10 (8-b,13,14)

12. Company financial statements

11. Differentiate between debenture and stock. (June 11) (Marks-4) (Page-)
12. Write down the components of financial statements as set out in BAS-1.

Math Question

1. Dec 15 (5)
2. June-15 (4, 5-a,b)
3. Dec 14 (3-b)
4. June 14 (6)
5. Dec 13 (5)
6. June 12 (7)
7. June 11 (4-b)
8. Dec 10 (14)
9. June 10 (15)

13. Sole trades and partnership financial statements

Math Question

1. Dec 11 (9,11)
2. June 11 (11)
3. Dec 10 (11)

14. Others

13. Differentiate between accounting policies and accounting estimates.(Dec 13) (Marks-5) (Page-)
14. Write short notes on following concepts: (June 12) (Marks-4x3=12) (Page-)

• Going concern
• Accrual basis of accounting
• Materiality

15. What are the accounting treatments related with dividend under the following circumstances: (June 12) (Marks-3x3=9) (Page-)

• Payment of final dividend.
• Declaration of interim dividend.
• Declaration of final dividend.

16. What is the meaning of following terms as per BAS Framework? (Dec 11) (Marks-4*2=8) (Page-)

• Going concern
• Substance over form

17. Write short notes on the followings: 10 (June 11) (Marks-10) (Page-)

• Capital income,
• Historical cost,
• Cash discount,
• Offsetting.

1. What are the components to be included in a complete set of financial statements as per BAS 1? (Dec 10) (Marks-6) (Page-)

3. Differentiate between Finance Lease and Operating Lease. (Dec 10) (Marks-6) (Page-)

4. What is the difference between Accounting Depreciation and Tax Depreciation. (Dec 10) (Marks-3+5) (Page-)

5. Define accounting equation. (Dec 10) (Marks-2) (Page-)

6. What is trade and cash discount? (Dec 10) (Marks-2) (Page-)

7. What is the income statement? (Dec 10) (Marks-2) (Page-)

8. What is conversion cost and replacement cost? (Dec 10) (Marks-3) (Page-)

9. Explain the following terms as per BAS framework: (Dec 10) (Marks-9) (Page-)

1. Materiality and Aggregation
2. Offsetting
3. Neutrality and Completeness

12. Define the following: (Dec 10) (Marks-6) (Page-)

1. Tangible and Intangible Asset
2. Goodwill
3. Share Premium

1. “Financial statements are required to give a true and fair view of the financial results of the entity”‐ Explain in the light of BFRS. (June-10) (Marks-5) (Page-)

3. According to BFRS framework who are the users of accounting information and what are their needs? 5 (June-10) (Marks-) (Page-)

4. Why it is important to distinct income and expenditure into capital and revenue? State which of the following items are capital expenditure and why? 5 (June-10) (Marks-) (Page-)

1. Purchase of machinery
2. Depreciation of building
3. Repairs of computer
4. Extension of office building
5. Custom duty paid on machinery when imported.

5. What is the meaning of following terms as per BAS Framework? 5 (June-10) (Marks-) (Page-)

1. Prudence
2. Substance over form.

6. Recorded in the sales day book and the purchases day book of a business are the following transactions:

i) The business sells goods on credit to Mr. P for Tk.2,00,000

ii) The business buys goods on credit from Q Ltd. for Tk.4,00,000

How and where are these transactions posted in the ledger accounts from the books of original entry? (June-10) (Marks-5) (Page-)

8. a) Define Going concern as per BAS 1. (June-10) (Marks-3) (Page-)

9. How inventories are measured as per BAS 2? Explain the concept of Net Realizable value (NRV). (June-10) (Marks-5) (Page-)

11. Explain “Changes in Accounting Estimates” according to BAS‐8 with examples. (June-10) (Marks-5) (Page-)

12. Write a memorandum to the Board of Directors of a banking company justifying the rationale for re‐estimating the useful lives of the fixed assets and changing the depreciation method from Reducing Balance Method to Straight Line Method. (June-10) (Marks-4) (Page-)