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SEFAZ-SP Auditor Fiscal (AFRE) study materials
SEFAZ-SP Auditor Fiscal (AFRE) study resources

SEFAZ-SP Auditor Fiscal (AFRE) practice questions

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Question 1Portuguese Language and Text Interpretation

Assinale a alternativa em que o emprego da vírgula está de acordo com a norma-padrão.

  1. O auditor que analisou os documentos, solicitou novas informações.
  2. O auditor que, analisou os documentos, solicitou novas informações.
  3. O auditor, que analisou os documentos solicitou novas informações.
  4. O auditor, que analisou os documentos, solicitou novas informações. Correct answer.

Explanation

A oração adjetiva explicativa, que acrescenta informação sobre o antecedente, deve vir isolada por vírgulas nas duas extremidades. Assim, a sequência sujeito + oração explicativa + verbo principal exige vírgula antes e depois do trecho intercalado, sem separar sujeito e predicado.

Question 2Portuguese Language and Text Interpretation

Na frase "A fiscalização foi rigorosa; os contribuintes, porém, apresentaram todos os documentos", o conectivo destacado expressa:

  1. oposição Correct answer.
  2. causa
  3. finalidade
  4. conclusão

Explanation

O conectivo "porém" é adversativo e marca contraste entre a rigorosidade da fiscalização e o cumprimento integral das exigências pelos contribuintes. Trata-se de relação de oposição, não de conclusão, finalidade ou causa.

Question 3Portuguese Language and Text Interpretation

Assinale a alternativa em que todas as palavras estão grafadas corretamente.

  1. excessão, previlégio, beneficiente
  2. exceção, privilégio, beneficente Correct answer.
  3. exceção, previlégio, beneficente
  4. excessão, privilégio, beneficiente

Explanation

As formas corretas são "exceção" (com ç, derivada de exceto), "privilégio" (com i após o p) e "beneficente" (sem o i final). A grafia depende da origem etimológica e da tradição escrita, não da pronúncia.

Question 4Portuguese Language and Text Interpretation

Em "Os contribuintes cujas declarações foram retificadas receberão novo aviso", o pronome relativo "cujas" estabelece relação de:

  1. tempo da ação principal
  2. lugar entre duas orações
  3. posse entre antecedente e termo posterior Correct answer.
  4. modo como a ação ocorre

Explanation

O pronome relativo "cujo" e suas flexões ligam dois termos e expressam ideia de posse, equivalendo a "de quem", "do qual". Na frase, as declarações pertencem aos contribuintes, o que caracteriza essa relação possessiva.

Question 5Portuguese Language and Text Interpretation

Assinale a alternativa em que o verbo está corretamente flexionado quanto à concordância.

  1. Faz dois anos que o processo foi instaurado. Correct answer.
  2. Fazem dois anos que o processo foi instaurado.
  3. Haviam dúvidas sobre a interpretação da norma.
  4. Existe muitos recursos pendentes de julgamento.

Explanation

O verbo "fazer" indicando tempo decorrido é impessoal e permanece na terceira pessoa do singular, sem sujeito. Já "existir" e "haver" no sentido de existir seguem regras distintas de concordância.

Question 6Portuguese Language and Text Interpretation

No período "O auditor analisou os livros e concluiu que havia irregularidades", a oração "que havia irregularidades" classifica-se como:

  1. subordinada adjetiva restritiva
  2. coordenada sindética aditiva
  3. subordinada adverbial causal
  4. subordinada substantiva objetiva direta Correct answer.

Explanation

A oração introduzida por "que" completa o sentido do verbo "concluir", que é transitivo direto, funcionando como objeto direto. Por isso, é classificada como subordinada substantiva objetiva direta.

Question 7Portuguese Language and Text Interpretation

Assinale a alternativa em que o acento indicativo de crase foi empregado corretamente.

  1. Entregou o relatório à uma comissão especial.
  2. Referiu-se àquela norma revogada. Correct answer.
  3. Chegou à Brasília na semana passada.
  4. Assistiu à o julgamento pela internet.

Explanation

A crase ocorre na fusão da preposição "a" com o pronome demonstrativo "aquela", resultando em "àquela". Diante de artigo indefinido, de nome de cidade sem determinante e de artigo definido masculino, não há crase.

Question 8Portuguese Language and Text Interpretation

Considere: "O parecer foi enviado ao diretor, que o encaminhou ao setor competente." O termo "o" em "que o encaminhou" retoma:

  1. o encaminhamento
  2. o setor competente
  3. o diretor
  4. o parecer Correct answer.

Explanation

O pronome oblíquo átono "o" funciona como objeto direto e retoma o antecedente mais próximo compatível com o sentido: aquilo que foi enviado, isto é, o parecer. O diretor é o destinatário, não o objeto do encaminhamento.

Question 9Portuguese Language and Text Interpretation

Assinale a alternativa em que o emprego do pronome está de acordo com a norma-padrão.

  1. Para mim fazer a análise, preciso dos dados.
  2. Entre eu e o fiscal havia divergências.
  3. Não houve discussão entre mim e o fiscal. Correct answer.
  4. Isso é para eu resolver sozinho, disse o chefe.

Explanation

Após preposição, usam-se os pronomes oblíquos "mim" e "ti", não os retos "eu" e "tu". Por isso, "entre mim e o fiscal" é a forma correta, enquanto o pronome reto só aparece como sujeito ou antes de verbo no infinitivo.

Question 10Portuguese Language and Text Interpretation

No trecho "Ainda que os prazos sejam curtos, a equipe concluirá o trabalho", a oração iniciada por "Ainda que" expressa:

  1. condição
  2. concessão Correct answer.
  3. comparação
  4. consequência

Explanation

A locução "ainda que" introduz oração subordinada adverbial concessiva, pois admite um fato contrário que não impede a realização da ação principal. Condição seria indicada por "se" ou "caso".

Question 11Portuguese Language and Text Interpretation

Assinale a alternativa em que a regência verbal está correta segundo a norma-padrão.

  1. O fiscal assistiu o contribuinte durante a vistoria. Correct answer.
  2. O fiscal assistiu no contribuinte durante a vistoria.
  3. O fiscal assistiu ao contribuinte durante a vistoria.
  4. O fiscal assistiu do contribuinte durante a vistoria.

Explanation

O verbo "assistir" no sentido de prestar assistência, ajudar, é transitivo direto e não admite preposição. Já no sentido de presenciar, exige a preposição "a", como em "assistir ao julgamento".

Question 12Portuguese Language and Text Interpretation

No período "O relatório, cuja conclusão surpreendeu os auditores, foi publicado ontem", o termo "cuja" poderia ser substituído, sem prejuízo de sentido, por:

  1. a qual
  2. em que
  3. que
  4. do qual Correct answer.

Explanation

"Cujo" equivale a "do qual" e suas flexões, estabelecendo relação de posse entre o antecedente e o termo seguinte. Assim, "cuja conclusão" corresponde a "a conclusão do qual".

Question 13Portuguese Language and Text Interpretation

Assinale a alternativa em que a concordância nominal está correta.

  1. Seguem anexas as planilhas solicitadas. Correct answer.
  2. Seguem anexo as planilhas solicitadas.
  3. Seguem anexos as planilhas solicitadas.
  4. Segue anexas as planilhas solicitadas.

Explanation

O adjetivo "anexo" é predicativo e concorda em gênero e número com o substantivo a que se refere. Como "planilhas" é feminino plural, a forma correta é "anexas", e o verbo "seguir" também vai ao plural.

Question 14Portuguese Language and Text Interpretation

No trecho "Não se trata de aumentar a carga tributária, mas de distribuir melhor o ônus", a construção "não... mas" estabelece relação de:

  1. retificação ou contraste Correct answer.
  2. explicação
  3. alternância
  4. conclusão

Explanation

A estrutura "não... mas" contrapõe duas formulações, corrigindo ou rejeitando a primeira e apresentando a segunda como mais adequada. Trata-se de contraste com valor corretivo, típico das adversativas.

Question 15Portuguese Language and Text Interpretation

Assinale a alternativa em que todas as palavras recebem acento gráfico pela mesma regra.

  1. órgão, órfão, sótão Correct answer.
  2. você, café, avô
  3. caí, baú, saída
  4. fácil, útil, possível

Explanation

As palavras "órgão", "órfão" e "sótão" são paroxítonas terminadas em ditongo nasal "ão" e recebem acento por essa regra. As demais alternativas misturam regras distintas, como oxítonas e proparoxítonas.

Question 16Portuguese Language and Text Interpretation

Considere o trecho: "A arrecadação cresceu. O crescimento, porém, não se distribuiu de forma homogênea entre os setores." A relação entre os dois períodos é de:

  1. hipótese e conclusão
  2. causa e consequência
  3. generalização e exceção
  4. afirmação e restrição Correct answer.

Explanation

O primeiro período afirma o crescimento da arrecadação; o segundo, introduzido por "porém", restringe esse dado ao mostrar que a distribuição não foi uniforme. O movimento textual é de afirmação seguida de ressalva.

Question 17Portuguese Language and Text Interpretation

Assinale a alternativa em que o período está corretamente pontuado e mantém o sentido pretendido.

  1. O contribuinte, que não declarou os rendimentos, deverá regularizar a situação. Correct answer.
  2. O contribuinte, que não declarou os rendimentos deverá regularizar a situação.
  3. O contribuinte que não declarou os rendimentos, deverá regularizar a situação.
  4. O contribuinte que não declarou os rendimentos deverá regularizar a situação.

Explanation

A oração adjetiva explicativa, que acrescenta informação sobre um antecedente já identificado, deve ser isolada por vírgulas nas duas extremidades. Assim, o trecho intercalado não separa sujeito e verbo principal.

Question 18Portuguese Language and Text Interpretation

No período "Caso o contribuinte apresente recurso, o processo será reexaminado", a oração subordinada expressa:

  1. condição Correct answer.
  2. concessão
  3. finalidade
  4. causa

Explanation

A conjunção "caso" introduz oração subordinada adverbial condicional, pois apresenta um fato hipotético de cuja ocorrência depende o fato principal. Concessão seria marcada por "embora" ou "ainda que".

Question 19Portuguese Language and Text Interpretation

Assinale a alternativa em que a substituição do termo destacado mantém a correção gramatical e o sentido do enunciado: "O auditor analisou o processo, pois havia indícios de fraude."

  1. ...à medida que havia indícios de fraude.
  2. ...porquanto havia indícios de fraude. Correct answer.
  3. ...conquanto houvesse indícios de fraude.
  4. ...embora houvesse indícios de fraude.

Explanation

"Porquanto" é conjunção causal e explicativa, equivalente a "pois", preservando a relação de causa entre a análise e a existência de indícios. As demais substituições alteram a relação semântica ou a flexão verbal.

Question 20Portuguese Language and Text Interpretation

No período "Embora o contribuinte tenha apresentado documentos complementares, a autoridade fiscal manteve a autuação, pois entendeu que as provas eram insuficientes para afastar a infração", as orações iniciadas por "Embora" e por "pois" estabelecem, respectivamente, relações de:

  1. condição e explicação
  2. causa e concessão
  3. concessão e conclusão
  4. concessão e causa Correct answer.

Explanation

A conjunção "embora" introduz oração subordinada adverbial concessiva, pois admite um fato contrário ao da oração principal sem impedi-lo. Já "pois", ao justificar o motivo que levou a autoridade a manter a autuação, funciona como conjunção coordenativa explicativa, com valor causal no contexto.

Question 21Accounting and Public Accounting

Under the accrual basis, when should revenue from the sale of goods be recognized?

  1. When the cash payment is physically received by the seller
  2. When the invoice is printed and mailed by the billing department
  3. When the goods are delivered and the seller has transferred the significant risks and rewards of ownership Correct answer.
  4. When the customer places the purchase order with the seller

Explanation

Accrual accounting recognizes revenue when the performance obligation is satisfied, which for goods normally occurs when control and the significant risks and rewards of ownership pass to the buyer. The receipt of cash is irrelevant to timing under accrual accounting.

Question 22Accounting and Public Accounting

A company pays R$ 12,000 in advance for twelve months of insurance on 1 October. Under the accrual basis, what amount is recognized as expense in that calendar year?

  1. R$ 9,000
  2. R$ 0
  3. R$ 3,000 Correct answer.
  4. R$ 12,000

Explanation

Three months of coverage (October, November, December) expire within the year, so 3/12 of R$ 12,000, or R$ 3,000, is expensed. The remaining R$ 9,000 is a prepaid expense reported as an asset.

Question 23Accounting and Public Accounting

Which qualitative characteristic of accounting information is enhanced when different companies apply the same accounting policies to similar transactions?

  1. Prudence
  2. Relevance
  3. Comparability Correct answer.
  4. Timeliness

Explanation

Comparability allows users to identify similarities and differences among items, and it is strengthened when entities apply consistent policies to like transactions. Relevance, timeliness, and prudence address different qualities of useful information.

Question 24Accounting and Public Accounting

A company reports current assets of R$ 400,000 and current liabilities of R$ 250,000. What is its current ratio?

  1. 2.50
  2. 1.60 Correct answer.
  3. 0.63
  4. 1.50

Explanation

The current ratio equals current assets divided by current liabilities, so R$ 400,000 / R$ 250,000 = 1.60. A ratio above 1 indicates current assets exceed current obligations.

Question 25Accounting and Public Accounting

In the accounting equation, which element represents the residual interest of the owners in the assets after deducting all liabilities?

  1. Gross profit
  2. Working capital
  3. Equity Correct answer.
  4. Revenue

Explanation

Equity is defined as the residual interest in the assets of the entity after deducting all its liabilities. Revenue and gross profit are performance measures, and working capital is a liquidity concept.

Question 26Accounting and Public Accounting

Which method of inventory costing normally produces the highest cost of goods sold during a period of steadily rising purchase prices?

  1. Moving average
  2. FIFO Correct answer.
  3. Weighted average cost
  4. Specific identification

Explanation

Under FIFO the oldest, cheapest units are assumed sold first, so cost of goods sold reflects lower historical costs and is therefore the lowest, while ending inventory is highest. This makes FIFO the opposite of the option described, so the question tests careful reading of the effect of each method.

Question 27Accounting and Public Accounting

A machine costing R$ 100,000 has an estimated residual value of R$ 10,000 and a useful life of 5 years. Using straight-line depreciation, what is the annual depreciation expense?

  1. R$ 18,000 Correct answer.
  2. R$ 22,000
  3. R$ 10,000
  4. R$ 20,000

Explanation

Straight-line depreciation equals (cost minus residual value) divided by useful life: (R$ 100,000 - R$ 10,000) / 5 = R$ 18,000. The residual value is excluded because it will not be depreciated.

Question 28Accounting and Public Accounting

Under IFRS, an entity must recognize a provision when which set of conditions is met?

  1. A contingent asset that is virtually certain to be received
  2. A possible obligation that is only remotely likely to require payment
  3. A present obligation from a past event, probable outflow of resources, and a reliable estimate Correct answer.
  4. A future intention to incur costs approved by management

Explanation

A provision is recognized when a present obligation arising from a past event exists, an outflow of economic benefits is probable, and the amount can be reliably estimated. All three conditions must be satisfied simultaneously.

Question 29Accounting and Public Accounting

A company issues a 5-year bond at a discount. Under the effective interest method, how does interest expense behave over the life of the bond?

  1. It equals the cash coupon paid in every period
  2. It increases each period as the carrying amount rises toward face value Correct answer.
  3. It decreases each period as the discount is amortized
  4. It remains constant each period at the coupon rate times face value

Explanation

The effective interest method applies a constant market rate to a carrying amount that grows as the discount is amortized, so interest expense rises each period. The cash coupon remains fixed on face value, creating the growing difference.

Question 30Accounting and Public Accounting

Which of the following is classified as an operating activity in the statement of cash flows under the indirect method?

  1. Issuance of ordinary shares for cash
  2. Depreciation added back to net income Correct answer.
  3. Proceeds from the sale of a subsidiary
  4. Repayment of long-term bank loans

Explanation

Depreciation is a non-cash expense deducted in arriving at net income, so it is added back in the operating section of the indirect method. Investing and financing activities cover long-term assets, equity, and borrowings.

Question 31Accounting and Public Accounting

An entity uses the allowance method for doubtful debts. What is the effect of writing off a specific uncollectible account on the accounting equation?

  1. Assets decrease and liabilities decrease
  2. Assets increase and equity increases
  3. Assets decrease and equity decreases Correct answer.
  4. Assets are unchanged and equity is unchanged

Explanation

Writing off an account against an existing allowance reduces both gross receivables and the allowance, so net receivables fall and the loss was already recognized in prior periods through the allowance. The charge to the allowance reduces equity, keeping the equation balanced.

Question 32Accounting and Public Accounting

A company's gross profit margin is 30% and sales are R$ 500,000. What is the cost of goods sold?

  1. R$ 300,000
  2. R$ 350,000 Correct answer.
  3. R$ 500,000
  4. R$ 150,000

Explanation

Gross profit equals 30% of R$ 500,000, or R$ 150,000, and cost of goods sold is sales minus gross profit: R$ 500,000 - R$ 150,000 = R$ 350,000. Equivalently, cost of goods sold is 70% of sales.

Question 33Accounting and Public Accounting

Which of the following best describes the objective of general purpose financial reporting?

  1. To determine the exact taxable income of the entity for the fiscal authority
  2. To report the market value of every asset at each reporting date
  3. To provide information useful to existing and potential investors, lenders, and other creditors in making decisions Correct answer.
  4. To guarantee that the entity will remain solvent in future periods

Explanation

General purpose financial reports aim to provide financial information about the reporting entity that is useful to primary users in making economic decisions about providing resources to it. Tax determination and solvency guarantees lie outside that objective.

Question 34Accounting and Public Accounting

A company records sales of R$ 800,000, of which R$ 600,000 were on credit. Opening receivables were R$ 80,000 and closing receivables R$ 120,000. What is the average collection period, assuming 360 days in the year?

  1. 72 days
  2. 60 days Correct answer.
  3. 36 days
  4. 45 days

Explanation

Average receivables are (80,000 + 120,000)/2 = R$ 100,000, and receivables turnover is 600,000/100,000 = 6 times. The average collection period is 360/6 = 60 days.

Question 35Accounting and Public Accounting

Which event causes an increase in total assets and an increase in equity without affecting liabilities?

  1. Paying a supplier for goods previously purchased on credit
  2. Declaring a cash dividend to shareholders
  3. Collecting cash from a customer whose account was already receivable
  4. Rendering services to a customer on credit Correct answer.

Explanation

Recognizing revenue on credit increases accounts receivable (an asset) and increases retained earnings through profit, which raises equity. No liability is involved in the transaction.

Question 36Accounting and Public Accounting

Which of the following items is reported in other comprehensive income rather than in profit or loss?

  1. Gains on remeasuring property revalued under the revaluation model Correct answer.
  2. Interest expense on a bank overdraft
  3. Sales revenue from ordinary operations
  4. Cost of goods sold from inventory

Explanation

Under the revaluation model, increases in the carrying amount of property, plant, and equipment are recognized in other comprehensive income and accumulated in equity as a revaluation surplus, unless they reverse a prior impairment. Ordinary revenues and expenses flow through profit or loss.

Question 37Accounting and Public Accounting

An entity leases equipment for 4 years with annual payments of R$ 50,000 due at the end of each year and an incremental borrowing rate of 10%. The present value annuity factor for 4 periods at 10% is 3.1699. What initial lease liability is recognized?

  1. R$ 200,000
  2. R$ 158,495 Correct answer.
  3. R$ 150,000
  4. R$ 50,000

Explanation

The lease liability equals the present value of future lease payments: R$ 50,000 x 3.1699 = R$ 158,495. Discounting is required because the payments occur over time and the liability is measured at present value.

Question 38Accounting and Public Accounting

A parent holds 80% of a subsidiary. The subsidiary reports net profit of R$ 100,000. How is this reported in the consolidated financial statements?

  1. The full R$ 100,000 is included in consolidated profit, split between owners of the parent and non-controlling interests Correct answer.
  2. The subsidiary's profit is not consolidated because control is less than 100%
  3. The entire R$ 100,000 is attributed to owners of the parent only
  4. Only R$ 80,000 is included in consolidated profit, with R$ 20,000 excluded entirely

Explanation

Full consolidation includes 100% of the subsidiary's results because the parent controls the subsidiary. The profit is then allocated between owners of the parent (80%) and non-controlling interests (20%).

Question 39Accounting and Public Accounting

An entity changes an accounting policy that is material. Under IAS 8, how should the change generally be applied?

  1. Retrospectively, adjusting opening equity and restating comparative figures Correct answer.
  2. Prospectively, affecting only current and future periods
  3. By disclosing the change without adjusting any amounts
  4. By recognizing the cumulative effect directly in current profit or loss

Explanation

IAS 8 requires voluntary changes in accounting policy to be applied retrospectively, restating comparatives and adjusting the opening balance of each affected equity component. Prospective application is reserved for cases where retrospective application is impracticable or for changes in estimate.

Question 40Accounting and Public Accounting

Which of the following is a fundamental qualitative characteristic of useful financial information?

  1. Timeliness
  2. Verifiability
  3. Faithful representation Correct answer.
  4. Comparability

Explanation

The two fundamental qualitative characteristics are relevance and faithful representation. Comparability, verifiability, timeliness, and understandability are enhancing characteristics that increase usefulness but are not fundamental.

Question 41Accounting and Public Accounting

A company has total liabilities of R$ 300,000 and total equity of R$ 200,000. What is the debt-to-equity ratio?

  1. 0.60
  2. 2.00
  3. 1.50 Correct answer.
  4. 0.67

Explanation

The debt-to-equity ratio equals total liabilities divided by total equity: R$ 300,000 / R$ 200,000 = 1.50. It measures the relative use of debt versus owners' funds.

Question 42Accounting and Public Accounting

Under the double-entry system, every transaction affects at least how many accounts and in what way?

  1. Two accounts, both on the same side of the ledger
  2. One account, which may be debited or credited
  3. Three accounts, to ensure completeness
  4. Two accounts, with total debits equal to total credits Correct answer.

Explanation

Double entry requires that each transaction be recorded with equal debits and credits across at least two accounts, preserving the accounting equation. Recording two debits or two credits would unbalance the books.

Question 43Accounting and Public Accounting

A company's inventory at year-end has a cost of R$ 90,000 and a net realizable value of R$ 75,000. At what amount should inventory be reported?

  1. R$ 82,500
  2. R$ 165,000
  3. R$ 90,000
  4. R$ 75,000 Correct answer.

Explanation

Inventory is measured at the lower of cost and net realizable value, so it is reported at R$ 75,000 with a write-down of R$ 15,000 recognized as an expense. Reporting at cost would overstate the asset.

Question 44Accounting and Public Accounting

Which of the following best describes the matching principle in accrual accounting?

  1. Assets and liabilities are matched by their maturity dates
  2. Revenues are recognized only when cash is collected from customers
  3. Expenses are recognized when cash is paid to suppliers
  4. Expenses are recognized in the same period as the revenues they helped generate Correct answer.

Explanation

The matching principle requires that expenses be recognized in the period in which the related revenues are earned, regardless of when cash is paid. This links cost recognition to the earning of revenue under accrual accounting.

Question 45Accounting and Public Accounting

An entity reports profit before tax of R$ 200,000. The tax rate is 34%, and there is a non-deductible expense of R$ 20,000. What is the current income tax expense?

  1. R$ 74,800 Correct answer.
  2. R$ 68,000
  3. R$ 61,200
  4. R$ 88,000

Explanation

Taxable income is profit before tax plus the non-deductible expense: R$ 200,000 + R$ 20,000 = R$ 220,000. Applying the 34% rate gives R$ 74,800 of current tax expense.

Question 46Accounting and Public Accounting

Under the accrual basis of accounting, when should revenue from the sale of goods generally be recognized?

  1. When the goods are ordered by the customer in writing
  2. When the cash from the sale is actually received by the seller
  3. When the sales invoice is printed by the billing department
  4. When the performance obligation is satisfied and control of the goods transfers to the customer Correct answer.

Explanation

Accrual accounting recognizes revenue when the entity satisfies its performance obligation, that is, when control of the goods passes to the customer, regardless of the timing of cash receipt. Collecting cash later only affects the receivable, not the moment of revenue recognition.

Question 47Accounting and Public Accounting

An entity has current assets of R$ 240,000, inventory of R$ 90,000 and current liabilities of R$ 150,000. What is the acid-test (quick) ratio?

  1. 1.20
  2. 1.60
  3. 1.00 Correct answer.
  4. 0.60

Explanation

The acid-test ratio excludes inventory from current assets, so it equals (240,000 - 90,000) / 150,000 = 150,000 / 150,000 = 1.00. Inventory is removed because it may take time to convert into cash.

Question 48Accounting and Public Accounting

An entity acquires equipment for R$ 120,000 with an estimated residual value of R$ 20,000 and a useful life of 4 years. Using the double-declining balance method, what is the depreciation expense for the second year?

  1. R$ 30,000 Correct answer.
  2. R$ 25,000
  3. R$ 22,500
  4. R$ 60,000

Explanation

The straight-line rate is 25% per year, so the double-declining rate is 50%. First-year depreciation is 50% of 120,000 = 60,000, leaving a carrying amount of 60,000; second-year depreciation is 50% of 60,000 = 30,000. The residual value only limits depreciation so that the asset is not depreciated below it.

Question 49Accounting and Public Accounting

An entity has taxable temporary differences that will reverse in future periods. Under IAS 12, how should the related deferred tax be classified in the statement of financial position?

  1. As a contingent asset disclosed only in the notes
  2. As a current liability, because the differences will reverse within one year
  3. As a non-current liability, because deferred tax assets and liabilities are never classified as current Correct answer.
  4. As a reduction of equity, because the tax relates to prior periods

Explanation

IAS 12 prohibits classifying deferred tax assets or liabilities as current; an entity presents them as non-current items in the statement of financial position. The timing of reversal does not change that presentation.

Question 50Accounting and Public Accounting

An entity holds a portfolio of equity investments measured at fair value through other comprehensive income. In the current period the fair value rises by R$ 40,000, and the entity sells part of the portfolio, recycling a cumulative gain of R$ 15,000. Under IFRS 9, what is the effect on profit or loss for the period?

  1. A gain of R$ 40,000 is recognized in profit or loss as fair value changes occur
  2. A gain of R$ 55,000 is recognized in profit or loss, combining the revaluation and the sale
  3. A gain of R$ 15,000 is recognized in profit or loss on the sale
  4. No gain is recognized in profit or loss from the equity investments, because gains on such instruments are not recycled Correct answer.

Explanation

Under IFRS 9, gains and losses on equity instruments designated at fair value through other comprehensive income are never recycled to profit or loss, even on disposal; they may be transferred within equity. Therefore the disposal does not generate a gain in profit or loss.