Quali (2)

100問 • 6ヶ月前

問題一覧

Which of the following costs are included in the cost of inventories?

Transport costs for raw materials

How should trade discounts be dealt with when valuing inventories at the lower of cost and net realizable value (RV) according to PAS 2?

d. Deducted from cost

The Coronet Company has a cost card in relation to an item of goods manufactured as follows: Materials. 70 Storage costs of finished goods. 18 Delivery to customers (Freight out). 4 Non-recoverable purchase taxes. 6 According to PAS 2, at what figure should the item be valued in inventory?

Which of the following costs of conversion cannot be included in cost of inventory?

Salaries of sales staff (sales department shares the building with factory supervisor).

The statement of cash flows help users asses all of this except one

the cash payment for purchase goods and services

The statement of cash flow present cash fkow according to the following classifications except one

generating activities

Which of the following is incorrect

operating activities and investing activities affects total comprehensive income

The statement of cash flow is prepares using of what basis?

cash basis

Only transaction that affected cash and cash equivalent are reported in which statement?

statement of cash flow

In PAS 7 there are two particular methods, what are these?

direct method and indirect method

PAS 7 does not require any particular method however PAS 7 encourages this type of method because it provides information that may be useful in estimating future cash flow which is not available under the other method. What method is this?

direct method

Cash flows arising from acquisitions and disposals of subsidiaries or other business units resulting to loss or obtaining of control are classified as

investing activities

These are all under operating activities except one

cash receipts and cash payments in the acquisition and disposal of property, plant and equipment, investment property, intangible assets and other noncurrent assets

Investing activities involve the acquisition and disposal of noncurrent assets and other investments. Which of the following is not one of these?

e. cash receipts from issuing shares or other equity instruments and cash payments to redeem them

Financing activities are those that affect the entity's borrowings and contributed equity. Which of the follwing is not one of these?

d. loan to other parties and collection thereof

Cash inflows or outflows relating to income and expenses are generally presented under

a. Operating activities

Entity A acquires equipment by issuing shares of stocks. How should Entity Areport the transaction in the statement of cash flows?

not reported

Entity A, a financial institution, received cash dividends from its investments inmarketable securities during the year. How will the dividends be presented in Entity A’s statement of cash flows?

as operating activity

Which of the following statements best describes a statement of cash flows?

d. The statement of cash flows shows historical changes of cash and cashequivalents during the period

Which of the following is presented under the investing activities section of astatement of cash flows?

purchase of equipment through cash

Preparing the statement of cash flows involves all of the following except determining the

cash collection from the customer during the period

The statement of cash flows provides answers to all of the following questions except

c. What is the impact of inflation on the cash balance at the end of the year?

This is the specific principles, bases, conventions, rules and practice applied by an entity in preparing financial statement

accounting policies

PAS 8 permits a change in accounting policy only if the change is

c.both a and b

Changes in accounting policies are accounted for using the following order of priority: 1. Transitional provision in a PFRS, if any. 2. Retrospective application, in the absence of a transitional provision. 3. Prospective application, if retrospective application is impracticable.

a. 1,2,3

Are monetary amounts in financial statement that are subject to measurement uncertainty

accounting estimstes

When it is difficult to distinguish a change in accounting policy from a change in accounting estimate, the change is treated as what?

accounting estimate

These arise from misapplication of accounting policies, mathematical mistakes, oversights ormisinterpretations of facts, or fraud.

a. Error

This refers to applying a new accounting policy to transactions, other events and conditions as if that policy had always been applied.

a.Retrospective application

Entity A's reporting period ends on December 31, 20x1 and its financial statements are authorized for issue on March 31, 20x2. Events after the reporting period are those events that occur within

January 1, 20x2 to March 31, 20x2.

According to PAS 10, these are those events, favorable and unfavorable, that occurbetween the end of the reporting period and the date when the financial statementsare authorized for issue

events after the reporting period

The Sarin Company's financial statements for the year ended 30 April 20X8 wereapproved by its finance director on 7 July 20X8 and a public announcement of itsprofit for the year was made on 10 July 20X8. The board of directors authorised thefinancial statements for issue on 15 July 20X8 and they were approved by theshareholders on 20 July 20X8. Under PAS 10, after what date should considerationno longer be given as to whether the financial statements to 30 April 20X8 need toreflect adjusting and non-adjusting events?

july 15, 2028

Which of the following is an example of a non-adjusting event?

destruction of a machine by fire after the reporting period

One of Entity A’s delivery trucks had an accident on February 14, 20x2. The truckis totally wrecked and is uninsured. Entity A’s December 31, 20x1 current-periodfinancial statements were authorized for issue on March 31, 20x2. Entity A askedyou if it can write-off the carrying amount of the destroyed truck from its December31, 20x1 statement of financial position. What will you tell Entity A?

No. Don’t write-off the truck because the event is a non-adjusting event. Youshould, however, disclose the event if you deem it to be material

Which of the following is most likely to be a non-adjusting event?

the entity announces a major restructuring after the end of the reporting period

It is the total amount included in the determination of profit or loss for the period.

tax expense or income tax

It is the amount of income taxes payable in respect of the taxable profit for a period

current tax

It arise when income and expense enter in the computation of either accounting profit or taxable profit but not both

permanently differences

Are the differences between the carrying amount of an asset or liability in the statement of financial position and its tax base

temporary differences

Those that result for future taxable amount when the carrying amount of the asset or liability is recovered or settled

taxable temporary differences

These are difference that have future tax consequences

temporary differences

This type of difference will give rise to deferred tax liability

taxable temporary difference

Deferred tax asset and deferred tax liabilities do not alter the tax to be paid in thecurrent period. However, they cause tax payments to either increase or decreasewhen they reverse in a future period. The reversal of which of the following willcause an increase in tax payment?

deferred tax liability

During the period, deferred tax assets increase by ₱400 while deferred taxliabilities increase by ₱500. The net change of ₱100 is a

deferred tax expense

Deferred tax asset and deferred tax liabilities are presented in non-current assets and non-current liabilities as?

separately

PAS 12 permits offsetting of deferred tax assets and deferred tax liabilities only if

d.both a and b

Which of the following is included as ppe in PAS 16

tangible asset and used in business

Which of the following is not included in the PPE?

asset classified held for sale

An item of PPE is recognized if

c.both a and b

An item of PPE is initially measured at?

cost

A bearer plant is a living plant that:

all of the above

The cost of a PPE acquired through an exchange of non-monetary assets is measured using the following order of priority: 1. Fair value of the asset given up 2. Fair value of the asset received 3. Carrying amount of the asset given up

1,2,3

The subsequent measurement for PPE is ?

either cost model or revaluation model

It is the systematic allocation of the depreciable amount of an asset over it useful value

depreciation

It is the estimated amount that an entity would currently obtain from disposal of the asset

residual value

The amount at which an asset is recognized after deducting any accumulated depreciation and accumulated impairment losses

carrying amount

PAS 16 has variety of depreciation methods which of the following is not one of it

sum method

What is the most commonly used method in PAS 16?

c. straight line method

PAS 16 applies to which of the following items?

a) Office furniture and fixture

Which of the following is not a characteristic of a PPE?

c. Primarily held for sale

According to PAS 16, PPE is initially measured at

a. cost

Depreciation starts when the asset is

d. The earlier of b and c

These are all forms of consideration given by an entity in exchange for service rendered by employees or for the termination of employment

employee benefits

Employee benefits are recognized as

expense

Employee benefits already earned by employees but not yet paid are recognized as

liabilities

The following are the categories of employee benefits except one

contributory benefits

This benefits are those that are due to be settled within 12 months after the end of the period in which the employee has rendered the related services

short term benefits

Are employee benefits that are payable after the completion of employment

post employment benefits

Under this plan, various unrelated employers contribute to a common fund that is managed by a trustee to provide post employment benefits to the employees of the participating employers

multiemployer plan

It is a one that is established by law and operated by the government.

state plan

It is the employee benefits that are due to be settled beyond 12 months after the end of the period

other long term benefits

Imagine you are an employer (an awesome one). When should you recognize short-term employee benefits?

When the employees have rendered service in exchange for the employee benefits.

You are the business owner of Entity A. You have 10 employees, each eaming ₽20,000 per month. You pay salaries on a bi-monthly basis. During the month of April 20x1, none of your employees were absent, late or have rendered overtime service. When will you recognize the salaries expense (and at what amount) for the first payday in the month of April 20x1? Timing of recognition. Amount recognized a. April 1. 20,000 b. April 15. 20,000 c. April 1. 100,000 d. April 15. 100,000

Entity A has 20 employees who are each entitled to one day paid vacation leave for each month of service rendered. Unused vacation leaves cannot be carried forward and are forfeited when employees leave the entity. All the employees have rendered service throughout the current year and have taken a total of 150 days of vacation leaves. The average daily rate of the employees in the current period is P1,000. However, a 5% increase in the rate is expected to take into effect in the following year. Based on Entity A's past experience, the average annual employee turnover rate is 20%. How much will Entity A accrue at the end of the current year for unused entitlements?

Under a profit-sharing plan, Entity A agrees to pay its employees 5% of its annual profit. The bonus shall be divided among the employees currently employed as at year-end. Relevant information follows: Profit for the year. ₽8,000,000 Employees at the beginning of the year 8 Average employees during the year. 7 Employees at the end of the year. 6 If the employee benefits remain unpaid, how much liability shall Entity A accrue at the end of the year?

400,000

You are employed as an accountant. Your company's retirement plan states that, upon retirement, an employee (not less than 60 years but not more than 65 years of age) is entitled to a lump sum payment equal to the employee's final monthly salary level multiplied by the number of years in service (not less than 10 years. At the end of month following the month of retirement and every month thereafter, the retired employee is entitled to a monthly pension equal to one-eighth (1/8) of the final monthly salary level. The monthly pensions cease upon death of the retired employee. However, if the employee has immediate dependents) with age of less than 18 years, the dependents) will be entitled to the monthly pensions, which will cease when the dependents) reaches 18 years of age. What type of post-employment benefit plan does your company have?

defined benefits plan

Are assistance received from the government in the form of transfers of resources in exchange of compliance of certain conditions

government grants

These are all example of government grants except one

government participation in the ownership of the entity

Government grants are recognized if there is reasonable assurance that

both a and b

PAS 20 uses what kind of approach?

income approach

When recognizing income from a government grant,the concept that is most relevant is

matching

It is a governemnt grant whose primary condition is that an entity qualifying for it should purchase, construct or otherwise acquire long term asset

grant related to asset

A government grant that becomes repayable shall be accounted as

change in accounting estimate

It is a transaction that is denominated or requires settlement in a foreign currency

foreign currency transaction

A foreign currency transaction is initially recognized by translating the foreign currency amount into the functional currency using the

spot exchange rate

are those which do not give rise to the receipt or payment of a fixed or determinable amount of money

non monetary items

It is the difference resulting from translating a given number of units of one currency into another currency at different exchange rates

exchange differences

Monetary items are recognized in

profit or loss

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are

A. Capitalized; other borrowing costs are expensed

Which statement is true concerning capitalization of borrowing cost? I. If the borrowing is directly attributable to a qualifying asset, the borrowing cost is required to be capitalized as cost of the asset. Il. If the borrowing is not directly attributable to a qualifying asset, the borrowing cost shall be expensed as incurred. a. I only b. Il only c. Neither I or Il d. Both I and lI

If the qualifying asset is financed by specific borrowing, the capitalizable borrowing cost is equal to

c. Actual borrowing cost incurred up to completion of asset minus any investment income from the temporary investment of the borrowing

Which of the following could be treated as qualifying asset for the purpose of capitalizing borrowing cost?

a. Investment property

If the qualifying asset is financed by general borrowing, the capitalizable borrowing cost is equal to

c. Average expenditures on the asset multiplied by a capitalization rate or actual borrowing cost incurred, whichever is lower.

Capitalization of interest ends when .

a. The asset is substantially complete and ready for the intended use

Which should not be considered a qualifying asset?

b. An expensive jet that can be purchased from a vendor

Interest income on specific borrowing for qualifying asset

a. Reduces the cost of the qualifying asset

Which is not a disclosure requirement in relation to borrowing cost?

c. Segregation of qualifying asset from the other assets

Capitalization of borrowing cost

d. Shall be suspended only during extended period of delay in which active development is delayed.

Borrowing cost is defined as

b. Interest and other cost that an entity incurs in connection with borrowing of fund.

100

Borrowing cost can be capitalized as cost of the asset when .

c. The asset is a qualifying asset and it is probable that the borrowing cost will result in future economic benefit to the entity and the cost can be measured reliably.

Cfas (overview of accounting)

ユーザ名非公開 · 75問 · 11ヶ月前

Cfas (overview of accounting)