Professional Documents
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Inacc3 Balucan
Inacc3 Balucan
Inacc3 Balucan
13. Current and noncurrent presentation 19. W/c of the following is not a method of
provides useful information when the entity disclosing pertinent information?
a. Supplies goods or services w/in a clearly a. Supporting schedule
identifiable operating cycle b. Parenthetical explanation
b. Is a financial information c. Cross reference and contra items
c. Is a public utility d. All of these are the methods of disclosing
d. Is a non-profit organization pertinent information
14. A presentation of assets and liabilities in 20. Adjusting events are those that
increasing or decreasing order of liquidity a. Provide evidence or conditions that existed at the
provides information that is reliable and more end of the reporting period.
relevant than a current and noncurrent b. Are indicative of conditions that arose after the
information. end of the reporting period.
a. Financial institution c. Are indicative of conditions that arose before the
b. Public utility end of the reporting period.
c. Government-owned entity d. Provide evidence or conditions that existed after
d. Service provider the date the FS were issued.
15. When there is much variability, the 21. W/c of the following events after reporting
operating cycle is measured at period would require adjustment?
a. Six months a. Loss of plant as a result of fire
b. The median value b. Decline in the value of investment
c. 12 months c. Loss on inventory due to major flood loss
d. Less than 12 months d. Loss on lawsuit the outcome of which was
deemed uncertain at year-end.
16. Under the International Financial Reporting
Standard, notes to financial statements 22. All of the following fall w/in the definition of
a. Must be quantifiable an entity’s related party, except
b. Must qualify as an element a. Joint venture in w/c the entity is a venturer.
c. Amplify or explain items presented in the main b. A postemployment benefit plan for the benefit of
body of the FS the employees of the entity.
d. All of the choices are correct regarding notes to c. An executive director of the entity.
FS. d. The partner of a key manager is major supplier
of the entity.
17. What is the first item presented in the Notes
to FS? 23. Which of the following would not be
a. Statement of compliance w/ PFRS considered key management personnel
b. Summary of significant accounting policies compensation?
a. Short-term benefits
b. Share-based payments a. An entity shall not offset assets and liabilities,
c. Termination benefits and income and expenses, unless required or
d. Reimbursement of “out of pocket” expenses permitted by PFRS.
b. Measuring assets net of valuation allowance is
24. Close family members of an individual offsetting.
include all of the following, except c. Gains and losses on disposal of noncurrent assets
a. The individual’s spouse and children are reported by deducting from the proceeds on
b. Children of the individual’s spouse disposal the carrying amount of the asset and related
c. Dependents of the individual or the individual’s selling expenses.
spouse e. Gains and losses arising from a group of similar
d. Brother or sister of the individual transactions are reported on a net basis, for
25. All of the following events after the reporting example, foreign exchange gains and losses arising
period should be classified as nonadjusting, from financial instruments held for trading
except
a. The entity announced the discontinuance of 29. An entity shall present a complete set of
assembly operation. financial statements, including comparative
b. The entity entered into an agreement to purchase information, at least annually. When an entity
the leased building. changes the end of its reporting period longer or
c. Destruction of a major production plant by fire. shorter than one year, an entity shall disclose all
d. A mistake in the calculation of allowance for of the following, except
uncollectible accounts receivable. a. Period covered by the financial statements.
b. The reason for using a longer or shorter period.
26. “Fair presentation” requires an entity c. The fact that amounts presented in the financial
(choose the incorrect one) statements are not entirely comparable.
a. To comply with applicable PFRS. d. The fact that similar entities in the geographical
b. To present information, including accounting area in which the entity operates have done so in the
policies, in a manner that provides relevant, reliable, current year.
comparable and understandable information.
c. To provide additional disclosures when 30. An entity must disclose comparative
compliance with the specific requirements in PFRS information for
is insufficient to enable users to understand the a. The previous comparable period for all amounts
impact of particular transactions, other events anr1 reported.
conditions on the entity’s financial position and b. The previous comparable period for all amounts
financial performance. reported and for all narrative and descriptive
d. To rectify inappropriate accounting policies used information,
either by disclosure or by note or explanator c. The previous comparable period for all amounts
material. reported, and for all narrative and descriptive
information when it is relevant to an understanding
27. Items of dissimilar nature or function of the current period’s financial statements.
a. Must always be presented separately in financial d. The previous two comparable periods for all
statements amounts reported
b. Must not be presented separately in financial
statements
c. Must be presented separately in financial
statements if those items are material
d. Must be presented separately in financial
statements even if those items are immaterial