UFRS

QUIZ 1
MULTIPLE CHOICE QUESTIONS (20 ITEMS):
1. It is a body of interrelated objectives and fundamentals. a. Concepts of capital
b. Conceptual Framework
c. Inventories
d. Faithful representation
2. It involves assigning monetary amounts at which the elements of the financial statements are to
be recognised and reported.
a. Recognition
b. Measurement
c. Relevance
d. Capital maintenance
3. _____________ is synonymous with the net assets or equity of the entity.
a. Capital
b. Capital Maintenance
c. Recognition
d. Relevance
4. Based on the PFRS: Improvements to PFRSs 2010, The latest set of improvements amends ______ standards and
one interpretation.
Five
Seven
Six
Four
5. It is concerned with how an entity defines the capital that it seeks to maintain.
Concept of capital
Conceptual Framework
Concept of capital maintenance
Improvements of PFRS
6. Under improvements to PFRSs 2010, unless otherwise specified, the amendments are effective
for annual periods beginning on or after _________ , with earlier application permitted.
a. January 1, 2009
b. January 1, 2012
c. January 1, 2010
d. January 1, 2011
7. This standard provides guidance on the determination of cost and its subsequent recognition as an expense, including
any write-down to net realizable value.
a. Capital Disclosures
b. Inventories
c. PFRSs Practice Statement Management Commentary
d. Presentation of Items of Other Comprehensive Income
8. The Practice Statement is applicable to management commentary presented prospectively
starting on ___________.
a. June 19, 2011
b. July 19, 2011
c. June 29, 2011
d. July 29, 2011
9. Which of the following shall comprise the cost of inventories?
a. Costs of purchase
b. Cost of conversion
c. Other costs incurred in bringing the inventories to their present location and condition.
d. All of the above.
10. Statement 1: Consequently, entities applying PFRSs are not required to comply with the Practice Statement.
Statement 2: Furthermore, non-compliance with the Practice Statement will not prevent an entity’s financial statements
from complying with PFRSs, if they otherwise do so.
a. Only Statement 1 is true.
b. Only Statement 2 is true.
c. Both are true
d. Both are false
11. The following are excluded from cost of inventories, except.
a. Borrowing costs
b. Administrative overheads
c. Selling costs
d. Abnormal amounts of wasted materials, labor, or other production costs
12. Are assets which are held for sale in the ordinary course of business, in the process of production for such sale or in
the form of materials or supplies to be consumed in the production process or in the rendering of services.
a. Inventories
b. Costs of purchase
c. Costs of conversion
d. Other costs
 13. Amendments to PAS 1: Presentation of Items of Other Comprehensive Income, an entity shall apply those
amendments for annual periods beginning on or after _________.
a. July 1, 2012
b. June 1, 2012
c. January 1, 2012
d. January 2, 2012

14. According to What PAS? “Those intended to meet the needs of the users who are not in a position to require an entity
to prepare reports tailored to their particular information needs”
a. PAS 1.6
b. PAS 1.8
c. PAS 1.7
d. PAS 1.10
15. It is normal statement showing the three elements comprising financial position, namely assets,
liability and equity.
a. Statement of Financial Position
b. Statement of Comprehensive Income
c. Statement of Changes in Equity
d. Statement of Cash Flows
16. What Presentation of Statement of Financial Position showing distinction of current and non-
current items?
a. Non asset
b. Disposition
c. Classified
d. Unclassified
17. This standard prescribes the basis for presentation of general purpose financial statements to
ensure comparability both with the entity's financial statements of previous periods and with the financial statements,
guidelines for their structure and minimum requirements for their content.
a. Balance Sheet
b. Presentation of Financial Statements
c. Presentation of Income
d. Inventories
18. It is the change in equity during a period resulting from transactions and other events, other
than changes resulting from transactions with owners in their capacity as owners.
a. Statement of Changes in Equity
b. Financial Statements
c. Statement of Comprehensive Income
d. Financial Presentation
19. This is the combined statement showing the components of profit and loss and other
comprehensive income in a single statement.
a. Double Statement of Comprehensive Income
b. Three Statement of Comprehensive Income
c. Two Statement of Comprehensive Income
d. Single Statement of Comprehensive Income
20. The amendments of AMENDMENTS TO PAS 32 AND PAS 1
Title: Puttable Financial Instruments are effective for annual periods beginning on or after?
a. 1 January 2009
b. 10 January 2002
c. 15 February 2009
d. 2 March 2005

QUIZ 2
1. The effective date of IAS 7, from which PAS 7 was adopted, was on
a) January  1, 1994
b) September 6, 2007
c) January 1 2010
d) 29 January 2016
2. Cash and Cash Equivalents include all of the following except;
a) Demand deposits in a bank deposited two years ago.
b) Treasury bills maturing three months from now.
c) Financial instruments maturing one month  from nowand purchased   a  year ago.
d) Money market instrument maturing two months from nowand purchased last month.
3. Which of the following cash flows is most likely excluded from financing activities?
a) Rent revenue relating to a lease.
b) Proceeds from issuing own equity instrument.
c) Cash payments to acquire Treasury shares.
d) Cash receipts from selling debt instrument of Entity A.
4. Which of the following will be most likely deducted from profit before income taxes in computing net cash from
operating activities under the indirect method?
a) Income tax expense recorded in the Statement of Comprehensive Income.
b) Decrease in the balance of receivables. 
c) Increase in the balance of inventory. 
d) Finance expense recorded in the Statement of Comprehensive Income.
5. Which of the following changes will be most likely accounted for prospectively?
a) Transition to FIFO method in computing inventory because the LIFO method was prohibited by the standard. 
b) Change in the valuation of inventory from cost model to Fair Value model.
c) Change in the salvage value of an equipment.
d) Error occurred in 2020 and was discovered at the end of 2021. 
6. An entity changed the estimated residual value of a building which has remaining useful life of ten years. Which of the
following is correct?
a) The change is accounted for prospectively affecting the year of change only.
b) The change is accounted for prospectively affecting the year of change  and future periods.
c) The change is accounted for retrospectively affecting the year of change only.
d) The change is accounted for retrospectively affecting the year of change and future periods.
7. Which of the following is generally treated as a financing activity under PAS 7?
a) Cash dividends distributed to shareholders.
b) Dividend income from an investee.
c) Share dividends declared to owners.
d) Interest expense for the period.
8. This results when profit determined under PFRS is greater than the taxable profit determined under tax laws. 
a) Deductible temporary 
b) Taxable temporary difference
c) Deferred tax asset
d) deferred tax expense
9. Which of the following results to a deductible temporary difference?

a) An asset acquired in a business combination is recognized at a fair value that exceeds the historical carrying amount used
for taxation purposes. 
b) The carrying amount of an investment in joint venture is greater than its tax base because the investee's profit is not
entirely distributed to investors. 
c) An asset is revalued downward but no equivalent adjustment is made for tax purposes.
d) Investment income is recognized on tax-exempt securities.
10. According to PAS 12, this represents the amount of income taxes payable in future periods in respect of taxable
temporary differences:

a) Current tax liability 

b) Current tax asset
c) Deferred tax asset 
d) Deferred tax liability
11. An entity reports income tax expense of P40,800 in its income statement and a tax due ofP44,700 (before tax
payments during the year) in its income tax return. Which of the following statements is correct? 

a) The entity is committing a tax fraud.

b) The entity is donating P3,900 to the Filipinos.
c) The entity discloses a P3,900 deferred tax expense notes to the financial statements
d) The entity discloses a P3,900  deferred tax benefit in the notes to the financial statements.
12. Which of the following results to a taxable temporary difference?

a. Rent received in advance.

b. An asset has a carrying amount of P12,000 and a tax base of P20,000,
c. A liability has a carrying amount of P20,000 and a tax base of P12,000,
d. Revenue is recognized before it becomes taxable
13. If the carrying amount of an asset exceeds its tax base, the difference is a

a. deductible temporary difference

b. taxable temporary difference
c. deferred tax asset 
d. deferred tax liability
14. Statement I: Income tax e expense is increased when a deferred tax liability reverses. 

Statement II: Timing differences include all temporary differences, but not all timing differences are temporary differences.

a. Both statement are True

b. Both statement are False
c. Only statement I is True
d. Only statement II is True
15. What are the two types of Construction Contract?
a. Fixed Price Contract and Cost plus contract
b. Cost –Reimbursement Contract and Implied Contract
c. Unit price contract and Bilateral Contract
  
16. Disclosures cycle of PAS 10 ( in order )
a. Date of authorization, Material Non – adjusting events, Material adjusting events
b. Material adjusting events, Date of authorization, Adjusting events
c. Date of authorization, Adjusting events, Material Non – adjusting events

 
17. Statement  I: Adjusting events are those that doesn’t provide evidence of conditions that existed at the end of the
reporting period.

Statement II: Non-adjusting events are those that are indicative of conditions that arose after reporting period.
a. Only I is true
b. Both are false
c. Only II is true 
d. Both are true

 
18. What includes Construction Contracts
a. Contract Revenue 
b. Contract Costs
c. All of the above

 
19. What year is the effective date of  IAS  10 ( 1999 )
a. September 2001
b. January 2000
c. May 1999

 
20. What year is the effective date of IAS 11 ( 1993 )
a. January 1995
b. January 2018
c. January 2001

QUIZ 3

1. According to PAS 16, the selection of an appropriate depreciation method rests

upon the entity's
A. management.
B. accountant.
C. regulator.
D. all of these
2. Which of the following is not one of the essential characteristics of a PPE?
A. tangible asset
B. used in business
C. primarily held for sale 
D. long-term in nature
3. An item of Property, plant & equipment shall be recognized as an asset when.
A. The cost of an asset can be measured reliably
B. It is probable that future economic benefits associated with the asset will flow to the
entity
C. Both
D. None
4. It means that the cost of the PPE together with the related accumulated depreciation
shall be removed from the statement of financial position.
A. Revaluation Model
B. Derecognition
C. Cost Model
D. Depreciation
5. Which of these is not a major characteristic of a PPE? 
A. Possesses physical substance
B. Acquired for use in operations
C. Yields services over a number of years
D. All of these are major characteristics of a PPE.
6. Which of the following does not form part of the initial cost of an item of PPE?
A. Purchase price, net of trade discounts and rebates
B. Freight costs
C. Installation and testing costs
D. Advertising and promotional costs
 
7. Are employee benefits which fall due wholly within twelve months after the end of
the period in which the employees render the related service.
A. Short-term benefits
B. Post-employment benefits
C. Other long-term benefits
D. Termination benefits
8. Include pensions and any other post-employment benefits such as post-
employment life insurance and post-employmenthealth care.
A. Short-term benefits
B. Post-employment benefits
C. Other long-term benefits
D. Termination benefits
9. Payable because of a decision to terminate an employee's employment before the
normal retirement date or an employee's decision to accept voluntary redundancy in
exchange for those benefits.
A. Short-term benefits
B. Post-employment benefits
C. Other long-term benefits
D. Termination benefits
10. Employee benefits which do not fall due wholly within twelve months after the
end of the period in which the employees render the related service.
A. Short-term benefits
B. Post-employment benefits
C. Other long-term benefits
D. Termination benefit
 11. Is action by the government designed to provide an economic benefit specific to
an entity or range of entities qualifying under certain criteria. 
A. Government Grants
B. Government Assistance
C. Non-monetary government grants
D. Grants related to assets
12. Are government grants whose primary condition is that an entity qualifying for
them should purchase, construct or otherwise acquire long-term assets.
A. Government Grants
B. Government Assistance
C. Non-monetary government grants
D. Grants related to assets
13. Are assistance by the government in the form of transfers of resources to an entity
in return for past or future compliance with certain conditions relating to the operating
activities of the entity.
A. Government Grants
B. Government Assistance
C. Non-monetary government grants
D. Grants related to assets
 
14. A contract is, or contains, a lease if the contract conveys the right __________ an
identified asset for a period of time in exchange for consideration.
A. To use
B. To control the use of
C. To obtain economic benefits from
D. To recognize depreciation changes of
15. Which of the following shall a lessee recognize at the commencement date?
A. A right-of use asset
B. A lease liability
C. Deferred income
D. A and B
16. At the commencement date, a lessee shall measure the right-of-use asset at
__________.
A. Cost
B. Fair value
C. Present value
D. Value in use
17. The objective of ________ is to prescribe the accounting treatment for revenue
arising from certain types of transactions and events.
A. PAS 19
B. PAS 20
C. PAS 18
D. PAS 16
18. PAS 18 applies to revenue arising from
A. sale of goods 
B. rendering of services 
C. use by others of entity assets yielding: interest,  royalties,  and dividends
D. all of the above
19. _______ should be measured at the fair value of the consideration received or
receivable.
A. Lease
B. Revenue 
C. A and B
D. None of the above
20. If the inflow of cash or cash equivalents is deferred, the fair value of the
consideration receivable is?
A. Greater than the nominal amount of cash and cash equivalents to be received
B. less than the nominal amount of cash and cash equivalents to be received
C. Either A and B
D. None of the above