Beruflich Dokumente
Kultur Dokumente
23.A preference share that provides for mandatory redemption on a specific date
or at the option of the holder is __________.
1. a financial asset
2. a financial liability
3. an equity instrument
4. neither a financial liability nor an equity instrument
24.It is a contract in which the unavoidable cost of meeting the obligations under
the contract exceeded the economic benefits to be received under the
contract.
1. Onerous contract
2. Executory contract
3. Sale contract
4. Executed contract
25.Which of the following is not normally the objective of financial reporting?
1. To provide information about an entitys assets, claims against those
assets and changes in them.
2. To provide information that is useful in assessing an entitys sources
and uses of cash.
3. To provide information that is useful in lending and investing decisions.
4. To provide information about liquidation value of the company.
26.If material, deposits in foreign bank that are subject to foreign exchange
restriction should be classified _________.
1. separately as current asset, with appropriate disclosure
2. separately as noncurrent asset, with appropriate disclosure
3. be written off as an extraordinary loss
4. as part of cash and cash equivalents
27.Which of the following is correct regarding earnings per share?
1. If preference share is outstanding, dividend declared on the
preference share is always deducted from net income in
calculating EPS.
2. EPS can never be negative.
3. If income from continuing operations is less than zero, potentially
dilutive securities are anti-dilutive.
4. All issues convertible to ordinary shares must be included in the
calculation of diluted EPS.
28.All of the following statements relates to finance lease, except
1. The lease transfers ownership of the asset to the lessee at the end of
the lease term.
2. The lessee has the option to purchase the asset at a price that
is expected to be approximately equal to the fair value at
exercise date.
3. The lease term is for a major part of the economic life of the asset
even if the title is not transferred.
4. The present value of the minimum lease payments amounts to at least
substantially all of the fair value of the asset at the inception of the
lease.
29.It is the present value of cash flows an entity expects to arise from the
continuing use of an asset and from its disposal at the end of its useful life or
expects to incur when settling a liability.
1. Entity-specific value
2. Fair value
3. Value in use
4. Discounted value
30.Which of the following statement is false?
1. A certified check is a liability of the bank certifying it
2. A certified check will be accepted by many persons who would not
otherwise accept a personal check
3. A certified check is one drawn by a bank upon itself
4. A certified check should not be included in the outstanding checks
31.Under applied factory overhead results when
a. A plant is operated at less than its normal capacity.
b. Factory overhead costs incurred are greater than the cost
charged to production.
c. Factory overhead costs incurred are less than the cost charged to
production.
d. Factory overhead costs incurred are unreasonably large in relation to
the number of units produced.
32.An entity has public accountability if
I.
An entity whose shares are traded in a public market.
II.
An entity whose debt instruments but not its shares are traded in a
public market.
III.
An entity whose shares and debt instruments are traded in an over-thecounter market.
IV.
An entity that is in the process of issuing its shares and debts.
a. I and III only
b. I and II
c. I, II and IIII
d. I, II, III and IV
33.It is the difference that will result in future taxable amounts in determining
taxable profit of future periods when the carrying amount of the asset or
liability is recovered or settled.
a. Temporary difference
b. Taxable temporary difference
c. Deductible temporary difference
d. Permanent difference
34.A government grant is defined as:
I.
Assistance from the government in the form of a transfer of resources
to an entity in return for past or future compliance with specified
conditions relating to the operating activities of the entity.
II.
Unconditional assistance from the government in the form of a transfer
of resources to an entity.
III.
Any type of assistance from the government to the entity from which
the entity has benefited directly.
a. I only
b. I and II only
c. I and III only
d. I, II and III
35.Which of the following statements is/are correct concerning reversal of an
impairment loss?
I.
I.
1. When added to the total accounts written off during the year,
this new sum is the desired credit balance of the allowance for
doubtful accounts to be reported in the year-end financial
statements.
2. It is the end amount of bad debt expense for the year.
3. It is the amount that should be added to the allowance for doubtful
accounts at year-end.
4. It is the amount of desired credit balance of the allowance for doubtful
accounts to be reported in the year-end financial statements.
56.When determining the unit cost of an inventory item, which of the following
should not be included?
1. Interest on loan obtained to purchase the item
2. Commission paid when purchased
3. Labor cost of the item when manufactured
4. Depreciation of plant equipment used in manufacturing the item
57.Shares received in lieu of cash dividend are recorded as __________.
1. income at fair value of the shares received
2. income at par value of the shared received
3. income at the cash dividend that would have been received
4. stock dividends
58.If the price of the underlying is greater than the strike or exercise price, the
call option is
1. at the money
2. in the money
3. on the money
4. out of the money
59.In theory, the proceeds from the sale of a bond will be equal to __________.
1. the sum of the face amount of the bond and the periodic interest
payments
2. the face amount of the bond
3. the present value of the principal amount due at the end of the
life of the bond the present of the interest payments made
during the life of the bond
4. the face amount of the bond plus the present value of the interest
payments made during the life of the bond
60.Justification for the method of determining periodic deferred tax expense is
based on the concept of __________.
1. matching of periodic expense to periodic revenue
2. objectivity in the calculation of periodic expense
3. recognition of assets and liabilities
4. consistency of tax expense measurement with actual tax planning
strategies
61.It is the date when a substantive agreement between the combining entities
is reached and in the case of publicly listed entities announced to the public.
1. Agreement date
2. Announcement date
3. Acquisition date
4. Combination date
62.Factors to consider in estimating early exercise include:
I.
the length of the vesting period, because the share option typically can be
exercised until the end of the vesting period. Hence, determining the
valuation implications of expected early exercise is based on the
assumption that the options will vest.
II.
the average length of time distinct options have remained outstanding in
the past.
III.
the price of the underlying shares.
IV.
the employees level within the organization.
V.
expected volatility of the underlying shares.
1. Only three of the statements are true
2. Only four of the statements are true
3. All of the statements are true
4. None of the statements is true
63.When using the installment sales method, __________.
1. gross profit is deferred until all cash is received, but revenue and costs
are recognized in proportion to the cash collected from the sale
2. gross profit is recognized only after the amount of cash collected
exceeds the cost of the item sold
3. revenue, costs and gross profit are recognized proportionally as the
cash received from the sale of product
4. total revenue and costs are recognized at the point of sale, but
gross profit is deferred in proportion to the cash that is
uncollected from the sale
64.An entity shall apply IFRS 4 to __________.
1. insurance contracts that it issues and reinsurance contracts
that it holds
2. product warranties issued directly by a manufacturer, dealer or retailer
3. contingent consideration payable or receivable in a business
combination
4. direct insurance contracts that the entity holds
65.A discontinued operation is a component of an entity that either has been
disposed of, or is classified as held for sale, and __________.
1. represents an amalgamated major line of business or geographical
area of operations,
2. is part of a single co-ordinated plan to procure of a separate major line
of business or geographical area of operations
3. is a subsidiary acquired exclusively with a view to resale
4. All of the above
5. None of the above
66.IFRS 1 applies when an entity first adopts IFRSs. It does not apply when, for
example, an entity:
I.
stops presenting financial statements in accordance with national
requirements, having previously presented them as well as another set of
financial statements that contained an explicit and unreserved statement
of compliance with IFRSs
II.
2. Government concession
3. Government grant
4. Government assistance
80.A government official cannot disburse government funds beyond the
approved budget in accordance with the constitutional provision that no
money shall be paid out of the National Treasury except in pursuance of an
appropriation law. Otherwise, the government official may be charged with
1. Technical malversation
2. Theft
3. Graft and corruption
4. An administrative case
81.Cash comprises
1. Cash on hand and demand deposits
2. Cash on hand, demand deposits and cash equivalents
3. Cash on hand and cash equivalents
4. Demand deposits and cash equivalents
82.With respect to payments of annuity fund and life income fund?
1. Annuity fund payments are fixed in amount and life income
payments vary in amount.
2. Annuity fund payments vary in amount and life income payments are
fixed in amount.
3. Both annuity fund and life income fund are fixed in amount.
4. Both annuity fund and life income fund vary in amount.
83.Transition loss on first adopting PAS 19 shall be recognized
1. Immediately
2. Immediately or over a maximum period of 5 years revocably
3. Immediately or over a maximum period of 5 year irrevocably
4. In other comprehensive income
84.Financial statements that are expressed in a stable monetary unit are
1. Constant peso financial statements
2. Nominal peso financial statements
3. Current cost financial statements
4. Fair value financial statements
85.A nonprofit organization receives an asset for which it has little or no
discretion over the use of the asset. The organization should report the asset
as
1. Contribution
2. Agency transaction
3. Conditional transfer
4. Either contribution or conditional transfer
86.Which of the following is true when the effective interest method of
amortizing bond discount is used?
1. Interest expense as a percentage of the bonds carrying amount varies
from period to period.
2. Interest expense decreases each period.
3. Interest expense increases each period.
4. Interest rate decreases each period.
87.A nonpublicly accountable entity must make an explicit and unreserved
statements of compliance with the PFRS for SMEs