Group 4 - CFAS Flashcard

Front

Jay, an accountant from ENHYPEN company has observed following items that meet the definition of an income or expense. The items will also provide users of financial statements with information that is both relevant and faithfully represented. Jay must recognized these items in____

Back

STATEMENT OF FINANCIAL PERFORMANCE

Front

Mommy Oni Company provided an allocation for advertising expenses of their new product “MPL Lemonade”. The matching principle application they must use is _____

Back

IMMEDIATE RECOGNITION

Front

The following are common basis for classifying financial elements EXCEPT: ROLE OR FUNCTION WITHIN THE BUSINESS, NATURE OF THE ITEM, PREFERENCE IN MANAGEMENT, MEASUREMENT METHOD

Back

PREFERENCE IN MANAGEMENT

Front

What classification is appropriate for the specialized equipment purchased by Mommy Oni Company that initially cost ₱2,450,000,000 and requires minimal care throughout its lifespan? Options: As inventory since it was acquired, Based on its role or function in business operation, Based on Mommy Oni since she is the founder and CEO of the company, As an expense since it is so expensive

Back

Based on its role or function in business operation

Front

Generally, revenue from the sale of goods is recognized at ___

Back

POINT OF SALE

Front

Camille decided to present a net amount by deducting liability from assets, but the assets and liability are irrelevant to each other. TRUE OR FALSE: Camille’s decision was appropriate

Back

FALSE

Front

It occurs when the entity no longer has a present obligation for all or part of a liability.

Back

DERECOGNITION OF LIABILITY

Front

True or False: In making decisions about presentation and disclosure, it is not important to consider whether the benefits provided to users of financial statements are likely to justify the costs of providing and using that information.

Back

FALSE

Front

Which of the following is considered part of Other Comprehensive Income? Income from the sale of goods in the normal course of business, Unrealized gains or losses that are not recognized in the statement of profit or loss, Expenses related to business operations, Net profit from regular operations

Back

Unrealized gains or losses that are not recognized in the statement of profit or loss

Front

What measurement basis is used in physical capital maintenance? Options: HISTORICAL COST, CURRENT COST, FINANCIAL COST, PHYSICAL COST

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CURRENT COST