AE 13_BSA 2_Quiz 1

It is an independent, private sector body that issues accounting standards called International Financial Reporting Standards.

The accounting standard-setting body in the Philippines established by the Professional Regulation Commission (PRC).

The entity liable must be identified, but the payee to whom the obligation is owed does not have to be identified.

• True

• False

The liability is not recognized until it is incurred.

• False

• True

Classification of liabilities according to financial statement presentation.

• Financial Liability

• Current Liability

• Non-Financial Liability

• Non-Current Liability

Classification of liabilities according to nature.

• Current Liability

• Non-Current Liability

• Financial Liability

• Non-Financial Liability

Which of the following are financial liabilities?

• Accounts Payable

• Advance payment from customer

• Salaries Payable

• Tax Payable

• Bonds Payable

Which statement best describes the term liability?

• A present obligation arising from past event.

• Resources to meet financial commitments when due.

• An excess of equity over assets.

• The residual interest in the assets of the entity.

Accounts Payable - 100,000

Notes payable (10% due this year) - 280,000

Advances from customers - 35,000

Salaries Payable - 50,000

How much is current liabilities?

• 185,000

• 150,000

• 465,000

• 0

Tax payable - 165,000

Mortgage payable - 125,000

Unearned rent income - 105,000

Utilities payable - 220,000

How much is non-financial liabilities?

• 0

• 270,000

• 230,000

• 510,000