BSA CUP

EASY 1: What is the chronological order in the standard setting process?

• a. Exposure draft, Research, Standard and Discussion paper
• b. Research, Exposure draft, Discussion paper and Standard
• c. Standard, Research, Discussion paper and Exposure draft
• d. Research, Discussion paper, Exposure draft and Standard

EASY 2: The petty cash fund of Dilaw Company was counted on December 31, 2023. The following items were found: Total bills and coins - 2,737.50 Certified check of general manager dated December 15, 2023 - 2,250.00 Postage stamps - 420.00 Supplies - 975.00 IOU of employee - 750.00 Company check representing replenishment of petty cash fund - 7,725.00 Unused postage stamps - 180.00 An envelope containing contributions of employees for the death of a fellow employee (contents intact) - 4,500.00 The petty cash fund was established at 15,000.00 What is the correct amount of petty cash fund on December 31, 2023?

• a. 12,747.50
• b. 12,732.50
• c. 12,712.50
• d. 12,727.50

EASY 3: Which of the following is similar for sum-of-the-years’-digit method and double declining balance method of depreciation?

• a. Results in a lower depreciation method in earlier years of the asset
• b. Results in residual value being ignored in computing periodic depreciation expense.
• c. The carrying amount should not be lower than its residual value at the end of its useful life.
• d. Depreciation rate based on its useful life is used to depreciate the asset

EASY 4: A 180-day, 10% interest-bearing note receivable is discounted to a bank at 12% after being held for 30 days. The proceeds received from the bank upon discounting would be the:

• a. Maturity value less the discount at 10%
• b. Maturity value less the discount at 12%
• c. Maturity value plus the discount at 10%
• d. Maturity value plus the discount at 12%

EASY 5: P&A Grant Thornton Company purchased a tooling machine on January 3, 2015, for P500,000. The machine was being depreciated on the straight-line method over an estimated useful life of 10 years, with no residual value. At the beginning of 2022, the company paid P125,000 to overhaul the machine. As a result of this improvement, the company estimated that the useful life of the machine would be extended an additional 5 years (15 years total). What should be the depreciation expense recorded for the machine in 2022?

• a. 34,375
• b. 50,000
• c. 41,667
• d. 55,000

EASY 6: Under full IFRS, intangible assets and investment properties are measured using the:

• a. Cost model or revaluation model
• b. Cost model or fair value model
• c. (a) for investment properties, and (b) for intangible assets
• d. (a) for intangible assets, and (b) for investment properties

EASY 7: Andrew Malan Company prepared an aging of its accounts receivable at December 31, 2023 and determined that the balance of its accounts receivables was P700,000 on January 1, 2023. Additional information is available as follows: Allowance for uncollectible accounts at 1/1/23 – credit balance - P34,000 Accounts written off as uncollectible during 2023 - 32,000 Uncollectible accounts recovered during 2023 - 5,000 Total sales return on credit sales - 12,000 Total sales discount granted - 7,000 Total credit sale recorded during the period - 1,400,000 Collection from credit customers during the period - 750,000 The company’s policy is to provide 8.5% of the outstanding receivables as uncollectible. How much is the amortized cost of accounts receivable as of December 31, 2023?

• a. P1,188,585
• b. P1,256,135
• c. P1,281,455
• d. P1,214,655

EASY 8: Which of the following is an example of change in accounting estimate?

• a. Change of inventory method from FIFO to weighted average
• b. Change of PPE method from cost model to revaluation model
• c. Change of lease accounting from IAS 17 to IFRS 16
• d. Change in depreciation method from straight line to double declining balance method.

EASY 9: What is the allocation of an impairment loss recognized for a cash generating unit?

• a. Across the assets of the unit based on carrying amount
• b. Across the assets of the unit based on fair value
• c. First, to any goodwill, and the balance to the other assets prorata based fair value
• d. First, to any goodwill, and the balance to the other assets prorata based on carrying amount

EASY 10: Which of the following statements is incorrect regarding accounting for investments under full IFRS?

• a. Debt investments are classified according to business model.
• b. Equity investments are classified according to extent of investment.
• c. Transaction costs under the FVOCI model are expensed.
• d. Shares received in lieu of cash dividend are recognized as dividend income, while cash received in lieu of stock dividend is recorded as if sold.