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WorksheetsFAR-CFAS ACADEMIC CUP
Total questions: 20
Worksheet time: 11mins
1.) Financial accounting is the area of accounting that emphasizes reporting to
Management
Regulatory bodies
Internal Auditors
Creditors and investors
2.) The Conceptual Framework defines a liability as:
A present obligation of the entity to transfer an economic resource as a result of past events
A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits
An amount the entity may have to pay after the end of the reporting period
None of the above
3.) The “communicating” process of accounting include all the following except
Recording
Classifying
Summarizing
Interpreting
4.) What is the law regulating the practice of accountancy in the Philippines?
R.A No. 9298
R.A. No. 9190
R.A No. 9928
R.A No. 9892
5.) “Accounting is an art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are in part at least of a financial character and interpreting the results thereof.” This definition was given by
AAA
ASC
FRSC
AICPA
6.) The three heading lines of financial statements typically include which of the following?
Company, statement title, time period of report
Company headquarters, statement title, name of preparer
Statement title, time period of report, name of preparer
Name of auditor, statement title, fiscal year end
7.) The following assets are current except:
Accounts receivable
Petty cash fund
Plant expansion fund
Office supplies unused
8.) 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.
Retained Earnings
Changes in Equity
Comprehensive Income
Profit or loss
9.) Identify the correct components of the income statement.
revenues, losses, expenses, and gains
assets, liabilities, and owner’s equity
revenues, expenses, investments by owners, distributions to owners
assets, liabilities, and dividends
10.) Financial statements shall be presented at least
Monthly
Weekly
Quarterly
Annually
11.) What is the normal order of presenting the notes to the financial statements?
A. Statement of measurement basis and accounting policies applied
B. Supporting information or computation for line items presented and aggregated in the FS
C. Statement of compliance with Philippine Financial Reporting Standards (PFRS)
D. Commitments, contingencies and other required financial and non-financial disclosures
ACBD
CADB
CABD
CBAD
12.) Which is not included in the ‘accounting policies’ section of the notes to the FS?
The measurement basis used in preparing the FS
The supporting computation for items aggregated on the face of the FS
The accounting policies used that are relevant to an understanding of the FS
Whether company is using FIFO or weighted average method for costing inventory
13.) Rhinzell Corporation needed a new warehouse; a contractor quoted a P250,000 price to construct it. The corporation believed that it could build the warehouse for P215,000 and decided to use company employees to construct the warehouse. The final construction cost incurred by the corporation was P240,000 but the asset was recorded at P250,000. This is in violation of the:
Time period principle
Matching principle
Cost principle
Revenue principle
14.) In recording the bank balance with the book cash balance, which of the following would not cause the bank balance shown on the bank statement to be lower than the unadjusted book balance?
Cash on hand at the company
NSF checks from a customer, as reported on the bank statement
interest credited to the account by the bank
deposits in transit
15.) Canabañero company short of cash sells its machinery to the bank and then leases the same property from the bank. This arrangement is called "sale and leaseback". Although the legal ownership has been transferred to the bank, the underlying economic reality for the company remain the same. Under the_________, the sale and subsequent leaseback are considered one transaction.
Neutrality
Standard of adequate disclosure
Substance over form
Prudence
175,000
95,000
150,000
50,000
(a)
18, 550
17, 950
17, 850
19, 550
19.) Quiambao company was incorporated on January 1, 2019, with P4,000,000 from from the issuance of share capital and borrowed funds of P1,500,000. During the first year, net income was P2,200,000. On December 15, the entity paid a P500,000 cash dividend. No additional activities affected shareholders’ equity in 2019. On December 31, 2019, the liabilities had increased to P2,100,000. On December 31, 2019, what amount should be reported as total assets?
6,530,000
9,000,000
7,800,000
8,800,000
7,501,000
6,900,000
9,392,000
8,225,000
