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WorksheetsACCTG 22 Final Quiz
Total questions: 20
Worksheet time: 15mins
Which of the following organizations is responsible for setting International Financial Reporting Standards?
Financial Accounting Standards Board.
International Accounting Standards Committee.
Financial Accounting Committee
International Accounting Standards Board.
Which of the following is a counter-balancing error?
Understated depletion expense
Bond premium under amortized
Prepaid expense adjusted incorrectly
Overstated depreciation expense
What is the relationship between the Securities and Exchange Commission and accounting standard setting in the Philippines?
The SEC requires all companies listed on an exchange to submit their financial statements to the SEC.
The SEC coordinates with the FRSC in establishing accounting standards.
The SEC has the mandate to establish accounting standards to be followed by enterprises under its jurisdiction.
The SEC reviews financial statements for compliance.
If an entity uses a modified cash basis of accounting, the modifications from the accrual basis should have substantial support which requires that
The financial statements have only minor modifications from GAAP.
The modifications must be the same as those required by a regulatory body
The modifications must be the same as GAAP and not illogical
No modifications are allowed
In accounting, the concept of “recognition” means
The process of formally incorporating in the totals of balance sheet and income statement an item that meets the” probability” and “measurability” criteria for accountable events
Journalizing a transaction in the books of original entry and posting it to the ledger
Assigning an amount or value to an accountable event and reporting it in the financial statements.
Journalizing and posting an accountable event and including it in the trial balance totals
Which of the following statements about the accounting cycle is true?
The first step in posting is to transfer the debit account from the journal to the ledger
A periodic adjusting entry affects both a balance sheet and income statement accounts, or in some rare instances, only income statement accounts
Selecting and analyzing accountable events are part of the recording phase of the accounting cycle
Adjusting is part of the recording phase of accounting
Which of the following is not an objective of using the present value in accounting measurements?
To capture the value of an asset or a liability in the context of a particular entity
To estimate fair value.
To capture the economic difference between sets of future cash flows
To capture the elements that taken together would comprise a market price if one existed.
Which statement is incorrect?
The Board of Accountancy(BOA) is under the supervision and administrative control of the Professional Regulation Commission
The Financial Reporting Standards Council assists the BOA in carrying out its own power and function to promulgate accounting standards in the Philippines
The Auditing and Assurance Standards Council shall be composed of fifteen members with a Chairman
Commission on Audit is represented in the Philippines Interpretations Committee
An entity with total liabilities of P 100 million is considered as
Publicly accounted entity
Medium-sized entity
Small entity
Micro entity
Which statement is correct regarding the Conceptual Framework for Financial Reporting?
Prevails in cases where there is a conflict with a PFRS
Its foundation is the elements of financial statements
Assist users of financial statements in applying the accounting standards
It addresses the characteristics that make financial information useful
At a minimum, the face of the statement of Financial Position shall include which of the following line items?
I. Accounts Receivable
II. Biological Assets
III. Machinery and Equipment
IV. Provisions
V. Deferred Tax Liabilities
VI. Issued capital and reserves attributable to owners of the parent
I, II, III, IV, V, and VI
I, II, IV, and VI only
II, IV, V, and VI only
II, IV, and VI only
The components of other comprehensive income include:\
I. Changes in revaluation surplus
II. Gains and losses on remeasuring held for trading financial assets
III. Effective portion of gains and losses on hedging instruments in a fair value hedge
IV. Interest on defined benefit plans
V. Gains and losses arising from translating the financial statements of foreign operation
I, II, III, IV, and V
I, III, and IV only
I and V only
I, III, and V only
1. In which of the following is an entity related to the reporting entity?
I. An associate of a member of a group of which the reporting entity is a member
II. A customer with whom the reporting entity transacts a significant volume of business resulting in economic dependence
III. The entity is a post-employment defined benefit plan for the benefit of the employees of an entity related to the reporting entity.
IV. One entity is a subsidiary of a third entity and the reporting entity is an associate of the third entity
I, II, III, and IV
I, III, and IV only
I and IV only
II only
Which statement is correct regarding interim financial reporting?
PAS 34 requires interim financial reporting quarterly
PAS 34 states a presumption that anyone reading interim financial reports will have access to the records of the entity
If an entity does not prepare interim financial reports, then the year-end financial statements are deemed not to comply with PFRS
Measurements for interim reporting purposes shall made on a year-to date-basis
Which statement is correct regarding PFRS for SMEs?
Adoption of the IFRS for SMEs implies that full PFRs are not appropriate for SMEs
Determination of taxable income and determination of distributable income are specific objectives of the IFRS for SMEs
Providing information to owner-managers to help them make management decisions is a purpose of the IFRS for SMEs
The IFRS for SMEs is appropriate for an entity that does not have public accountability
1. CPAs, firms and partnerships of CPAs engaged in the practice of public accountancy including partners and staff members thereof, shall register with the Commission and the Board, such registration to be renewed every
Year
Two Years
Three Years
FIve Years
Under the revised Conceptual Framework, which of the following are among the enhancing qualitative objectives of financial accounting?
A. Relevance D. Faithful representation G. Comparability
B. Neutrality E.Verifiability H. Freedom from error
C. Understandability F.Timeliness I. Completeness
A, D, and F
C, E, F, and G
E, G, H
C, D, E, and F
Which of the following basic accounting assumptions is threatened by the existence of severe inflation in the economy?
Monetary unit assumption
Periodicity assumption
Going-concern assumption
economic entity assumption
All of the following will justify the recognition of an asset by an accounting entity except when
It acquires legal ownership of the asset
It has legal control of the asset
It has exclusive knowledge band control of expected benefit flow even without legal right
It acquires physical possession of the asset with or without legal ownership or legal control.
The primary distinction between revenue and gain is
The materiality of the amount
The likelihood that the transaction will recur in the future
The nature of the activity that gives rise to the transaction
The method of disclosing the transaction
