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WorksheetsACCOUNTING GAME SHOW - Average Round
Total questions: 10
Worksheet time: 5mins
In a discounted cash flow analysis, which of the following would not be consistent with adjusting a project's cash flows to account for higher-than-normal risk?
A. Increasing the discount rate for cash outflows
B. Increasing the discounting period for expected cash inflows
C. Increasing the expected amount for cash outflows
D. Decreasing the amount for expected cash inflows
In 2019, Far Corporation, a food processing company, purchased a car for use by its Chief Executive Officer (CEO) amounting to PhP 2,500,000. For the year, the following expenses were incurred in relation to the purchased vehicle:
Depreciation
PhP
500,000
Repairs and maintenance
25,000
Input taxes on purchase of
vehicle
300,000
Input taxes on repairs and
maintenance
3,000
Oil and lubricants
40,000
Premium paid for insurance
covering said vehicle
50,000
The total expense deductible for income tax purposes is __________.
A. PhP 500,000
B. PhP 918,000
C. PhP 638,000
D. PhP -
In which of the following situations can an entity that does not have public accountability claim compliance with the PFRS for SMEs in its financial statements?
A. The entity prepares its financial statements in accordance with local tax requirements that are substantially the same as the PFRS for SMEs.
B. The entity prepares its financial statements in accordance with local tax requirements that are, except in name, word-for-word the same as PFRS for SMEs.
C. The entity prepares its financial statements in accordance with local tax requirements that are, except in name, word-for-word the same as full PFRS.
D. In both cases b and c above.
In accordance with PFRS 9, A gain or loss on a financial asset or financial liability that is measured at fair value shall be recognized in profit or loss unless:
A. it is part of a hedging relationship
B. it is a financial liability designated as at fair value through profit or loss and the entity is required to present the effects of changes in the liability’s credit risk in other comprehensive income
C. Either A or B
D. Neither A nor B
Which of the following are exceptions for IFRS 9 application?
A. Contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument as if the contracts were financial instruments.
B. Derivatives that are embedded in leases.
C. Contracts that were entered into and continue to be held for the purpose of the receipt or delivery of a non-financial item in accordance with the entity’s expected purchase, sale or usage requirements.
D. A and B
E. All of the above
The tolerable rate of deviations for a test of control is generally
A. Lower than the expected rate of errors in the related accounting records.
B. Higher than the expected rate of errors in the related accounting records.
C. Identical to the expected rate of errors in the related accounting records.
D. Unrelated to the expected rate of errors in the related accounting records.
Which of the following is not a legal tender in the Philippines?
A. One thousand pesos denominated in twenty-peso bills
B. Five hundred pesos denominated in one-peso coins
C. Two hundred pesos denominated in 25-centavo coins
D. One hundred pesos denominated in 1-centavo coins
Maltec Corporation has started placing its quarterly financial statements on its web page, thereby reducing by 10 days the time to get information to investors and creditors. The qualitative concept improved is:
A. Consistency
B. Timeliness
C. Comparability
D. Faithful representation
Which one of the following instruments does not satisfy the sole payments of interest and principal requirement in IFRS 9?
A. A variable rate loan where the rate varies based on LIBOR up to a specified upper cap
B. A variable rate loan where the rate varies based on LIBOR and any changes in the credit risk
C. A variable rate loan where, if the loan is repaid before maturity, the borrower pays a 25% premium as a penalty for early repayment
D. A variable rate loan where the loan can be extended at the applicable interest rate at the time of extension
A conceptual framework for accounting is
A. A set of financial statements
B. A set of rules governing financial reporting
C. A set of components of financial statements
D. A set of principles underpinning financial reporting
