WorksheetsCFAS and FAR Quiz Bee
Total questions: 20
Worksheet time: 11mins
An onerous contract is a contract in which ________________ of meeting the obligation under the contract __________________ the economic benefits expected to be received under
A. Avoidable costs; are less than
B. sunk costs; exceed
C. Opportunity costs; are less than
D. unavoidable cost; exceed
The deferred income tax liability:
a. Can result in a deferred income tax asset
b. Is never recorded.
c. Is a contingent liability
d. Represents income tax payments that are deferred until future years because of temporary differences between GAAP rules and tax accounting rules.
How is an equity instrument defined?
a. The instrument includes no contractual obligation to deliver cash or another financial asset.
b. The instrument includes no contractual obligation, and the instrument will/may be settled in the issuer's own equity instrument
c. The instrument includes a contractual obligation, and the instrument will/may be settled in the issuer's own equity instrument
d. The instrument includes contractual obligation and will/may be settled in the issuer's own debt instrument
The elements directly related to the measurement of financial position are?
a. Asset, liability, equity, income, and expenses
b. Asset and liability
b. Asset and revenue
d. Asset, liability, and equity
It is a present economics resources controlled by the entity as a result of past events
a. expenses
b. assets
c. equity
d. liabilities
Which statement in relation to income is true?
a. Revenue encompasses both income and gain
b. Income encompasses both revenue and gain
c. Income encompasses revenue only
d. Gain encompasses both income and revenue
What is fair value of an asset?
a. The price that would be received to sell an asset in an orderly transaction between market participants.
b. The price that would be paid to transfer a liability in an orderly transaction between participants
c. The undiscounted value of future cash flows
d. The discounted value of future cash flows
Impairment loss is reported
a. As direct deduction from retained earnings
b. As a component of income from continuing operations
c. As a change in accounting estimate
d. As a component of discontinued operation
Which is the recoverable amount of an asset?
a. Value in use
b. Fair value less cost of disposal
c. Fair value less cost of disposal or value in use, whichever is lower
d. Fair value less cost of disposal or value in use, whichever is higher
The process of identifying, measuring, recording, and communicating financial information about a company's activities so decision makers can make informed decisions
a. Finance
b. Accountancy
c. Accounting
d. Business
Any cash flows directly related to earning income, including cash sales and collections of accounts receivable as well as cash payments for goods, services, salaries, and interest.
a. Cash flows from financing activities
b. Cash flows from investing activities
c. Cash flows from operating activities
d. Current assets
Completeness is an ingredient of the primary quality of
a. verifiability
b. faithful representation
c. relevance
d. understandability
A measure that is computed as: Current Assets/Current Liabilities
a. Current ratio
b. Financial ratio
c. Quick assets
d. Liquidity Ratio
A financial statement that provides relevant information about a company's cash receipts (inflow of cash) and cash payments (outflow of cash) during an accounting period.
a. Income statement
b. Cash flow statement
c. Statement of changes in equity
d. Balance sheet
Probable future sacrifices of economic benefits; usually requires the payment of cash, the transfer of assets other than cash, or the performance of services.
a. Liability
b. Asset
c. Equity
d. Expenses
The excess of a company's revenue over its expenses during a period of time.
a. Net profit margin
b. Asset
c. Equity
d. Net income
The federal agency established by Congress to regulate securities markets and ensure effective public disclosure of accounting information. Has the power to set accounting rules for publicly traded companies.
a. Department of Health
b. Bureau of Internal Revenue
c. Security and Exchange Commission
d. PhilHealth
A financial statement that reports how much of the company's income was retained in the business and how much was distributed to owner's for a period of time.
a. Income statement
b. Cash flow statement
c. Statement of retained earnings
d. Balance sheet
The average time that it takes a company to purchase goods, resell the goods, and collect the cash from customers.
a. Operating Cycle
b. Fiscal Year
c. Cash Flow
d. Life Cycle
Which of the following is not an example of a financial asset/liability?
A. A contract that will be settled in the company's own equity
B. Advances received on a construction project
C. You Answered Shares
D. Cash
