Gains and losses on the purchase and resale of treasury stock may be only be reflected in

Taxable temporary difference is the

I. Temporary difference that will result in future taxable amount in determining taxable income of future periods when the carrying amount of the asset or liability is recovered or settled.

II. Temporary difference that will result in future deductible amount in determining taxable income of future periods when the carrying amount of the asset or liability is recovered or settled.

The process of analyzing event and transaction whether or not they will be recognised

Gain or loss from disposal of investment property is the difference between the___________

The following are components of assurance engagement risk EXCEPT

Profit is the residual amount that remains after expenses have been deducted from income.

Which of the following statements is the BEST description of a “condition”?

Which is least likely beneficial in adequately planning an audit of financial statements?

Expenses are recognized when the goods or services (efforts) make their contribution to revenue

Business enterprise assumed to have a long life is a violation of conservatism.

Information about the sources and uses of an enterprise’s cash and cash equivalents is provided in the:

According to the conceptual framework, which of the following statements conforms to the realization concept?

the ability to bring together for the purpose of noting points of likeness and difference. Implicit in comparability is consistency, which requires that the accounting methods and practices should be applied on a uniform basis from period to period

The going-concern assumption justifies the valuation of assets on a liquidation basis

Some costs which give rise to future benefits cannot be directly associated with the revenues they generate.Such costs are allocated in a rational and systematic manner to the periods expected to benefit from thecost

Relevance is the capacity of information to make a difference in a decision by helping users form predictions about the outcome of past, present, and future events

the contract between the bondholders and the borrower or issuing entity

Conservatism is best described as selecting an accounting alternative that

PAS 7 prescribes the requirements in the requirements in the presentation of

bonds issued whereby another party promises to make payment if the borrower fails to do so

Transaction costs are defined as fees and commissions paid to agents, advisers, brokers, and dealers.

Income tax payable is not a financial liability

The concept of accounting entity is applicable*

Lease payment sahll be discounted using

Many accountants are employed in business enterprises in various capacity as accounting staff/ chief accountant or controller. These accountants are said to be engaged in*

Per PAS 1, in the absence of a Standard or Interpretation that specifically applies to a transaction or event, management shall develop and apply accounting policy that results in relevant and faithfully represented information. Which of following is the least likely source of such alternative?

Which of the following statements is/are true about equity?

I. Equity is defined as the difference between assets and liabilities

II. Increases and decreases in equity (other than from transactions with owners of the enterprise) represent income and expenses

Which entities are required to apply deferred tax accounting?

I. Public Entities

II. Nonpublic entities

any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities

Which of the following would be matched with current revenue on a basis other than association of cause and effect?

Which of the following is not among the economic resources of a business enterprise?

The measurement basis “net realizable value” is best described as

Why are certain costs of doing business capitalized when incurred and then depreciated or amortized over subsequent accounting cycles?

The main function is to establish and improve accounting standards that will be generally accepted in the Philippines

The revaluation model means that property, plant and equipment are carried at revalued carrying amount

the amount of cash or cash equivalent paid and the fair value of the other consideration given to acquire and asset at the time of acquisition or construction

Residual value is the estimated net amount currently obtainable if the asset is at the end of the useful life

Which statement is incorrect concerning liabilities?

It is the process of analyzing, recording, classifying, summarizing and communicating all involving the receipt and disposition of government funds and property and interpreting thereo

"Epenses are recognized when

Obligations which exist at the end of reporting period although their amount is indefinite

The property, plant and equipment are tangible assets, meaning with physical substance

Which of the following is most likely to prepare the most accurate financial forecast for a corporate enterprise based on empirical evidence?

the absolute monetary amount of the net assets contributed by shareholders and the amount of the increase in net assets resulting from earnings retained by the entity

The restatement of historical peso financial statements in terms of current prices results in presenting assets at

summary of the terms and concepts that underlie the preparation and presentation of financial statements for external users

PAS 37 paragraph 10 defines

Publishing yearly financial reports is a sample of the periodicity assumption

Revenue is generally recognized at point of collection

A business owned and operated by two or more persons who bind themselves to contribute money, property or industry to a common fund, with the intention of dividing the profits among themselves

it is also known as future exchange price

Realizable value is also known as "current sale exchange price"

Admission fees are recognized as revenue when the event takes place

Subscription fees should not be recognized as revenue on a straight line basis over the subscription period

Installation fees are recognized as revenue over the period of installation by reference to the stage of completion

Revenues represent other items that meet the definition of income and do not arise in the course of the ordinary regular activities of an entity

Obligations may be legally enforceable as a consequence of binding contract or statutory requirement

Which of the following enhances the usefulness of financial information?

Which of the following is not subject to depreciation

Amounts owned by a business are referred to as

Which of the following is an intangible assets?

An expense involves the outflow of money, the use of other assets, or the incurring of a liability

An expense related to use of borrowed funds

Property, plant and equipment are intangible assets that are held by an enterprise for use in the production or supply of goods or services.

The entity issuing the check is the payee while the receiver is the payor

A credit memorandum is a form used by the seller to notify the buyer that his/her account is being decreased due to errors or other factors requiring adjustments

Purchase requisition is an authorization made by the buyer to the seller to deliver the the merchandise as detailed in the form.

It is a formal notice to the debtor detailing the accounts already due

A document issued by the carrier (a trucking, shipping or airline) that specifies contractual conditions and terms of delivery such as freight terms, time, place and the person named to receive the goods

Direct verification means verifying an amount or other representation through direct observation, for example, by counting cash.

Verifiability implies consensus

Comparability requires that financial information must be comprehensive or intelligible if it is to be useful

The primary accounting objective is fair presentation of the financial performance of the entity

Classifying preference dividends as expense is an application of what concept?

The T-account is sometimes called the book of original entry

Office supplies are also classified as expenses

Prepaid are expenses paid for by the business in advance. These include insurance and rent

It is any kind of medium exchange that a bank will accept for deposit at pace value

Which of the following is an internal user of financial information?

These users require information on risk and return on investment

The credit balance in the income summary account represents

What function do general ledgers serve in the accounting process?

If an entity uses special journal, in which journal would the sale of merchandise for cash be

An example of nominal and contra account is

Which of the following types of accounts measures economic flows over a period of time?

Which of the following accounts would be increased by a debit?

Persons who have agreed to take and pay for original, unissued shares of a corporation formed or to be formed

Small share dividends are dividends in which the additional shares issued are less than 10% of the previously outstanding shares

Adjusting entries are made at the beginning of every accounting period in order to split mixed accounts or to bring the accounts up to date

A journal where all checks issued for payment are recorded

These are also known as permanent accounts because they are carried from one accounting period to another

What is another term for equity?

It is the residual interest in the assets of the entity after deducting all of its liabilities

This arises in the course of ordinary regular activities of the entity and is referred to by a variety of different names including sales, fees, interest, dividends, royalties and rent

Outstanding share capital are issued shares acquired by the corporation but not retired and are therefore, awaiting to be reissued at a later date

This share gives its owners certain advantages over ordinary shareholders

A share of stocks represents the interest or right of a shareholder in a corporation and is evidenced by a certificate of stock

The partners capital account is debited for the debit account balance of the drawing account at the end of the period

A partnership with a capital of P3,000 or more is valid even if it is unregistered with the Securities and Exchange Commission (SEC)

The term recognized is synonymous with the term

Gains on assets unsold are identified, in a precise sense, by the term

Which of the following measurement attributes is not currently used in practice

It is the amount of cash that could currently be obtained by selling the asset in orderly

It is the ability to bring together for the purpose of noting similarities and dissimilarities

Which of the following term best describes information that influences the economic decisions of users

Fiduciary accounting is an application of

The primary accounting objective is fair presentation of the financial performance of the entity

When a parent and subsidiary relationship exists, consolidated financial statements are prepared in recognition of

Financing accounting is the area of accounting that emphasizes reporting to

These are the events that affect the entity and in which other entities participate

A partnership is created by mere agreement of the partners.

A partnership with a capital of less than P3,000 is void if it is unregistered with the Securities and Exchange Commission.

The essence of partnership is that each partner must share in the profits or losses of the venture.

One advantage of a partnership over corporate form of organization is the unlimited liability of partners.

In a partnership, there is a right of succession. In a corporation, there is no right of succession.

The one who takes vital role in the business but is not known to be a partner by external parties.

It is designated to wind up or settle the affairs of the partnership cessation.

It may be dissolved by the admission, insolvency, death, incapacity, withdrawal of a partner.

It cannot be a partnership without donation of money, property or industry.

The partner who can lose only what he has invested in a business.

The persons who assumes full co-ownership of a partnership including the unlimited liability is a

Each partner is personally liable for all debts of the partnership

There is no income tax imposed on partnership

A disadvantage of partnerships over corporations is the partner's unlimited liability

Assets invested in the partnerships should be recorded at their cost to the partner

A partnership may be established for charity

A limited partnership must have at least one general partner

A partner's capital account is debited to reflect assets permanently withdrawn

A silent partner takes active part in the business of the partnership and is not known by outsiders to be a partner

In a limited partnership, none of the partners has unlimited liability for the business debts

In a contract of partnership, two or more persons bind themselves to contribute money, property or industry to a common fund, with the intention of dividing the profit among themselves

When a business entity receives payment before delivering goods, the unearned revenue account is

Amounts owed to others for unpaid expenses

These are claims against customers arising from sale of services or goods on credit.

Expenses are increases in assets, or decreases in labilities, that result in decreases in equity, other than those relating to distributions to holders of equity claims.

Expenses should be recognized in the accounting period in which goods and services are used up to produce revenue and not when the entity pays for those goods and services

This principle states that acquired assets should be recorded at their actual cost and not at what management thinks they are worth as at reporting date

An efficient business in one that provides goods and services at low costs relative to their selling prices

It involves the use of of resources to design, produce, distribute and market goods and services

A business owned by its stockholders

Journal is a chronological record of the entity's transactions

When an owner deposits cash in an account in the name of the business, it is an increase to

The following can be found in an income statement except

Revenue or income, is the outflow of money or other assets that results from sales of goods or services, or from the use of money and property.

This accounts records long-term debt of the business entity for which the business entity has pledged certain assets as security to the creditor.

It is a written pledge that the customer will pay the business a fixed amount of money on a certain date.

It means that information is available to decision-makers in time to be capable of influencing their decisions.

One Person Corporation (OPC) is a corporation with a single bondholder, who may be a natural person, a trust or an estate.

Assets are expected to be realized for more than one accounting period