WorksheetsSquid Bowl Practice Quiz 1
Total questions: 60
Worksheet time: 10mins
General-Purpose Financial Reports are useful to potential and existing investors, lenders, and creditors due to the following reasons EXCEPT
Provides an exact estimate on the entity's value
Provides a rough estimate on the entity's value
Provides information on management's stewardship
Provides information on the liquidity of assets
Based on General-Purpose Financial Reports, investors may do the following (more than one correct answer)
Make assessments of the amount, timing, and uncertainty of future net cash inflows
Form their expectations on returns
Providing or settling loans
Influence management's actions
Information about the nature and amounts of a reporting entity’s economic resources and claims can help identify the reporting entity’s financial strengths and weaknesses; specifically, all of the following, EXCEPT
Liquidity and solvency
How future cash flows will be distributed among those with a claim against the reporting entity
Needs for additional financing and how successful it is likely to be in obtaining that financing
Assessment of management’s stewardship of the entity’s economic resources
The following are information one can get from financial reports EXCEPT
Past cash flow
Changes in economic resources
Private transactions by one of the entity's management
Transactions made by the entity's management
The Conceptual Framework cannot be revised
True
False; revised -> updated
False; cannot -> may
False; revised -> rewritten
(a) depicts the effects of transactions and other events and circumstances on a reporting entity’s economic resources and claims in the periods in which those effects occur, even if the resulting cash receipts and payments occur in a different period
Changes in --- results from the entity’s financial performance and from other events or transactions
(a)
General-Purpose Financial Reports provides information to help existing and potential investors, lenders, and other creditors to estimate the ---
(a)
Financial reports also provide information about the effects of transactions and other events that change a reporting entity’s ---
(a)
Example of an entity’s economic resources and claims changing but not as a result from financial performance are ---
(a)
The following are qualitative characteristics of useful financial information EXCEPT
Materiality
Faithful Representation
Completeness
Understandability
Financial information has relevance if it has
predictive information, confirmative information, or both
predictive value, confirmative information, or both
predictive value, confirmative value, or both
predictive information, confirmative value, or both
The following are enhancing qualitative characteristics EXCEPT
Verifiability
Simplicity
Timeliness
Comparability
The following are aspects of faithful representation EXCEPT
Free from Error
Completeness
Accurate
Neutrality
Perfect accuracy is not required; since an estimate cannot be deemed to be either accurate or inaccurate then a representation of that estimate can be faithful if the amount is described clearly and accurately as being an estimate, the nature and limitations of the estimating process are explained, and no errors have been made in selecting and applying an appropriate process for developing the estimate
False; nature and limitations -> assumptions and limitations
False; perfect accuracy is not required -> perfect accuracy is required
False; can be faithful if the amount is described -> cannot be faithful if the amount is described
True
The --- identify the types of information that are likely to be most useful to the existing and potential investors, lenders, and other creditors for making decisions about the reporting entity based on information in its financial report
(a)
Information is --- if omitting, misstating, or obscuring it could reasonably be expected to influence decisions that the primary users of general-purpose financial reports make based on those reports
(a)
In some cases, a --- between the fundamental qualitative characteristics may need to be made to meet the objective of financial reporting
(a)
Enhancing qualitative characteristics --- make information useful that don’t have the fundamental qualitative characteristics.
(a)
--- bears the costs of creating the financial information in the form of reduced returns
(a)
The two natures of obligations
Natural Obligations and Civil Obligations
Civic Obligations and Natural Obligations
Civil Obligations and Legal Obligations
Natural Obligations and Legal Obligations
The following are essential requisites of an obligation EXCEPT
Obligee
Juridical Tie
Obligor
Prosecutor
Essential elements of cause of action
Legal Right
Action Against Prosecutor
Correlative Legal Obligation
Breach or Violation of Right
The kinds of quasi-contracts are
Solutio Indebiti and Negotiorum Gestio
Negotio Gesto and Solutio Indebiti
Negotorium Gestio and Solutio Indesibili
Soluto Indebit and Negotio Gesto
The kinds of civil liabilities associated with delicts are the following EXCEPT
Civil liability without criminal liability
Civil liability in addition to criminal liability
Criminal liability in addition to civic liability
Criminal liability without civil liability
--- means that in case of non-compliance, the courts of justice may be called upon to enforce its fulfillment or, in default thereof, the economic value that it represents
(a)
Article --- defines obligation as a juridical necessity to give, to do, or not to do.
(a)
--- is a juridical bond by virtue of which one is bound in favor of another to render something
(a)
Juridical Necessity means that in case of non-compliance, the courts of justice may be called upon to enforce its fulfillment or, in default thereof, the --- that it represents
(a)
--- do not grant a right of action to enforce their performance
(a)
The active subject in an obligation
(a)
--- is the power which a person has under the law, to demand from another any prestation
(a)
--- is the illegal invasion of a legal right; it is the wrongful act or omission which causes loss or harm to another.
(a)
--- is the loss, hurt, or harm which results from the injury
(a)
--- is an obligation in which the subject matter is a thing which the obligor must deliver to the oblige
(a)
Article --- talks about obligations derived from law
(a)
Article --- talks about obligations derived from quasi-contracts
(a)
Article --- talks about obligations derived from acts or omissions punishable by law (crimes)
(a)
Article --- talks about obligations derived from quasi-delicts
(a)
In crime or delict, there is criminal or malicious intent or criminal negligence, while in quasi-delict, there is only ---
(a)
Entails that a partnership is an entity distinct and apart from the members composing it
Juridical Necessity
Mutual Agency
Juridical Personality
Mutual Personality
The following are characteristics of partnership EXCEPT
Mutual Contribution
Mutual Agency
Mutual Partnership
Limited Life
The following are advantages of a partnership when compared to proprietorships EXCEPT
Profits are shared
Bigger capital
Losses are shared
Better management
The following are classifications of partnership EXCEPT
Classification as to object
Classification as to profit
Classification as to liability
Classification as to publicity
The following are classifications of partners EXCEPT
General Partner
Capitalist Partner
Managing Partner
Head Partner
In registering a partnership business, it is necessary for all partnerships to register in the following government institutions EXCEPT
Bangko Sentral ng Pilipinas (BSP)
Securities and Exchange Commission (SEC)
Social Security System (SSS)
Bureau of Internal Revenue (BIR)
The following are principal parts of an article of co-partnership EXCEPT
Ownership Clause
Transfer Clause
Partnership Name
Notarial Page
In the absence of any agreement, the contributions will be recognized at
Historical Cost
Partnership Valuation
Book Value
Fair Market Value
The classification of partners as to contribution are the following
Capitalist Partner, Industrial Partner, and Capitalist-Industrial Partner
Financing Partner, Industrial Partner, and Financing-Industrial Partner
Capitalist Partner, Working Partner, and Capitalist-Working Partner
Financing Partner, Working Partner, and Financing-Working Partner
This article states that partnerships have a juridical personality.
Article 1786
Article 1160
Article 1179
Article 1768
--- means that a partner can bind the other partners to a contract if he is acting within his express or implied authority
(a)
A --- is a partnership comprised of general partners or a combination of general and industrial partners personally liable for the partnership’s debts after the exhaustion of its assets
(a)
A --- is a partnership established and organized in accordance with all the legal requirements for its existence
(a)
A --- is a partnership wherein the existence of certain persons as partners is not avowed or made known to the public by any of the partners
(a)
A --- is one who is liable for partnership debts up to the extent of his interest in the partnership only
(a)
There is a need for a partnership contract to be in writing when the capital of the partnership is PHP --- or more in money and property
(a)
General professional partnerships are exempt from income tax; however, each partners’ share is subject to ---
(a)
Co-Partnership is subject to 25%; however, individual partner’s income is not subject to ---
(a)
If a partner withdraws a substantial amount of money with the intention of repaying it, the debit should be to --- which should be classified separately from other receivables of the partnership
(a)
In cases when partners have pre-existing businesses, the respective books of partners will be --- to reflect the fair market values of their assets
(a)
