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The definition of inventories under PAS 2 states three types of inventories.
The definition of inventories under PAS 2 states three types of inventories.
True
Goods in transit purchased FOB destination are included in the inventories of the buyer.
Goods in transit purchased FOB destination are included in the inventories of the buyer.
False
An increase in inventory always has a corresponding increase in accounts payable.
An increase in inventory always has a corresponding increase in accounts payable.
False
Under the FIFO cost formula, Big Co.'s cost of goods sold for the period is P3.
Under the FIFO cost formula, Big Co.'s cost of goods sold for the period is P3.
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Under the Average cost formula, Big Co.'s ending inventory is P3.
Under the Average cost formula, Big Co.'s ending inventory is P3.
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Amortized cost financial assets are initially measured at fair value.
Amortized cost financial assets are initially measured at fair value.
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The term 'financial instrument' encompasses only assets that are considered 'investments.'
The term 'financial instrument' encompasses only assets that are considered 'investments.'
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Investment in equity securities can be measured at amortized cost.
Investment in equity securities can be measured at amortized cost.
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Investments in ordinary shares can be classified as financial assets measured at amortized cost.
Investments in ordinary shares can be classified as financial assets measured at amortized cost.
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Unrealized gains and losses on investments in equity securities measured at FVOCI are recognized in the income statement.
Unrealized gains and losses on investments in equity securities measured at FVOCI are recognized in the income statement.
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Subsequent changes in the fair value of a financial asset measured at amortized cost are normally ignored.
Subsequent changes in the fair value of a financial asset measured at amortized cost are normally ignored.
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Entity A shall classify debt securities either as FVOCI or as FVPL if held under a 'hold to collect and sell' business model.
Entity A shall classify debt securities either as FVOCI or as FVPL if held under a 'hold to collect and sell' business model.
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The effective interest rate on bonds acquired at a discount must be higher than the stated rate.
The effective interest rate on bonds acquired at a discount must be higher than the stated rate.
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All financial assets are initially measured at fair value plus transaction cost according to PFRS 9.
All financial assets are initially measured at fair value plus transaction cost according to PFRS 9.
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Discount or premium amortization is unnecessary if investments in bonds are measured at FVOCI.
Discount or premium amortization is unnecessary if investments in bonds are measured at FVOCI.
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The income earned by a sinking fund forms part of the sinking fund balance.
The income earned by a sinking fund forms part of the sinking fund balance.
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A long-term fund is always established in relation to the origination of a long-term liability.
A long-term fund is always established in relation to the origination of a long-term liability.
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Appropriation of retained earnings is made only in conjunction to a legal requirement.
Appropriation of retained earnings is made only in conjunction to a legal requirement.
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The increase in cash surrender value is accounted for as income.
The increase in cash surrender value is accounted for as income.
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Cash dividends received on a life insurance, in which the accounting for cash surrender applies, are accounted for as a reduction in the investment account rather than income.
Cash dividends received on a life insurance, in which the accounting for cash surrender applies, are accounted for as a reduction in the investment account rather than income.
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If Triniville Co. commits to purchase a financial asset on Day 1 and the transaction settles on Day 4, using trade date accounting, the financial asset will be initially recognized on Day 4.
If Triniville Co. commits to purchase a financial asset on Day 1 and the transaction settles on Day 4, using trade date accounting, the financial asset will be initially recognized on Day 4.
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A change in management's intention for holding particular financial assets would trigger the reclassification of financial assets between the measurement categories of PFRS 9.
A change in management's intention for holding particular financial assets would trigger the reclassification of financial assets between the measurement categories of PFRS 9.
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Not all debt-type financial assets can be reclassified; some other asset types can also be reclassified when an entity changes its business model for managing financial assets.
Not all debt-type financial assets can be reclassified; some other asset types can also be reclassified when an entity changes its business model for managing financial assets.
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Shares are said to be selling ex-dividend after the date of declaration and before the date of record.
Shares are said to be selling ex-dividend after the date of declaration and before the date of record.
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If an investee's shares were selling at P10 before the issuance of stock rights and declined to P8 immediately after, the value per stock right must be approximately P2.
If an investee's shares were selling at P10 before the issuance of stock rights and declined to P8 immediately after, the value per stock right must be approximately P2.
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An increase in prices would result in the recognition of a gain in a 'short' futures contract.
An increase in prices would result in the recognition of a gain in a 'short' futures contract.
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If the market price exceeds the strike price in a put option contract, the option is said to be in the money.
If the market price exceeds the strike price in a put option contract, the option is said to be in the money.
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The maximum amount of loss in an option contract that is not designated as a hedging instrument is equal to the acquisition cost of the option.
The maximum amount of loss in an option contract that is not designated as a hedging instrument is equal to the acquisition cost of the option.
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Dogs Co. pays a deposit to the broker when entering a futures contract, and this deposit forms part of the carrying amount of the derivative instrument.
Dogs Co. pays a deposit to the broker when entering a futures contract, and this deposit forms part of the carrying amount of the derivative instrument.
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Entity Y enters into a forward contract and receives a net cash payment of P1,000 when the spot rate increases to P3.00.
Entity Y enters into a forward contract and receives a net cash payment of P1,000 when the spot rate increases to P3.00.
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