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These are restrictions on the borrower as to undertaking further borrowings, etc.
These are restrictions on the borrower as to undertaking further borrowings, etc.
- Covenants (correct)
- Terms and conditions
- Loan Policies
- None of the above
The following describes the Notes to Financial Statements, except:
The following describes the Notes to Financial Statements, except:
- None of the statements (correct)
- Present items disaggregated
- Provide narrative description
- Aid in enhancing understandability
It is the time between the acquisition of assets for processing and their realization in cash or cash equivalent.
It is the time between the acquisition of assets for processing and their realization in cash or cash equivalent.
- Financial cycle
- Operating cycle (correct)
- Time Period
- Product cycle
Under these covenants, if certain conditions relating to the borrower's financial situation are breached, the liability becomes payable on demand.
Under these covenants, if certain conditions relating to the borrower's financial situation are breached, the liability becomes payable on demand.
Significant influence may be gained by share ownership of _____________
Significant influence may be gained by share ownership of _____________
A change in accounting policy shall be made only when required by an accounting standard or the change will result in more relevant information.
A change in accounting policy shall be made only when required by an accounting standard or the change will result in more relevant information.
The following are examples of related parties, except:
The following are examples of related parties, except:
Current assets are usually listed in the order of ________?
Current assets are usually listed in the order of ________?
The following cash flows are classified under financing activities, except:
The following cash flows are classified under financing activities, except:
The holders of instruments classified as equity are simply known as:
The holders of instruments classified as equity are simply known as:
It is the most liquid asset.
It is the most liquid asset.
No adjustments are required for the following events after the reporting period, except:
No adjustments are required for the following events after the reporting period, except:
For financial institutions, interest paid and interest received are classified as financing activities.
For financial institutions, interest paid and interest received are classified as financing activities.
Statement of Comprehensive Income includes the following, except:
Statement of Comprehensive Income includes the following, except:
The following describes Property, Plant and Equipment except:
The following describes Property, Plant and Equipment except:
Interest paid and interest received shall be classified as an operating expense, but alternatively may be classified as financing or investing.
Interest paid and interest received shall be classified as an operating expense, but alternatively may be classified as financing or investing.
The liability is classified as ________________ even if the lender has agreed not to demand payment.
The liability is classified as ________________ even if the lender has agreed not to demand payment.
Financial statements shall be presented at least___________
Financial statements shall be presented at least___________
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Study Notes
Assessment Overview
- Total points achieved: 87 out of 90
- Student: Bert Andre Mendez
- Email for correspondence: bertandre.mendez@csucc.edu.ph
Financial Terms and Definitions
- Covenants: Restrictions placed on borrowers regarding further borrowings and financial actions.
- Notes to Financial Statements: Provide essential disclosures under Philippine Financial Reporting Standards to clarify and enhance the financial statements.
- Product Cycle: Refers to the time between acquiring assets for processing and realizing cash or cash equivalents.
Financial Relationships and Ownership
- Significant Influence: Generally indicated by share ownership of 20% or more.
- Related Parties: Includes post-employment benefit plans and immediate family members of those who have control or significant influence over the reporting entity.
Financial Reporting and Accounting Policies
- Accounting Policy Changes: Can only occur if mandated by an accounting standard or if it leads to more relevant and faithfully represented information.
- Current Assets: Listed according to liquidity, which indicates how easily they can be converted to cash.
Cash Flow Classifications
- Financing Activities: Include transactions related to long-term liabilities and equity, such as cash receipts from issuing debt or equity instruments.
- Most Liquid Asset: Cash and cash equivalents are considered the most liquid assets on the balance sheet.
Reporting Period Events
- Adjustments After Reporting Period: Specific events, like sales of inventories, require careful consideration of adjustments related to net realizable value.
Comprehensive Income and Expenses
- Statement of Comprehensive Income: Includes income, expenses, and unrealized gains or losses, but not equity.
Property, Plant, and Equipment
- Defined as tangible assets expected to last over one year, used for production, and not classified as intangible assets.
Classifications of Liabilities
- Current Liabilities: Include obligations classified as current even if lenders agree not to demand payment post-reporting period.
Presentation of Financial Statements
- Required at least annually, aligning with standard reporting practices.
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