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Questions and Answers
What cost formula is not permitted under PAS 2?
What cost formula is not permitted under PAS 2?
- Weighted Average
- Last-In, First-Out (LIFO) (correct)
- First-In, First-Out (FIFO)
- Specific Identification
How many units were available for sale by January 21?
How many units were available for sale by January 21?
- 320 units
- 600 units (correct)
- 280 units
- 400 units
What is the cost of goods sold calculated using the FIFO method?
What is the cost of goods sold calculated using the FIFO method?
- P3,500
- P3,760
- P3,640 (correct)
- P4,000
What unit cost was used for the units sold during the sale on January 12?
What unit cost was used for the units sold during the sale on January 12?
What is the ending inventory in units after the sale on January 12?
What is the ending inventory in units after the sale on January 12?
What is the total cost of the ending inventory at the computed costs?
What is the total cost of the ending inventory at the computed costs?
When utilizing the FIFO method, which purchase is accounted for first during a sale?
When utilizing the FIFO method, which purchase is accounted for first during a sale?
What is the total cost associated with the purchase made on January 21?
What is the total cost associated with the purchase made on January 21?
What is the total cost of the units available for sale?
What is the total cost of the units available for sale?
What is the weighted average unit cost calculated for the inventory?
What is the weighted average unit cost calculated for the inventory?
What is the number of units in ending inventory?
What is the number of units in ending inventory?
How much is the ending inventory valued at cost?
How much is the ending inventory valued at cost?
What is the total cost of sales calculated?
What is the total cost of sales calculated?
What is the unit cost of the January 7 purchase?
What is the unit cost of the January 7 purchase?
Which of the following correctly represents the total units available for sale?
Which of the following correctly represents the total units available for sale?
What would be the consequence of using a unit cost of P14 for the January 21 purchase instead of P12?
What would be the consequence of using a unit cost of P14 for the January 21 purchase instead of P12?
What is the ending inventory based on the weighted average method?
What is the ending inventory based on the weighted average method?
How is the moving average cost calculated in this context?
How is the moving average cost calculated in this context?
What is the cost of sales calculated using the moving average method?
What is the cost of sales calculated using the moving average method?
What is the net realizable value (NRV) of Product A?
What is the net realizable value (NRV) of Product A?
What is the write-down amount for Product A?
What is the write-down amount for Product A?
What will be the total cost of Product B in the financial statement if the NRV is considered?
What will be the total cost of Product B in the financial statement if the NRV is considered?
Which of the following represents the estimated selling cost of Product B?
Which of the following represents the estimated selling cost of Product B?
What is the total cost of Product A listed in the financial records?
What is the total cost of Product A listed in the financial records?
Under the cash basis of accounting, when is income recognized?
Under the cash basis of accounting, when is income recognized?
Which financial activity classification is correct for interest expense paid?
Which financial activity classification is correct for interest expense paid?
What method does PAS 7 encourage for cash flow reporting?
What method does PAS 7 encourage for cash flow reporting?
Which of the following is classified as an investing activity?
Which of the following is classified as an investing activity?
The indirect method of cash flow presentation adjusts profit or loss for what purpose?
The indirect method of cash flow presentation adjusts profit or loss for what purpose?
What activity classification applies to dividends paid to owners?
What activity classification applies to dividends paid to owners?
What does the direct method of cash flow presentation show?
What does the direct method of cash flow presentation show?
Which of these classifications is incorrect for interest income?
Which of these classifications is incorrect for interest income?
What type of cash flows arise from acquisitions and disposals of subsidiaries resulting in loss or obtaining of control?
What type of cash flows arise from acquisitions and disposals of subsidiaries resulting in loss or obtaining of control?
What is NOT a component of cash and cash equivalents disclosures?
What is NOT a component of cash and cash equivalents disclosures?
Which of the following defines accounting policies?
Which of the following defines accounting policies?
Which scenario falls under a change in accounting estimate?
Which scenario falls under a change in accounting estimate?
What is the primary purpose of PAS 8?
What is the primary purpose of PAS 8?
What defines a correction of prior period errors?
What defines a correction of prior period errors?
Which of the following transactions would NOT be classified as financing activities?
Which of the following transactions would NOT be classified as financing activities?
What characterizes a change in accounting policy?
What characterizes a change in accounting policy?
Study Notes
Introduction to PAS 8
- PAS 8 provides standards for selecting, applying, and changing accounting policies.
- The accounting and disclosure of changes in accounting policies, accounting estimates, and correction of accounting errors are defined within PAS 8.
- The goal of PAS 8 is to give clearer, reliable, and comparable financial statements.
Accounting Policies
- The specific principles, bases, conventions, rules, and practices applied by an entity in preparing and presenting financial statements.
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Description
This quiz covers the essential aspects of PAS 8, which provides guidelines for selecting, applying, and modifying accounting policies. It focuses on the accounting and disclosure of changes in accounting policies, estimates, and corrections of errors, aiming for clearer financial statements.
