CFAS-ASSESSMENT-PAS.pdf

Assessment - PAS 1, 7, 8, 10, 24 Total points 87/90 The respondent's email ([email protected]) was recorded on submission of this form. 0 of...

Assessment - PAS 1, 7, 8, 10, 24 Total points 87/90 The respondent's email ([email protected]) was recorded on submission of this form. 0 of 0 points Last Name, First Name * Mendez, Bert Andre Email * [email protected] Untitled Section 87 of 90 points These are restrictions on the borrower as to undertaking further borrowings, etc. * 1/1 Covenants Terms and conditions Loan Policies The following describes the Notes to Financial Statements, except: * 1/1 Notes to Financial Statements provide narrative description or disaggregation of items presented in the financial statements. The purpose of the notes to the financial statements is "to provide the necessary disclosures required by Philippine Financial Reporting Standards. Notes to Financial Statements are used to report information that does not fit into the body of the financial statements in order to enhance the understandability of the financial statements all of the statements It is the time between the acquisition of assets for processing and their realization in *1/1 cash or cash equivalent. Product cycle Time Period Operating cycle Financial cycle Under these covenants, if certain conditions relating to the borrower's financial *1/1 situation are breached, the liability become payable on demand. True False Significant influence may be gained by share ownership of _____________ * 1/1 25% or more 50% or more 20% or more 51% or more A change in accounting policy shall be made only when * 1/1 required by an accounting standard or the change will result in more relevant and faithfully represented information. desired by the accountant. the change will result in more relevant and faithfully represented information. required by an accounting standard The following are examples of related parties, except * 1/1 Post-employment benefit plan of the employees of either the reporting entity or an entity related to the reporting entity. close family members of those person who has control, significant influence or joint control over the reporting entity venturer and the joint venture two venturers sharing joint control over a joint venture. Current assets are usually listed in the order of ________? * 1/1 efficiency liquidity profitability solvency The following cash flows are classified under financing activities, except * 1/1 cash payments by a lessee for the reduction of the outstanding principal lease liability cash receipts from sales of equity or debt instruments of other entities cash payments to acquire treasury shares cash receipts from issuing debentures, loans, notes, bonds, mortgages and other short or long- term borrowings The holders of instruments classified as equity are simply known as * 1/1 creditors suppliers customers owners It is the most liquid asset. * 1/1 Prepaid expenses Receivables Cash and cash equivalents Inventory No adjustments are required for the following events after the reporting period, except * 1/1 Sale of inventories after the reporting period may give evidence about the net realizable value at reporting date. Business combination Change in tax rate Destruction of a major production plant by a fire For Financial institution, interest paid and interest received are classified as financing *1/1 activities. False True Statement of Comprehensive Income includes the following, except * 1/1 Unrealized gain or loss on debt instrument Expenses Equity Income The following describes Property, Plant and Equipment except * 1/1 expected to be used during more than one-year period held for use in production or supply of goods and services intangible held for rental to others economic resource Interest paid and interest received shall be classified as operating expense, but *1/1 alternatively maybe classified as financing or investing. False True The liability is classified as ________________ even if the lender has agreed, after the *1/1 reporting period and before the statements are authorize for issue, not to demand payment as consequence of the breach. noncurrent current Financial statements shall be presented at least___________ * 1/1 annually monthly quarterly Beyond the mere 20% threshold of ownership, the existence of significant influence is *1/1 usually evidenced by: Material transactions between the investor and the investee Provision of essential technical information all of the above Interchange of managerial personnel An entity shall not disclose key management personnel compensation. * 1/1 True False The following are classified under noncurrent liabilities, except * 1/1 notes payable deferred tax liability finance lease liability It is a present obligation of an entity to transfer an economic resource as a result of *1/1 past event Expense Liability Equity Asset  PAS 24 paragraph 12 requires disclosures of related party relationships only if there *0/1 have been transactions between the related parties. True False Correct answer False In absence of Accounting Standards, PAS 8 paragraph 11 and 12 specify the hierarchy *1/1 of guidance which management may use when selecting accounting policies in such circumstances. 1. Definition, recognition criteria and measurement concepts of assets, liabilities, income and expenses in the Conceptual Framework for Financial Reporting. 2. Requirements of current standards dealing with similar matters. 3. Most recent pronouncements of other standard-setting bodies that use a similar Conceptual Framework, other accounting literature and accepted industry practices. What is the correct order of hierarchy? Order 3, 2, 1 Order 2, 1, 3 Order 1, 2, 3 Order 2, 3, 1 It is the availability of cash in the near future to cover currently maturing obligations. * 1/1 Financial flexibility Operational efficiency Liquidity Solvency In absence of an accounting standard that specifically applies to a transaction or event, *1/1 management shall use judgment in selecting and applying an accounting policy that results in information that is relevant to the economic decision making needs of users and faithfully represented. True False These are the specific principles, bases, conventions, rules and practices applied by an *1/1 entity in preparing and presenting financial statements. Accounting Policies Accounting Manual GAAP The following are components of financial statements except * 1/1 Statement of Changes in Equity Trial Balance Notes to the Financial Statements Statement of Financial Position The following cash flows are classified under investing activities, except * 1/1 cash payments for future contract, forward contract, option contract and swap contract cash receipts from sales of property, plant and equipment, intangibles and other long-term assets cash payments to acquire equity or debt instrument of other entities. cash receipts and cash payments of an insurance entity for premiums and claims, annuities and other policy benefits. OCI that will be reclassified to Retained Earnings are the following, except * 1/1 "Remeasurements" of defined benefit plan, including actuarial gain or loss. Revaluation surplus during the year Unrealized gain or loss on equity investment measured at fair value Unrealized gain or loss from derivative contracts designated as cash flow hedge. An income statement is a formal statement showing the financial performance of an *1/1 entity as of the reporting date. True False It is the availability of cash over a long-term to meet financial commitment when they *1/1 fall due. Solvency Financial flexibility Operational efficiency Liquidity It means conversion of non-cash assets into cash or cash equivalent thru sale. * 1/1 Utilization Liquidation Asset realization The liability is classified as ______________ if the lender has agreed on or before the end *1/1 of the reporting period to provide a grace period ending at least twelve months after the end of the reporting period. current non-current It is the residual interest in the assets of the entity after deducting all of its liabilities. *1/1 Simply means "net assets" or total assets minus liabilities. Revenue Expense Equity Which of the following does not describes an asset? * 1/1 Controlled by an entity Result of past event a right that has the potential to produce economic benefit economic obligation Noncash investing and financing transactions are not disclosed. * 1/1 False True  Retrospective application means that any resulting adjustment from the change in *0/1 accounting policy shall be reported as an adjustment to the ending balance of retained earnings. True False Correct answer False Profit and loss is the total income less expenses, excluding the components of other *1/1 comprehensive income. True False For prior period errors, if comparable statements are presented, the financial *1/1 statements of the prior period shall be restated so as to reflect the retroactive application of the prior period errors as a retrospective restatement. True False Estimation involves judgment based on the latest available and reliable information. * 1/1 True False The entity shall apply the same accounting policies each period in order to achieve this *1/1 principle. Reliability Understandability Verifiability Comparability The activities summarized in the Statement of Cash Flows are the following, except * 1/1 Operating Selling Financing Investing It means that the change is applied to transaction, events and conditions from the date *1/1 of change in an estimate, no more prior year adjustments. retrospective recognition current and prospective recognition A liability shall be classified as current under the following circumstances, except: * 1/1 The entity holds the liability primarily for the purpose of trading. The entity have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. The entity expects to settle the liability within the entity's normal operating cycle. The liability is due to be settled within twelve months after the reporting period. The following classifies under current assets, except: * 1/1 the entity holds the asset primarily for the purpose of trading asset that is restricted to settle a liability for more than twelve months after the reporting period. the entity expects to realize the asset within twelve months after the reporting period the entity expects to realize the asset or intends to sell or consume it within the entity's normal operating cycle. If the refinancing on a long-term basis is completed on or before the end of the *1/1 reporting period, the refinancing is an adjusting event and therefore the obligation is classified as current. False True Other comprehensive income shall be grouped as follows: *1/1 1. OCI that will be reclassified subsequently to ________________ when specific conditions are met. 2. OCI that will be not be reclassified subsequently to profit or loss but to _________________________ profit or loss, cash flows profit or loss, balance sheet profit or loss, retained earnings Land is subjected to depreciation. * 1/1 False True The refinancing or rolling over must be at the discretion of the entity, otherwise, if the *1/1 refinancing or rolling over is not at the discretion of the entity, the obligation is classified as a _____________________________. current liability noncurrent liability When an entity's end of reporting period changes and financial statements are *1/1 presented for a period longer or shorter than one year, an entity shall disclose the following, except: The reason for using a longer or shorter period The period covered by the financial statements effectivity date of the reporting period change the fact that amounts presented in the financial statements are not entirely comparable Under accounting standards, alternative treatments are possible. * 1/1 False True If the entity has the discretion to refinance or roll over an obligation for at least twelve *1/1 months after the reporting period under an existing loan facility, the obligation is classified as _________________. non-current current The following are unrelated parties, except * 1/1 providers of finance, trade unions, public utilities, and government agencies in the course of their normal dealings with an entity by virtue only of those dealings. a customer, supplier, franchisor or general agent with whom an entity transacts a significant volume of business merely by virtue of the resulting economic dependence. two entities simply because they have a director or key management personnel in common. individuals owning directly or indirectly an interest in the voting power of the reporting entity. The following are examples of change in accounting policy, except * 1/1 change in useful life the initial adoption policy to carry assets at revalued amount is to be dealt with as revaluation change from cost model to fair value model in measuring investment property. Change in method of inventory pricing The effect of a change in accounting estimate shall be recognized *1/1 ____________________. currently and prospectively retrospectively The objective of financial statements is: * 1/1 to provide information about the financial position, financial performance and cash flows of an entity that is useful to creditors in making economic decisions to provide information about the financial position, financial performance and cash flows of an entity that is useful to auditors in making audit opinion to provide information about the financial position, financial performance and cash flows of an entity that is useful to managers in making economic decisions to provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions  The following are the minimum disclosures of related party transactions, except * 1/1 the doubtful accounts expense recognized during the period in respect of amount due from related parties. intragroup related party transactions and outstanding balances the allowance for doubtful accounts related to the outstanding balance. the amount of outstanding balance, terms and conditions whether secured or unsecured and nature of consideration to be provided in settlement An entity is not required to outline all significant accounting policies applied in *1/1 preparing financial statements. True False A liability which is due to be settled within twelve months after the reporting period is *1/1 classified as current even if an agreement to refinance or to reschedule payment on a long-term basis is completed after the reporting period and before the financial statements are authorized for issue. True False General purpose financial statements are directed to all users. * 0/1 True False Correct answer False Adjustments are required for those events that provide evidence of conditions that *1/1 exist at the end of reporting period. False True Dividends received shall be classified as operating activities, alternatively it may be *1/1 classified as financing activity. False True When the entity's normal operating cycle is not clearly identifiable, its duration is *1/1 assumed to be _____________. two years 6 months twelve months The following are non-cash transactions, except * 1/1 acquisition of asset by issuing share capital conversion of preference shares into ordinary shares Interest acquisition of asset by assuming directly related liability The assets are shown on the left side and the liabilities and equity on the right side. * 1/1 Account form Report form A liability which is due to be settled within twelve months after the reporting period is *1/1 classified as current even if the original term was for a period longer than twelve months. False True OCI that will be reclassified to profit or loss are the following, except * 1/1 Change in fair value attributable to credit risk of a financial liability designated at fair value through profit or loss Unrealized gain or loss from derivative contracts designed as cash flow hedge Gain or loss from translating financial statements of foreign operation Unrealized gain or loss on debt instrument measured at fair value These are the means by which the information accumulated and processed in the *1/1 financial accounting is periodically communicated to the users. Journal Entries Trial Balance Financial Statements Subsequent events are events, favorable or unfavorable, that occur between *1/1 __________________ and _______________________. January and December the end of reporting period and date of income tax computation. the end of reporting period and date on which the financial statements are authorized for issue. An entity has two options of presenting comprehensive income, two statements or *1/1 single statement. True False Parties are considered to be related if one party has the following, except * 1/1 The ability to exercise significant influence over the other party provider of finance in the course of normal dealings with an entity by virtue only of those dealings. Joint control over the reporting entity. The ability to control the other party It is a basic statement that shows the movements in the elements or components of *1/1 the shareholders' equity. Statement of Changes in Equity Statement of Financial Position Statement of Financial Performance Statement of Comprehensive Income It is simply defined as an identifiable non-monetary asset without physical substance. * 1/1 Deferred assets Intangible assets Other assets Significant influence is the power to participate in the financial and operating policy *1/1 decision of an entity, but not control of those policies. True False An obligation is a duty or responsibility that an entity has no practical ability to avoid. * 1/1 True False This form of statement of financial position sets forth the three major sections in the *1/1 downward sequence of assets, liabilities and equity. Account Form Report Form Adjustments are required for the following Events after the Reporting Period, except * 1/1 The determination of the profit sharing Settlement of a court case Major ordinary shares transactions Bankruptcy of a customer The following items are under noncurrent assets, except * 1/1 Long-term investments Property, plant and equipment Deferred tax assets Intangible assets Marketable securities The following cash flows are classified under operating activities, except * 1/1 cash receipts and payments for securities held for trading cash advances and loans made by a financial institution cash payments or refunds of income taxes unless specifically identified with financing and investing activities cash payment to acquire property, plant and equipment, intangibles and other long-term assets The Statement of Retained Earnings is no longer a required basic statement but it is a *1/1 part of the Statement of Changes in Equity. True False An investment qualifies as a cash equivalent only when it has a short maturity of *1/1 _____________ from the date of acquisition. six months or less four months or less three months or less twelve months or less Adjustments are required for those that are indicative of conditions that arise after the *1/1 end of reporting period. False True An entity shall not present any items of income and expenses as extraordinary. * 1/1 True False Events after the Reporting Period may require * 1/1 no adjustment, disclosure only adjustment, no disclosure either adjustment or disclosure both adjustment and disclosure The term trade and other payables includes the following, except * 1/1 notes payable dividends payable current tax liability accrued expenses The following items are under current assets, except * 1/1 Inventories Trading securities and other investments Office Equipment Prepaid expenses Control is ownership directly or indirectly through subsidiaries or more than half of the *1/1 voting power of an entity. True False It is an asset by an entity for the accretion (growth) of wealth through capital *1/1 distribution for capital appreciation (increase of value) or for other benefits to the investing entity such as those obtained through trading relationships. Capital Long-term investment Dividend Financial statements are authorized for issue when * 1/1 the audited by a Certified Public Accountant the board of directors reviews the financial statements and authorize them for issue. the tax are paid the shareholders approve the financial statements. This form was created inside of Caraga State University - Cabadbaran Campus. Report Abuse Forms