1.

    The ability through consensus among measures to ensure that information
represents what it purports to represent is an example of the concept of
(1/1 Point)
Verifiability
Feedback value
Comparability
Relevance
3
An entity installed a new production facility and incurred a number of expenses
at the
point of installation. The entity's accountant is arguing that most expenses do not
qualify for capitalization. Included in those expenses are initial operating losses.
The
initial operating losses should be
(1/1 Point)
Expensed
Capitalized and charged to the income statement
Capitalized
Expensed and charged to the income statement
4
Recognition of an element is appropriate when information results in
(1/1 Point)
Faithful representation
Both relevance and faithful representation
Relevance
Neither relevance nor faithful representation
5
Employee benefits include settlements made by an entity in the form of the
following, except:
(0/1 Point)
Goods
Property
Cash
Services
6
An investor shall discontinue the equity method when
(1/1 Point)
The investor ceases to have control over the associate.
The associate operates under severe long-term restrictions.
The investor ceases to have significant influence over the associate.
The business activities of the investor and associate are dissimilar.
7
A contingent liability
(1/1 Point)
Is reported of current liability.
Has a most probable value of zero but may require a payment if a given future event occurs.
Is not disclosed in the financial statements .
Definitely exists as a liability but the amount or due date is indeterminate.
8
Which is the proper treatment of contingent asset?
(1/1 Point)
An accrued account
Deferred income
Account receivable
A disclosure only
9
This standard prescribes the minimum content for an interim financial report and
its principles for recognition and measurement. E.g. “Interim financial reports may
be presented monthly, quarterly or semiannually.
(1/1 Point)
PAS 34
PAS 24
PAS 36
PAS 31
10
Which of the following statements is false about impairment of assets under PAS
36?
(0/1 Point)
If the carrying amount is higher than the recoverable amount, the asset is judged to have
suffered an impairment loss.
 In impairment of assets, an asset shall be carried at above the recoverable amount.
None of the above
Impairment is a fall in the market value of an asset.
11
Which of the following statements is true about impairment of assets under PAS
36
(1/1 Point)
The impairment loss is not recognized in profit or loss.
If the recoverable amount of an asset is less than the carrying amount, there is impairment loss.
Impairment loss is the difference between the asset’s carrying amount and value in use.
When the recoverable amount of an asset is less than its carrying amount there is no impairment
loss.
12
Which of the following is not a condition that affects if a provision should be
recognized as a liability under PAS 37?

I.    The entity has a present obligation, legal or constructive as a result of  a past
event.
II.    The entity has a probable inflow of resources from the provision
III.    There is probable outflow of resources embodying economic benefits will be
required to settle the obligation.
IV.    The liability’s amount can be measured reliably.

(1/1 Point)
I & II
None of the above
I
II only
13
All of the following are true relating to intangible assets under PAS 38 except:
(0/1 Point)
All of the choices are correct
It must be under the control of the entity as a result of a past event.
Cost of introducing a new product or service, including costs of advertising is a capitalizable
item for intangible assets
 Intangible assets shall be measured initially at cost
14
Which of the following is the correct definition of an investment property under
PAS 40?
(1/1 Point)
It is defined as property, building or land, or both that is held by an owner or by the lessee
under a finance lease to earn rentals or for capital appreciation
It is defined as property building or land, or both that is held by an owner or by the lessee under
an operating lease to earn rentals or for capital appreciation.
It is defined as property, building, land, and equipment that is held by an owner or by the lessee
under a finance lease to earn rentals or for capital appreciation.
It is defined as any property held by an owner or lessee under either finance lease or operating
lease to earn rentals or for capital appreciation.
15
Which of the following statements is true regarding investment property under
PAS 40?

I. Land held for long-term capital appreciation is an investment property

(1/1 Point)
I & II only
III only
None of the above
All of the above
16
An operating segment is a component of an entity:

I. That engages in business activities which it may earn revenue and incur
expenses
II. Operating results are reviewed by the chief operating decision maker
III. Discrete financial information are available
IV. Excludes revenue and expenses relating to transactions with other
components of the same entity
(1/1 Point)
 None of the above
All of the above
I, II, III
I, II, IV
17
All of the following shall be measured at FVPL, except:
(0/1 Point)
Debt investment irrevocably designated at FVPL
Financial asset held for trading
Debt investment at amortized cost
Investment in quoted equity instrument
18
Fair value is measured at reclassification date where differences from carrying
amount should be recognized in profit or loss
(1/1 Point)
FVPL
Zonal Value
FVOCI
Amortized Cost
19
Fair value to be paid to transfer at an orderly transaction between market
participants
(0/1 Point)
Property
Asset 
Equity
Liability
20
The following are valuation techniques in measuring fair value except:
(1/1 Point)
Income Approach
Instinctive Approach
Market Approach
Cost Approach
 21
New global framework for revenue recognition
(1/1 Point)
PFRS 15
PFRS 13
PFRS 9
PFRS 8
22
Contract or part of a contract that conveys the right to use the underlying asset
for a period of time in exchange for a consideration

(0/1 Point)
Receivables
Borrowing Cost
Debt
Lease
23
Which of the following is not a required disclosure under PAS 1?
(1/1 Point)
Assets held for sale
Provisions
Number of employees
Intangible assets
24
In PAS 2, measuring inventories are lower between:
(1/1 Point)
Fair value and net realizable value
Cost of production and the average cost
Cost and net realizable value
Cost and carrying value
25
Which of the following is not an example of cash flows from operating activities?
(0/1 Point)
Cash receipts from sales of property, plant and equipment, intangibles, and other long-term
assets
 Cash receipts and payments from contracts held for dealing or trading purposes
Cash receipts from the sale of goods and/or the rendering of services
Cash receipts and payments of an insurance entity for premiums and claims, annuities, and other
policy benefits
26
Investments normally qualify as a cash equivalent only when they have a short
maturity of ______
(1/1 Point)
Six months or less from the date of acquisition
Six months or less from the reporting date
Three months or less from the reporting date
Three months or less from the date of acquisition
27
Under which of the following circumstances is PAS 8 applicable?
(-/1 Point)
None of the above
Selecting and applying accounting policies
Changes in prior period errors
Accounting for changes in accounting policies
28
PAS 10 identifies the period covered by these events as starting immediately after
the year-end and ending at the date of:
(0/1 Point)
Approval of the financial statements
Issue of the financial statements
Publication of the financial statements
All of the above
29
On February 14, 2021, the management of an undertaking approved financial
statements for the issue to its supervisory board. The supervisory board is made
up solely of non-executives and may include representatives of employees, and
other outside interests. On February 21, 2021, the supervisory board approved
the financial statements. On March 10, 2021, the financial statements are made
available to shareholders, and others. On April 17, 2021, the shareholders
approved the financial statements at their annual meeting. On April 25, 2021, the
financial statements were filed with a regulatory body. Which of the above dates
marks the end of the period covered by PAS 10?
(1/1 Point)
April 25
April 17
March 18
February 14
30
A related party transaction is a transfer of resources, services, or obligations
between a reporting entity and a related party, ___________.
(1/1 Point)
Regardless of whether a price is charged
At a price lower than the current market price
When no price is charged
Unless the market price is charged
31
In its consolidated financial statements, an investor uses the ______ of accounting
for investments in associates and joint ventures.
(1/1 Point)
Equity method
Asset method
Cost method
Hybrid method
32
PAS 29 shall be applied to the financial statements, including the consolidated
financial statements, of any entity ______.
(0/1 Point)
Which is located in a country of a hyperinflationary economy
Whose functional currency is the currency of a hyperinflationary economy
Which operates in a country of a hyperinflationary economy
All of these are correct
33
Which of the following is within the scope of PAS 32?
(1/1 Point)
Assets held for sale in the ordinary course of business
 Investments in associates and joint ventures
Contracts relating to employee benefits
Financial instruments that are within the scope of PFRS 9
34
Under IFRS, the presumption is that equity investments are:
(0/1 Point)
Held to profit from price changes
Held for trading
Held for trading and held to profit from price changes
Held as financial assets at fair value through other comprehensive income
35
Which of the following should be applied to PAS 41?
(0/1 Point)
Land related to agricultural activity
All of the above
Bearer plants related to agricultural activity
Agricultural produce at the point of harvest
36
This is defined as the first annual financial statement in which an entity adopts
PFRS by an explicit and unreserved statement of compliance with PFRS.
(1/1 Point)
First PFRS financial statements
Opening PFRS statement of financial position
First audited financial statements
PFRS financial statements
37
What is the date of transition to PFRS?
(1/1 Point)
The end of the latest period in the most recent annual financial statements under previous GAAP
The beginning of the earliest period for which an entity presents full comparative information
under PFRS
The beginning of the latest period in the most recent annual financial statements under previous
GAAP
The end of the earliest period for which an entity presents full comparative information under
PFRS
 38
Which is the correct definition of provision?
(1/1 Point)
A liability which cannot be easily measured
A liability of uncertain timing or amount
An obligation to transfer funds to an entity
A possible obligation arising from past event
39
It is a group of assets to be disposed of by sale or otherwise, together as a group
in a single transaction, and liabilities directly associated with those assets that will
be transferred in the transaction.
(1/1 Point)
Disposal group
Non-current asset
Cash generating unit
Discontinued operation
40
An entity shall classify a noncurrent asset or disposal group as held for sale when
(1/1 Point)
The carrying amount of the asset or disposal group is recovered through continuing use.
The noncurrent asset or disposal group is idle or retired from active use.
The noncurrent asset or disposal group is abandoned.
The carrying amount of the asset or disposal group is recovered through a sale transaction.
41
 A provision shall be recognized as liability when:
(1/1 Point)
The amount of obligation can be measured reliably
An entity has a present obligation as a result of a past event
All of these are required
It is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation
COMPUTATIONAL
42
(3/3 Points)
 5,850,000

43
(3/3 Points)

1,529,600

44
(3/3 Points)
 3,180,000

45
On October 1, 2023, Portal Corporation purchased to hold to maturity, 1,000,
$1,000, 9% bonds for $990,000 which includes $15,000 accrued interest. The
bonds, which mature on February 1, 2031, pay interest semiannually on February
1 and August 1. Porter uses the straight-line method of amortization. The bonds
should be reported in the December 31, 2023 balance sheet at a carrying value of
(0/3 Points)

Correct answers: 975,750
46
On December 31, 2022, Celtics Company purchased a machine from Boston
Company in exchange for a non-interest bearing note requiring eight payments
of P200,000. The first payment was made on December 31, 2022 and the others
are due annually on December 31. At date of issuance, the prevailing rate of
interest for this type of note was 11%. The PV of an ordinary annuity of 1 at 11%
for 8 periods is 5.146 and the PV of an annuity in advance at 11% for 8 periods is
5.712.

On December 31, 2022, what is the carrying amount of the note payable?
(0/3 Points)

Correct answers: 942,400
47
On January 1, 2018, Hawks Company borrowed P3,600,000 from a major
customer evidenced by a non-interest bearing note due in three years. The entity
agreed to supply the customer’s inventory needs for the loan period at lower
than market price. At the 12% imputed interest rate for this type of loan, the
present value of the note is P2,550,000 on January 1, 2018.

What amount of interest expense should be reported on 2018?

48
Harrison Company purchased a depreciable asset for $100,000. The estimated
salvage value is $10,000, and the estimated useful life is 10 years. The straight-
line method will be used for depreciation. What is the depreciation base of this
asset?
(3/3 Points)
90,000

49
Bruno Inc. borrowed $400,000 on April 1. The note requires interest at 12% and
principal to be paid in one year. How much interest is recognized for the period
from April 1 to December 31?
(3/3 Points)
36,000

50
Knorr Company purchased bonds with a face amount of $400,000 between
interest payment dates. Barr purchased the bonds at 102, paid brokerage costs of
$6,000, and paid accrued interest for three months of $10,000. The amount to
record as the cost of this long-term investment in bonds is
(3/3 Points)
414,000

51
Hamilton Company has cash in bank of $10,000, restricted cash in a separate
account of $3,000, and a bank overdraft in an account at another bank of $1,000.
Hamilton should report cash of
(3/3 Points)
10,000

52
Question
(3/3 Points)
 25,800

53
On January 1, 2007, the merchandise inventory of Colaw, Inc. was $800,000.
During 2007   Colaw purchased $1,600,000 of merchandise and recorded sales of
$2,000,000. The gross profit rate on these sales was 25%. What is the
merchandise inventory of Colaw at December 31, 2007?
(3/3 Points)
900,000

54
For 2007, cost of goods available for sale for Vale Corporation was $900,000. The
gross profit rate was 20%. Sales for the year were $800,000. What was the
amount of the ending inventory?
(3/3 Points)
260,000

55
Gomez Company had a gross profit of $360,000, total purchases of $420,000, and
an ending inventory of $240,000 in its first year of operations as a retailer.
Gomez’s sales in its first year must have been
(3/3 Points)
540,000

56
The following information applied to Howe, Inc. for 2010: Merchandise purchased
for resale $300,000 Freight-in 8,000 Freight-out 5,000 Purchase returns 2,000
Howe's 2010 inventoriable cost was
(0/3 Points)
Correct answers: 306,000
57
Checkers uses the periodic inventory system. For the current month, the
beginning inventory consisted of 1,200 units that cost $12 each. During the
month, the company made two purchases: 500 units at $13 each and 2,000 units
at $13.50 each. Checkers also sold 2,150 units during the month. Using the FIFO
method, what is the ending inventory?
(0/3 Points)

Correct answers: 20,925
58
Chess Top uses the periodic inventory system. For the current month, the
beginning inventory consisted of 200 units that cost $65 each. During the month,
the company made two purchases: 300 units at $68 each and 150 units at $70
each. Chess Top also sold 500 units during the month. Using the average cost
method, what is the amount of ending inventory?
 
(3/3 Points)

59
Question
(0/3 Points)

Correct answers: 1,310,000
60
Question
(3/3 Points)
 10,000

61
Gross billings for merchandise sold by Lang Company to its customers last year
amounted to €13,720,000; sales returns and allowances were €370,000, sales
discounts were €175,000, and freight-out was €140,000. Net sales last year for
Lang Company were

(3/3 Points)
13,175,000