toa cpar

7/26/2019 TOA Cpar

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C'PA

t: :

SC'HOOL

-

I - :

-

s

Marrila

I

I

101 l

THITORY

OF

ACCOLJNTS

Final

Preboard

Exantination

M{-JL'TIPLE

CHOICE

:

MARK

sheet

provided.

Make

lhe

mark

STRICTLY

NOT ALLOWED.

,+.

,5.

Saturclal

.

ScPteniber

14.

8:00

a.rn.

to

l0:00

a.rlr.

SU'I'

A

FULLY

i"ith

Pencil

Na.

2

tlre

letter

of

your

choice

on

the

att

DAR.K

trri

do

rr{,)t

usc

too

niuch

pressrlre.

uRASttlLtlS

I

tlnancial

rcpolts

tirr

llnanc

ial

reports

lbr

repons

ibr

external

'c:.tcittitl

Llscfs.,

I

|ell(,r'is

t()t'

c\t\'l'lltll

crterrral

Ltsers,

I

I

l

I

.

'SMt:s

irr

its operling

sturtcitrent

i

.

hr

I'FRS

ritr

SN4h.s.

I

il'the

PfrRS

lbr

SMl.:

dt,c[

rrot

I

tianreiroll<

as

one

type

ol',isset-

,ilitr

ol

c()nrpoucnl

ol'eqtrif

-r

ahilities

I

i

'h

to

the

c'quit-u-

itnder

I'['RlS

lbr'

SnriilI tind rnediuur-sized

entities

are

et'rtiiics

that

3.

Do

not

ha.ve

public

accountability

arrd

pr"iblir :

speciel

ptirpose

L}SETS.

h.

llalc

public

accorttrtiibiliti,and

publish

gcllcrttl

prlrpi)sc

llttanciatl

LISC

TS ,

ci.

Havr.

p6blic

accol;ttabititl'

and

publish

speciai

pllrpose

tjnancial

Whicit

i'r^ray

be

cla.ssitred as

a;r

SME

uitder

Philippine.|urisiilctir:rr';'

a. Banco De

()rrr

b.

Meralcir

c,

Sr-rn

Lit'e Financial

d.

None

oithese

\\.er

RH

:is

ot't

il

a tirst-time

adopter

presents

its

tlnr:nciai

:,tal;nrents

in accordance

with PFRS

fbr

SVII

Decemher

31.2013 on

comparative

basis.

rvl,lt is

the,-jate

ol'transitiorl

to

PFRS

lbr

SMEs'l

n.

I)ecer.nheril.201i

l^,.

l)ect't-uher

3 l. 201

]

c. Jarruarf

i.l0ll

d.

.lanuary

l.

2010

All

of

the

lbilowiltg

cillt

be

cltue b1'a tirst-tirrle il(i()ptel'o1'[)FItS

lor

o1'

flrrancial

position.

except

a.

Recognize

all

assets and

lial-rilities

r

itt,s':

rtargtlitiorl

is required

h. Rcc,rgtrize all

assets

and

liabilities

retltti''c'cl

t'l

tirll

Pi'RS

even

il

require

such recognition.

c.

Reclassii-v items that

it

recognizeC

ulnder

a

pl'evious accounting

f'

iiatrility

or component

olcquiiv

trrrt

a clitli:ren1

t)'pe

of esset-

liaLri

d.

.\ppl)'PFRS ibr SMtjs

in measurin;'

:iil

rlrcggirized

asscts

ancl

Iia

-[

he

re'conc

i

l

iation ol

equity

uuder

the

prev

i':iri; ;c

;.rrti

ng

tian-ieworl

SMEs

is made at

a.

The diite

oi'trarrsition

to

PFR.S

tbr

SI\4H:r

onli.

b.

'The

erttl of the

cLtn'ettt

reporlilrg

pe

r,oti

irtrlr'.

c.

I'lre clate

oltransitir-lp

to PFRS

tgr

i,M[:s;

litri

Lll

tl-i'e

eud

oltlie

cul't'cltt

t'cportitrg

pcriocl.

d.

I'he dare

of

transitiorr

to PFRS

fbr S 1[-:;

anii::r

tlrt

cnd

ot'the

prcccding cot.ltllaralive

perit

-f

he

components

oiother

cornprehensive

inctnre

,ri':rn

S\(E,

inc[,-tcle

ail

olthe

fbllo*il1g.

exc€]

a.

Revaluation surplus

during

the

year'

h. Actuarial

gain

arrd

lo-ss

c.

'l-he

eff'ective

portion

o1'gain

or

loss oir

ir*rJgirig

instntmetrts

clesigtituter.l

as

cash

florl

hedg

d. Liailr or loss tiont

transiating

the

flnancilil

.slatet-trents

of

a

tbreign

operatiol'l

7.

'1he

basic

flnancial

instnunents

of

an

SME inclu,le all

of

the

fullowillg.

except

a. Bank accounts

b.

Investrnents in nonconvertible

and nonptrltali)e

pr:efiretrce

shares

c.

BLrurJs

iind

similar clebt in-slrLilneuts

d. l-rlanr, 1o sLrbsidiaries

or

as;-cocintcrs

u itlr

snecillc rjalr:

ti'rrlalrtritl

C

D

C

Bank

Public Utilities

Insurance

B

C

A

January 1, 2013 naman yung Opening Statement

Pero January 1, 2012 yung beg. of comparative

period (beg of the previous yr)

=> SMEs has the choice if to OCI or to P&L 'to

Reval Method is not equal to FV Methodt Met o ang

s so wala

ng RE. Yung

nirerevalue

an sa FV Method, diretso sa P&L yun.

D

=> dapat payable on demand ____________________

7/26/2019 TOA Cpar


8.

Which

of

the

tbllowing

statbrnents

is

true

about

the

PfiRS

'cir

SMEs

I

.

a.

U*der

the

tair

ualJe

mddel.

thc

investmelrt

in

ass{ciate

is

initi:ii1'

nteastrr':l

at

the

transattlon

price inch-rdiirg

transactibn

cost'

I

i

b.

Investnrent

p;;p.;,

i, J',.rrur.cl

at either

cost

or

fdir

value'

c.

A

gor.r,-,n,.,.,ilrarrt

relatecl

io an asset

n'ray

be

tr'eatecl

as

clelerred

inc()i"ll3

or

reductictrt

irt

the

carrying

atttount

of

tlre

asset'

d.

A

parent

need

not

presetlt con*qolidated

iinancial

statentetris

if

the

parent has

onll'

one'

subsidiarv

which

lvas

acquired

u,ith

the

intenrion

of'seliing

or

ciisposing

cif

rt

v'

itl'irl

orle

vear'

9.

T'he

tlrrancial

a.

Statenreut

b.

Statetnent

c.

Statetlent

d. Staterrient

Statentents

of

a

nttttnrutit

olgaliizi:tioll

includc

aii

Lif

the

iolllririlg-

llieepl'

of flnarrc

i al

p'osirion

clf

changes

inl

tirrrij

balance

ofactivities

I

of

cash

t)ow:;i

nrenrbership

deveiopment

actil'ities

of

a

1C.

i

i

furicl

i'aising

anci

N'lanageineut

and

generali expenses-

nonprotir

organization

are

classilleci

as

a.

Program

serr,'ices

b.

Support

ser"'ices

c, Operating

expenses

d.

Nonoperating

expettsesi

I

Itiuh

trf

tlre

lbilo*irrg

u'o'u['J

resttlt in

ir;l

illurt

'tst' irt

l"rl.''1li':rr'..

A

private

nonprotit

irosIital

ea,'tterj

intere::I

ol:

investtli]riiS

liiat

\\

.\

norrprolit

organ

izati,iu

rec,-'i

vcd

tttrcslnditional

prc ili

ses',r-r

'edr"l

1

rec i'etl

i

a donttr

l

l.

\\,

a.

h.

l3

A

nonprotit

vttluntarl

{ealth

anil

r,i,elf'are

organizi.t{ion

:eceived

who siipulate<J

that

t[e honet,s5orilil

i1,',r

i',,

'i

,i',

r iirrrii

r

.-').1

'rt)

;;,;];;iii

o.gu'li'utit)rt

recciVecl

cash

corrrl'ih'rtion

ii'oiri

a

Jottot

ri[1r

stipltlated

tliat

tire

ntolle\

be

spept

tilr eqr-ripmeut"

none

o1',viri:h'lras

aciluirer

lll

liltl

curl'elli

l"ear'

Alt

gf'the

fbllowing are

classif-red

a.s

ilr-ianciril:'.ri:ii

'iti':s

ci'2;rsllf

i"ii'nr'"1'r7a1ic'n"

except

a,

Cash contribution

restricted

b1

the

dr:,i.:cr

fiir

i'ac'':lt.r

drvrrir)pnlr"I'

b.

(lash

contribution to

Lre

penlattetlilv

it:r'trs,l':d'

c

Cash clividend

and

interest

to

bc Lrscd

f111

3rrqllisrtilrl

'rt'-(\:r'lr'

'ijr'rqt:i;

;ll'

'lt

d. Caslr

contribution

liom

a

cionor

who stip';iaieil

ti"ll-'t

tt

-

i''

'-r''

i'

rf i'll

ri-l ilccLrrdance

with

decision

of the

governir.rg board.

-flie

l'unctiorrs

of

(lOA

incl[rde

ail

ot'the

ibilor"irj'''

t]'r;'i

,.

i

it.

lg

exarriine"

atrti

sr.ttlc

ai]

:icci)riltt:i

,)ert;1n,lr$

tr.r

tirr

,'iii','r'.r'

:1t.,'-l

'i:.))ct-'iiirilta:;

o1'tlre

naii00al

gr)\etnntent

anil

its

suodit

istttits.

consliit-:;i,.;riltl

i{r,,i:i..,.

r).'

i

r'l'rir,'tri-t

rri',:Lj

or

ctltltr0lled

corporatiotrs aud

NGOs

receivlr-lg

s.rbSidl

ir3;ii

ihtl

[,)\'i]ir-.ilrf

rlt

b.

["ti

Iree

p

the

general accot-tt-tts

of'lire

g{-)\'el'lllllc-ilt

c.

To sublr]it

to the

President

and

Congress

au annur"l

r1.rii..,..

c,i'the

,i:lticnal

goverru"nenl-

lts

subtlivisions and

gor,erllrncllt-o\"tted

6t'ctli'lttiriicti

r',);g","

li

:;':

cl.

'l'o

clesign.

prepare alrd,approve

the

zrccot-intin{

ii}st'inl ':rig3

'(;i'r1};.}rrl-lt

it:liilci--S,

l.t.

An appropriation

is

a.

An

authorizatioti

by the

legislati','e

iroti'r

ttr

it'::i<e

paitltt't-tisr

i-'l;i

ol

g,J\'rlrilllient

tlnds

under

specitred

conditions

anci

purposes.

fr An

autliorizalion

by

DBM

io

the

head

of

an

g-qenc'

tri

incut'

chlig'ilions

v'ithin

a specified

anro Lntt.

c

rhe atlpunt

cot-tlmittet\

o1;

tt'nt'acted

hf

i'(')'r'8:'il 'lie

nt

acl;: riistr;'tii

e

oiliciai'

d.

I hc

practice

gl

gor.

crnr-r-tcr-rt

fbr"

pliiuriil:p.

pr'o;r,rar-tttrtitig

lii.'ii

briillri:ti.ig

ilrt'

iit

rlilabiiit\

ot't'uClne'1

tirr

the

l-ieceSSat\

sf

rvicc:;

expt:cicd

r,1-

tltc

g(,',

i'l'i'tllltlllt.

1,5.

(ieneral

income accounts

of

tl-re

lro',/emulent

inclitcl,:':ii

oi'llle

+i,ii.lilin r

c\rt'pt

3,.

Filing

t'ees

in

a

court

of'liiw'

b. Dii

idend inconte

fionr

irtr estnterits

c. Grants

nnd dotratiotrs

d.

[:rncs ilrtd

pcualtics

fionr

12.

anci ltse

I

3::ts{'-'t'i

tt,i'

"ii;

C

Li}'iellt

ti'e

i'.'li

'"'-l

ilt;t::naleci.

I

I

l,

i:

D

B

B

lang

eduction

om

set"

thod

d SMEs

A

D

D

Board-

signated,

restricted

n..

____ Unrestricted => Operating

A

D

=> DBM ang

gumagawa nito..

Appropriation

AllotmentObligation

National Budget System

Gen. Income Accounts

Gen. Income AccountsGen. Income Accounts

Specific

7/26/2019 TOA Cpar


16.

Which of

the

foilov'

inlr

is

nct

a

qualitative

a.

Materialit5'

b.

Linderstandabilitv

c.

Comparability

d.

Relevance

characte"istic

of

fi

nancial

statements?

i7.

Which

oi.the

fcrliowing

is

frue

of

the

qr-ralitative

characteristic

of

"understandability"

in

relation

to

inlormatio,t

in

ilrrrncial

statements'7

a. Users

shoulci

be

willing

to

study

the

inf'ormaticn

u,ith

reasonable

diiigence

lr.

Users

are

expected

to

have

significant

business

knowledge

c.

Finaircial

statements

should exclude complex

matters

d.

Finar-rcial

statements

should

be

fi'ee

from

material

error

18, Which

of

tl-re

fbllowing

is an

example

of

an

"expense"'?

a.

A

loss

on the

disposal

ola

noncurrent

asstt

b.

A

decrease

in

equitl

arising

tion1

a

distribu.tion

to

equity

participapts

c.

An

int.rease

in

ecernomic

benefrts

during

the

accounting

period

d.

A

reduction

in

income

for

the

accounting

period

1g.

which oltl-,e

follow,ir-rg

statements

concerning

lhe

conceplual

Framev'ork

is

illcorrect?

a. The

('ilnceptua

F

rarueu,ork

provides

th"at

transactibns

must

be

acc0unterJ

tbr

in

accordance

with

their

legal

forrn.

b.

primary

responsibility

for

the

preparation

and

presentation

of

the financial

statements

of

the

entity

rests

witli

management.

c.

Financial

statements

must

not

exclude

complex

matters

in

order

to

achieve

understandability'

d. Where

any

conflict

arises

between

the

Conceptual

Frumeworkand

PFRS.

the

requirements

of

the

PFRS

prevail.

20.

Which

of

the

foliorving

statements

regarding

"profit'"

is

truc]

a.

prof

rt

is any

u*ol',nt over

and abJre

thal

required

to

r.itaintain

the

capital

at

the

beginning

of

the

period.

b.

protlt

is

the

residual

amount

ihat

rernains

atier

expenses

have

been

deducted

from

income'

c. Proflt

is

normally

deterrnined

using

the

frnancial

capita

concept.

d.

All

of

these statements are true.

2

i .

Which

of the

following

reports

is nEt

a component

of

the

financial

statements?

a.

Statement

of

financiat

pcsition

b.

Statement

of changes

in

equitY

c. f)irectors"

repofi

d. Notes

ro

the

finarrcial

statements

22.

Which of

the

following

inforrnation

is rrot

:;pecifically

a

required

disclosure?

a.

Name

of'

the

reportirrg

entitl,

or

otirer

means

of

identification.

and

any

change

in

that

infbrmation

from

the

previous

yrar'

b.

Nanres

of

itra.ior

shaielrolders

oi'tiie

entit)".

c.

Level

of

rounding

used

in

preserrting the

fipanciai

Statements.

d.

Whctl-ier

the

tlnancial

statement,

"ou.,

the

indil'idual

entity

or

a

group

of

entities'

23.

When an

eptity

cpts

to

present the

inccme

slatement

classifying

expenses

by

function'

which

of

the

tbllowing

is not

iequired

to

Lre disciosed

a-q

"adrJitional

information"?

e.

Depreciation expense

b,

Emplc,vee

benefit

expense

c.

Directors'

remuneriltion

d.,A"mor1 zation

expense

24.

Which of'fl-re

fbllowing

statements

in

relatiori

ro

materialitl,

is

not

true?

a.

Ir4ateriality

of

items

depends on

their inclii,iduai

or

coliective influence

on economic decisions'

b.

Materiality

of an

ilem

depends

on

its

:rb:.oiute

size

and

nature.

c.

An ite:l

must

nrake

a dif'ference

or

it

ueed

not

be

disclosed.

d.

An

iterr

is

material

if

the

inciusion

or

omission

would

influence

or

change

the

judgement

of

a

reasona.ble

person.

A

sub-quality of Relevance 'to

A

A

A

D

C

B

legal

rm butbstance

er form

net asset approachtransaction

approachnanc a cap ta concept s ase

on historical cost..

C

B

XXXXXXXX relative size

7/26/2019 TOA Cpar


25, Which of the

fbllowing

statements

in

relation

to

presentation

of

financial

statements

is

true?

a.

Dividends

paid

should

be

recognized

rn the

statement

of comprehensive

of

income,

b.

A

loss

on

disposal

of

noncurrent asset

should

be

recognized

in

the

statement

of

changes

in

equity.

c.

Prorisions should

be ri:cognized

in the

statement

of

financial

position.

C.

,,\

revaluation

su,i",lu:i

during the

year

should

be

recognized

in

the

statement

of

changes

in

equity.

26.

Which of

the l'ollowing costs

of

conversion

cannot

he included in

cost of

inventory?

a.

('ost

of iirect

labor

h,.

Factort' rent and

r-rtilitii:s

c. Saiarie > of

:sales

stalf

d. Factor\, overhead

based on normal capacity

27. Costs which are

inventoriable include

all

of

the following.

except

a.

Costs

that

are

directly

connected with

the

bringing

of

goods

to

the

place

of business

of

the

br"ryer.

b. Costs

that

are

directly connected

with

converting

olgoods

to a

salable condition.

c. Buying costs

cf'a

purchasing

department.

d. Selling costs of a sales

clepartment.

28. Which

of

the

following

is not;rn

acceptable

method of

applying

the

lower

of

cost

or

net

realizable

value method to inventory'/

a.

Inventory

location

b.

Group

oi'inventory

items

c. Individual item

d. Total

of the

inventory

29. Net realizable vaiue is the

general

rule fbr

valr-ring

which of the

tbllowing

types

of

inventory?

a.

Clommodities held

by

broker-traders.

b.

Computer components

hrld lor sale

to manuf'acturers,

c.

Inventories

priced

on an

item

by

itern

basis

but

not

those

priced on

a

total

inventory

basis.

d.

All of'the cht-rices are held at NRV,

30. How

should an unrealized

gain

on

foreign cLlrrency

transaction

be

presented

in

a statement

of

cash

flows'7

a. As

an

inflow

under

"financing

activities"

because

it arises fiom

a

foreign

cLlrrency

transaction.

b.

It

should be

ignored

as

it is an

unrealized

gain,

c.

It should

be

Cisclosed in the

notes to the

financial statements

by way

of

abundant

precaution.

d. As an adjustment

to

the net income

under "operating

activities".

31.

How

shoLrici r.paynlent

of a

long,ierm

loan comprising

repal'ment

of the

principal

amount

and

interest.lLlt

tc date

be

treiled in

a staternent of

cash

f'loil's'l

a,

'l'he

repal,pent

ol the

principal

ioan is an investing cash

tlow and

the interest

payment

is

either

an operating

cash

f'lor,v

or

a

financing

cash

flow.

b.

'1'he

repayment

of

the

principal

loan

is a financing

cash

flow

and

the interest

payment is either

an operating

cash 1'low

or

a

financing

cash

flow.

c.

The repaymerrt

ol

the

principal

loan

is

a

financing

cash

flow and

the

interest

payment is either

an

operating

cash

tlow

or investing cash

flow.

d.

The

repayment of

the

principal

loan is a flnancing cash

flow

and

the interest

payment is netted

against interest ieceived

on bank

deposits and

the net amount

of

interest

is shown as

operating

cash

flow.

32.

An

entity

thal changeci an

accounting

policy

should

a. Infbrm

sharehoiciers

prior

to

taking

the decision.

b.

Account tbr

the change retrospectivelv

c.

'freat

the

effect of

the

change

as

an

extraordinary

itern

d. Accor-rr.rt

for the

change currently and

prospectively.

C

C

D

A

A

D

B

BHow to account change in policy:

(1) according to transitional

provision

(2) otherwise, retrospectively

7/26/2019 TOA Cpar


.

33.

V/hen

the

residital

i'alue of

plant

ancl

ma.chiner'''

hacl

,jrastica,ri',.h111 :ei ,

the

entity

should

a.

Retrospectrvely

change

tire depreciation

charge

bas,vd

r-,ri

thc

reviseci

resiciual

valrle.

b.

Change

the depreciation

charge

and

treat

il

as a

correction

cf a;:

,:rror.

c. Change

the annual

depreciation

for the

eurrent

;,'eai

and

iiiture

'/ears.

d.

Ignore

the

effect of

tlie

change

on ar'nuai

depreciation.

,

34.

Which

of the foltowing

sltouiC

not

[:,e

ireated::is

a

r

hrrrge

ir acciiuniin;r

roiic,r'?

a.

A new

poiicy

resulting

tioni

the

require,;ient:

oi'i

rre\\

Plrl{S'

t,.

items

clf-

ilropeny"

plant

and

eq.ripinerrt

erc

no\\

ileasurecl

at

f-air

value

rvhereas

they:had

previously

been measured

at cost.

c.

A

change

"s

made

in

the

meihocl

rtt'crilculeting,

the pio',iisiott

jbr

uncoilectible

accounts

rece

ir

a'olc

C.

Investnrent

properties

are

now measured

ai

fair'

.,'alue

wltereas

ihev

had

been

previously

mea:-,urei1 at ;,-,st.

35. An entity deals extensivery

with

tbreign

entil,ies.

ar:ci

the

frnanciai

statemer,ts

reflect

these

tbreign

currenc)'transactions. Subsequent

to the

er,r.

oireporting

pet'iod,

and

before

the

the

issuance

of

the

financial

srarements, there

rvbre abnornral

t'luctua.ticn::

in l-r,-eign

cun'ency

rates.

How

should

the

entity account

for

ti-ris event?

a.

Ac.iurst

the

i'trreign

exchange

year-end

baiances

io

reflcci the

abnorrnal

adlerse

fluctuations

in

16; c'i6ln ex;ha,ige rate.

t,. ,\cijuit the

lbreign

exchan5te

year-end

hirlances

r.o

reflect

all

the

aLrnormal

flr-rctuations

in

lbrcign

exchange

rates and

rrct"f

r,tst

ad'rerse

tnc;','enicnts.

(r,

Disclose

the

post-rei;crtinlr

perioii

event

as r nonadjustirig

i:vent.

11. ignore the

post-reponing pericd

r"1en1-.

36.

Ail

of

tlre

iitllowing

musi l:c

,-Ji,r:l,i::rrj

Si.)i.rlr.r:tir-'ir.

c'r*{'l}i

'['l-re

tax ba:;es olnra.J()t

itelns on

r^.,nicL

oei:r,,]"1

i:ti]i

irali cc,:n

caicttiated

I lr.- autount oi'deduc:tible teiripclary di{-.feicrlc:s

tlri

r,r,hich

no deferrcci

iax ass 't

is

r"ecognized

;

Ihe

antount of taxal:,le

terrrporar-v- ciifteren,;es associated

,vith

invc'strnents

in

subsidiaries

and

associates

tirr

v,,hrch

no cieferreti tax

iiabiliti,

ts rei:cgnized.

d.

Th* arnount of

inccme

iax reiating

to

each

compcnent

r:f oiher

,:omprel-iensive

income

37 All oI'iirc iollori,ing would

result to

def'el'rec

tax a ..-i

^y.'.:;i

a.

il,teiest

e):pen:,e

is accrurc,

bui

iirc'iuced itr

ru.0il:.

J

,iii

J;]

a

c:sit

ursis.

b

i'he accurnulateii depreoiation

on,jrrr,1SS,:rt

is

g:eaiel

t,lan

acc.r.-nriulated

tar

depreciilliorl.

r-. Developrnent

cost -.

have been

capi'ti;iizeii

nnii

amo{ized

hiit

v/r're

deducted

in

determining

taxable

profit

in

the

perictri

int.ut,','ir,.t"

d.

The'tax

base

fur

a machinc,

is

iireatcr

tirarr

.ii,:,

cetrrving

allloilr,t.

18, An

entrt\

bought

a

prir.,ate

-tet

cxprecfecj

to

tre

uir:(i

.it,er

a

pr'iici1 oi ,'

yeirrs.

-I'he

engine

of the

jet

has

a llsefu

iif-e

c''i

5

years.

i'l-re

pri'",ate

jr:t.s

t.r:es :iyr

t'glila,rciJ

e,,'er)

2.

years.

fhe

piivate

jet

will

deirreciated

using the straight-line

method

*','cr

a. 7

yeais

ccnrpr,rsite usetul

iift.

b. .5

years

useful

life oi'the engiire.2.

yeais usefLri

iii..: oi

thr

the balance ccst

trf

the

"iet.

c.

2

years

useful

iife basecl

on

i')onseli'aListn.

d. 5

y'ears

rrseful liie based

cu

a si;upit'ri.i'r;g?:ri

tlil;

r:-reiui

3g.Anentiryinstall:ciane\ proclictior-lle.;rilii:l<iirr-t-ti:c,.iaiti:rttierofr:xp',snsesatthepointof

installatiorr

r:yhich

inc.luded

initial

operatin;i

lo.,iir:r

'['lu,

in::ia]

,-'p,:ra;iitg

loss;s should

be

a.

Defbried

an{J

anloniz,ed c'r.qr

r

r-;3strliat',[:

ptricti

\i-

ir-n'1.

b. Expinserl

anci

clrarged

to

the

incorne

itlaiet(leitt.

c.

Capitalized as

part

c1'the cost

clpl:l'it

as

ir.iliiecti'"

;it:iilttt",bi'.r

cost.

d.

Cha,"rled

t:

ret,rinec.l earn,rg.l.

40. An

entit),o\,vn:i a

fieet

of cars

;rnr.j

,,hri:s

11-:e

r:r,tit;.

licc;r:i,',1

:rtr

;tvatu(,

lrie properll',

plant

and

equiprneni. Which

option

shor-rld bc,;eier:ti.:ci

ii:

r.:l;,,iioti

io

th.:,,r',r.1;,2.1ir-rit?

a.

R.evaiui:

only or:e-l-raiioi'caclt

class

o.l

Drt-,pi:,1r,.

;

lr.:ri

3ri i

aqr-,;pme

nt'

b.

Revaiue an

cn ii'e

class

o-+

profr;t"I .

piar,t

:.t-t,., elLriiril

j(i1,1,

c.

Rerialue one ship at a tirxe as

it

is easirr

lii.li,

ie',,eiuirg

ali

sirins

altr-,i;eiher.

d.

Since asset:r are being

revaiu;ci

iedulai]','" i;r';i'e

ir li-)

i1,,'t](i

.t clepi'eciate.

|,

(i

)

lire

s.

arr,J

7

years

useflul

life

applied

to

li't,e

s

:rf'ali

rlaior

compcnents.

C

C

C

estimate 'to

A

a ust ng

t 'to,

NOT

lly

re,

CLOSE mo

s

eady

culated,

nasa

mo na sya

rec ate

nificant

ts

C

B

B

B

l PPEs

e

valued

avoid bias

7/26/2019 TOA Cpar


o

41.

Which

of the

following

statements

is

correet?

a"

Assets

are depreciated

even

if the fairralue

exceeds carrying

amount.

b.

Land

and

building

are not

ascounted

ibr separately,,

rvhen

acquired together.

c.

A

noncurrent

asset

acquired

as the

resr.ilt cian

exchange

of

assets is not recognized.

d,

A

gain

on

disposal

of a noncurrent

assef is

classitied as revenue.

42-.

Which

of the

following

disclosures

is

not

'*,r,-,iiet'i

lor

troperty.

plant

and equipment?

a. Tl-re

existence

and

anlounts

of restrictior::

orr

iiric

b. A

narrative

discrission

of f'uture

capitai experrditure

plans

c.

The

depreciation

rnetl-rod

useci

d.

The measurement

bases

used for

determining the

gross

carrying amount

4i.

Which

of the following

situations

woulcl

prirno

{acie

leadto a lease

being

classified as an operating

lease?

a.

Transf.er

o.{''orvnership

to

the

lessee

at the end of ihe lease term.

b.

(r;,t-:,n

to

purchase

at

a

valLle

below tl,e

rail vaiur

oi'the asset,

c.

ihe

lease

term is for

a major

parl

olti,e

asset's iiri.

d. The

present

value

of

the

minimum

iease

pa1'n.rents

is

5Aoh of the fair

value

of

the

asset.

44. Wher:e

thc-re

is

a

lease

cf land

and

building

and the

title to the

land is not transferred.

generally

the

lease

is treated

as

if

a.

The land is

finance

lease and

the builciirrg

is

a

finance

lease.

h,

'fhe

land

is

a flnarrce lease

and the

buiiding

is an

ofrt-.rsii11g

lease.

c.

fhe land

is

an operating lease

and

the

building

is

a

ilnance

lease

d.

The land is

an

operating

lease

and the

builriing

s

an operating

lease.

45.

l'he

prot'rt

on

a finance lease

for

iessors w'ho ar,,'rnanui'acturers

or dealers

should

a.

Not

be recognized

separateiy

from fiiiance incoinc

b. Be

recognized

in

the normal

way on

the

trnnsa,.:tion

c.

Only

be recognized

at the

end of the lease tei'm

d. Be

allocated

on a

straight

iine basis

over

tl'ie life

of the lease

46.

'"tlill

and

hold"

sales"

in

which

delivery' is delayed ai the

buyer's

request

but the buyer

assumes

tItle

and accef)rs

invoicing.

shoirld

br: recognizeci

ia,hen

a.

The

'0u1,,j1

makes

a-n order,

h.

The

seller

starts

manufacturing

the

goocis.

c.

The

title

has

been

transferred

but

the

goods

are

kept

on

the

seller's

premises.

d.

It

is

probable

that

the delivery

will

be nrade"

payment

terms have been

established"

and

the

buyer

has

acknowledged

the

delivery

instnrctions.

47

.

A

new

entity

has

come

out

with

an

of'fer to

ref'unc

the

cost

of

purchase

within

one month

of

sale if

the customer

is

not satisfied

with

the

product.

"'01herr

should

the entity recognize the revenue?

a.

When

goods

are

sold

to the

customers,

t,.

After

one

month

of

sale.

c.

Only

if

goods

are not

returned

by the

cusaomcrs after the

period

of

one

month.

d.

At

the

time

of sale

along with

an offset

to re'venue

of

the

liability

of the

same

amount

for the

possibility

of the

rerurn.

48.

An

entity

has

decided

to

improve

its defincd

henr:fil

pension

scheme. The benefit

payable

will

be

detennir-red

b,"-

ref'erence

to 60

years

of

ag:

rati:er

titan 65

,r-ears

oi age,

As

a'result^ there

is

an

increase

in

the det'ined

beneflt

pension

liabilit.,.

j-{ow

should

the

increase

in

the

pension

liability be

treated

in

the

trnancial

statentents?

a.

fhe past

scrvice

cost shor-rld

be

chargecl

aga;n.st

retained

earnings.

b. The

prrs:

se tvice

cost

should

be

charged

againsi

profit

or loss for the

year.

c. The

past

service

cosr

should

be

ailocc"ted over the remaining

service

period.

d.

The

past

service

cost

should

not be recognized.

A

B

D

C

B

les type!

DBill & hold sales is not layaway sales

A

B

Sa sales-or-return, revenue agad..

pero sa sales on trial, NO revenue muna.

7/26/2019 TOA Cpar


49.

Which of

the fbllowing

is taken

intcr acco,-rni

.,,/hen

detei'ntining

the

rJiscolint

raie in a defilned

benefit

plan?

a.

N4arket

yields

at the end

of reporting

period on high-quality

corporate bonds.,

b.

,nr'.r1rnent or dctuarial

rislt.

c. Specific

risk associated

r.vith

th,j erltity's

b,usiness.

;

.

d. Risk

that

tuture

experiences

may

cliffer

from

actuarial

assurnptions.

50.

Which

of

the

tbllowing

statNments best clescriL*s

othc{

long-ferm

em1:io.*'pg

henefits?

a.

ltJenefits

not falling

ciue

wholly

within

tvrelve

months

ol the

end

of

ihe

peririd in

which the

service is rendered

l

b.

Benefits

which

lall

due

within

t',relvc mi,nths

of

the end

of

the

perioC

in

rvhich the

service

is

rendered

'

,

c. Benetits

payable

as a

result o1'an enritr''s ciecision

to

end

an

emplol'ee's

enpioyrnent

before

the

normai retirement date

d.

Beneflts which

are

pal,able

;,iii:r

cor.rnietion

o1'ernr,loi,r,rclil

51.

Which

ol'the lbllowing

is

not specilir:ail1,

ex,-:iuded

lrom

gc;';ernrnent

grant

uncler

PAS

20?

a. Covernmenr

particioation

in

ou,rlersnip

ol

lh,':

*;riir"',

b,

Covernment

grant

ccvered

by

PAS

41 on agricr.il,ure.

c.

Gor,'ernment assistance

providerl

in

the

fbrm

of

ta.:;. bene

fits.

d. Forgivable

loan

froni

the

govei:nment,

52. At

the

beginning

of the cumerrt

year"

an entitv

recei.,eci

two

gcvernrient

grants,

namely Grant

One

as

financial

assislance

t-ol:-iart-ir.j

co;its

llr:t,acl:,

in::rrn,ll.,,Lrici

G'ant

Two

as

s,,bsidi'f,ol

cost

o1-

purchasirrg

colxplitirr

soiiivale.

.:r,er

,i

),u'r,rrs

Iv\

irieir r:l

t.lr,-'

i;iic',v,ng

statL'merlts

is true'.)

a. Crant One an.i Lii'ai--rt

-iu'cr

.iiroulli

s

l'sgligiliz*c

u-t

i-,..,1i in lhe

cun'eni

yea.r"

b. Grant

One and Grant i'wo shciuld

be recogrrrzed

over )

)'Ears

u.

Grant

One shoLrld be

recognized

in

l-ull

il ttre

currei..t

ye*r

irrr'i Crant

Twr'

should

be

r:ecognized

Orer 5

years.

d. Grant One

shor-rid be

recogrrizeri in

fuli

iit

ilie

crlrl-ir:nt

ri?:

.titui

Ciaitl

T',io sirr:uld

be

recogr-rized

at

the end

of

-5

years.

53. Which

of the

following

rvould

no{

be relevant

in

rielrrniniirg

iit.'

lrr,r,cljritlai

cttrrency?

a.

The currency that

intluences

the

ccsts

oithc

er-rliit,

b.

The

currency in

which

tin;rnce or fund is

ge,relatecl.

c.

'l'he

currency' ir-r which receipts

fi-oirr

,:pt-,r;riirrs :.*:ii..'ities:

a'':

.'r--t.,lrt..1

d.

'lhe

currency

that is

the n-rost internationaill

:iccetr,tabje

ti,r

lte,:1irg.

54.

At

which

rate shoulel n(iilolrrrenr a:as;'.-q

ite'rransla.leci when ih.''

f,.t:rc'i,:nai

c-rrrency

rigures are

being

transiated into

a differerll

orc:-gr-jiati,,it

cr.;r,'r-rl'i(

V1

a.

l-he historical

exchiinge raie

b. The

ciosing rate

c. The

average rate

d. The

spo't erchange rate

55.

Which

of

the

tblior,'.ing:siatenrents rbout

tire

capitalizlti{:t:^^

,f i:,r.:r,-,',itt'ctsts

as

paft

oi'the

cost

of

a

qualiil'ing

asset

is

l.rue?

a. If tiinas ccmt tl'ont:lsiteiSi

bi-rro,.r'ir,,i,'-

1ii": atrilr llI

ir)

r]i.:

c;rt-,it.,lizc,l

is based

on the

w'eighted

average

cosi

{ii' i-r,rrrr.'r...

i i.r-:.

h Capitaliz:tlor

ai,+a),s

conlittt,cs

untii

tlte

assei

is bro,lghi

ir,lt.r

il:,e

c.

Capitaiizatron

always comlrlences

?S

Soorr

a.s

i:xpcndirure

cithr;

ir :;I

i.-.

irt,']riti",.t(i

d.

Capitalization

always

ccmmences as soon a:,

int.:rest

cn

le

ie';a;rt

Lia'ircni',,rgs

ts

being

irrcurred

56.

Wi-ren

computing

interest

cosi

to

be capitalrzeiJ. the

conriepr

oi"ir,.ld,rble

intcrest"

ref-ers

to

a" The

total interest

cost actuali,v

incurred,

b.

A

rr-rst

of capiral

charge for equity,

c.

'lhat

poition

of

total

interest cost

whicl-r

vio,;lcl

not hiive

t:ee,r incuirred

if

expenditures

for

asset constmciion

had

not

been rnade,

d. That

portion

of

a'terage accumulateci

expenditu;:es

on

vvhich

nc

interesl.

cost

was incurred.

A

A

D

C

D

B

A

C

Other Long-term benefit

Short-term benefit

Termination benefit

Post-employment benefit

may PAS for Tax

current rate method

capitalization ceases.

7/26/2019 TOA Cpar


57.

which

of the

following

is the

recomrnencled

approach

to

handiing

interest

incurred

in,

financing

the

construction

of

property.

plant and

equipn:ent'i

a.

Capitalize

only

the

actual

interest

costs

incurred

dr.ring

construction'

_

b.

Charge

construction

with all

costs

of

funds

employed,

whether

identifiable

or

not'

c.

Capitalize

no interest

during

construction.

d.

Capitalize

interest

costs

equal

to the

prime interesf

rate

times

the

estimated

cost

of

the

asset'

58.

Which of

the

following

is

not a

related

paity:'

a.

A director

of

the

entity.

b.

The

parent

of

the

entitY.

c. A

shareholder

of

the

entity

that

holds

19'b

stake

in the

entity.

d. The son

of

the chief

executive

officer

of tht

enti v'

59.

During

the

current

y,ear.

the

parent sold

lroods

to

the

surbsidiary.

The

subsidiary

paid

part

of

this

debt and

then

encountered

flnancial

diificirlti,:s.

Aclministration

costs

are

incurred

as

a

result

of

the

credit

controllers

chasing

the debt.

All

o1'the

fbllowing

are

required

to

be

disclosed

in

relation

to

this arrangement,

except

il. The costs

of the

credit

control

department

incurred

in

pursuing

the

debt

b.

Details

of any

guarantees received

in

relation

to the

outstanding

balance

c.

The

provision in

relation

to

the debt

being

uncollectible

cl.

The amount

of the

transaction

and

otitstandinq

balance

60,

An

entity

acquired

an

investment

in a

subsidiary

v,,ith the

view

to

clispose

of

this

investment

within

six

mcnths.

The investment

in

the

subsidiary

l-,as

been

classified

as

held

for sale.

How

should

the

investment

in the

subsidiary

be

treated

in

the

t-ir,atrcial

statements?

a.

Purchase

accounting

should

be

used.

h,

Iiquity' accounting

should

be used'

c. The subsidiary

should

not be

consoiid;ited

but

FFRS

5 should

be

used'

d.

The subsidiary

should

remain

off

statement

of

tlnancial

position'

61.

An

entity

controls

an

overseas

entity.

Because

ct'exchange

controls.

it

is.ditflcult

to

transf-er

funds

out

of

the country

to the

parent

entity.

The

parent ouns

100%

of

the

voting

power

of

the

overseas

entity. How

should the

overseas

entity

be

accounted

tbr'?

a.

It shouid

be exclucleci

from

consoiidation

and

the

equity

method

should

be

i"ised'

b.

It

should

be

excluded

from

consolidation

and siated

at cost.

c.

lt

should be excluded

from

consolidation

an<i

a.ccounted

for

in

accordance

with

PAS

39'

d.

it

is

not

permitted

to

be

excluded

from

cor,solidation

because

control

is

not

lost.

62. How

is

the

impairment

test carried

out

for an

inrrestment

in

associate?

a.

T'he

goodwill

is

separated

from

the

rest

of

the

investineni

arrc

rs

impairmenttested

individually'

b.

'fhe

entire

carrying

amount

of

the

investment

is tested

for

impairment

by

comparing

its

recoverable amount

with

the

carrying

amollllt.

c.

The

carry,ing

amount

of the

investmertr

slrorriti

be

cortrpared

rvith

its

market

value'

d.

The

recoveiable amounts

of

all

invesinienr:;

in

associates

shoulci

be

assessed

together

to

determine

whether

there

has been

an impairinent

on

all

investments.

63.

Delrt

investments

held

for

collection

arc

reported

ai

a. Amortized cost

b.

Fair value

c. The

lower

of

amortized

cost or thir

valuc

d. Net realizable

value

64.

Which

of

the

following

is not

generally correct a.bout

recordirrg

a

sale

of

a

debt

investment

betbre

maturity

date?

a.

Accrued interest

will

be

received by

tlie

seller

er,en

though

it

is not

an

interest

payment

date'

b.

An entry

must

be nrade

to

amortize

a

discount

to the

date

of sale.

(..

The

entry

to

amortize

a

premium

to

thr: dat.:

oisale

includes

a

debit

to

Cebt

investment'

d. A

gairr

on

the saie

is the

excess

of

the

seiting

price

over

the cartying

arnount

of

the

debt'

A

C

A

C

B

B

A

C

specific borrowing

lated-

rty

anx

held-for-collection ex. is A R

XXX credit

7/26/2019 TOA Cpar


65.

lnvestments in

tradir-rg

deht investments

are

generaily

reported

at

a.

Amortized

cosi

b.

Face

value

d.

Marurity

value

v

i

l

i

i

66.

Under the

fair

value

optionl

entities

a. fi,rnrprlhensiveincome

h.

Irrcornc'

c.

Equin

d.

Othr:r

corrprehensive i,rr:cnre

67.

If

the investor

owns 60% of the

generall-v

account

for

this investn:ent

l

report

all

changesiin

lair

valLte

in

I

i

investee's outstanding

oroinery

shares,

the

investor

under

the

l

shbuld

rr

Cost method

b.

Fair

value

rnethod

c. Consolidation

equity method

C.

Consolidation method

68. An

entiiy

declares

and distributes

a

cash

diviileni',

ihat is

a

rt':,,.rli rf

cu"rert

eamings. How

will

the

receiprt

of those

dividends affect

lhr

inr,,r:sll'i,J;ti

:-r.1-r,j,) lrt ol'tirc

ii:r'eslor ur:d*r

each

of

the

following

accounting

methods?

'

a.

No

eilbct

under

f.air

value method

and

de :reasi

under eqr,rity'

raethoC

b, Increarse

under

tair

value

nietirod

and

dccr"e.'se

r,ir-rder

equity

method

c.

No

i:lt'ect

untJer

both

fair

vaiue

metlroi-l anrl,

,:ril-riiy

method.

d.

I)eclease under'fair value

lretiic{i

;ir'd:ro,:fibct

un'ler

equitv

methoci.

69.

All

of

tl-ie

tbllou,ing

are

characteristics

of

a

cleril,a,tive

f'lnancial

in.-tmmtnt.

excep'

a.

'fhe

instrument

has

iJle

uf

iiii)ic rir,r'i:l 11i:;r:

r'rnri rli i,lentilled

payment

l)rLr\

ision.

ir,

'l'he

instrurnent

requires a

iarg*

rr.,'ec.nlcni::ri

1r,: i:rlci;tior

nf

tle

rr.rnt;'acl

c"

fhe

ir-rstnrmett

requiires

oi

pelii;t:

;tct

se1Ller',*,ii.

d"

AII

of these

a.re characteristics.

70.

All

of

the

fbllowing

arc

ntoirciit;'',

lten,:.,

r';rcrpt

a. Trade

payables

b.'I'rade

recei.u,abir:s

c. Adn-rinistration

costs

paid

in

calh

d.

Loan

repayable

at

par

vrlue

72.

An

entity

is

reporting

in

a hyperintlationary

errcncfrl).

Which of tlre

follor.l'ing statelx.ents

is true'?

a, There

is

a

loss

on the net

n:onetary'position

ii'rhc

tronetar)'assetJ exceed nronetar)'liabilities.

b.

l'liere

is

a

gain

on

the net

rnonetarr

posilion

iithc mrneta"r;,'liahilities

excec'd

nronetary

assets.

c. Ttrre gain

or

lcss in

the net monetar.y

position

is recognized in

profit

or

loss.

d.

All of

these

statements

are

true

What

are

the

conditions

lbr

oi'lseiirn:r

ci-financial

assets ancl fiiranr:ial

iiabiiities'/

a.

A

legal

right

of

set-oi].

b.

A legal

right

r-rf

set-otf

and an

intention

to scrtle net or simultaneousiy.

c. The

existence

of

a

clearing

mechanism

or

other

miirket

i-rrechanisrn

lor

net

-settlement

and an

expectation

of net

settlement.

d. ,A

riettirrg

agri:emerrt

anr, an

erpect:tir-.r

c

I n':t

sel,tle-r,eyir.

For what

items

is f'air vair-re

requilrrl

to be rii:i.-ll:,J,i

rru;ler PAS

32'l

arti

.:.

a.

All

flnancial

irrstnrmenrs

'

,iifu

b.

All

tlrrancial

instruments.

excepl. Lrnilur-rled

r:qliit,v

instrrrrn'i:r,t.s alr,: derivaiives

linked

thereto

c.

All

tlnancial

assets

and

linancial

liabtlilies.

txr:iJilL

ior ii",v.,1s1ments

in

unqtiuted

instruments and

delivatives

linlied

therero.

L:

d.

All ilnanciai

assets.

except

for

invesiire".]t

lr u,rcluotllirir,rr:1runen1s

and derivatives

linked

thereto.

I

71

73.

C

B

D

A

B

C

D

B

small investment lang

Asset or liab lang ang monetary items

expense account

C

7/26/2019 TOA Cpar


74^

Which

of

the

following

statements

in

relllicn

to

financial

instruments

is

true?

a,

Treasury

shares

are

recognized

as

fina:rcial

assets'

b.

Any

gain or

loss

on

tr.ur=,rry

share

transactions

is

recognized

in

profit

or

loss

c.

Transactions

costs

of

issuing

equity

instruments

are

charged

against

income'

d.

The

components

of

a

compound

finarcial

instrument

aie

classified

separately

in

accordance

with

their

substance.

7_(.

Dividends

in

respect

of

redeemable

prefcrence

shares

aie

a.

Not

recognized

b.

Recognized

in

profit

or

loss

as

compontnt

of

fi'nance

cost

c.

Recognized

directlY in

equitY

d.

Recognized

directly

in

other

comprehensive

income

76.

Earnings

per shai'e

is

calcr.rlatecl

before

accortnting,

for

which

of

the

follorving

items?

a.

Pret'erence

dividend

tlli the

peric'<

b. OrclinarY

dividend

c.

Taxation

d.

MinoritY

interest

77.

Ordinary

shares

issued

as

part of

a

business

ccmbination

are

included

in

EPS

fiom

e.

fhe

beginning

of

the

Period

b.

l'he

date

of

acquisition

c.

The

end

of

the

Period

d.

The

n'ridpoint

of

the

Period

78.

lf

a.

botrus

issue

occurs

between

the

yt:ar-enci

a'nci

the

date

that

the

tlnarlcial

statements

are

authorized

a. EPS

both

fbr

the

current

and

the

pret,i:,trs vear

,3re

adjustcd.

b. EPS

fbr

the

current

year

only

is

adjusted'

c.

No adjustment

is

made

to

EPS.

d.

Diiuted

EPS

onlY

is

adjusted.

79.

Ail

olthe

tbllowing

items

must

be

disclo-qe:]

,n

reiationto

earnings

per share'

excepf

a.

Forecast

earnings

per

share

for

the

follow'ing

linancial

year

b.

Instrurnent

thaicould

potentiallv

dilute

Lraiic

earnings

per

share

in

the

iuture

but

were

not

included

in

the diluted

EPS

becaisc

they

are

antidilutive

in

ttte

current

period

c.

The

weighted

average

number

of

ordir,ar"y

shares

used

to

calculate

earnings

per share

d.

'fhe

earnings

tigureJused

in calcula:ing't',:isic

and

diluted

earnings

per

share

-

80.

Prlblicly

traded

entities

are

encouraged

tr.l

pro'"ide

interim

t.inancial

reports

a.

At

least

ar

rhe end

of

half

year

ani

within

6C

days

ol

the

end

of

interim

period'

b.

Within

a

month

of

the

half

year-end.

c.

0n

a

quarterlY

basis'

d.

Whenever

the

entitY

wishes.

81.

There

is

a

presumption

that anyone

reaCing

i:rterim

financial

reports

would

a.

Understand

ali

enllippine

Financial

Renortrng

Standards'

b.

l.Iave

access

to

the

records

of

the entity'

t;.

Have

access

to

the most

recent

annual

reF'ort'

cl.

Not

make

decisions

based

on

the

report'

g2.

which

of

the

following

statements

in

relation

to

inteiim

{inancial

reporting

is

not

true?

a.

An interirn

financiil

report

mav

cons'si

rria

r;cndensed set

of

financiai

sratements'

b. An

interim

financial

report

rnay

consisl

of

a

r:<;:nplele

set

of financial

statements'

c. It is

necessary

to

count

inventories

in

full

at

the

errd

of

each

interim

period'

d.

The NRV

of

inventories

is determined

by

refbrence

to

selling

prices at

the

interim

date'

g3.

When

deciding

on

the

discount

rate

to

tre

tiseci

in

caiculating

value

in

use.

which

factor

shouid

not

be

taken

into

account'J

a.

The

time

value

of

moriey

b.

Risk

specific

to

the

asset

fbr

which

c.

Risk

specific

to the

asset

for

which

d.

Pretax

ra.te

firtr.rre

cash

flow

estimates

have

not

been

adjusted'

future

cash

flow

estimates

have

been

adjusted'

D

B

B

B

A

A

A

Bonus issue = stock dividends

is an adjusting event..

C

C

C

dapat NOT

adjusted ang

CFs

7/26/2019 TOA Cpar


-

g4.

An

impairment

loss

lirat

relates

to an

asset

that

has

been

revalued

shor"rld

be

recognized

in

a. Profit or

Ioss

b.

Revaluation

surplus

that

relates

to

the

revalued

asset

c.

Openir-rg

retained

eamings

85.

Which

of the

following

impaimrent

losses

should

never

be

reversed?

a.

i.oss

on

property.

plant and

equipment

i

t,.

l,oss

on

good'rvill

'

c.

I-oss

on

business

segment

I

d.

Loss

iitr

inventorY

86.

For

which

of the

following

should

a

provision

be

rei'.ognized?

a.

Future

operating

losses

b, Obligaticlns

under

insurance

contracts

c. Reductions

in

tair

value

of

f-rnancial

instruments

d.

Ohligations

tbr

plant

decommissioning

costs

87.

Provisions

shall

be

recognized

fbr

all

of the

following.

except

a. Cleaning-up

costs

oi

corrtaminated

land

wheir

an

oil

entity

has

a

published

policy that

it

will

un<Jertake

ttr clean

up

all

contamination

that

it cattses'

b.

Restructuring

costs

after

a

binding

sale

a-ureement

has been

signed

c.

Rectit.icatii,,i.nrt-

relating

to

detietive

piotlucts already

solcl

r'1.

Future

refurbishment

costs

due

to

introduction

of

a

new

computer

system

88.

Which

of

the following

disclosures

is

not

required

with

respect

to

intangible

assets?

a.

Usefirl

lives of

the intangible

assets.

b.

Reconciliation

of

carrying

amount

at

the beginning

and

the end

of

the

year.

c.

C-'onrractual

commitments

for the

acquisition

of

intangible

assets,

d.

Fair

value

of similar

intangible

assets

used

by

competitors.

89.

Which

o1'the

following

statements

in relation

to

research

and

development

is true?

a.

'['he

product being*developed

should

have

already

been

put into

commercial

proCuctitln

or

use'

b.

Expenditures

duiing the

research phase

of a

project

lla)

s,rmctimes

til

capitalized as

an

irrtangible asset.

c. Expenditures

dr-rrilg

rhe

development

phase

ol

a

plo.iect

may

sometimes

be

capitalized

as an

intangible

asset.

d. All of these statements

are true,

90. Which of the

follou,ing

-statements

in

relation to

intangible

assets

is

true?

a. Intangible

assets

with a

finite

useful

lif'e

should

be

measured

at

cost

and

tested

annually

for

impairment

b.

lntangible assets

acquired

in a

business

combination

should

only

recognized

if

they

have

i

already

been

recognized

by the

acquiree'

c,

Intangible

assets

acquired-in

a business

combination should

not

be

recognized

separateiy

fiom

goodrvill

d. Atl

of

thes..

statentents

are

not trLle.

91.

What

is rhe etfectir,e

interest

rate ot-a

debt

instrument

measured

at

amortized

cost?

a. The stated

rate

of

the

debt

instrument.

b.

'l'he

ipterest

rate

currently

charged

by

the

entity

or

by

others

ior

similar

debt

instrument'

c.

Ihe

ipterest

rate

that

exactly iir"ornt,

estimated

future

cash

payments

through

the

expected

l

tif-e of

the debt

instrument

to the

net

carrying

anlounl-

of

the

instrument.

d.

'i'he

basic"

risk-fiee

interest

rate that

is

derived

fiorn

observable

price.

92.

\t what amount

is

a

financial

asset

or

financial

liability

measured

on

initial

recognition?

.

a,

The consideratir:n paid or received

for

the

financial

asset

or

financial

liability

tl.

Acquisition

cost

c.

Fair

vaiue

d.

7.ero

B

B

D

D

D

IFRS 4

PFRS 9

=> no present

obligation yet..

C

D

C

may

NITE useful

fe, test

ly forpairment

may indication

C

7/26/2019 TOA Cpar


,

93.

Which oi

the

fbllowing

additional

disclosures

mr:st

be

made

when

an

entity

chooses

the

cost

model

as

the

accounting

policy tbr

investmei-rt

properly?

a.

The

tair

value of

the

ProPertY

b.

The

present value

of the

propert)

c.

The

value

in use

of

tire

ProPertY

cl.

The

net realizable

value

of

the

propertv

94.

Which

of

the

following

ciisclosures

shoulcl

be

rnade

when

the

fair

value

model

has

been

adopted

for

investmen'.

prope;'i.r .'

a.

Depreciation

method

usecl

b.

The amount

of

impairmetrt

ioss

recognized

c,

LJseful

lif'e or

d'^preciation

rare

ttsed

d. Net

gains

or

iosses

iiom

fair

vah-re

adiustments

95.

Ap entity

l-rad a

plantation forest

that

is

likely to

be

harvested

and

sold

in 30

years.

The

income

should

be accounted

tbr in

which

of the

fbllowing

way?

a,

N-o

income should

reported

annually

until

first

harvest

and

sate

in

30

years'

b.

lnco6e should

be

measured

annuaily

and

reported

using

a

t-air

value

approach

that

recognizes

ahd

nteasures

biological

growth.

c.

The e\/entual

sale

pr,r..idr should

be

estimated

and

matched

to

the

profit

and

loss

account

o';er

iire 30-year

period.

d.

The

plantaiion ibrest

should

be

valued

every

5

years

and

the

increase

in

value

should

be

shown

in

the

statement

of

comprehensive

in.otn.

as

component

of

other

comprehensive

income.

96. Where there

is a

production cycle

of

more

than

one

year

for

a biological

asset"

separate

discl'rsure

is

encouraged

ibr

a.

Physical

change

only

b.

Price change

only

c.

'fotal

cirange

in

value

d. Physical

change

and

price

change

97.

Man1, shai'es ancl

most share options

are

not

:r;r.clecl

in

an

active

market.

Which

o1'the

following

option valuatiorr

*.echniques shoulct

nof

be lised

iis

a

rneasure

of

fair

value

of

share

options

in

the

first

instance'?

a.

Black-Sholes

model

b. Binomiai

,nodel

c. Mont':-Carlo

model

d. Intrinsic

value

98.

The

"excess

of the

acquirer's

interest

in the

net

fair

vah-re

of

the

acquiree's

identifiable

assets'

Iiabilities and

contingent

tiabilities

should

bt:

a.

r'\mortized

over

the

lif-e

of

the

assets

acquirec:

b. Reassessed

as

to

accuracy

of

measurement

aniJ

then

recogniz.ed

immediately

in

profit

or

loss'

c.

Reassessed as

to

accuracy

of

measurement and

then recognized

in

retained

earnings

d. Carried

as a

capital

reser\/e

indefinitely.

99.

In

ordei"lor

a

noncLlrrent

asset

to

Lre classified

as

held

for

sale.

the

sale

rnust

be

"'highly

probable"

which

means ihat

a.

The

fr,rtr-rre

sale

is

likely

to

r.rccrir'

b.

The

tuture sale

is more

likel,v

than

nct to

occrtr,

c.

The

sale

is

cerlain.

d"

The

probability

is higher

than

more

likelv

thari

t.ti,-t,

100.

Exploration

and evaluation

asset

should

a.

Not

Lre recognized

in

the

flnancial

statements,

b.

Be

classified

as

tangible

asset

c,

Be

ciassitred as

intangible

asset

d. Be classified

as

either

tangible

asset

or

intangible

asset

A

D

B

D

usually, kaya ka nag-cocost model

kasi wala FV na available..

ological

set is

approach

D

B

D

a, b, c are all valuation method

possibleprobable

highly probable

D

toa cpar

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