INTERMEDIATE ACCOUNTING III REVIEWER

1. General purpose financial statements cater to what type of needs of user

Common needs

2. A complete set of financial statements does not include

C.Statement of retained earnings

3. ABC Co.'s depreciation expense for the period is overstated. Which of the following statements is incorrect?

c. ABC Co. can rectify the error by simply making appropriate disclosures in the notes.

4. According to PAS 1, this general feature of financial statements requires the presentation of the last year's financial
statements together with the current year's financial statements.

c. Comparative information

5. Which of the following is an example of offsetting under PAS 1?

c. Deducting the related selling costs from the sale price when computing for the gain or loss on the sale of an item

of property, plant and equipment.

6. When is an entity not required to present an additional

d. The entity changes the frequency of its reporting.

7. The purpose of general purpose financial statements is to provide information about the

d. financial position, financial performance, and cash flows of an entity that is useful to a wide range of users in making
economic decisions.

2. A complete set of financial statements includes

notes

3. An additional statement of financial position as at the beginning of the preceding period is prepared when an entity
makes (choose the incorrect statement)

c. prospective application

4. According to PAS 1 Presentation of Financial Statements, the general features of financial statements include all of the
following, except

b. Comparability of presentation

5. According to PAS 1 Presentation of Financial Statements inappropriate accounting policies are policies

b. not rectified either by disclosure of the accounting policies used or by notes or explanatory material.

c. permitted as long as they are used consistently from period to period.

d. disclosed in the notes only.

6. When an entity changes the end of its reporting period and presents financial statements for a period longer or
shorter than one year, an entity shall disclose all of the following, except

A quantification of the possible adjustments that would eliminate the effects of the longer or shorter reporting period.

7. The statement of financial position may be presented either or on liquidity (unclassified). PAS 1 Presentation of
Financial Statements encourages the

a. classified presentation

8. In a classified statement financial position, PAS 1 Presentation of Financial Statements requires deferred tax assets and
deferred tax liabilities to be presented as

b. noncurrent items

9. PAS1 Presentation of Financial Statements.

b. does not prescribe the order or format in which an entity presents items in the financial statements.
10. All of the following statements correctly refer to the provisions of PAS 1 Presentation of Financial Statements, except

statements of previous periods and with the financial statements of other entities.

PAS 1 shall be applied to all-purpose financial statements prepared and presented in accordance with Philippine Financial
Reporting Standards (PFRSS).

11. Financial statements are a structured representation of the financial position and financial performance of an entity.
The objective of general purpose financial statements is to provide information about an entity's (choose the incorrect
statement)

d. valuation

12. The general features listed in PAS 1 includes the following I. Fair Presentation and compliance with PFRSS

II. Accounting Entity

III. Going Concern IV. Accrual Basis of Accounting

V. Consistency of Presentation VI. Materiality and Aggregation

VII. Offsetting

VIII. Comparability

c.I, III, IV, V, VI, VII

13. In virtually all circumstances, a fair presentation is achieved by compliance with applicable PFRSS. A fair presentation
also requires an entity (choose the incorrect statement)

To have its financial statement examined by an external party.

All of the following are examples of offsetting, except

a. presenting accounts receivable net of allowance for doubtful accounts

Which of the following statements is incorrect?

c. PFRSS apply to financial statements and to other information presented in an annual report or other document

Mare Co.'s December 31, 20x1, balance sheet reported the following current assets:

At December 31, 20x1, the total of Mare’s current asset:

244,000

Mill Co.'s trial balance included the following account

What amount should be included in the current liability section of Mill’s December 31, 20x3 balance sheet?

45,000
Mint Corp.

. Mint uses the percentage-of-completion method to account for long-term construction contracts for financial statement
and income tax purposes. All receivables on these contracts are considered to be collectible within twelve months.
During 20x3, estimated tax payments of P450,000 were charged to prepaid taxes. Mint has not recorded income tax
expense. There were no temporary or permanent differences, and Mint's tax rate is 30%..

In Mint's December 31, 20x3 balance sheet, what amount should be reported as:

3. Total retained earnings?

851,000