Net – Blue. Sure – Green. Guess – Yellow.

Wrong - Red

Compu sa excellllllll…. basta numbersssssssssss

Statement 1: An entity shall disclose the revenue from external customers for each product and service.
Statement 2: An entity shall disclose a major customer only if such customer provides revenue of more than
10% of an entity’s external revenue.
- 1 only br1 CM5 RM23
- 2 only
- Both statements
- None of the statements

The net income for the year ended December 31, 2014 for Knot Corporation was Php3,520,000.

Purchases of plant assets 2,800,000

Depreciation of plant assets 1,480,000
Dividends declared on plant assets 970,000
Net decrease in non-cash current assets 290,000
Loss on sale of equipment 130,000

What should be the cash provided from operating activities in Knot's statement of cash flows for the year ended
December 31, 2014?
- 5,420,000 RM1

Which of the following cost and expenses is not allowed to be anticipated in the interim financial statements?
- Cost of sales AF7 CM31 P29
- Depreciation
- Loss on sale of equipment
- Rent Expense

Carnival company uses the direct method to prepare its statement of cash flows. Carnival had

Cash receipts from sale of an old van Php160,000

Cash receipts from issuance of ordinary shares 2,000,000
cash receipts from issuance of 10%, 10-year bonds 1,500,000
Cash receipts from customers 1,000,000
Cash receipts from repayment of loan made to other company 1,200,000
Cash receipts for dividends 150,000
Cash receipts as interest 150,000
Cash payments for operating expenses 650,000
Cash payments for taxes 300,000
Cash payments for equity securities bought 900,000
Cash payments for equipment purchased 300,000
Cash payments for land acquired 1,200,000
What is the net cash provided (used) from investing activities?

Select the correct response:

 Net – Blue. Sure – Green. Guess – Yellow. Wrong - Red

Compu sa excellllllll…. basta numbersssssssssss

Php 1,040,000 - RM2

Php 1,640,000
Php 1,940,000
Php 2,240,000

thomA
On December 1, 2014, P Company acquired through foreclosure a property comprising land and building that it
intends to sell. However, P Company does not intend to transfer the Property to a buyer until after it completes
renovations to increase the property's sales value. P Company paid a total lump sum amount of P7,000,000 to
acquire the property. As of December 31, 2014 P Company has paid a total amount of PI00,000 for the partial
renovation of the property and the property is currently selling at P7,600,000.
In its December 31, 2014 statement of financial position, P Company should report its held for sale property at
- None CM1, lole
- 7,000,000
- 7,100,000
- 7,600,000

Which type of accounting change should always be accounted for in current and future periods?

Change in accounting policy

Change in reporting entity
Change in accounting estimate RM3 (Quizlet) MF14 AF8 p31
Correction of an error
Sauce: https://quizlet.com/200662944/ch-22-conceptual-final-flash-cards/

Which of the following events will appear in the cash flows from financing activities section of the statement of
cash flows?

Select the correct response:

Cash purchases of equipment.
Cash purchases of bonds issued by another company.
Cash received as repayment for funds loaned.
Cash purchase of treasury stock. - RM4 (Quizlet) CM7

Thomas Company does not keep a full set of business records, but the following information is available for the
month of June
2014:
Trade receivables, June 1, 2014 P 80,000
Trade receivables, June 30, 2014 55,000
Credit sales 680,000
Cash received from customers 673,000
Bad debts written-off 4,000
General provision for doubtful debts set up in June 10,000
 Net – Blue. Sure – Green. Guess – Yellow. Wrong - Red

Compu sa excellllllll…. basta numbersssssssssss

Assuming no other transactions, how much discount was allowed to customers during the month of June?

Select the correct response:

P24,OOO
P28,OOO - RM5 P28
P34,OOO
P38,OOO

The following are the aggregation criteria for additional reportable segments when it failed to meet the 75%
threshold on external
sales:
i. Nature of product or service
ii. Nature of production process
iii. Type of class of customers
iv. Marketing method
v. Regulatory environment
Which of the following shared criteria cannot be used as a basis in selecting additional reportable segments?
Select the correct response:
i, and iii
ii, iiii, and v
i, iii, iv
i, ii, iiii, v - RM6 CM9 KN6

Increases in fair value less cost of disposal under PFRS 5 is accounted for

as gain from change in fair value without limitations.

as increase in revaluation surplus.
only as gain from recovery of impairment loss. - RM7 MH9 CM40
All of the above

Financial information does not demonstrate consistency when

- firms in the same industry use different accounting methods to account for the same type of transaction.
- a company changes its estimate of the salvage value of a fixed asset.
- a company fails to adjust its financial statements for changes in the value of the measuring unit.
- none of these mh1 NG CM8 MF27
Sauce: https://quizlet.com/538036529/chapter-2-quiz-flash-cards/

Which of the following is (are) the proper time period(s) to record the effects of a change in accounting
estimate?
- current period and prospectively (NG) MF18 RM24

Which of the following is an operating segment?

● Manufacturing plant
 Net – Blue. Sure – Green. Guess – Yellow. Wrong - Red

Compu sa excellllllll…. basta numbersssssssssss

● Subsidiary P1 CM30 RM31 br28

● Head Office
● Assembly Department

Stone Company changed its method of pricing inventories from average cost to FIFO. What type of accounting
change does this represent?
- A change in accounting estimate for which the financial statements for prior periods included for
comparative purpose sshould be presented as previously reported.
- A change in accounting policy for which the financial statements for prior periods included for
comparative purposes should be presented as previously reported. (MH2)br6 P21 kn2
- A change in accounting estimate for which the financial statements for prior periods included for
comparative purposes should be restated.
- A change in accounting policy for which the financial statements for prior periods included for
comparative purposes should be restated
Sauce: https://quizlet.com/7930297/acct-ch-22-part-1-flash-cards/#:~:text=Stone%20Company%20changed
%20its%20method,be%20presented%20as%20previously%20reported.
https://pdfcoffee.com/single-entrydone-pdf-free.html

The financial statement which summarizes operating, investing, and financing activities of an entity for a
period of time is the
- Statement of Cash Flows br27
Source: https://quizlet.com/230509892/wiley-plus-4-flash-cards/

The entity is about to prepare its interim financial statements as of June 30. Which of the following is not included
in the comparative financial statements for the current year?
- Statement of financial position as of June 30 of the current year
- Statement of financial position as of June 30 of the prior year (MH13) P33
- Statement of Comprehensive income for the quarter ending June 30 of the current year
- Statement of Comprehensive income for the six-months ending June 30 of the prior year
Sauce:

Which of the following is (are) the proper time period(s) to record the effects of a change in accounting
estimate?
- Current period and prospectively
Source: https://quizlet.com/252239539/accounting-301-final-exam-ch-22-flash-cards/

Factor company creates a provision of P200,000 for an onerous contract on disused distribution warehouse on
December 31, 2011. The contract has one year outstanding as of December 31, 2011 and the company includes
the profit or loss charge in distribution cost which then totaled P800,000. The distribution costs in year 2012
before the release of the provision are P700,000 which includes the rental charge for the disused warehouse.
 Net – Blue. Sure – Green. Guess – Yellow. Wrong - Red

Compu sa excellllllll…. basta numbersssssssssss

What amount of distribution costs should the company report in its December 31, 2012 profit or loss?
- 500,000 AF15
- 600,000
- 700,000
- 800,000

Bargain Company reported net income of P3,000,000 for 2014. Changes occurred in several balance sheet
accounts during 2014 as follows:
Investment in associate, carried at equity 400,000 increase
premium on bonds payable 50,000 decrease
Accumulated depreciation, caused by major repair of equipment 200,000 decrease
Deferred tax liability 150,000 increase
In the 2014 statement of cash flows, how much should be reported as net cash provided by
operating activities?

Select the correct response:

Php 2,600,000
Php 2,700,000 - RM8
Php 2,800,000
Php 2,900,000

Which of the following needs to be disclosed for an operating segment?

- The products and services
- Information about profit or loss of the operating segment
- Reconciliations of the totals of segment revenue to revenues in the entity' s income statement
- All of the above P9 MF17 CM29

Assuming no other transactions, how much discount was allowed to customers during the month of June?
- 24,000
- 28,000 (MH3)
- 34,000
- 38,000
Sauce: https://www.studocu.com/ph/document/saint-paul-school-of-professional-studies/accountancy/sample-
problems-accrual-cash-basis-single-entry-part-3/16987223
]
Accounting information is considered to be relevant when it
a. can be depended on to represent the economic conditions and events that it is intended to represent.
b. is capable of making a difference in a decision.(https://quizlet.com/42150597/ch-2-flash-cards/) P12 MH 15 NG
c. is understandable by reasonably informed users of accounting information.
d. is verifiable and neutral.
 Net – Blue. Sure – Green. Guess – Yellow. Wrong - Red

Compu sa excellllllll…. basta numbersssssssssss

Statement 1: The term chief operating decision maker refers to a manager with a specific title.
Statement 2: An operating segment is a component of an entity that is regularly reviewed by the chief operating
decision maker.
● Only 1 is correct
● Only 1 is incorrect P27 RM29
● Both are incorrect
● Both are correct
Sauce: https://www.sec.gov/Archives/edgar/data/40704/000110465912066783/filename1.htm
https://www.iasplus.com/en/standards/ifrs/ifrs8

Which of the following costs and expenses should be recognized in application of the cause and effect principle?
- Depreciation
- Cost of sales P10 RM12 br16 CM21
- Utilities
- All of the above

Which of the following noncurrent assets will not be accounted for under PFRS 5 when classified as held for sale?
- Equipment
- Patent
- Investment associate
- Deferred tax asset - RM9 MF15 P16 NG, LOLE AF13 CM26

Smart Company has the following financial assets as of December 31, 2014:
I AP300,000 accounts receivable that is not held for trading
II An P/800,000 investment in an equity instrument quoted in an active market that is not held for trading.
III A P500,000 investment in equity instrument that is not held for trading and does not have a quoted price, and
whose fair value cannot
be reliably measured.
IV A P600,000 purchased debt security with the objective to hold the asset to collect the contractual cash flows
that are solely payment of
interest and principal.
V A P700,000 purchased debt security quoted in an active market that Smart Company plans to hold to maturity.
Smart Company has a
business model with the objective of trading the security to make profit for changes in the fair value of debt
securities.
VI A P400,000 investment in equity instrument that is quoted in an active market. Smart Company has no
intention to sell the investment.
VII A P600,000 investment in equity that is held for trading.

What amount of financial asset under the category — investment in debt security at
fair value should be separately reported in the December 31, 2014 statement of financial
position?
 Net – Blue. Sure – Green. Guess – Yellow. Wrong - Red

Compu sa excellllllll…. basta numbersssssssssss

Select the correct response:

600,000
700,000 - RM10
1,300,000
2,000,000

the quality of information that gives assurance that it is reasonably free of error and bias?

a. Relevance
b. Faithful representation (MH12)
c. Verifiability
d. Neutraility
Sauce: https://quizlet.com/302847739/3-conceptual-framework-qualitative-characteristics-flash-cards/

Which of the following should be carried at lower between carrying amount and fair value less cost to sell in
accordance to PFRS 5?
- Manufacturing plant held for sale - RM15 CM23 MF32
- Abandoned equipment
- Inventory held for sale
- Biological assets held for sale

What is the quality of information that gives assurance that it is reasonably free of error and bias?
- faithful representation P2 AF9
Source: https://quizlet.com/302847739/3-conceptual-framework-qualitative-characteristics-flash-cards/
https://www.studocu.com/ph/document/polytechnic-university-of-the-philippines/conceptual-framework/
conceptual-framework-qualitative-characteristics/9810014

On January 2, 2014, Channel Company intends to sell its building with a carrying value of P5,000,000
but based on a
test of impairment the said building has a fair value of Php4,500,000, but will continue to use the asset
until the
construction of a new building is completed. The current building has a remaining useful life of 10 years.
On January 2, 2014, Channel Company should classify the building as

Property, plant & equipment valued at P4,500,000.

Property, plant and equipment at P5,000,000.
Non-current asset held for sale and valued at 4,500,000
Non-current asset held for disposal and valued at P5,000,000.
 Net – Blue. Sure – Green. Guess – Yellow. Wrong - Red

Compu sa excellllllll…. basta numbersssssssssss

The two fundamental qualities that make accounting information useful are
- relevance and faithful representation P6
https://quizlet.com/90376833/intermediate-accounting-i-chapter-2-flash-cards/

All of the following could potentially be classified as either operating or investing cash flows under IFRS, except:
- The net change in cash for the period
- Dividends paid P7 NG MH10
Source: https://quizlet.com/376348536/cash-flow-flash-cards/

Statement 1: Interim financial statements are required. - Incorrect

Statement 2: Interim financial statements must be presented with the most recent annual financial statements
(False sa Studocu)
- 1 only
- 2 only
- Both of the statements
- None of the statements AF3 BR9 P20 NG CM19
Sauce for S2: https://www.studocu.com/ph/document/our-lady-of-fatima-university/accountancy/2-accounting-
theories/12248273

The statement of cash flows reports all of the following except:

- The net change in cash for the period
- The cash effects of operators during the period
- The free cash flows generated during the period AF4 MF1 NG br20
- Investing transactions
https://quizlet.com/157415327/acc-exam-1-flash-cards/

A company changes from percentage-of-completion to completed-contract, which is the method used for
tax purposes. The entry to record this change should include a
- debit to Retained Earnings in the amount of the difference on prior years, net of tax. MF7 NG
br11 CM39
Source: https://quizlet.com/200662944/ch-22-conceptual-final-flash-cards/

Accounting information is considered to be relevant when it

- b. is capable of making a difference in a decision. RM13 CM32
Source: https://quizlet.com/42150597/ch-2-flash-cards/

A noncurrent asset held for sale shall be measured at the lower of carrying amount and fair value less
cost to sell when
● the carrying amount will be recovered principally through a sale AF14
● the carrying amount will be recovered principally through use by a different segment of the
entity
 Net – Blue. Sure – Green. Guess – Yellow. Wrong - Red

Compu sa excellllllll…. basta numbersssssssssss

● such assets include investments that is accounted for under PFRS 9

● All of the above
Source: https://www.iasplus.com/en-ca/standards/part-i-ifrs/international-financial-reporting-standards/
ifrs5

Percy Company is engaged in a small export business. The company maintains limited records. Most of the
company's transactions are summarized in a cash journal; non-cash transactions are recorded by making memo
entries. The following are abstracted from the company's records:

-
On January 2, 2014, Channel Company intends to sell its building with a carrying value of P5,000,000 but based
onna test of impairment the said building has a fair value of P4,500,00, but will continue to use asset until the
construction of a new building is completed. The current building has a remaining useful life of 10 years.
On January 2, 2014, Channel Company should classify the building as
- PPE valued at 4.5M P3 not sure ahahah br10 NG
- non current asset at 5,000,000 RM22

On January 2, 2014, Window Company intends to sell its building with a carrying value of P3,800,000 but with a
fair value of P4,200,000, but will continue to use the asset until the construction of a new building is completed.
The current building has a remaining useful life of 10 years.
On January 2, 2014, Window Company should classify the building as
- Property, plant & equipment valued at P3,800,000.
- Property, plant and equipment at P4,200,000. br3 NG RM17
- Non-current asset held for sale and valued at 3,800,000.
- Non-current asset held for disposal and valued at P4,200,000.

Increases in fair value less cost of disposal under PFRS 5 is accounted for
- as gain from change in fair value without limitations
- as increase in revaluation surplus
- only as gain from recovery of impairment loss P26
- all of the above

What are two fundamental qualities that make accounting information useful for decision making are
- comparability and consistency
- materiality and timeliness
- relevance and faithful representation NG quizlet
- reliability and comparability

Which of the following disclosures is not required for a change from average cost to FIFO?
- Basic and diluted earnings per share for the current period and each prior period presented
- The nature of the change in accounting policy
- The amount of the adjustment relating to periods before those presented
- All of the choices are required. CM6 coursehero rm26 MF24 br15 NG kn1 P32
 Net – Blue. Sure – Green. Guess – Yellow. Wrong - Red

Compu sa excellllllll…. basta numbersssssssssss

The statement of cash flows provides answers to all of the following questions except
- where did the cash come from during the period?
- what was the cash used for during the period?
- what is the impact of inflation on the cash balance at the end of the year? br7 AF5 NG CM13 P22
RM19 MF25
- what was the change in the cash balance during the period?
https://quizlet.com/157415327/acc-exam-1-flash-cards/ (also chegg)

Which of the following employee benefits may be anticipated for financial reporting purposes at interim date?
- vacation leave-LOLE br25 MH16
- sick leave
- 13th month pay
- all of the above (sa file) MH16

All of the following could potentially be classified as either operating or investing cash flows under IFRS, except:
- interest received
- dividends received
- taxes paid that are specifically identified with investing
- dividends paid MF13, LOLE

Decision makers vary widely in the types of decisions they make, the methods of decision making they employ, the
information they already possess or can obtain from other sources, and their ability to process information
Consequently, for information to be useful there must be a linkage between these users and the decisions they
make. This link is
● Relevance
● Reliability
● Understandability P13 MF21 CM36
● Materiality
Sauce: https://quizlet.com/110652325/chapter-2-intermediate-accounting-flash-cards/

Statement 1: An entity shall classify a noncurrent asset or disposal group as held for sale when the noncurrent asset
or disposal group is idle or retired from active use
Statement 2: A highly probable sale should be a sales transaction that is certain.
Which is (are) correct?
a. 1 only
b. 2 only
c. Both statements
d. None of the statements CM15 br17 MF28 AF10 RM30
 Net – Blue. Sure – Green. Guess – Yellow. Wrong - Red

Compu sa excellllllll…. basta numbersssssssssss

Which of the following events will appear in the cash flows from financing activities section of the statement of
cash flows?
- cash purchases of equipment
- cash purchases of bonds issued by another company
- cash received as repayment for funds loaned
- cash purchase of treasury stock

Accounting information is considered to be relevant when it

- can be dependent on to represent the economic conditions and events that is intended to represent
- is capable of making a difference in a decision (studocu)
- is understandable by reasonably infomrated users of accounting information
- is verifiable and neutral

On December 31, 2014, Potter Company’s warehouse has a carrying value of Php 3,500,000 with a remaining
useful life of 10 years, but its fair market value was Php 3,300,000. As of December 31, 2014, Potter Company
intends to sell the warehouse to a buyer after it vacates the warehouse. The time necessary to vacate the warehouse
is usual and customary for sales of such assets.
br22
In its December 31, 2014 statement of financial position, Potter Company should include the warehouse as
- PPE valued at P3,300,000
- PPE valued at P3,500,000
- NCA held for sale and valued at P3,300,000
- NCA held for sale and valued at P3,500,000

The relevant accounts and adjusted balances shown below were taken from Gradual Company's trial balance on
December 31, 2014.
Cash deposit in banks 300,000
Gold bullion deposited in banks 2,000,000
Trade accounts receivable 1,400,000
Investment in debt instruments 3,000,000
Investment in equity instruments 1,600,000
Investment in equity instruments, with significant influence 2,400,000
Prepaid expenses 120,000
Finance lease payable 250,000
Deferred revenue 120,000
Trade payables 650,000
Provision for estimated litigation loss 420,000
Issued debt instrument 1,800,000
Issued equity instruments 2,900,000
 Net – Blue. Sure – Green. Guess – Yellow. Wrong - Red

Compu sa excellllllll…. basta numbersssssssssss

What total amount of financial instrument-liabilities that are within the scope of IAS 32 and IFRS 9 should Gradual
Company report for the year
2014?

Select the correct response:

650,000
1,800,000
2,450,000
1,870,000