Quiz-3-MT-BRING-HOME-Statement-of-Changes-in-Equity - Statement-of-Cash-Flows - NCA-held-for-sale 2
Quiz-3-MT-BRING-HOME-Statement-of-Changes-in-Equity - Statement-of-Cash-Flows - NCA-held-for-sale 2
Quiz-3-MT-BRING-HOME-Statement-of-Changes-in-Equity - Statement-of-Cash-Flows - NCA-held-for-sale 2
TRUE OR FALSE. Write TRUE if the statement is correct and FALSE if otherwise. (10 points)
MULTIPLE CHOICE. Write in CAPITAL LETTER the correct answer. (15 points)
11. An entity shall measure a noncurrent asset or disposal group classified as held for sale at
A. Carrying amount
B. Fair value less cost of disposal
C. Lower between carrying amount and fair value less cost of disposal
D. Higher between carrying amount and fair value less cost of disposal
12. What is the treatment of any gain on a subsequent increase in the fair value less cost of disposal of a
noncurrent asset classified as held for sale?
A. The gain shall be recognized in full
B. The gain shall not be recognized
C. The gain shall be recognized but not in excess of the cumulative impairment loss previously
recognized
D. The gain shall be recognized but only in retained earnings
13. When a component of a business has been discontinued during the year, the component’s operating
loss of the current period should be included in
A. Income statement as part of revenue and expenses
B. Income statement as part of the loss on the discontinued operation
C. Income from continuing operations
D. Retained earnings
14. Under IFRS, an entity can report interest expense in the statement of cash flows
A. In operating activities
B. Either in operating activities or financing activities
C. In financing activities
D. In investing activities or financing activities
15. In a statement of cash flows using indirect approach for operating activities, an increase in inventory is
presented as
A. Outflow of cash
B. Inflow and outflow of cash
C. Addition to net income
D. Deduction from net income
1
YUNA Co.’s total shareholder’s equity on January 1, 2021 was P180,000. The following were the
transactions during the year:
16. How much is the total shareholder’s equity on December 31, 2021?
A. 840,000
B. 700,000
C. 640,000
D. 540,000
EUGEO Co. reported profit of P340,000 for the year ended December 31, 2021. Depreciation expense
for the year was P100,000. The following are the changes in the operating assets and liabilities of
EUGEO Co. during 2021:
2021 2020
Accounts receivable P560,000 P300,000
Accounts payable 240,000 120,000
The following were cash transactions of SINON Co. during the period:
2
The comparative statement of financial position and statement of comprehensive income of ASUNA
Co. on December 31, 2021 are shown below:
Additional information:
Equipment with carrying amount of P240,000 was sold for P200,000 resulting on a loss on sale of
P40,000
Acquisition of equipment for cash amounted to P800,000
Dividends paid totaled P90,000
3
KIRITO Co. classified machinery as held for sale on December 31, 2020. The carrying amount of the
machinery is P5,000,000 and fair value less cost to sell is P4,200,000 on this date.
On December 31, 2021, the machinery was not sold however the delay is due to factors beyond the
control of the entity. The fair value less cost to sell is P3,900,000.
24. What is the measurement of machinery held for sale on December 31, 2020?
A. 5,000,000
B. 4,200,000
C. 3,900,000
D. 4,000,000
END OF QUIZ