1. In 2021, Jules Company realized that its ending inventory was understated byP1,500 in 2019. How should Jules Company handle this? a. An adjustment to reduce inventory by P1,500 needs to be made. b. An adjustment to increase cost of goods sold (COGS) by P1,500 needs to be made. c. An adjustment to increase inventory by P1,500 needs to be made. d. No adjustment needs to be made.
1. In 2021, Jules Company realized that its ending inventory was understated byP1,500 in 2019. How should Jules Company handle this?
a. An adjustment to reduce inventory by P1,500 needs to be made.
b. An adjustment to increase cost of goods sold (COGS) by P1,500 needs to be made.
c. An adjustment to increase inventory by P1,500 needs to be made.
d. No adjustment needs to be made.
2. For interim reporting, a loss on sale of a business segment occurring in the third quarter is
|
A. |
Recognized and allocated over the quarters |
|
B. |
Recognized and allocated over four quarters |
|
C. |
Recognized immediately in the third quarter |
|
D. |
Deferred until the annual reporting |
3. Under PFRS 8, which of the following is not a criterion used to determine reportable segments?
|
A. |
Segment assets |
|
B. |
Segment liabilities |
|
C. |
Segment sales |
|
D. |
Operating profit or loss |
4. Which among the following errors could cause an understatement of owners' equity and overstatement of liabilities?
a. Failure to record interest accrued on a note payable
b. Making the
c. Failure to make the adjusting entry to record revenue which had been earned but not yet billed to customers
d. Failure to record the earned portion of fees received in advance
5. Each of the following errors will overstate net income of current year, except
|
A. |
Equipment purchased in a prior year was expensed |
|
B. |
Current year end ending inventory was overstated |
|
C. |
Accrued wages were not recorded at current year-end |
|
D. |
PPE purchased in the current year was expensed |
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