Multiple Choice only
1. Offsetting of assets and liabilities is
a. Allowed in all cases
b. Not allowed in all cases
c. Allowed unless not permitted by PFRS
d. Not allowed unless permitted by PFRS
2. The REFINANCING (rolling over) of a currently maturing long-term debt of an entity completed after the balance sheet date but before the FS are authorized for issue requires that such debt be classified as a
a. Current liability, if the refinancing is at the discretion of the entity owing to the debt
b. Current liability, the discretion of the entity to refinance the debt notwithstanding
c. Non-current liability, if the refinancing is at the discretion of the entity owing to the debt
d. Non-current liability, if the refinancing is not at the discretion of the entity owing to the debt
3. Under PAS 1, assets in the statement of financial position are broadly classified into
a. Current and non-current
b. Tangible and intangible
c. Depreciable and non-depreciable
d. Monetary and non-monetary
4. Which of the following statement best describes a liability?
a. An excess of equity over current asset
b. A present obligation of the entity arising from past events
c. Resources to meet financial commitments as they fall due
d. The residual interest in assets of the entity after deducting all of its liabilities
5. The statement of financial position of a reporting entity presents a structured summary of the
a. Assets, liabilities and equity at the reporting date
b. Cash receipts and payments of cash during the period
c. Profits and losses not reported in income of the period
d. Revenue and expenses arising during the reporting period
6. Which of the following is an essential characteristic of an asset?
a. The claims to an asset's benefits are legally enforceable
b. An asset provides future economic benefits
c. An asset is obtained at a cost
d. An asset is tangible
7. Under PAS 1, which of the following does not refer to a current asset?
a. It is expected to be realized, sold or consumed within the entity's normal operating cycle
b. It is expected to be realized within twelve months after the balance sheet (BS) date
c. It is a cash or cash equivalent restricted for more than 12 months from BS date
d. It is held primarily for the purpose of being traded
8. The balance sheet format wherein asset section is shown side-by-side with liabilities & equity section.
a. Account form
b. Report form
c. Functional presentation
d. Natural presentation
9. Which is not required to be presented as a line item on the face of the statement of financial position?
a. Biological assets
d. Investment accounted under equity method
10. These provide narrative description or disaggregation of items disclosed on the face of the financial statements and information about items that do not qualify for recognition
a. Financial reports
b. Value-added statements
c. Notes to the financial statements
d. Summary of significant accounting policies
11. The application of Philippine Financial Reporting Standards, with additional disclosures, is necessary, is presumed to result in financial statements that achieve
a. Aggregation
c. Comparable information
d. Consistency of presentation
12. Under PAS 24, related parties do not include
a. Affiliates
c. Entities that have a common director
d. Key management personnel and their close family members
13. An entity is required to present the following non-financial disclosures, except
a. Domicile and legal form of the entity
b. Description of the nature of entity's operation
c. Names of major shareholders and broad members
d. Name of parent and ultimate parent of the group of companies
14. Which of following is not a acceptable presentation of the statement of financial position?
a. Assets presented in the order of liquidity
b. Non-controlling interests presented within equity
c. Provisions presented as part of the liability section
d. Deferred tax liabilities presented as part of current liabilities
15. An obligation is not a contingent liability but should be recognized as a provision when
a. An obligation is unusual in nature and occurs infrequently
b. Amount is measurable and settlement of obligation is probable
c. Amount is measurable and settlement of obligation is frequent
d. Obligation is unusual in nature and settlement of obligation is probable
