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1. Bank borrowings are generally considered as A. Financing Activities B. Operating Activities C. Separate Disclosure D. Investing Activities 2. Jin Construction Firm has 10

1. Bank borrowings are generally considered as

A. Financing Activities

B. Operating Activities

C. Separate Disclosure

D. Investing Activities

2. Jin Construction Firm has 10 years term loan agreement with JK Bank. Based on IAS 7, how should Jin have accounted for the repayment in the statement of cash flows?

A. The repayment of the principal loan is financing, and the interest payment is either an operating or an investing.

B. The repayment of the principal loan is an investing, and the interest payment is either an operating or a financing.

C. The repayment of the principal loan is an investing, and the interest payment is either an operating or an investing.

D. The repayment of the principal loan is financing, and the interest payment is either an operating or a financing.

3. Solana Corporation voluntarily changed on of its accounting policies. This change shall be accounted for as

A. Treat the effect of the change as a component of other comprehensive income.

B. Inform shareholders prior to taking the decision.

C. Treat the change prospectively and adjust the effect of the change in the current period and future periods.

D. Account for the change retrospectively.

4. Gold Entity's management is having difficulty in distinguishing the change between a change in accounting estimate and a change in accounting policy. In such case, the change shall be treated as

A. Change in accounting estimate with NO appropriate disclosure.

B. Correction of an error

C. Change in accounting estimate with appropriate disclosure.

D. Change in accounting policy.

5. What is the basic purpose of the Conceptual Framework?

A. To assist users of financial statements in interpreting the information contained in the financial statements.

B. To provide information to those interested in the work of the FRSC in the formulation of PFRS.

C. To assist preparers of financial statements in applying the accounting standards.

D. All are considered basic purpose of the conceptual framework.

E. A and B ONLY.

F. C and D ONLY.

6. During 2019, Bud Company sold its land for $10,000,000 cash. The asset has a book value of $8,000,000. Kim Taehyung, the accounting manager, recorded this transaction as debit to cash and credit to land and gain.

Using the conceptual framework, what principle associated with the recording of Kim Tarehyung?

A. Recognition of Cash and Land

B. Recognition of Cash ONLY

C. Derecognition of Land

D. Derecognition of Land and Gain

7. 5 years ago, Joonie Entity was acquired by Jiminie Entity. The acquisition resulted to a parent-subsidiary relationship. Joonie Entity reported $50,0000,000 total assets in the Financial Statement as of December 2021. THe said financial statement is accounted for as:

A. Consolidated Statement of Financial Position

B. Consolidated Financial Performance

C. Unconsolidated Statement of Financial Position

D. Unconsolidated Financial Performance

8. Due to the tight deadline, the accounting manager of Hobi Company is contemplating on what financial statements should be take?

A. The statement of Comprehensive Income should issue first because it is the most important among the financial statements.

B. The statement of financial position and statement of comprehensive income are the fundamental financial statements; hence, it is appropriate to issue the said statements before the others.

C. All the financial statements shall be issued with equal importance.

D. All the financial statements shall be issued with equal importance unless the situation does not permit.

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