1. Which of the following would be classified as a product that is the result of processing after harvest?*

Bananas

Wool

Cotton

Cheese

2. Which of the following statements best describes investment property?*

Property held for use in the production and supply of goods or services and property held for administrative purposes

Property held to earn rentals or for capital appreciation

Property held for sale in the ordinary course of business

Property held for capital appreciation

3. Which of the following statements in incorrect?*

Donations of PPE should be recorded at the fair value of the donated asset at the time of donation.

When a group of assets is acquired for a lump sum price, the total cost should be allocated to the individual assets based on their carrying amounts.

Property acquired in exchange for shares or other securities in the enterprise should be recorded at its fair value or the fair value of the securities, whichever is more clearly evident.

When property is acquired in exchange for another asset without commercial substance, no gain nor loss is recognized.

4. Which of the following would increase the value of an investment in associate?*

Dividend received

Share in the other comprehensive loss

Share in the net loss

Share in the other comprehensive income

5. The cost of an item of PPE comprises all of the following, except*

Fines paid for violation of import regulations.

Purchase price

Import duties and non-refundable purchase taxes

Any cost directly attributable in bringing the asset to the location and condition for its intended use.

6. Which of the following is false?*

Under PFRS 9, the basis of carrying investments in debt securities as FVPL, FVOCI, or at amortized cost, is the entity's business model

Under PFRS 9, an investment in equity securities not held for trading is automatically accounted for as FVOCI

Reclassification of investment in equity securities under PFRS 9 is not allowed

Under PFRS 9, reclassification of investment in debt securities is allowed

None of the choices

7. Investment property shall be measured initially at cost. Subsequently, investment property shall be measured at*

Fair value

Cost less accumulated depreciation and any accumulated impairment losses

Either fair value or cost less accumulated depreciation and any accumulated impairment losses

Either fair value or cost

8. BM Co did not amortize the discount on its short-term bond investment. What effect would this have of the carrying value of the investment and on net income, respectively?*

overstated, overstated

understated, overstated

understated, understated

no effect, no effect

9. Government grant shall be recognized when there is reasonable assurance that:*

The entity will comply with the conditions of the grant and the grant will be received

The grant must have been received

The grant will be received

The entity will comply with the conditions of the grant

10. Net realizable value is*

Expected selling price less expected cost to complete and expected cost of disposal

Current replacement cost

Estimated selling price less estimated cost to complete and estimated cost of disposal

Estimated selling price

11. S1: If the qualifying asset is financed by specific borrowing, the capitalizable borrowing cost is equal to the actual borrowing cost incurred up to completion of asset minus any investment income from the temporary investment of the borrowing. S2: If the qualifying asset is financed by general borrowings, the capitalizable borrowing cost is equal to the average expenditures on the asset multiplied by the average interest rate or actual borrowing cost incurred up to completion, whichever is lower.*

Only statement 1 is true

Only statement 2 is true

Both statements are true

Both statements are not true

12. For investment in equity securities carried as FVOCI under PFRS 9, the difference between the carrying value of the investment and its related cumulative unrealized gain or loss-OCI is*

its initial cost

its unrealized gain or loss reported under profit or loss for the period

its unrealized gain or loss reported as a component of OCI for the period

Its amortized cost

13. In a period of falling prices which inventory method generally provides the lowest amount of net income?*

Moving average

Specific identification

FIFO

Weighted average

14. Investment in associate is accounted for using:*

Amortization method

Fair value method

Equity method

Cost method

15. All of the following are required when classifying receivables, except*

Indicate the receivables classified as current and non-current

Disclose any receivables pledged as collateral

Disclose all significant concentrations of credit risk arising from receivables

All of the choices are required when classifying receivables

16. A gain or loss arising on the initial recognition of biological assets and from a change in the fair value less costs to sell of a biological asset shall be included in:*

Profit or loss for the period

Other comprehensive income

A separate revaluation reserve

Either in the profit or loss or the other comprehensive income for the period

17. A 120-day, 15% interest bearing note receivable is discounted to a bank at 18% after being held for 45 days. The proceeds received from the bank upon discounting would be the:*

Maturity value less discount at 18% for 45 days

Maturity value less discount at 18% for 120 days

Maturity value less discount at 18% for 75 days

Maturity value less discount at 15% for 75 days

18. An entity, with an investment in debt securities carried as FVOCI, deemed its original business model as not applicable starting November 30, 2020, and decided to reclassify its investment as FVPL. Which of the following statements is true?[*

The reclassification shall be made on November 30, 2020; the investment is transferred at fair value from FVOCI to FVPL; the cumulative gain or loss previously recognized in OCI is transferred to retained earnings

The reclassification shall be made on January 1, 2021; the investment is transferred at fair value from FVOCI to FVPL; the cumulative gain or loss previously recognized in OCI is transferred to retained earnings

The reclassification shall be made on January 1, 2021; the investment is transferred at fair value from FVOCI to FVPL; the cumulative gain or loss previously recognized in OCI is transferred to profit or loss

The reclassification shall be made on November 30, 2020; the investment is transferred at fair value from FVOCI to FVPL; the cumulative gain or loss previously recognized in OCI is transferred to profit or loss

19. The following items are generally classified as plant assets, except:*

Property being used as a plant site

Breeding animals

Improvements to leased facilities

Property held for future plant sites

20. Under PFRS9, investment in equity securities not held for trading are classified as:*

FVOCI

FVPL

Either FVPL or FVOCI, depending on the entity's business model

FVOCI, if the entity opted to carry as FVOCI, otherwise, carried as FVPL