1.General purpose financial statements are

a.those statements that cater to the common and specific needs of a wide range of external users

b.those statements that cater to the common needs of a wide range of external users and internal users

c.those statements that cater recommend needs of a limited range of external users

d.no do statements that cater to the common needs of a wide range of external users

2.which of the following is classified as an equity instrument rather than a financial liability?

a.Preference shares that are mandatorily redeemable

b.a contract that is settled by the delivery of a variable number of the entity's own equity instruments in exchange for a fixed amount of cash or another financial asset

c.a contract that is settled by the delivery of a fixed number of the entity's own equity instruments in exchange for a variable amount of cash or another financial asset

d.shares issued but were subsequently re acquired

3.which of the following properties fall under the definition of investment property?

I.Land held for a long term capital appreciation

II.property occupied by an employee paying rent at market rate

III.property being constructed on behalf of third parties

IV.a building owned by an entity and leased out under an operating lease

a.I and II

b.I and IV

c.II and IV

d.II, III and IV

4.Which of the following transactions results to the recognition of an asset?

a.An entity forecasts of purchase of inventory in the coming month. The purchase is highly probable

b.An entity enters into firm commitment to purchase inventory in the coming month. The entity cannot cancel the commitment without paying a penalty. The contract is not onerous

c.during the period, one of the buildings entity was destroyed by a calamity

d.an entity receives a non monetary grant from the government

5.According to PAS 27 Emma investments in subsidiaries, associate's or joint ventures are accounted for in the separate financial statements

a.at cost

b.at fair value in accordance with PFRS 9

c.using the equity method under PAS 28

d.any of these as a matter of accounting policy choice

6.Which of the following is added to the cost of inventories

a.Cost of wasted material due to production inefficiencies

b.import duties and shipping of inventory in words

c.storage costs of finished goods

d.trade discounts received on the purchase of inventory

7.according to PFRS 5, assets helper sale are measured at

a.fairvalue

b.fair value less costs to sell

c.carrying amount

d.lower of B&C

8.Entity A's inventories on December 31 20X1 have a cost of 100,000 and the net realisable value of 80,000. Accordingly, Entity A recognized a write down of inventories of 20,000. Shortly after December 31 20X1, but before the financial statements were authorized for issue, the inventories were sold for a net sales proceeds of 70,000. The correct amount of inventory write down to be reported in entity A's December 3120 X One Financial statements is

a.20,000

b.0

c.30,000

d.any of these

9.Aanhin pa ang damo kung patay na ang kabayo

a.materiality

b.relevance

c.timeliness

d.biological asset horse

10.which of the following statements is true

a.in current practice accounting provides only quantitative information that is useful in making economic decisions

b.external users are those who do not have the authority to demand financial reports tailored to their specific needs

c.under the stable monetary unit assumption the owners of the business and the business are viewed as a single reporting entity. Therefore, the personal transactions of the owners are recorded in the books of accounts

d.the practice of accountancy in the Philippines is regulated under RA 9892

11.which of the following is correct regarding asset recognition

a.items that do not meet all the requirements for recognition are always ignored

b.before an entity recognizes an item as an asset the item must be owned by the entity

c.physical form is necessary for an item to be recognized as an asset

d.costs are recognized as assets if they meet the definition of an asset as well as the recognition criteria a probable future economic benefits and reliable measurement of cost or other value

12.which of the following is accounted for under PAS 41

a.bearer plants

b.bearer animals

c.government grants related to biological assets measured at cost

d.plants used in landscaping