1.Which of the following is the correct definition of provision?

A possible obligation arising from past event

A liability of uncertain timing or amount

A liability which cannot be easily measured

An obligation to transfer funds to an entity

2.What amount is recognized as provision?

Best estimate of the expenditure

Minimum of the range

Maximum of the range

Midpoint of the range

3.When the provision arises from a single obligation, the estimate of the amount.

Reflects the weighting of all possible outcome by their associated probabilities.

Is determined as the individual most likely outcome.

Is the individual most likely outcome adjusted for the effect of other possible outcomes.

Midpoint of the possible outcomes

4.A provision is

An event which is not recognized because it is not probable or cannot be measured reliably

An event which is probable and measurable

An event which is probable, possible or remote and measurable.

An evet which is probable but not measurable.

5.Which of the following would not be considered a provision?

Warranty liability

Bad debt

Tax payable

Note payable

6.A bond convertible by the holder into a fixed number of ordinary shares of the

entity is

A compound financial instrument

A primary financial instrument

A derivative financial instrument

An equity instruments

7.The process from bonds issued with nondetachable share warrants shall be accounted for

Entirely as bond payable

Entirely as shareholders' equity

Partly us unearned revenue and partly as bonds payable

Partly as bonds payable and partly as shareholders' equity

8.These are all forms of consideration given by an entity in exchange for services rendered by employees

Employee benefits

Employee compensation

Fringe benefits

Salaries and wages

9.The components of defined benefit cost include all, except

Service cost

Net interest

Remeasurement

Contribution to the plan

10.The service cost of a defined benefit plan comprises all of the following, except

Current service cost

Past service cost

Gain or loss on plan settlement

Net interest

11.Which of the following components of defined benefit cost shall be recognized through other comprehensive income?

Current service cost

Past service cost

Net interest

Remeasurement

12.Which of the following statements is true?

Vested and unvested past service cost shall be amortized over the remaining vesting period.

Vested past service cost shall be recognized as expense and unvested past service cost shall be amortized over the remaining vesting period.

Vested and unvested past service cost shall be recognized in retained earnings

Vested and unvested past service cost shall be expense immediately.

13.These are employee benefit which are payable after completion of employment

Short-term employee benefit

Postemployment employee benefits

Other long-term employee benefits

Termination benefits

14.In rare circumstances, when a retirement benefit plan has attributes of both defined contribution and defined benefit plan, the plan is deemed.

Defined benefit plan

Defined contribution plan

Neither defined benefit plan nor defined contribution plan

Both defined benefit plan and defined contribution plan.

15.It is the profit for a period before deducting tax expense

Accounting profit

Taxable profit

Gross profit

Net profit

16.It is the deferred tax consequences attributable to a taxable temporary difference

Deferred tax liability

Deferred tax asset

Current tax liability

Current tax expense

17.A deferred tax liability is computed using

Current tax law regardless of expected or enacted future tax law

Expected future tax law regardless of whether enacted or not

Current tax law unless a future enacted tax law is different

Either current or expected future tax law regardless of whether the expected future tax law is enacted or not.

18.In computing basic earning per share, an entity would include which of the following?

Dividends on nonconvertible cumulative preference shares

Dividend on ordinary shares

Interest on convertible bonds

Number of nonconvertible cumulative preference shares.

19.EPS disclosures are required for

Entities whose ordinary shares and potential ordinary shares are publicly

traded.

Entities that are in the process of issuing ordinary shares in the public market

All entities

Entities whose ordinary shares and potential ordinary shares are publicly traded and entities that are in the process of issuing ordinary shares in public market.

20.EPS disclosures are

Required for all public and nonpublic entities

Required for public entities and encouraged for nonpublic entities

Encourage for public entities and required for nonpublic entities

Encouraged for all entities

21.In computing basic earnings per share, the amount of preference dividend on noncumulative preference shares should be

Deducted from net income whether declared or not

Deducted from net income only when declared

Added to net income only when declared

Ignored

22.In computing basic loss per share, the annual preference dividend on cumulative preference shares should be

Ignored

Deducted from the net loss whether declared or not

Added to the net loss whether declared or not

Added to the net loss only when declared

23.Purchasing power gain or loss results from

Monetary assets

Monetary liability

Monetary asset and monetary liability

Nonmonetary asset and nonmonetary liability

24.Financial statement that are expressed under a stable monetary unit are

Constant peso financial statements

Nominal peso financial statements

Current cost financial statements

Fair value financial statements

25.During a period of inflation, an account balance remains constant. With respect to this account, a purchasing power gain will be recognized if the account is a

Monetary liability

Monetary asset

Nonmonetary liability

Nonmonetary asset