51. Fences and parking lots are reported on the balance sheet as A. Land improvements B. Land C. Property and equipment D. Current assets

52. Periodic depreciation expense is primarily the result of applying the A. Full-disclosure principle B. Cost principle C. Revenue principle D. Matching principle

53. The cost of rearrangements of machinery which will provide future benefits should be debited to the following account when incurred A. Accumulated depreciation B. Expense C. Machinery D. Deferred charge

54. All of the following are causes of depreciation except A. Inadequacy of the asset B. Wear and tear from operational use C. Obsolescence of the asset D. Decline in current market value of the asset

55. Which of the following items relevant to depreciation of an asset can be zero? A. Depreciable cost B. Residual value C. Any of the given choices D. Useful life

56. Depreciation A. Expense of P20,000 reflects a P2,000 decrease in liquid funds. B. Choose the best description of depreciable cost C. Is an allocation of property, plant and equipment cost to the time period of usefulness, in a systematic and rational manner. D. Is a cash expense

57. The cost of land does not include A. Cost of removing old buildings B. Cost of improvements with limited lives C. Cost of grading, filling, draining and clearing D. Special assessments

58. Choose the best description of depreciable cost A. Original cost less salvage value B. Minimum book value C. Book value D. Salvage value

59. Which of the following is not a major characteristic of a plant asset? A. Acquired for use B. Yields services over a number of years C. Possesses physical substance D. Acquired for resale

60. Accounting for tangible operational assets is primarily in conformity with the A. Matching principle and reporting principle B. Historical cost and reporting principle C. Historical cost principle D. Matching principle and historical cost principle

61. These are short-term and highly liquid investments that are readily convertible into cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. A. Cash Equivalents B. Inventories C. Cash D. Intangibles E. Investments

62. All of the following are considered as cash except A. Bank drafts B. Amount in the savings account C. 90-day time deposit D. Fund to pay for minor expenses

63. They are expected to yield benefits only in the current accounting period. A. Revenue expenditures B. Accounting expenditures C. Capital expenditures D. Current expenditures

64. These are expenditures expected to yield benefits beyond the current accounting period. A. Capital expenditures B. Accounting expenditures C. Revenue expenditures D. Current expenditures

65. These are instruments that represent ownership in a company or rights to acquire ownership interests as agreed upon or determinable price. A. Inventories B. Equity Instruments C. Accounts Receivable D. Debt Instruments

66. All of the following are cost directly attributable to property, plant and equipment except A. costs of of opening a new facility B. installation and assembly costs C. costs of site preparation D. initial delivery and handling costs

67. An entity shall recognize a biological asset or agricultural produce in all of the following conditions except A. the entity controls the asset as a result of past events B. it is probable that future economic benefits associated with the asset will flow to the entity C. it is to be realized within 12 months or within the normal operating cycle D. the fair value or cost of the asset can be measured reliably

68. Transaction costs at initial recognition forms part of initial cost. A. Financial Asset @ Fair Value Through Other Comprehensive Income and Financial Asset @ Amortized Cost B. Financial Asset @ Fair Value Through Profit or Loss and Financial Asset @ Fair Value Through Other Comprehensive Income C. Any of the given choices. D. Financial Asset @ Fair Value Through Profit or Loss and Financial Asset @ Amortized Cost

69. PAS 41 applies to the following except A. bearer plants B. agricultural produce at the point of harvest C. biological assets D. government grants related to biological assets

70. Transaction costs at initial recognition do not form part of initial cost and are charged to expense. A. Financial Asset @ Amortized Cost B. Financial Asset @ Fair Value Through Profit or Loss C. All of the given choices. D. Financial Asset @ Fair Value Through Other Comprehensive Income

71. Agricultural produce is recognized upon A. upon harvest B. purchase or birth of an animal C. upon transaction D. upon sale

72. Biological asset is recognized upon A. upon sale B. purchase or birth of an animal C. upon transaction D. upon harvest

73. ABC company is engaged in the buying and selling of ready to wear clothes. What type of inventory does ABC Company have? A. Work-in-Process Inventory B. Raw Materials Inventory C. Finished Goods Inventory D. Merchandise Inventory

74. The excess in the cost of goods available for sale after deducting the amount of goods sold is A. Raw Materials Inventory B. Merchandise Inventory C. Finished Goods Inventory D. Work-in-Process Inventory

75. Biological assets that meet the criteria of bearer plants will be subject to all of the recognition in A. Agriculture B. Inventory C. Property, plant and equipment D. Investment property

76. All of the following are considered as cash except A. Unrestricted Compensating Balance B. Financial instruments that are drawn generally from authorized post offices or other financial institutions. C. Checks payable to the enterprise which are not yet presented to the bank for payment. D. Undeposited stale check

77. It includes brokers and dealers' commissions, any levis by regulatory authorities and commodity exchanges and any transfer taxes and duties. They exclude transport and other costs necessary to get the assets to a market. A. Historical cost B. Fair market value C. Point-of-sale cost D. Acquisition cost

78. DEF Company is engaged in selling its own baked products. The flour use in baking is considered as A. Merchandise Inventory B. Finished Goods Inventory C. Work-in-Process Inventory D. Raw Materials Inventory

79. Bearer animals held solely for the produce that they bear shall be accounted for as A. Investment property B. Inventory C. Agriculture D. Property, plant and equipment

80. All of the following are the characteristics of inventory except A. in the form of materials or supplies to be consumed in the administrative process B. held within the normal operating cycle C. in the process of production for such sale D. held for sale in the ordinary course of business

81. Reclassification of Investments in Equity Instruments from Financial Asset at Fair Value Through Profit or Loss to Financial Asset at Fair Value Through Other Comprehensive Income or vice versa is not allowed since the option to present in OCI subsequent changes in the fair value should be done on initial recognition and that election is revocable. A. True B. Maybe C. Sometimes D. False

82. These are the amounts paid to acquire the rights to explore for undiscovered natural resources or extract proven natural resources A. Acquisition cost B. Point-of-sale cost C. Development cost D. Exploration cost

83. It serves the same purpose as futures in that respect but are fundamentally different. The holder has no obligation to exercise A. Interest Rate Swaps B. Options C. Forward Contract D. Foreign Currency Futures

84. It is a broad term that encompasses machinery used in manufacturing, computers and vehicles, furniture, and fixtures. A. Machinery B. Property C. Equipment D. Plant

85. They are depreciable site enhancements that are not permanent including driveways, parking lots, roads, fencing, and landscape. A. Land Improvements B. Property C. Leasehold Improvements D. Plant

86. They can be distinguished from other assets by the fact that their benefits are derived from their physical consumption. A. Land Improvements B. Natural resources C. Biological assets D. Leasehold Improvements

87. Which of the following statements is incorrect? A. Dividends are recognized when the entity's right to receive payment of the dividend is established B. Dividends are paid in different forms; cash, share and property dividend. C. Dividends of Investment in Associates form part of the profit or loss. D. Dividends are distributions of profits to holders of equity investments in proportion to their holdings of a particular class of capital.

88. If a lessee constructs a new building or makes modifications to existing structures, it will be accounted for as A. Leasehold Improvements B. Land Improvements C. Biological assets D. Natural resources

89. All of the following are transaction cost except A. Commissions paid to brokers and dealers B. Transfer taxes and duties C. Holding costs D. Securities and Exchange Commission Fee

90. Investment where the investor holds 70% of the voting power of the investee. A. Associate B. Equity Securities C. Debt Securities D. Subsidiary

91. The entity is required to test whether there is an impairment in an intangible asset, A. Semi annually B. Annually C. Every 3 years D. When there is no indication of impairment

92. An identifiable non-monetary asset without physical substance. A. Inventory B. Intangible C. Investment D. Accounts Receivable

93. The cost of the land improvements is not added to the land account but rather is capitalized to the land improvements account and depreciated over the useful life of the land. A. True B. False C. Maybe D. Sometimes

94. It represents financial assets arising from a contractual right to receive cash or another financial asset from another entity. A. Investment B. Accounts Receivable C. Inventory D. Cash equivalents

95. Leasehold improvement is depreciated over A. the shorter between the lease term and the useful life of the leasehold improvement B. the longer between the lease term and the useful life of the leasehold improvement C. the useful life of the leasehold improvement D. the lease term

96. Recoverable amount is equal to the A. Net realizable value B. Value in use C. The higher between the net realizable value and value in use D. The lower between the net realizable value and value in use

97. These are expenditures such as drilling a well or excavating a mine as well as any other cost of searching for natural resources. A. Development cost B. Point-of-sale cost C. Acquisition cost D. Exploration cost

98. These are incurred after the resource has been discovered but before production has begun. A. Acquisition cost B. Exploration cost C. Point-of-sale cost D. Development cost

99. Applicable for those companies which manufacture high value items such as cars. A. Weighted Average B. Last In, First Out C. Special Identification D. First In, First Out

100. Those indirect costs of production that vary directly, or nearly directly, with the volume of production A. Fixed manufacturing overhead B. Variable manufacturing overhead C. Direct Materials D. Direct Labor