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    "question_id": "4228330",
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    "meta_title": "[Solved] Choose the letter of the correct answer. | SolutionInn",
    "meta_description": "Answer of - Choose the letter of the correct answer. (Conceptual Framework of Accounting Standards) 1. A manufacturer at the end o | SolutionInn",
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    "question_title_h1": "Choose the letter of the correct answer. (Conceptual Framework of Accounting Standards) 1. A manufacturer at the end of its fiscal year recorded the following",
    "question_title": "Choose the letter of the correct answer. (Conceptual Framework of Accounting Standards)",
    "question_title_for_js_snippet": "Choose the letter of the correct answer  (Conceptual Framework of Accounting Standards) 1  A manufacturer at the end of its fiscal year recorded the following data below  Direct labor P800,000 Indirect labor 100,000 Manufacturing overhead 160,000 Selling and other expenses 80,000 Raw materials used 140,000 What is the total manufacturing cost of the manufacturer  a  P960,000 b  P1,200,000 c  P1,280,000 2  What is the accounting concept that justifies the usage of accruals and deferrals  a  Stable monetary unit b  Going concern c  Consistency 3  How should exchange gains or losses resulting from foreign currency transactions be accounted for  a  Included in net earnings for gains, but deferred for losses b  Included in the statement of financial position as a deferred item  c  Included as component of income from continuing operations for the period in which the rate changes  4  Which of the following is a component of other comprehensive income  a  Unrealized loss on debt investment measured at fair value through other comprehensive income  b  Gain from translation of the financial statement of a domestic operation  c  Unrealized loss from derivative contracts designated as fair value hedge  5  PlantTito Company provided the following information during the current year  Cash balance, Jan 1 P1,250,000 Cash received from customers 2,000,000 Interest paid on long term debt 75,000 Income taxes paid 50,000 Cash paid to suppliers 1,500,000 Proceeds from sale of long term investments 500,000 Gain from sale of long term investments 150,000 Cash paid for land 750,000 Cash received for dividends 100,000 Proceeds from issuance of share capital 1,100,000 Cash paid for dividends 100,000 Cash paid to employees 300,000 Cash received for interest 75,000 Gain on sale of treasury shares 75,000 Depreciation expense 200,000 What is the net cash provided used by operating activities  a  P625,000 b  P250,000 c  P600,000 6  Which of the following group of cost should be included as part of distribution cost  a  Freight out, marketing expense, freight in, sales commission b  Advertising, transportation in, depreciation of delivery equipment, depreciation of store equipment c  Salesmen's salaries, sales commission, marketing expense, freight out 7  The following statements relate to analysis of expenses in the income statement based on either the nature of expenses or their function within the entity  Which statement is incorrect  I  An entity classifying expenses by function shall disclose additional information on the nature if expenses including depreciation, amortization expenses and employee benefit cost  II  PAS 1 requires the use of the cost of sales method because this presentation often provides more relevant information to users than the nature of expense method  a  Neither I nor II b  II only c  I only 8  In which section of the statement of financial position should cash that is restricted for the settlement of liability due 18 months after the reporting period be presented  a  Current assets b  Equity c  Noncurrent asset 9  In which section of the statement of financial position should cash that is restricted for the settlement of liability due 18 months after the reporting period be presented  a  Noncurrent liabilities b  Current assets c  Noncurrent asset 10  IFRIC Interpretations issued by IASB a  Are considered authoritative and must be followed  b  Cover newly identified financial reporting issues not specifically addressed  c  Cover issues where unsatisfactory or conflicting interpretations have developed 11  PlantTito Company provided the following information during the current year  Cash balance, Jan 1 P1,250,000 Cash received from customers 2,000,000 Interest paid on long term debt 75,000 Income taxes paid 50,000 Cash paid to suppliers 1,500,000 Proceeds from sale of long term investments 500,000 Gain from sale of long term investments 150,000 Cash paid for land 750,000 Cash received for dividends 100,000 Proceeds from issuance of share capital 1,100,000 Cash paid for dividends 100,000 Cash paid to employees 300,000 Cash received for interest 75,000 Gain on sale of treasury shares 75,000 Depreciation expense 200,000 What is the cash balance on December 31  a  P2,325,000 b  P2,400,000 c  P2,250,000 12  Which is not within the new definition of an assets  a  Future economic benefit is expected to flow to the entity b  The economic resource is controlled by the entity as a result of past event c  The economic resource is a right that has potential to produce economic benefit 13  Which of the following statements are true  Investing activities are presented using direct method in the statement of cash flows  Financing activities are presented using direct method in the statement of cash flows  Investing activities are presented using indirect method in the statement of cash flows  Financing activities are presented using indirect method in the statement of cash flows  a  2 and 3 b  1 and 4 c  1 and 2 14  PlantTito Company provided the following information during the current year  Cash balance, Jan 1 P1,250,000 Cash received from customers 2,000,000 Interest paid on long term debt 75,000 Income taxes paid 50,000 Cash paid to suppliers 1,500,000 Proceeds from sale of long term investments 500,000 Gain from sale of long term investments 150,000 Cash paid for land 750,000 Cash received for dividends 100,000 Proceeds from issuance of share capital 1,100,000 Cash paid for dividends 100,000 Cash paid to employees 300,000 Cash received for interest 75,000 Gain on sale of treasury shares 75,000 Depreciation expense 200,000 What is the net cash provided used by operating activities  a  P1,000,000 b  P1,075,000 c  P1,175,000",
    "question_description": "<p>Choose the letter of the correct answer. (Conceptual Framework of Accounting Standards)<\/p> <p> <\/p> <p>1. A manufacturer at the end of its fiscal year recorded the following data below:<\/p> <p> <\/p> <p>Direct labor P800,000<\/p> <p>Indirect labor 100,000<\/p> <p>Manufacturing overhead 160,000<\/p> <p>Selling and other expenses 80,000<\/p> <p>Raw materials used 140,000<\/p> <p> <\/p> <p>What is the total manufacturing cost of the manufacturer?<\/p> <p> <\/p> <p>a. P960,000<\/p> <p>b. P1,200,000<\/p> <p>c. P1,280,000<\/p> <p> <\/p> <p>2. What is the accounting concept that justifies the usage of accruals and deferrals?<\/p> <p> <\/p> <p>a. Stable monetary unit<\/p> <p>b. Going concern<\/p> <p>c. Consistency<\/p> <p> <\/p> <p>3. How should exchange gains or losses resulting from foreign currency transactions be accounted for?<\/p> <p> <\/p> <p>a. Included in net earnings for gains, but deferred for losses<\/p> <p>b. Included in the statement of financial position as a deferred item.<\/p> <p>c. Included as component of income from continuing operations for the period in which the rate changes.<\/p> <p> <\/p> <p>4. Which of the following is a component of other comprehensive income?<\/p> <p> <\/p> <p>a. Unrealized loss on debt investment measured at fair value through other comprehensive income.<\/p> <p>b. Gain from translation of the financial statement of a domestic operation.<\/p> <p>c. Unrealized loss from derivative contracts designated as fair value hedge.<\/p> <p> <\/p> <p>5. PlantTito Company provided the following information during the current year:<\/p> <p> <\/p> <p>Cash balance, Jan 1 P1,250,000<\/p> <p>Cash received from customers 2,000,000<\/p> <p>Interest paid on long term debt 75,000<\/p> <p>Income taxes paid 50,000<\/p> <p>Cash paid to suppliers 1,500,000<\/p> <p>Proceeds from sale of long term investments 500,000<\/p> <p>Gain from sale of long term investments 150,000<\/p> <p>Cash paid for land 750,000<\/p> <p>Cash received for dividends 100,000<\/p> <p>Proceeds from issuance of share capital 1,100,000<\/p> <p>Cash paid for dividends 100,000<\/p> <p>Cash paid to employees 300,000<\/p> <p>Cash received for interest 75,000<\/p> <p>Gain on sale of treasury shares 75,000<\/p> <p>Depreciation expense 200,000<\/p> <p><\/p> <p>What is the net cash provided\/used by operating activities?<\/p> <p> <\/p> <p>a. P625,000<\/p> <p>b. P250,000<\/p> <p>c. P600,000<\/p> <p> <\/p> <p>6. Which of the following group of cost should be included as part of distribution cost?<\/p> <p> <\/p> <p>a. Freight out, marketing expense, freight in, sales commission<\/p> <p>b. Advertising, transportation in, depreciation of delivery equipment, depreciation of store equipment<\/p> <p>c. Salesmen's salaries, sales commission, marketing expense, freight out<\/p> <p> <\/p> <p>7. The following statements relate to analysis of expenses in the income statement based on either the nature of expenses or their function within the entity. Which statement is incorrect?<\/p> <p> <\/p> <p>I. An entity classifying expenses by function shall disclose additional information on the nature if expenses including depreciation, amortization expenses and employee benefit cost.<\/p> <p>II. PAS 1 requires the use of the cost of sales method because this presentation often provides more relevant information to users than the nature of expense method.<\/p> <p> <\/p> <p>a. Neither I nor II<\/p> <p>b. II only<\/p> <p>c. I only<\/p> <p> <\/p> <p>8. In which section of the statement of financial position should cash that is restricted for the settlement of liability due 18 months after the reporting period be presented?<\/p> <p> <\/p> <p>a. Current assets<\/p> <p>b. Equity<\/p> <p>c. Noncurrent asset<\/p> <p> <\/p> <p>9. In which section of the statement of financial position should cash that is restricted for the settlement of liability due 18 months after the reporting period be presented?<\/p> <p> <\/p> <p>a. Noncurrent liabilities<\/p> <p>b. Current assets<\/p> <p>c. Noncurrent asset<\/p> <p> <\/p> <p>10. IFRIC Interpretations issued by IASB<\/p> <p> <\/p> <p>a. Are considered authoritative and must be followed.<\/p> <p>b. Cover newly identified financial reporting issues not specifically addressed.<\/p> <p>c. Cover issues where unsatisfactory or conflicting interpretations have developed<\/p> <p> <\/p> <p>11. PlantTito Company provided the following information during the current year:<\/p> <p> <\/p> <p>Cash balance, Jan 1 P1,250,000<\/p> <p>Cash received from customers 2,000,000<\/p> <p>Interest paid on long term debt 75,000<\/p> <p>Income taxes paid 50,000<\/p> <p>Cash paid to suppliers 1,500,000<\/p> <p>Proceeds from sale of long term investments 500,000<\/p> <p>Gain from sale of long term investments 150,000<\/p> <p>Cash paid for land 750,000<\/p> <p>Cash received for dividends 100,000<\/p> <p>Proceeds from issuance of share capital 1,100,000<\/p> <p>Cash paid for dividends 100,000<\/p> <p>Cash paid to employees 300,000<\/p> <p>Cash received for interest 75,000<\/p> <p>Gain on sale of treasury shares 75,000<\/p> <p>Depreciation expense 200,000<\/p> <p> <\/p> <p>What is the cash balance on December 31?<\/p> <p> <\/p> <p>a. P2,325,000<\/p> <p>b. P2,400,000<\/p> <p>c. P2,250,000<\/p> <p> <\/p> <p>12. Which is not within the new definition of an assets?<\/p> <p> <\/p> <p>a. Future economic benefit is expected to flow to the entity<\/p> <p>b. The economic resource is controlled by the entity as a result of past event<\/p> <p>c. The economic resource is a right that has potential to produce economic benefit<\/p> <p> <\/p> <p>13. Which of the following statements are true?<\/p> <p> <\/p> <ol> <li>Investing activities are presented using direct method in the statement of cash flows.<\/li> <li>Financing activities are presented using direct method in the statement of cash flows.<\/li> <li>Investing activities are presented using indirect method in the statement of cash flows.<\/li> <li>Financing activities are presented using indirect method in the statement of cash flows.<\/li> <\/ol> <p> <\/p> <p>a. 2 and 3<\/p> <p>b. 1 and 4<\/p> <p>c. 1 and 2<\/p> <p> <\/p> <p>14. PlantTito Company provided the following information during the current year:<\/p> <p> <\/p> <p>Cash balance, Jan 1 P1,250,000<\/p> <p>Cash received from customers 2,000,000<\/p> <p>Interest paid on long term debt 75,000<\/p> <p>Income taxes paid 50,000<\/p> <p>Cash paid to suppliers 1,500,000<\/p> <p>Proceeds from sale of long term investments 500,000<\/p> <p>Gain from sale of long term investments 150,000<\/p> <p>Cash paid for land 750,000<\/p> <p>Cash received for dividends 100,000<\/p> <p>Proceeds from issuance of share capital 1,100,000<\/p> <p>Cash paid for dividends 100,000<\/p> <p>Cash paid to employees 300,000<\/p> <p>Cash received for interest 75,000<\/p> <p>Gain on sale of treasury shares 75,000<\/p> <p>Depreciation expense 200,000<\/p> <p> <\/p> <p>What is the net cash provided\/used by operating activities?<\/p> <p> <\/p> <p>a. P1,000,000<\/p> <p>b. P1,075,000<\/p> <p>c. P1,175,000<\/p>",
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    "related_book": {
        "title": "South-Western Federal Taxation 2020 Comprehensive",
        "isbn": "357109147, 978-0357109144",
        "edition": "43rd Edition",
        "authors": "David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman",
        "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1962.jpg",
        "uri": "\/textbooks\/south-western-federal-taxation-2020-comprehensive-43rd-edition-9780357109144",
        "see_more_uri": ""
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    "free_related_book": {
        "isbn": "B0CP3FJKGZ",
        "uri": "\/textbooks\/alaska-real-estate-test-alaska-real-estate-license-exam-prep-book-to-help-you-get-your-license-the-ultimate-workbook-salesperson-exam-passing-test-prep-book-to-help-you-get-your-license-1st-edition-979-8869993205-251947",
        "name": "Alaska Real Estate Test Alaska Real Estate License Exam Prep Book To Help You Get Your License The Ultimate Workbook Salesperson Exam Passing Test Prep Book To Help You Get Your License",
        "edition": "1st Edition"
    },
    "question_posted": "2024-06-28 03:09:12",
    "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08",
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