Академический Документы
Профессиональный Документы
Культура Документы
Macnntou/E.Amflls)
,,\
ll
2.
3.
4.
-1.
,'61
(l
LJneler the Conceptual Franrework 1or Fir.rancial Reporting 20t0, what are the two lundamental qualitative
c haracteristi cs of accou nti n g in lbrnr ation')
c. Reliabilit_v- and understandability
a. Relevancc and prudence
b. Reliability and conservatism
,-d,' Relevance and laithful rcprc'sentation
tror hedging purposes, derivative instruments may be broadly designated as either
a. Cost hedge or lhir value hedge
F.' Fair value hedge or cash l1ow hedge
d- Fair value hedge or nrarket hedge
b. Cost hedge or cash florv hedge
What is rhe correct sequence in dealing with the national budget for various government agencies'?
a.
b.
c.
d.
4.
7
8.
Cg.
C
C
a.
b.
-{
d.
equity
,s:
d.
Experience
Pragnratism (practicality)
10.'I'heclassificationofaleaseaseitherctperatingorlinancelease isbasedon
a.
b.
.c.
d.
asset
of
comprehensive inconre
ol a statement of
in place of a
statement
comprehensive income
Should presenl on a statemclrt ol incorne
ls required to present a statement of comprehcrtsive income
13. Apropertydevelopermustclassifypropertiesthatitholdslbrsaleintheordinarycorlrseofbusinessas
c. I]inancial asset
lnventory'
d. Investrncntproperty
Property, plant and eqtriPment
14. As a mininrunt requirement. interim linancial reports should include
a. A balance sheet and statenrent ol'cornprehe'nsive income
b. A complete set of flnancial statetnents pursuant to PAS I
g.' A condensed set of financial statements and selected explanatory notcs
.-r.
b.
d.
o1'
-rhlEORY
ll
A
TA Mock Exam
of ACCOUNTS Mock CpA Board Exarnination (page 2)
b.
of
c.
d.
-:*:.
b.
c.
d.
it
20. lf
_
A" -
i /r. 'nt
a.
b:'
c.
d.
d.
Zero
..a:
b.
23.
1-he
b.
c.
.future profits
Financial statements are issued nine rnonths late
Management reports to stockholders new pr<{ects ,.rndertaken, buf the financial siatements nevsr
report the project results
I FS includes a propefty with a carrying amount increa,sed to marag,ement's estimate of rnarket value
24. For companies that prepares financial statements in accordance with FFRS, plant. properry. and equipment should be
valued using which models?
A
?' The cost model or the revaluation model.
b. The cost model or the fair value nrodel.
c. 'fhe cost model or the fair value through profit or loss model.
d. The revaluation model or the fair value model.
25. By applying the definition provided in FAS 21. whish itenr rvill tre regarrled as a monetary item?
D
a. Property, plant and equiprnent
lnventory
b. Land and buildings
Accounts receivable
26. According to the Conceptual Framework, thc two criteria reqpired fbr incorporating items into the income statement
or statement of financial position are that:
ts
a. lt meets the definition of relevance and reliabiliq,r.
__b, It meets the definition of an element and can be measured reliablv.
c. It satisfies the criterion of capital maintenance.
d. It meets thq requirements of comparability and consistency.
27. I'FRS requires changes in accounting principles to be repo$ed
B
a. On a prospective basis.
c. By restating ttre finaneial statements.
-b. On a retrospective basis.
d. By a cur,uriative adjustment on the income statement.
28. The major classification of expenses in government accounting include all of the following, excep{
B
q. Personal services
c. Maintenance ancl operating exprses
d. Financial expenses
h. Selling expenses
c.
*:
-Tk fu^ta.r,fubl,
P.:SA
TA Mock Exam
g!, A<*rr^^taar^r
a.
b"
c. .
i:
Cl
i0.
A
3i
of hypothetical,
principles.
]'hese are govemment grants whose primary condition is that an entity qualilving for them should purchase, construct'
or otherwise acquire long-ternt assets.
c. Covernment gi[i
a. Grants related t0 assets
Govemnrentappropriation
d.
income
to
b. Grants related
to
is
systems
cash
control
o1'most
A ma.ior objective
a. Ensure that current obligations are met
-tr. Ilnsure that excess cash does not exist
c, Eltsure that unused cash is invested
d.
32. Exchange differences arising frorn tronslatior of financial statements of a foreign entity arc
e.
b.
c.
d.
a.
b.
(:
a.
b.
a. Income
b. Asser
'ci
d.
t'iabilitY
I'.quitv
37. Accordirrg to the Conceptual Framework of Accounting,, which of the following is not a constraint of
reliable information?
a. 'I'imeliness
_.b. Neutrality
c.
d.
re
levant and
,.f0., Wttictr of tt',. fotto* ingis not necessarily rcgartled as nonprotit organizations?
B
''
"
D
a. Cooperatives
h. PartnershiPs
37. lhe
'
ExpensedirnmediatelY
c.
,d.
financial statements
Result in an adjustment.of the rnarket value used in the lower of cost or market valuatiorr at balance
sheet date
l'abor unions
b.
39.
Country clubs
D'-
.g:
'd'
reports noncurrent assets as the I'irst item on ils balance shect- This is an example
tmpropei statemenl prsentation
9': lndustry practice
Substance over tbrrn
d'
Conservatism
a.
b.
ol
Refifr
-Tk
Rw:,.t+t
Srl""l
4i@.
TA Mock Exam
(l
a.
b.
"p..
f -r tl.
System?
(ienerate periodic and relevant financial repofts for better monitoring or performance
l'i.i. -,.Whcre a business transaction requires a direct adjusfment to an equity u.count, the tax effect is adjusted against:
a.
b.
Originating
Provisional
entity
presenter
c.
d.
First-time adopter
Initial financial reporter
46. Which one ot'the following is not a source o{'generally accepted accounting principles in the Philippines?
C
.a. Existing practices in the Philippines
b. Available literature on the topic or suLrject under study
c. Pronouncements by the Association of CPAs in Public Practice
d. Statements, recommendations, studies, or standards issued by standard-setting bodies such as the
International Accounting Standards Board and the F'inancial ,Accounting Standards Board
47. When the revaluation model is used lor reporting PPE, the gain or loss should be included in:
C
a. lncome for the period,
b. Gain liom revaluation on the income statement.
c. A revaluation surplus account in other comprehensive income,
d. An extra<lrdinary gain or loss on the income statement.
4B. A change in accounting policy should be applied
B
.i. Retrospective only
c. Prospectively only
b. Retrospectivelyandprospectively
d. Currently only
'49.
According to PAS 37, for which of the folbwing should a provision be recognized?
D a. . Future operating losses
c. Reduction in fair value of financial instrumcnts
b. Obligations under insurance contracts
d. Obligation for plant deconrmissioning costs
-50. Which is not a requisite of 'reliability' of financial statements?
D
a. The statements are presented in accordance with GAAP
b. The statements are examined by independent auditors who prepare adequate statements
c. An effective system of internal control is maintained
n: Income tax returns are properly filed
51. What is the inherent justification underlying the concept ol'potential ordinary shares (diluters) in UPS compurarion?
ll
a. .. Cost-benefit
c. Materiality
b. Substance over form
d. 'l'imeliness
52. Uider percentage of completion method, the Progre.ss Billings account is a ', .
A
c. Noncurnent liability account
_z:" Cantra current asset account
b. Contra noncurrent asset account
d. Revenue account
53. ln the case of grants related to an assel. which of these treatments is prescribed by PAS 20'l
B
a. Record the grant at a nominal value in the first year and write it off in the subsequent year
"b. Either set up the grant as deferred income or deducf it in arriving at the carrying amount of the asset
c. Record the grant at fair value in the first year and take it to inconrc in the subsequent year
d. l'ake it to the income statement and disclose it as an extraorrlinary gain
54. A small and medium-sized entity must measure its property, plant and equipmenr after initial recognition at
a.
b.
c.
Cost
Cost less any accumulated depreciation less any accumulated impairment losses
Cost less any accumulated depreciarion less any accumulated impairnrent losses plus the cost of day-
d.
to-day servicing
Cost plus the cost of day-to-day servicing
I)
ll)
a.
b.
III)
I
only.
ll only
I and
c.
d.
a.
b.
- c.
d.
ln operating activities.
Either in operatin! activities or financing o"iiuiri"r.
In financing activities.
In investing activities or financing activities.
TA Mock Exam
36. Which of the fbllowing is the tirst step within hierarchy of guidance to which management ref'ers, and whose
applicability at consiclers. when selecting accounting policies?
a.
.
V:
c.
Consider the most recent pronouncentents of other standard-setting bodies to the extent they do not conflict
lvith PFRS or the Conceplual Framework.
Apply a standard fronr PFRS if it specifically retates to the transaction, event, or condition.
Consir1er the applicability of the definitions, recognition criteria, and rneasurement concepts in the
C
d.
nceptual I;r
am ewor k.
Apply the requirements in PFRS dealing with similar and related issues.
a.
b.
slteet.
d.
Deferre6 taxes of one jurisdiction are oft'set against another jurisdiction in the nctting process.
is a criterion that must be met in order for an item to bc recognized as an intangible asset other
a.
b.
c.
b.
c.
d.
thresholds:
Stalement 1j lts repo$ed revenue, including hoih sales to external customers and intersegtnent sales, is l0% or more of
the combined revenue, internal and external, of all operating segments'
Statement 1/: The absolute amount of its repoited profit or loss is l07o or more of the greater, in absolute amounl, of
(l) combined reported profit of all operating segments that did not repon a loss and (2) combined reported loss of all
';:;:::X,';i\:J::jil';:JiP:;'ffi;"
a.
b.
I only
Il onlY
c.
d.
I and II
I. ll and lll
RaSA
Au*',',"1ar*^,
"[
TA Mock Exam
Stitan ?nt
(-r
b. il onlv
-l.he
4ll.
c.
d.
l. Il and III
c.
d"
Only statement
C)nly statement
following staternents are based on the PAS 29 (Financial Repoiting in I{yperinflationary Economies);
Stslement /: ,The financial statements of an entity whose functional currency is the currency of a hyperinflationary
economy shall be stated in terms of measuring unit current at the end of the reportjng period (balance sheet date).
Siatement ll.' 'l'hc gain or loss on the net monetary position shall be included in profit or loss and separately disclosed.
'*atement 11l: When an economy ceases to bc hyperinflationary, an entity shall trcat the amounts expressed in the
measuring unit current at the end of the reporting period as the basis lor carrying amounts in the subsequent financial
stater]1ents.
A
Il
1.'
il:
b.
a.
b.
Freight-ln
ll is true
lll is false
c.
d.
'
b.
c.
d.
Increases in an asset's carrying value as a result nl' the first revaluation must be recognized as a
component of p'ofit or loss.
51. Which of the following is usually N0'l'discloscrt in the selected explanatory notes tbr an interinr finalcial reporr?
C
a. Accounting policies and methods
c. Nature olentity's operations
b. Events after the interim period
d. Seasonality or cyclicality of interim operalions
-52. Retrospective application of a change in accounting policy means:
D
a. Applying a new accounting policy to transactions, other events and conditions, identitled bcfore the date
when the financial statements arc authorized fbr issue, as if that policy had always been applied.
b. Applying a new accounting policyr to transactions" other vents and conditions occurring between the date
as at which the policy is changed and the date when the tlnancial statements are authorized for issle.
c. Applying a new accounting policv to transactions, other evenls ancl conclitions occurring a{1er the date as
at which the policy is changed.
d. Applying a new accounting policy to transactions, other events and conditions as if that policy hacl
always been applied.
53. According to the Conceptual Framework. the financial statement eloneit that is defined as incrcases in cconomic
benefits during the accounting pcriod in the {brm of inflows or enhancenrents of assets cr decreases of liabilities rhat
result in increases in equity, other than those relating to contributions from equity participarrts. is:
a.
b.
c.
Revenue
Income
Prol'its
D
A
B
entities of SMEs?
a. Cost model
b. Equity method
c.
d.
an<l
Revaluation mo<iel
-55. Which is the minimum reporting requirenient fbr a company fhat is preparing its first PFRS financial statements'l
a. Three statements of financial position
c. One statement of comprehensive income.
b. Two statements ol'financial position.
d. One statement of cash flows"
56. Recording the adjusting entry for depreciation has the same efTect as recording the ad.iusting entry fbr
a.
b.
a.
c.
d.
An unearned revenue
A prepaid expensc
Permitted
if
An accrued expense
An accrued incorne
are:
the change
will result in a more rcliable and more relevant presentation of the financial
statements.
b.
o.
d.
Pcrmitted if the entity encounters nw transactions. events, or conditions that are substantively different
{iom existing or previous transactions.
Required on material transactions, il'the entity had previously accounted lbr similar, though imnraterial,
transactions under an unacceptable accounting method.
Required if an alternatc accountins policy gives rise to a material change in assets, liabilities. or the
currcnt year net income.
TA Mock Exam
Auar^'"1a,*,7
"[
THEORY of ACCOUNTS Mock CPA Board.Examination (Page 7)
i'72.ltJncler If Rlcl 19, how should an entity
r* , liability (in the <.rrder of priority)?
meLsure
a.
b.
I, II,
lll
il, ilt,
b:
g;
d.
II, I, III
t, IIt, II
c.
An administrative
a.
b"
. c.
d.
SM Group ol'Companies
ABS-CIIN toundation,
a chaiitable institution
Lions Cluh lnternational. a civic organization
Chris James, a Quezon City resident who owns a chain of beauty salons
75. An entity that acquires an intangible asset may use the revaluation mctdel lbr subsequent measurement only ifi
B
a. 'fhe useful life il'the intangible asset can be reliabiy detennined.
b. 'An active markel exists ibr the intangible asset.
c. The cost of the intangible asset can be measured reliably.
d. The intangible.asset is a monetary asset.
76. linder PAS 12. deferred tax assets and liabilities should be re;lorted in the balance sheet
C
a. As cument and not-current assets and liabilities depending the balance shect classification of the
related tax basis of the temporary clifference
'
b. , As current and non-current depending on the order ol'liquidity br rnaturity
e:" As non-current asset and qon-curent liability
'd. Always net non-current asset or net non-current liatrility
,
?7. When total debit exceeds toial credit inthe httlunc'c.yhect columns of the workshcct. this indicates
Net loss
c. lero profit
-b1- Net income
d. No mehningful amount
'78. tJnder IFRIC 13, the award credits granted to customers under a "customer loydlty prograrn" is often described as
a,
A'-
a.
b.
Points
c.
Llredits
Awards
d. Royalty
79. Which of the fbllowing statements aLrou{ financial statements is inconect?
D
a. They provide information about the financjal position. performance, and cash flows of un enrerprise
that is useful to a wide range of users in making economic decisions
' b. They are the primary responsibility of the rnanagement of the enterprise
'
c. They show the results of ,he stewardship of the management for the resources entrusted to it by the
capital providgrs
are prepared at least annually and are directed to both the common and specilic inlbrmation
_d.'
' They
needs o1'a wide range ol'stal.ement usL'rs,
80. Lessor shall recognize asset held under a flnance lease as a receivable at an anroun{ cqual to
Gross investment in the lease
c. Cross rentals
Net investment in the lease
d. Residual value, guaranteed or not
...8 l. .'Which prepares the national govemment buclget?
A 'Executive department
c. Judicial departmcnr
-bl. Legislative deparfment
d. All three branches of gr;vernnrent
82. Which of the fdllowing gains and losses can an entity elect (an accounti;rg policy chcice.) to recoglrize in other
comprehensive income (i.e. in total cornprehensive income outside of prolit or loss)'.)
C
a. Losses from discontinued operations
b. Cains and loises arising on translating the financial statements of a fbreigrr operation
er- Actuaiial gains and losses of deflrred benefit plans
d. Gains and losses that managemenr considers extraordinary items
83. Which of the following accounts is recognized uncler single-entry bookkeeping system ?
'a.
-. !.'' a.
$4'
C \-"
4 Cash
b. Merchandise inventory
'lJnder
a.
b.
c.
d.
Intangible asiet
c. Either intangibb ;;;r,;;; ;nancial asset
Financial
asset
-&- Neither intangible assei nor tjnancial asset
./..-..-..
Wtrictr of the following about note disclosures are considered mandatory(requirecl) rather than voluntary (optional)?
ItS.
t'i,
Di$closure of infJmation about key sources of estimation uncertainty.
Il. Disclosure of information about.iudgment that flranagement has madi in th-e process of applying accounting
policies.
lll. l'he presentation of noles to the financial slatelnents in a systcrnatic manner.
lV. The cross-refbrence between each line in the financial statements and any related infonnation disclosed in the
no.tes to the financial statemehts.
D
: ?{.' I and ll only
c. l, Il and lll only
b. lll and iV only
d" I. ll. Ill and IV
|rf"d 4 A"rp,^**,*,r
TA Mock Exam
f)
88. What
a. Two
- b. Five
limit for the nurnber of operating segments that an entity must disclose?
c.
.*:
,4.
Ten
I til'
c.
Supreme Court
Si.x
89. I'hePresidentcannotcontractorguaranteeforeignloansonbehalfoftheRepublicwithoutthepriorconcurrenceof
a.
b"
Monetary board
Philippire Congress
d. Bangko Sentral ng pilipinas
90. A bond or similar instrument convertible by the holder into a fixed number of ordinary shares of the entity is
(a. en cqtiity instrument
z Acompound financialinitrument
b. A primary financial insffument
d. A derivative financial instrument
, 9l I Which information should be disclosed in relatjon to dsrivative contracts?
C
a. . " Fair value only
c. Bqth fair value and notional amount
'b. Notional ainount onlv
d. Neither fair value nor notional amount
d"
93.
a.
b.
c.
d.
It is amortized
Ir is tested for impairment periodically
It is written offagainst profit or loss
Coodwill is not recognized separatcly within the carrying amount of the investment
94- Under IFRIC I7, an entity shall measure a liability to distribute noncash asset as dividend to irs owners
1i.e., property
dividend as a noncash distribution to shareholders) at
B
a' Carrying amount of the asset to be distributed c. Higher amount between (a) and (b)
b.
Iair value of the asset to be distributed
d. Lower amount between (a) and (b)
,-^\ - _
It
is
a
scheme
dgveloped
participating
to
encourage
companies
reduce emission of greenhouse gases to specified
[95.\
\ -
levels.
a.
b.
(flE N D x-r
-
ERRAI|UM/CLARIFICAT|ON
retained eamings to contributed capital (i.e.. total equity does not change); hence, answer should
be
e(not
.B').