Академический Документы
Профессиональный Документы
Культура Документы
1. The operations of a saving bank are being evaluated by the Bangko Sentral ng
Pilipinas.
During the investigation, the BSP has determined that numerous loans made by
top management were unwise and have seriously endangered the future of the
saving bank.
Answer: Going concern
2. The parent entity in Manila has subsidiary in Japan. The financial statements of
the subsidiary are translated to pesos for consolidation with the financial
statements of the parent entity at year-end.
Answer: Accounting concept
3. A machinery was imported from USA at a certain cost five years ago. Because of
inflation, the machinery now has a current replacement cost which is very much
higher than the historical cost.
The management decided to wait until next year and present financial statements
for a two-year period rather than prepare now the traditional twelve-month
financial statements.
Answer: Time period
5. A subsidiary was exhibiting poor financial performance for the current year.
1. An entity decided to publish financial statements only in the years when it had
good news to report.
Answer: Time period
2. An entity reported inventory, property, plant and equipment and intangible assets
at current value at year-end.
Answer: Going concern
5. A mining entity kept no accounting records after starting business. The entity is
waiting until the mine is exhausted to determine the success or failure of
business.
Answer: Time period
1. An entity reported financial statements in nominal pesos that have mixed rather
than uniform amount of purchasing power.
Answer: Monetary unit
3. The pesos of today can buy as much goods and services as the pesos five years
ago.
Answer: Monetary unit