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¢ following statement is TRUE? nen a permanent restriction on resources of a not-for-profit organization is met " it izati t by the incur expense for the restricted purpose, the expenses is reported in the restricted net aseete, 2 Net assets that are restricted by the governing board of a not-for-profit organization are reported as a Bat of temporarily restricted for resson thatthe bosrd had the control anytime to lit such resinctons promise to give (pledge) whether conditional or unconditional is recognized as conditio ‘commitment of a prospective denor. ie ae ‘mn the statement of activities, separate revenue, expenses, gain, losses and reciassifications for each class including its increases and decreases must be reported. 180. Which of the following statements is TRUE? A. The EUP computed under the weighted average costing may be equal with the EUP arrived at using FIFO costing 8 In @ process cost system, abnormal lost units if discreet are only extended to the unit column but not to the EUP column, if joss is continuous and normal, los units are not included in the quslity schedule of the cost of production report. D. Unit material cost is computed by taking total material costs changed to the department for the period and sividing by the physical units in the process during the period. c. 161. Which of the following statements is TRUE? ‘A. Applied overhead consists of estimated activity times predetermined overhead rate. 8. In Order to obtain more accurate product costs, many companies now allocate overhead using justin time method C. If actual overhead is less then applied overhead, upon closing, overhead is underapplied anc Cost of ‘Goods Sold s credited. c D. Actual overhead exceeds applied overhead and the amount is immaterial, upon closing, overhead 1s underapplied and Cost of Goods Sold will increase. 162. Which of the is FALSE? : A ot Onroad of process costing when beginning and encing work In process inventories are each ee ee i B. Fora manufacturing company, indirect manufacturing costs may be included in both werk in process inventory and finished goods inventory. ©. Adiscrete loss is assumed to occur at specific point in the production process. DB. Abnormal spoilage is always accounted for an equivelent unit basis. ‘Which following statemer ‘ALSE? eee Coen eee roel Gate, tre account Forward Contact Reoeivabla whic ete recavable fom te "Bank erected to recognise foreign exchenge ls te Serene the forward rele unde 6 de to ion a Retument mans Phipps Company aeqared ante money foreign curercy cal pon ‘ontrct under a fair value hedge, ff the spot rate decreases fom transaction dats to yesr-end thes the Fairs value at year-end is algo equal to the gain cn derivates es tothe effective porvon wri current eamings or profit and less. < ippine Company Gelivered merchandise on account to a customer in another county © A Phigpine Company Srgenorinated in the county local cuency to be selied in 2017, te s2lé, transaction Is not automaticaly a hedge tem even ifthe bid spot rates decreasing, b, Onite ecttement dee, inthe books of XYZ:Company 2 Phiippine Comeany wit imporing tareasion +O hich is also a hedge item end a forward contract to buy foreign curency Wich & ia te instrument fhe amount of each debited is measured in pesos but denon foreign elements. An example might be a reinsurance ‘ums at @ future time if there are na claims under ‘will be repaid in the future. PFRS 4 requires: = ae PAGE 28 MARS SUMMARY QUIZZER ° provide with the infrastructure, 1 ©: The grantor controls or regulates what services the op must provide hom it must provide them, and \ and fi ee rovide them, and what price; 1 otherwise: any significant resioual \, D © Gfantor centrols- through ownership, beneficial entitlement or otherwise- any Sigl Nerest in the e at the end of the term of the arrangement \ ae eelttoretation provides the seeounting prncinles for recognizing and measuring the obligations end eth Tights in service concession arrangements, The issues addressed are: i Treatment if the operator's right over the infrastructure i a eooanition and measurement of arrangement consideration construction or upgrade services & | and it oniy C. and iit only Vand ti! only DB. I l,and it eT rele ee*etation provides the accounting principles for recognizing and measuring the obligations and related rights in service cancession arrangements, The Issues adcressed are: |. Operating services. HI, Borrowing Costs: Ill. Subsequent accounting treatment of a financi Operator by the grantor is8et and an intangible asset; and items provided to the ‘ C. landill only A land tl oniy D. Iliad iit 8B. Hand Ili only 152. Which ofthe following statement(s) is (are) false? |. PFRIC 12 specifies that the infrastructure to be recognized as property, plant and equipment of the Operator because the contractual service arrangement does not convey the right to contro! the use of the public service infrastructure to the operater. I. The operator has access to operate the infrastructure to provide the public service on behalf of the granter, in accordance with the terms specified in the contract, lI "Under the terms of the contractual arrangement, the operator acts as a service provider by constructing 9F upgrading the infrastructure (construction or upgrade services) used to provide a public service and operates and maintains that infrasiructure (operation services) for a specified period of time A lonly ©. land tionly B. ltonly BD, fand til only 183, The operator of the BOT arrangement shall recognize anc measure revenue in accordance with A PAS 41 C, PAS 23 B. PAS 18 D. PAS 11 and PAS 18 154, In construction or upgrade services, the operator shall account for revenue and costs relating to construction or upgrade services in accordance with PAS 11, generally using the A. Gasn method B. Cost recovery method C, Completed contract method D, Stage of completion method 458. The operaior has an unconditional right to receive cash if the grantor contractually guarantees to pay the ‘operator based on: A Nil B Current market value of theright