AM ww # Eth goa gn Om is and Ortigas 725-99441734.790% * Colamba, Laguna 049) 5482607 (Visayas) Becolod City (0 18" Cebu City (032) 258.7777 Loe, 122, (08822) 725150" Davao City (082) 225.0048 prte.com. oh CPA REVIEW OPEN FINAL PRE-BOARD EXAMINATIONS THEORY OF ACCOUNTS ‘Exam Coverage | RPCPA | Examination Syllabus [Exam Code _ ToA OpenFPB. September 25, 2009, 8:00 AM to 1 100 B_sororaaguedo-var "3oeya Xe} 249 Jo 3U UDUOdLIOD PanuAUCDSiD uj Jo jesedsip Uo $50} 10 wed 243 se fem se 338Ne X@1 31) 40 JOU TusUOdWIO> panuAUODS!D aur BunIe-ado Wo, $S0} JO suiDU! ay JO sIS!SuC> aMODUT sAIsUdYeZdWIOD 40 JuaUIEIEIS lp Jo UoNsas suoReIadO penuRUODSI aul ‘p “p88 Xe} 349 Jo 38U 2uaYOdtuED PanuRLODSIP ayy SuNeledo WON 40 sWAreIg op Jo UORDES suONeIEdO panuQUODSIG 24) pays xe} a4 Jo Iu qeauod.o? panuguODsiP ay Jo jesodsi uO S80} 40 Ue sy} Jo Aluo sisisuo> awoour aAIsUBYDLALIO Jo JuaWA}EIS B4y Jo UONIeS suoITeINdO panuUOdsIQ BYL “a “suonieiede Suinuguco wou ‘awoou! Joye awoour sa\sveusiduiog Jo AUIS Bu uo AroSar20 382} 343 se uous o1e suOReIAdo panunUODSIg “2 42391302 1 BuyMOjIO) 349 JO UD} ‘{pBys|iqe3S9 5} uaWAed anie2es 07 3454 BUY LALA Ipanienal St yseo 9uy tpaziieas usaq sey anusna aa weUM Ajo Bnuanss puapinlp jo uonieBors: ay smolte “onueAsy ST Std ‘SpuapIAID Woy anuansi 243 SuuNseou UdyA q e ‘iqeareoai 10 panisoes uoResepisUOD au Jo BNIeA OOS “Pp ‘igenleoaz 0 PeNts0a1 USED JO IUMOWY > ‘{genra2e1 JO PeAjsDes UORELBPISUOD 349 40 150) °-G 81 10 panjedsl YORe.apIsucd ay? Jo Snlen wJey “2 3 paunseaw aq pinous snuansy races 1ex@ anf sapual TOMVANE 1984S amsue x + jUO Z “ON TIONSd 88n, in SunseLg CaMOTIY SB¥NSWEI ON ANPING “papincid yeoys awsue 2U; Uo wid) Ypee Jo! iaMsue BUC Alto se) “SuORSANd BUImMO}}O) aia Jo Wes 10) sewsue aq BIA Hes ‘SNOLLONUISNT auas spuneeay 40 ooTheory of Asoo. seTB 99. Exchange difference relating to the transiation of fore operations into the currency of the reporting entity, disclosed in the: Comprehensive Income Financial Position; id be disclosed in the criteria cash eat guarantee of indebtedness of others balance sheet date inancing of debt subsequent to the balance sheet date Please submit your answer sheet Keep the questionnaire, Thank you for taking the PRTC Open Pre-Board Examinations! @ Tig DS anata = Tea. DpanFPaIO OS “Treaty of Accounts 4. Which of the f operations is true? 2. The assets and ltabllities of 2 disposal group classi held for sale by an entity may be offset and shown as 3 sem an the Statement of Financial Position of the ing_ discon Jing statements regat statements of the entity in which the discon operation was reported ¢. The gain or loss on disposal of 2 component of an en zs a discontinued operation need not be sed separately from the loss from operations of the discontinued segment. Id for sale’ PFRS 5 Non-current Assets wed Operations, While an asset 1s B. the reco, nce costs for the asset ws from the asset as ‘operating cash flows"; the asset from being deprec 6, Any gain on a subsequent increase in the fair value less cost ‘0 sell of a noncurrent asset classified as held for sale should be treated as follows: 2. The gain shouid be recognized in ful b. The gain should not be recognized, c. The gain shoulé be recognized but not In excess of the cumulative impairment toss. The gain should be recognized but enly in retained earnings, eT aaa a Fok DpearPBTO TSWOUOTSNTT oe so ge ate sororaasiodo'vos nof sales, p peusnof jesauag 4ayS1605 s249nCn ‘a fewinof sydig005 use, e yeusnoy saouejeq qunos9e 1968p ‘syoog Aep Aynbaz °p asuadxy uomaue, goesuen @ 0} saijdde A29, 40 IIS @ JO a2vasq ‘vonpestian 2 0} uae suneaay jo hou, REUSTHINOOE ae sop see sorarayyvecoryos yuauls2unouoid mau 124) Aq pauIn pequnosde S| abuey> aR ‘UolseresdseU! 40 prepuRIS Sous Mau © Aq pauinbes si Adijed Suunose ul aSueys © J “2 3sed 34 U) ISIxe Jou Pip 3249 qUaAd 10 LoRDESLE 30 puly @ o} ADIjod BuBunesve ue Suldjdde apnpu; seid Suqunozze uw sa6ueyg “4 foJ0¢ GuRUNoDde Ue aBuey> oF parijwsad you st ANUa Uy “e gsapntiog Sugunoce uy sabueyD Suipsedai 399400 $1 jwOWEReIS Y>IYAA “OT paysnfpe 5] Alo Sag painia “p Se2 2 apew' si uunsnipe oN “> paisnfpe si Ajuo 1294 quasi a 3“ parsnipe Bie 489A snojaid au3 pue quaLND Buy weg 30) Sa3 “2 vay ‘pazuowne ese swuauiszers JefoueUy aye Je diep ayy pue Pua 894 B42 Ueamiag epeur 5! USED 0) SO12YS Jo Bass! mau @ JT 428k Bununoose ayy jo quiodpww sys “p Pouad Sununosse aug yo pus O4L “3 inboe Jo yep ay (9 Powed Bugunoase ain Jo 6uiuuigag aur “2 pouew .85@yaiNd, 84} Jo BSED O42 UL YOREIND!29 Gaz ay UI BOPN|oUE Sie uo}eulquiD> ssauisng @ Jo ied se pans) sazzus AeuipIO “8 sig “6 02d 22125 104 play se WORRD|YISSE!D Sy saye squNose sAqqUE oy ul dnOWS iq jo Juncwe BuAue> ayn ag pinom yeu 813 1/85 02 LOWE Te 3809 pinom BTe 0} panjend: aim sresse ayy ’>jes 105 Bulsq vodn ‘uomur oZ4 Sem ajes 40) play se UCHeDUISsEID siojeq Amielpawuiy Slasse essay jo. qunoWe BulALeD ul ‘dnolb jesodsip © se syesse asay SoleUsise Aue UL ‘sASSe JO UORDaIOD @ jo SsodsIp oF SuIUUEId s AIUD UW ~Z joy se paysse> suas -sonosoy 0 Kesus,Theory of Aocaunis sere 91, 92 93. ge oa it is the account used to record all income derived from business operations of government agencies engaged in trade, business and commerce a. Miscellaneous income b. Other business income © General income d. Sales revenue The type of endowment fund that may be established only by the board of trustees of a nonprofit university is 2. Permanent endowment fund b, Term endowment fund c. Quast-endowment ‘The FRSC issues its Standards called PERSs. ‘These consist of 3. PFRSS c. Philippine Interpretations b. PASS a. Which of the following statement is correct regarding application guidance for 2, It doas not cont 5, It is published to assist o not mandatory, forms an Integra! part of IFRSS, and is mandatory ‘cludes guidance on implementation, sstrative disclosures and requirements for financial statements. les In applying IFRSs, but is istrative ther si What is the authoritative status of the Framework? a, it has the highest level of authority. In case of a conflict between the Framework and a Stencard or Interpretation, the Framework overrides the Standard or Interpretation there is @ Standard or interpretation that specifically applies to 2 transaction, it overrides the Framework. In the absence of @ Standard or an Interpretation that specifically applies, the Framework should be followed. b. To OpeniPBTOOS ‘rneoey of Acceunts sete &. f 2 new pronouncement does not include specific ttonat provisions, the change In accounting policy is, applied prospectively. Which of the following items held by Company X44 would be as cash? cheeks c. Stale checks b. Certified checks i. Postdated checks 1en @ petty cash fund is used, which of the 12? a. The petty cashier's summary of petty cash payments serves as 2 journal entry that is posted to the appropriate general ledger account b. The reimbursement of the petty cash fund should be ‘credited to the cash account ¢. Entries that include @ credit to the cash account should be recorded at the time the payments from the petty cash fund are made . All of the above wing Is 13. Pagudpud Company received @ seven-year zero-interest- bearing note on February 22, 2008, in exchange for property if sold to Rear Company. There was no established exchange price for this property and the note has no ready market. The prevailing rate of interest for 2 note of this type was 7% on February 22, 2008, 7.5% on December 31, 2008, 7.7% on February 22, 2009, and 8% on December 31, 2009. What Interest rate should be used to calculate the interest revenue trom this transaction for the years ended December 31, 2008 and 2008, respectively? a, 055 and 0% 7% and 7% b. 7% and 7.7% d. 7.5% and 8% 44. Choose the correct statement about recording the discounting (with recourse) of a customer's four-month note with a contin aes ae E TR OpenrPae.O8so oraasuado'vor wanes jeu! y 02 BION 2yBisien0 a8 sAouabe ain 61 uonezado yso12]u! s.Agque Sunoday 21860 UBIe20) us ayy Jo Aduaund 4ayno fouasins @ s} Aouauind uBiauoy “9 us BYR UD UBLILONAUD D1 ud ayy jo Aouauna a wu aseuaind au UB Uj 3S0490U Sz 03 Bul pue sasuadxs uonepyosuon aie nosy aMten we) 3 siess@ [2DuBuy sAREAUap-LCU 40 Loy uae suncooy 0 Aco. 494 W922 Opa Sem “OTOZ ‘St Arenuer ye ALoOAUL si 201d ajes 1uanbasqns a42 2ey2 parou sioyone ays ‘ipn= Bi Suing 22d yea as¢ Jo 1503 @ Je “GOO ‘TE JEqUIEIEG 20 $e AlqUeAU) GuSOD 82 UI Papnisu; Sem sadofanuD rors Buys ‘sdojaaua saded sys pue saini>ejnueW 37) Dey “et aunowe ide ye se eHeWw qu Soop a “p Sway JepUNS so SCNow "> Bules 2yp UI jnses suon: *soUOAW! JeIOL “a ‘aun woes 0} Ajaieiedas “2 Qunowe AoquBAU! 3Sa%m0} B41 MOUS 0} 2% pinoys uoReridde uo! “Way ude 0} JO ” 40 SdneuB 0} ‘Arojuanu! je102 0} BIN anjen sigezijea: ru 40 3503 0 samo} 8 ie 02 saygsym Sunenjena s: Dur ‘Ng “ZT ‘SB|d)oulid Bugunoaze pexdasne A| is Aroqueaul jemadiad & 1m Aju Pash aq ued > 'sp006 50 mols yeaishyd 2un yim s1s03 papicoa. jo Moy au soyeW -g nid 20} Ayunyoddo je SayeulUUYS OF 's1809 5ultles “p 1509 SeI0S 2 cu paIseiA °G "s3s03 uoHonpoud satyo pue soger ‘sj SDEBYIOAD aA adsxe ‘seuowanul jo 3502 ayy UI Pappu eq ACW BuMMo|a) Bui ‘ST ‘sjou Jo anjen 8023 4) qURODs|p sy saseq_ uo! ueuy Sul“ juaGunuod e pue siqensoa1 so}0U-e13U00 & 9g squesaidas junon9e pazunoasip siqenjeos1 sajoUu By, °> “Aauige\| waBuRUOD ayy SSoPSIp 0} Kem au AlUO S| S1AYL “a ‘820U 24 0 anjen ave ayy DUR Speedoud Oyy uADNIEq souaiayyp sip) sjenbe Sujjunossp uo ssoj 40 uIeD ays “e aus siunooay 50 scoc. A financial asset is recognized when, and only wi ity obtains the risks and rewards of ownershi ‘nancial asset and has the ability to dispose the financi a 1 and only becomes @ party to the contractual provisions of he instrument 86. Which of the fo! accounting? 2. Formal designation and documentation ing is fot a condition of the the hedge can be rellably measured, and the hedge is assessed on an cagoing basis and determined actually to have been effective c. For cash flow hedges, a forecast transaction mi highly probable a: fons in cash fi or loss to the hedged risk, and the hedge to have reduced the net enti hedged risk wide exposure to the value through profit or loss category if ncial asset 15 no ionger held for the purpose of se! the near term in particular circumstances. “Theory of Accounts SETS pack, Furthermore, inquiry reveals that during the physical stock take, a water leakage paper end the gl LLC has spent Or another dards. harvest is the purpose of that Standard, cost at deemed to be a, Us fair value less estimate point-of-sale casts at point of t of the harvest s$ accumulated impairment losses ukely to be harvested 'be accounted for in in 30 years b. Income should be measured annually and reported using ‘aoproach that recognizes and measures cal growth Toa Opent PBIB OSeso. ade so/oraesuodo vos suaujo jo suon2e ay2 Jo uspUsdspLr esse jeouEUY ay Jo asadsip 01 Atjige Sey pue quawn.asu; ayy Jo jorjudD suleygo AqqUa ta 'uBuM Aiud PUe ‘uEYMA paTIUBODE: Ss esse je!DUBUL y “e ‘Ageia pauriseau WSU: By} JO BnFeA 10 3809 aA PUR AURUD inary ey dIqeqoud faym paziuBooas 5} 398s: 58 SY 2 40 2988e JeUeUY @ Jo LORIUBoD—s 20; ajdiDu! aq ueD ua at oy moy sta ‘uous 19 84? YaiM soDaNIp VOWILUGD e Sey wey ABU UY “> Snue ayy Jo Aueduies qe 4 tp Jn0 souanizul WeDyUuBIS 20 jonLOD 2UI0} ayezedas jo sasodund ay) so) piepueys oui Jepun paysads seuoB9y29 40 jsij alg Guowe Jou si Gumojioy aD JO YOIUM Saqued pareja: Jo sauobaqe views) Joy 3g 02 aie pz Syd sapun paguose.d saunso} Jp sioquaw aug 0 em spesuey Aqua 3ua ux jonuea 2uIof seus Aely asnevag fic ayy J8Ae IS SHOINIUBA OM -g BoUuRuy Jo SIBPIAGIg *e /2 Spnpul seed porn ‘ce sdeoxe ‘6 mojo} BU 4 0s op 03 ang aanewioy leas ou sey H Jey? 10 ‘BuIpeR ase32 O10 ANY i alepinby oy spuayul 3 2A Z9yya azep ye>Ys doUEIeq aU) 9ye SoUlUe}ep quowadeuEL 41 sISeq W13IU02 5ulod 2 uo SIUaWATE}S jeDURUY sy aiedaLd OU jjeYs AIUD UY “P suas syunccoy yo oot so-0rsasusdorves BIWOSTUE —eyoe ape futadosd 2u2 Buidojanep 10 BunsnAsuoD UL pauinouy sooimosad Jano pue 4092) jd Buy sonaiuoe sesso} Guneiedo jeg: “> 53500 dn eis -g $3500 UONDeSUe LDU0 DUP sXe sajsuen Apadosd ‘seoia1as 1263] 10) S09 jeuoissajolg “2 aenpsuy Ausdosd UOUISAAL! 0} Pareles souypUdxe aigemnquAe AndeNG “zZ queunsenur ayy a1ojeq passaDy Avo aL pue rit ‘tt “B ‘8529] eoueuy © Japun Aue JexnOUe on pasea} Ausdoid “AL ‘Ayedoud quaunsanul ue S@ 98n 10, padojane 10 parsngsuos Surg s1 yet AYOCOIg “TTT sdyadoud UBuQSeAut pas BusG S) 32uR AUSCO!S “IE ‘sanied alta jo sleusq Lo padojenep Jo pazsnysue> Sulog Ariedog “t ‘sepnjou; Auadoud 3u3 Se 957 Bulnunuod 404 padoy niga quasasd so asn ay3 spuawwoosy “2 3500 2101199 Jo asn BUI spuBuILODeY "3 9 2 350: anyen seh e1BN35 30 SBS ‘'sqasse je1001019 2A 10; DeSn siseq quBWaINSeau Jo Soi0yD B49 SuIpICBOY “Zz bu 59850) pue sule8 pazjuBooes Jo quswa298 342 15 8q Pinoys anjen ul eseasou: Du Pue ssead ¢ /u3n@ panjen aq Pinoys Jso10j LONeIUeId auL “p pouad 429A-0E Bi} saAo jUNOD” sso} pUe qWOsd OU OF payxeu! Pue pareuiss aq pinoys spesscic jee jemusAD ouL “> auas ‘aunesey 0 Kau,“Theory af Accouns seTB 82 the annual general meeting where the snare! approve the financial statements Events after the balance sheet date are favorable and unfavorable events between the balance sheat cate and the date on which the financial statements are authorized for issue by management Events after the balance sheet date are favorable events between the balance shéet date and the date on which financial statements are authorized for issue The management of an entity competes draft of financial nded December 34, 2008 on March 15, 2009, the board of directo: reviews the financial statements and authorizes them for issue. The entity announces its profit and selected other financial information on March 20, 2009, The financial ements are made available to shareholders and others on Apri 1, 2009. The shareholders approved the financial statements at their annual meeting on May 19, 2009 and the approved financial statements are then filed with SEC and BIR on May 30, 2009. For purposes of identifying events after balance date, the financial statements were authorized 2. Merch 15, 2009 &. March 29, 2008 Which statement is incorrect regarding events after balance sheet date? 3. Events after the balance sheet date that provide further ce of conditions that existed at the balance sheet financial statements, Events or concitions thet arose after the balance sheet dete does not require adjustments to the financial statements, HF an entity decleres dividends after the balance sheet date, the entity shal! recognize Use dividends as @ “Theory of Accounts sere correct regarding investment property? ie the fair value of investment 25, Which statement a. Entities should deterr property. b. Entities should use the fair vaiue mode. c. Entities should use the cost model. d. Entities should determine the fair value of investment property on the basis of @ valuation by an independent valuer who holds a recognized and relevant professional 26.in case of property held by @ finance lessee under an operating lease and classified as iavestment property a, The entity has to account for the investment property unger the cost model caly b, The entity has co use the fair value model on'y c. The entity nas the choice between the cost model and the fair value model d. ‘The entity needs only to disclose the fair vaiue and can use the cost model under PAS 38 which of the following costs incurred in th a machine purchased for use in company’s wufecturing operations be capitalizes? and preparation of use 27. Theoretically, iein transit Yes ves No No 28,A machine with 2 four-year estimated useful life and an estimated 15% salvage value wos acquired on January 1, 2008, The increase in accumulated depreciation for 2010 using the doubie-declining balance method would be original cost x 85% x 50%. st x 50%. St x 85% x 50% x 50%: inal cost x 50% x 50% BRT R Sm TaD paAFRETO OS TgeT eae Ton OpentPsia os_sprpraasuedo ver SROSSSTRNMNN __0¢ Jo e7 2009 pue eyep yays 291 2g squeAs aiqeL0, pue aigeiongy ae zag ayy Jaye swsAg “Gg ‘2056; JO) pazuOYINe ave SyAUUEIEIS [e|oueUy ayy uolum Uo sep Buy pue sjep yeays aDueIEG SiN UaEMIaG SqUBAR BIQEIOAG; B12 BLD JAYS eURIeq BUI JaYe SURAT “= gaasi00 51 syuawszeIs Our uA 50 UHM “0B xIS "P anos °@ anid 2 van 2 daney 1501943 S09 SyuSUIBOS da Auew soy 'E00z 40} uONeUUOZU} TusUIBES 31 UT arses vas aer zee ze BOO NIET o0'ese"s coo'sca'e 00'909'9 pa'eca's 00'000' ‘oo'aas'er ‘a00'00S't 6007 € saquueD9g papud 1204 94} 40} paIpnpuoD o1em suoneraco Suumy 0109 35 on on ° 534 on > on 524 4 S84 SBA e suswiaysno sofew seaue yer1ydes60a9, anege Agnus “82 SAINSORSIP AB apA|DUI seINso!ISIP epmm-(ssudseTUa) weadde Buieisdo -¢ wpeoidde quawissg “2 au se 03 pauayar 51 squatuBas Suneisde 40) Hodes 02 voneWHOst yey SuILMBIeP 2 pasA pomau SY} /g Sd UO pasee ZL weoidde weweseven °p ueosdde esuciews 2 elas uncsoy 20 eau sororeasusdo'ves HEEOSEEEA orotate Jo pasodsip si 30882 out uayM quaUsa}eIS SLLODU! 943 O} sMidins aup sEYSUEN UD

‘anjan wwe 3@ paunseau: 12 40 abueyaxe us pauintoe yasse Ue JT “P Onjen 412i 349 38 PINSeaLU |g I!" 2500 Se JayjoUe Jo) @SueYOXs ui pauIndoe s1 ysse Ue JT payndutt 10 pazubooa: 09 3s! qubuidinbs pue “quer 3 uorRipuaD 6: sepniout Wiuts "3800 32 pap10301 80 Pinoys Bad“ Bde wSTEIS YDIUM “OE suuasnseau jefet SuipueBey 121001 jasn aun Jo aBesane ajduns @ uo paseq Pp af axa jo Frypsn yeamo}) wsmensesuoa uo paseq 2} 3 30 2ouajeq sy2 0 pandde a: ‘agit mgasn sueed jasn 52004 ¢ pue“ sn SICA Gg yt) mjasn suisoduiod S12aA ¢ “e ano. Poursus suijaybiens ayy Sursn payeisesdep iim ref send BuL "S223 ayenud UL “suB9A ssiead ¢ 30 poued puBUOsUIOD 1OfeWs =} JO Ish zauyle paresaidep 49.3809 ats “S/eI9yJ0 jenud @ yBnog “UY AwmIesH “Ez 23s suuncaay jo Ane,Theory of Accounts SETS ©. For an oper the lessee Is t ald over the lease @. A journal entry is not required for either the see when an operating lease is in an advance payment, such a: prepayment of rent in addition ti periodic rents. 74 Ina d contribution pk ployment benefit ‘expense is equal to 8. Enterprise's contribution to the pla! respect to the ne Present value services rendered in G. Present value of the services rendered in a respect to respect to 75. Which of the following is @ characteristic of a defined bet olan? 8, Post-empioyment benefits are besed on the plan's formula, 8. Post-empioyment be nt risk is borne by the employee 76, Which of the following is not a component of the retirement benefit expense? 2. Interest cost, b. Expected return on plan assets ©. Benefits paid to retirees ¢. Amortization of prior service cost BRAS ca a “Tek GpenrPBIES sere incorrect regarding recognition “ome? in recognition of specific expenses should be recognized as income over the period of the related expense, a, hould be recognized proportion to the assets requiring ié be recognized as income immediately after meeting the coneition Hable ss ernecrsatea fox oats alien period in which It is receivable the acceptable approach in accounting for ent grants? f grants sho iS Necessary t match them be recognized as Income over 1e related t0 donated Government grants should be credited directly to retained earnings 6. Government grants should be deferred and amortized over & maximum period of 20 years jonetary grants, such as land or other resources, are unted far at ts net considered a b rt-term and long-term borr ance charges in respect of finance leases waa = “FoR GpanrPsi6 08Jou S80p asva; Sunziade ue s: wou diysiaume 0} eat ‘yen eres aun s| ay sororeasuodo ver suonersdo Suinuques wos ‘SwWOdUl JO WoUOdUION —_SaRLINDAS ales-sOy-aIqENEAY “p nda ,SrepIOINPOIS qWauedulo> sye1edes, sequnses Bupen “2 Ins swapIOWPAS Safunas ajes-sos-siqeeny -¢ ‘ut0au! 40 jusuOdUIO} sanunoes Buipen “e se papodey se Ayssei9 sagunoes asaup wou $9550] gue sue Hoda: 3! pinoys moy pue ‘saauinses asaun Ayissej> D3 PINOYS MO} “UNE? Jesu Oy UI 1JeS 2 PUT! SSOP 3 noas AINA aIqeIeHIeu Jo OHOjuOd B Sey “03 AE sSummousog jereus6 '3MO} Bu JO abeIOAe Pp BEGIBAR paryBlam 2x1 °D 22 YsaraqUl ISeydiy 349° a Uo sayes ssouaqu! yso4siy pue SBulmou0g jes9UaB UC 332) 3a: S6uimo110g jes@uaB alg UO sBuymtoss0g jes0u96 aun uo aie. 3825 Mo] B42“ aq pinoys jaues 02 parnguise syso2 Buyrouog aigeziende> SN 9G 0} a7) ISS/ayU! aly ‘sSuIMOLOg jeI9UE5. pads yjoq Ag paaueuy s) 39sse Bi De usyya Pazieudes sou asuadxo 0: pobs qusWaBeUeW Jo LoIsi9ap uo Burpuades ‘pazeydeo 10 ssuadxe o3 paSiey> aq Keus > BaSN Bi POMOLOg spun; ALA ty 40} 29SS2 OU Jo 2809 34 Jo Led se pazieride aq pnoys “¢ PS.inDu! uBym asuadxe 03 pabiey> aq pinoys -e yesse Buy 2 40 uononpose 40 uoROR.ySUED ‘uodISINbIe ALR 0} sigeRnd ADeuIp 242 FYI 5YSO9 GuImasi0g ‘EZ S¥e DESAI uy spun “9¢ esas ‘sunosy 0 KoeusTheory of Accounis seve ition of an investment in a . proceeds from the issue of debentures; G. refinancing of long-term debt, 66. In 2 statement of cash Flows, receipts from sales of aroperty, lant, and equipment wou'd be classified as cash inflows from a. liquidating activities, c. investing acti b. operating activities, 4d. financing activ 67.1t Js the aggregate amount included in the determination of ‘net profit or loss for the period in respect of current tax and deferred tax 2, Tax expense c. Deferred tax expense b. Current tax expense 4d. Deferred tax benefit, 68. D’Silva Limited has @ product warranty liability amounting to P20 000. The product warranty costs are not tax deductible Until paid out to customers. The compeny tax rate is 30%. The company has: a. a deductible temporary difference of PO; b. an assessable temporary difference of 10 000; a tax base of d. a future deducti le amount of PO. 68. & future taxable amount is exemplified by: 2. revenue that is included in the tax return before it is included in pretax accounting income ©. gain that is included in the tax return before it is included in pretax accounting income. © expense that is included in the tax return after it is included in pretax accounting income, G. expense that is included in the tax retum, before it is Included in pretax accounting income. “Theery of Acoouls sera 39. Which of the following is true? 2, Trading securities can be classified 2s current or noncurrent depending on management's Intent, current under any circumstance. ©. Trading securities shoulc not be classified as current under any circumstence. 4d. Aveilabie-for-sale sec noncurrent depending on management’ ies can be classified as current or intent, 40. At the beginning of the year 2 company had a debit balance in the account Market Adjustment--Trading Securities. During the year the company did not buy or sell any trading securities, but at the end of the year the ralated market adjustment account had a credit balance. This change indicates that 3. 2 [oss on the income statement was recognized. b. a gain on the income statement was recognized. c. the value of the investment account increased, d, the value of the investment account decreased. When the equity method is used to account for investment in common stock, which of the foliowing affects the investor's reported Investment income? Net income of associate Cash dividends a Yes yes b No No cc No A a Yes No 42. When goodwill is acquire amortization of goodwi 2. spread evenly across the usef b. not permitted; ©. included in the determination of the investor's share of the associate's profit or loss; d. included in the revaiuation of the investment. by an investor in an associate, the fe of the investment: Rage 206750 waaanezom. oh a ‘Toa OpaaFPTERD rere rs os Tak OpanFPRIO DEEEWOSSEEMA or joer ates sororaususdorves __So-orsasusdorvor feweys JUEUIISZALI BIeYS e YEnoW? soUEPINID Jo 2U% ‘auleae euinout sso oven WMOWOS BYI JO ie e ©3 jenbo 2528) ye anjer enpisal e aney syasse a) powad Bunz pes Jo pud ayy re pamajne: eq. ou pact seo eu! paquasaid 2q pjnom sway we ay #0 uoReURLETEp 84 ou! 42yUB OU S30 OnjeA jenoISeN By “e ssajun 22 si ‘sayg;Gueur aip ‘siesse aiqiSuerur 30 uo, 0 squawiked ¥2}0) 343 0} Jenbs sy 859 jeULIOU Puokag pauajep si yasse ajgiGuewy ue so) quawhed J -p e ‘ON|BA wei $3/ 0} jenbs $1 3S09 ay ‘ass fo 10 25.049 30 894) pesinane 5) asse 3) pey Aawg JI $e Day Aveurpsoeinx 22M 51 SUSWDIEIS SUMoIOJ BUI JO YD) aseaivag aseanag . 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YsinBunsip jouue? sudioqUd Ue T “9 ase0780 rs az}erdes aq ojnoys syS00 JUDUICOIOARD Iv °C vies Sreys PUSS SOS ‘BSUBdKS 07 paBiel> 3q Pinoys $3502 YDLEESEA Ily “e Bu 40 yes 81809 aUsdojonep pue wDIE9s91 J0 uoneiepap alt Aq paizeye aq sBujtues paulets: pinom mon “Zo Booar jen) SupeBas yeu09 s} qwaWleIers Yiu te aise = Bnooey jo hoe 813s ‘sunoooy 0 oe.‘Theory of Accounis sere 58. Which of the following is true of a premium on bonds payable? a. It is 2 contra-stockhoiders' equity account. b. it is an account that appears only on the books of the vestor. . It increases when amortization entries are made until it reaches its maturity value. d, It decreases when amortization entries are made until its 59. Use balance reaches zero at tike maturity date, of the effective Interest method in smortizing a premium on bonds payable would result in a b a 60. Whi ‘A constant amount of oremium amortization each period over the life of the bonds ‘An increasing amount of premium amortization each period over the life of the bonds A decreasing amount of premium amortization each period over the life of the bonds Cannot be determined from thi information given ich of the following transactions does not result in a decrease in retained earnings? Declaration and issuance of dividends for the period. “Theory of Accounts sere 46. 47. 48. ‘The recoverable amounts of the following types of intangible assets should be measured annually whether or not there is, ‘any indication that it may be impaired a. An intangible asset with a definite useful life. ». Goodwill acquired in 2 business combination. © aandb Gd. neither a nor b ‘The following are external indicators of impairment, except a, Market value deciines. b. Negative changes in technology, markets, economy, or laws. c. Increases in market interest rates. . Worse economic performance than expected, Which statement is incorrect in determining recoverable amount? a. If the carrying amount is less than fair value less costs to sell or value in use, it Is not necessary to calculate the other amount. b. If fair value less costs to sell cannot be determined, then recoverable amount is value in use. c. 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