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Q^.;*,, _ _ _tu.4rrfaeT TAPW-34L
PREWF EK MATER|ALS in THEORY of ACCOTJNTS
{October 2017 Batch) .* page 9

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l. I] 26. t) t. l]
'5
76. n
2. t) 27. C 52. I) 77. I)
3. t) 28. C 53. I] 78. I)
4. I) 29. A 54. A 79. t)
5.C 30. t) 55. D n0. D
6. I) 3r. c 56. C 81, A
7. t) 32. t) 57. C 82. t)
8. Il 33. u 58. C: 83. I)
9.C 34. C 59. A 84. A
r0. B 35. I) 60. t) tt5. c
11. c 36. A 61. A ft6. A
t2. t) 37. C 62. n 87. t)
13. t) 38. I) 63. A {t8. cl
14. c 39. I) 64. A {t9. i}
15. n 40. I] 6-5. A 90. I)
t6. A 41. c 66. I] 9t. c
11. t) 42. t) 67. 1l 92. A
18. c 43. I) 68. n 93. I)
t9, I) 44. Il 69, (l 94. A
20. A 45. I) 10. D 95. C
21. I) 16.. C 71. tl 96. A
22. Il 47. C 72. C 97. A
23. t) 48. I, 73. C 98. A
24. I) 49. C 74. 1) 99. C
25. B 50. B 75. B 100. B
Il RI Ill' t,XPLn N ATION Si C t .A lili:' tC AT't O_N S' r'0 SIlLl tC] f l_it) I.ILMI
3' Under thc Conceptual Framework (2010), uscrs rif tinancial inlbrmatiur arc classificd
into:

I3' []nder the C<xrceptual liratncwork (20 10). cunparabiliiy is NOI'unilirrnrirv (i.c., atrcotrnting
ctrangcs are allowr:6);
pennitting alternativc accountinS mcth<>ds lirr sarne transaclions, however, I)IMINISIILjS
corlfarabifity.
l9 -'whtte-cmt)-3Jir{g-TrrrrenrisTnrnfi(incd as'an rrndar.lviirs assrinrption in the 1cu, lrrar,cr,r,.rk. .acc.r,l hasis'is
l-l' I:r..lll'\'thc.n {i\s:tts = I-iabilirics - }:guitrl ) crnphasir is,n pr()[^-r i,c.nre dcterminatignlincome
statcr,ent;
I'R()l'RIl.IARY rlrcon rAs\crs - I_iahilirics = I quinl ) cmphasis is on proper assct
valuation/balancc shccl;
Rtrsll)t:n I. IrQtjll Y theory' (Assels - I-iahilirics - prci'crrcl.r }rqriirl - c,xnrnon
F,quityl
25' IAIi and IFRS are principlcs-bascd as <'rpposed tr> thc Us l-'ASI) stanrlards which arc c.nsidercd
30' usual mistake is choicc A' lnstead of obtaining ma.ioriw support fi.rn practicintl accountanls, rules-buscd.
stan<Iar6s arc prcparcd
by an independent body (FRSC) rhat f'acilitatcr th"'uppi.',rrai i,f ,...rurriing
stanimcts (pIrRS). 1'hc ('\'\rJ '')
' rr! b.cly corrp'sc4
is Lr
.I'prol'essional menrbers, rcprcscnting various intcrcsiei.l user groups.
34' 'l'hc llureau of'Internal Revenue (BIR) is not clirectly involvit in the stanciarcl-scrling
process of'tinancial rcp.rting
' standards in the counrry; instcad. BIR is rcprescnted in the l5-nrcnrhcr
l:'inancial Rcporting Standarcls council, rvhich
is the standard-sctting body ol'thc country. Philippinc Financial
Ileporring Standards (pIrRS) arc appnrvr;d suh.icct to
the concurrcrlce o1'thc Professional Regulations Conrmissi<rn (PRC)
throufh thc l]oard of (l].A).
39' l'ixtemal cvcnt-s ar.) tho'se that aflcct the cntity and in which olhcr entiti"cs participatc. Acc<.runlancy
(fn thc olhcr hernd, intcrnal
cvents do not involve other entities' parlicipation. I'roduction and casualty
urc thc usual exarnplcs .l'internal cvcnls.
49' Prepaitl expcnsc recordcd under the.a^r'set melltod is not sub.iecr to r.cvcrsing
' rccorded un<lcr thc expen,se i!!'!" prcpaid
entries; howcver, l'rul'(rru cxpcr)sc
ntt:th<rl:ntav hr: rcvcrsed.
63' Rctrtrspcctivc application as.rilnre.s thar ihe rrcw accounting polic'y had always brcn
aPplictl I'rorn tlrc hcginning,
clarification (portion of the question was ornirtccl): "ln zor], a firn: changci
tiom t iti<1...."
66' Pruspectivc applicatit)n rneans that the c.hange is clfected l]im thc tlatc 6lic]rang e onw,rds.
76' Choice A is rnore commonly knowrt as "clividcnil in arrears," which is requirc,lig bc discl>sc6
in the notes to thc ItS.
78' While PAS 24 requires thc disclosurc of.parent antl subsidiary relationship irrespectivc
ol-any i,rcrcompany.r intrn-
group transac(ions, it dt>es nol require disclosure o1'lransactiirns which
are n.rnnally elintirtrted in r5c prcparati.n.l'
consolidated FS.

AI)I)I'LaNA!_aUE.!. UaN S (with sugsesrcd_4qtler5)

I . Ar:counting conccpts arc No'r clerivcd 1lom whicli ,{'rhc lbll'wiug?
(.1 a. lixpericncc c. Laws rif naturc
b Pragtnatism (practicalify) (1. lrrtluctive r,.:asoning
2. wliich ol'thcse qualitative charactcristics or conocpts arc relarcd?
A a. I{elcvancc and rnateriality c. l{elevancc ancl undcrstandatrility
b. l-lnderstandabilify and conrparability d. Itcliabilitv
ancl cornparabiliry