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    526 views14 pages

    Cpale 2020-Far PDF

    Uploaded by

    Geoff Macarate

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    © All Rights Reserved
    Download as PDF or read online from Scribd
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    of 14
    REY OCAMPO ONLINE! FINANCIAL ACCOUNTING AND REPORTING DIAGNOSTIC EXAMINATION ‘TOS BASED ON FAR SYLLABUS EFFECTIVE MAY 2019 1.0 Development of Financial Reporting Framework and ‘Standard-Setting Bodies, Regulation of the Accountancy Profession, Conceptual Framework and ‘Accounting Process (4 Items) Presentation of Financial Statements (40 items) Financial Assets (40 items) Non-Financial Assets (15 items) Labilities (7 tems) Equity (10 items) Other Topies - BLIEISC (10 Jtems) ao SMEs/Micro Enterprises (4 items) ANSTRUCTION: Select the correct answer for each of the following questions. Mark only one answer for each item by shading the box corresponding to the letter of your choice on the answer sheet provided. STRICTLY NO ERASURES ALLOWED, segeen Sesses MULTIPLE CHOICE 1, Which of the following is least likely affected by the ‘GOVID-19 pandemic? Impairment of assets 8: teases, 'C. ADIlity OF the entity te continue as going concern D, Identification of related parties 2. Continuing required for A. Renewal of license B, Accreditation to practice C. Both a and b D, Neither a nor b Professional Development (CPD) is 3. Qualitative — characteristics information more useful inctude A. Relevance Comparability B. Faithful representation D. All of these 4, The accountant of Review Company made the following adjusting entry on December 31. Prepaid Rent Rent Expense P1600 If annua! rent is paid in advance avery October 1, the ‘original transaction entry made was ‘A. Debit Prepaid Rent and credit Cash, P1,800, 'B. Debit Rent Expense and credit Cash, P1,800. ‘C, Debit Rent Expense and credit Cash, . D. Debit Rent Expense and credit Cash, that make useful 1,800 OCTOBER 2020 CPALE When an entity hes not applied a new PFRS that has been issued but Is not yet effective, the entity shall ‘A. Do nothing. B. Request the auditor to disciose this fect in the ‘auditor's report, C. Disclose this fact in the financial statements of the period of first application. D. Disclose this fact and known or reasonably ‘estimable information relevant to assessing the ossible impact that application of the new PFRS will have on the entity's financial statements in the period of initial application. Statement of financial position as at the beginning of the earliest comparative period Is not required when an entity A. Applies an accounting policy retrospectively. B. Makes a retrospective restatement of Items in its financial statements. C. Reclassifies items in its financial statements. D. Changes an accounting estimate. . The statement of financial position shall include line iter for the following assets, except A, Trade and other receivables 8B, Investments in associates C. Assets classified as held for sale DL Right-of-use assets The following are examples of non-adjusting events: after the reporting period that would generally result in disclosure, except ‘A. Entering into’ significant commitments or contingent liabilities, for example, by issuing nificant guarantees, 8. Chenges in tox rated OF tai Iowa enacted or ‘announced after the reporting period that have 2 ‘sonificant effect on current and deferred tax esses and liabilities. C. Abnormally large changes after the reporting Period in asset prices of foreign exchange rates, D. The determination after the reporting period of the amount of profit-sharing or bonus payments. |. In accordance with PAS 1, which of the following expenses need not be presented separately in the profit or loss section a the statement of prafit or loss? Finence costs Shave of loss of associates Tax expense Depreciation expense ons> 10. Entity X Is an associate of Entity T. A reporting entity is related to Entity X AL If the renting enty i a joint venture of tty 8. ithe rout enhy tan associate of ty C. Inelther orb, 0. In neither anor 5. 11, An entity issued 9 financial liability cesignated s FVTPL for PL millon. At the end of the rey the fair value of the financial aon ‘ecroased by P100,000, Which statement is correct? ‘A. The entity should recognize loss of 100,000, 'B. The entity should recognize gain of P100,000 in ‘OCI regardless of the nature of the change In fair value. C. The entity should recognize gain of PL00,000 in profit or loss regardiess of tne nature of the change in fair value. D. The entity shoul recognize gain of P100,000 In OC! for the amount of change in the fair value that Is attributable to changes in the crecit risk of the llaplity, 12. Which of the following risk is mest relevant to notes payable? ‘A. The risk that one party to a financial instrument ‘will cause @ financial loss for the other party by falling to discharge an cbvigation. 8. The risk that the fair value or future cash flaws of 4 financial Instrument will fluctuate because of changes in market priees, ‘C. The risk that an entity will encounter difficulty. in mecting obligations associated with financial limbllities that are setties by dellvering cash or another financial asset. D, All af the above. 23, Which statement Is correct regarding settlement in ‘the entity's own equity instruments? ‘ALA contract is always classified as equity lnstrumant if it may result in the recelgt or avery Sys ot ely omer. 8. An entity cannot have a contractual obligation to deliver a number of its own shares that varies so. ‘nat the fair value of the entity's awn equity instruments to be received or delivered equais the amount of the contractual obligation, C. A contract cannot be cassified os a financial Wabllty of the entity the entity must or can settie It by delivering its own equity instruments. ‘D. A non-derivative contract Is not an equity instrament |f the entky uses @ variable number of (ts awn equity Instruments as a means to settle the contract, 14, Members’ shares In co-operatives and similar entities are equity if A. The entity has an unconditional right to refuse redemption of the members’ shares, B. Redemation is prohibited by local law, regulation or the entity's governing charter if conditions— such as liquidity constraints—are met (or are not. met). €. Either aor b. D. Nelther a ner b. 15, Which of the folowing are reported in the statement ‘of changes in equity? a resources and claims a in economic resources and claims C. Changes in economic resources and cialms not from financial performance D. Inflows and eutflaws of cash and cash equivalents 16. In accordance with IFRIC 17, when an entky settles the dividend payable, it shall recognize the

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