Toledo, Laurie Mae C.
Modified True or False : The ​primary objective of
1. Statement 1: When selecting a measurement basis, it
is important to consider the quantitative characteristics,
cost constraint, and other factors.
Statement 2: If no IFRS standard specifically applies to a
transaction, no disclosure requirements may specifically
apply to that transaction.
a. Only statement 1 is true.
b. Only statement 2 is true.
c. Both statements are true.
d. Both statements are false.
2. Which of the following are the main reasons for
developing an agreed conceptual framework?
I. It provides a basis for resolving accounting
disputes.
II. It provides a framework for setting accounting
standards.
III. It provides the qualitative characteristics of
useful financial information.
IV. It provides fundamental principles which then do
not have to be repeated in accounting
standards.
a. I and II only
b. I, II, and III only
c. I, II, and IV only
d. All of the above
Mates, Natalie Clyde N.
1. Which of the following statements is incorrect?
An item is recognized if;
a. It meets the definition of an asset,
liability, equity, income or expense
b. It is uncertain whether an asset or
liability exists
c. Recognizing it would provide useful
information
2. Statement 1: Derecognition is the removal of a
previously recognized asset or liability from the entity’s
statement of financial position.
Statement 2: Recognition does not require
quantifying an item in monetary terms.
a. Only statement 1 is true
b. Both statements are true
c. Only statement 2 is true
d. Both statements are false
Robredillo, Stephen Jay L.
1. The following are the aspects of an asset, which
is not?
a. Right
b. Transfer of an economic resource
c. Control
d. Potential to produce economic benefits
2.
financial statements is to show the results of
management’s stewardship over the entity’s
resources.
​Answer: False, Secondary Objective
Jimenez, Rachelle Anne F.
1. Revision of the conceptual framework will
automatically lead to changes in standards that
are inconsistent with the revised concepts.
FALSE
2. When developing requirements of IFRS
Standards, can the International Accounting
Standards board depart from the “Conceptual
Framework”?
a. No
b. Yes, the Board is not required to use
Conceptual Framework when
developing standards
c. Yes, but only from the aspects of the
Conceptual Framework and only if
doing so is needed to meet the
objective of financial reporting
d. Yes, because it is used by IFRS
Surat, Kristine Marie
1. Statement 1:​ The Conceptual Framework is a
standard. ​Statement 2:​ If there is a conflict
between a standard and the Conceptual
Framework, the requirement of the conceptual
framework will prevail.
A. Both statements are true
B. Both statements are false
C. Only the first statement is true
D. Only the second statement is true\
2. Intra-comparability is define in the following
statements, except one:
a. it also called horizontal or inter- period
b. a type of comparability
c. refers to the comparability of financial
statements between different entities.
d. refers to the comparability of financial
statements of the same entity but from one
period to another
Nokom, Armie Jessie C.
M1: Which of the following is NOT an enhancing
qualitative characteristic?
A. Comparability
B. Verifiability
C. Relevance
D. Understandability
 A. TRUE
M2: Statement 1 - PAS 1 requires an entity to present B. FALSE
notes in a systematic manner. Statement 2 - Sales, Ken Eduard M.
Aggregation (breakdowns) of the line items in the other 1. It is one of the qualitative characteristics of
financial statements and other supporting information. decision-useful information which requires that
the financial information must be
A. Both statement are false comprehensible or intelligible if it is to be useful.
B. Only the 1st statement is true a. Timeliness
C. Both statement are true b. Verifiability
D. Only the 2nd statement is true c. Understandability
Deris, Janus Kromwel B. d. Comparability
1. Statement 1: Total comprehensive income is “the
change in equity during a period resulting from 2. ​Statement 1​: Compliance with the PFRSs is
transactions and other events, other than those changes presumed to result in fairly presented financial
resulting from statements.
transactions with owners in their capacity as owners”. Statement 2​: Financial statements are normally prepared
Statement 2: Total other comprehensive income is the on a going concern basis unless the entity has an
sum of profit or loss and other intention to liquidate or has no other alternative but to do
comprehensive income. It comprises all ‘non-owner’ so.
changes in equity. a. Only statement 1 is true
Presenting information on comprehensive income, and b. Only statement 2 is true
not just profit or loss, c. Both statements are true
helps users better assess the overall financial d. Both statements are false
performance of the entity.

a. Both statements are true

b. Both statements are false Josef, Andrea Jessa C
c. Only the first statement is true 1.Which of the following statements about enhancing
d. Only the second statement is true qualitative characteristics of financial statements is not
correct?
A. Fair values of assets that cannot be verified
in an active market should not be disclosed
2. The following are the aspects of an asset except: in the financial
statements.
a. Potential to produce economic benefits B. The financial statements of similar entities
b. Transfer of an economic resource adopting different asset measurement bases
c. Control can be
d. Right adequately compared.
C. The value of invoices not yet received from
Diesta, Steven James suppliers for services should be estimated at
This is the information on economic resources (assets) financial year
and claims against the reporting entity (liabilities and end for reporting purposes.
equity); D. Financial statements should be presented with
A. Changes in economic resources and claims the assumption that a reasonable and informed
B. Financial Position third
C. Notes a person will know how to analyse financial
D. Balance Sheet information.
Recognition is the removal of a previously recognized
asset or liability from the entity’s statement of financial 2. ​An effective process of capital allocation promotes
position. productivity and provides an efficient market for buying
A. TRUE and selling securities and obtaining and granting credit.
B. FALSE Under IFRS companies need not report immaterial items
The historical cost of an asset is the consideration paid within the body of the financial statements, but must
to acquire the asset minus transaction cost.
disclose them in the notes or supplementary information
that accompany the financial statements
a. Only 1st statement is true
b. Only 2nd statement is true
c. Both statement are true
d. Both statement are false
Tamayo , Jenny Rose Ann E.
1. Which of the following are the purpose of
conceptual framework
A. promote transparency by enhancing the
international comparability and quality of
financial information.
B. strengthen accountability by reducing
the information gap between providers
of capital and the entity’s management.
C. risks around the world, thus improving
capital allocation. The use of a single,
trusted accounting language lowers the
cost of capital and reduces international
reporting costs.
D. All of the above
2. PAS 2 ​refers to the discussion and presentation
of the statement of cash flows to​ PAS 6
Statement of Cash Flows. -​ ​F (PAS 1 AND PAS
7)
Yadao, Janelle Cherey Mae F.
1. A classified presentation shows no distinction
between current and non current items. An
unclassified is also called ‘based on liquidity.’
a. Only 1st statement is true
b. Only 2nd statement is true
c. Both statement are true
d. Both statement are false
2. Which of the following are one of the components of
the relevance information?
a. Neutrality
b. Completeness
c. Predictive Value
d. Freedom error
Cerilo, Noemi A.
1. Which of the following is not an Other
Comprehensive Income?
a. Gains and losses on investments
designated or measured at fair value
through other comprehensive income.
b. Remeasurements of net defined benefit
liability
c. Presenting a loss from a provision
net of a reimbursement from a third
party.
d. Gains and losses arising from
translating the financial statements of a
foreign operation.
2. Statement 1: Control does not mean that the
entity can ensure the resource will produce economic
benefits in all circumstances. It only means that if the
resource
produces benefits, it is the entity who will obtain those
benefits and not another party.
Statement 2: Financial concept of capital – capital
is regarded as the entity’s productive
capacity, e.g., units of output per day.
a. Statement 1 and 2 are true
b. Statement 1 and 2 are false
c. Statement 1 is false but statement 2 is true
d. Statement 1 is true but statement 2 is false
Afos, Danica C.
1. Statement 1:​ The historical cost is the
consideration paid to acquire the asset minus
transaction cost.
Statement 2:​ Information about possible future
transactions and other events is included in the
financial statements only if it relates to the
present information presented in the financial
statements and is deemed useful to users.
a. Statement 1 and 2 are true.
b. Statement 1 is true but statement 2 is
false.
c. Statement 1 and 2 are false.
d. Statement 1 is false but statement 2 is
true.
2. The following are components of other
comprehensive income except:
a. Gain or losses arising from the
derecognition of financial assets
measured at amortized cost.
b. Changes in revaluation surplus.
c. Remeasurement of net defined benefit
liability.
d. All of the following are components of
Other Comprehensive Income.
Pabello, Jarelle Joy A.
1. In presenting the statement of financial position,
the level of rounding-off and presentation of
currency is included in the heading - ​TRUE
2. Which of the following is the responsibility of the
management for an entity’s financial
statements?
 A. Review and approval of financial a. Fair presentation and compliance with
statements PFRS
B. Going concern assessment
b. Going concern
C. Oversight over the financial reporting
process
c.​ ​Frequency of Offsetting
D. All of the above
d. Comparative Information
Dimayuga,Erick Louise D.
Aragon, Jeremiah
1. The objective of general purpose financial
reporting is? 1. Statement 1: The elements of FS are asset,
A. ​Provide financial information liability, and equity only.
about the reporting entity that is useful to existing
and potential investors,lenders and other creditors Statement 2: An asset is a duty or responsibility that an
in making decisions about providing resources to entity has no practical ability to avoid.
the entity a. Only statement 1 is true.
B. To inform government statistics b. Only statement 2 is true.
C. To support the entity's tax return c. Both statements are true.
D. To meet all the information needs of all the users of d. Both statements are false.
an entitys financial statements
E. To inform economic decision - making by a broad 2. It is the residual interest in the assets of the
range of users (including managers,investors,creditors entity after deducting all its liabilities.
and prudential regulators. a. Income
b. Retained Earnings
2. Recognition criteria determine when to c. Equity
recognise an item. Measurement is determine d. Dividends
the monetary amounts at which to measure an
item. Uncertainties about the extent of future Maderazo, Abegail M.
cash flows could affect both recognition and
measurement. Is it True of False? 1. IFRS Standards may deal with similar items and
Answer: ​True related issues, but for other issues, there may
be no such Standard.
Liquigan, Oshwald C.
Answer: ​ TRUE
1. Statement 1: The primary objective of FS is to
show the results of management’s stewardship over the 2. Statement 1: PAS 1, requires an entity to
entity’s resources. provide an additional disclosures when it uses
the nature of expense method.
Statement 2: Financial statements are the structured Statement 2: Presenting a separate income
representation, of an entity’s financial position and
statement is allowed as long as a separate
results of its operation.
statement showing comprehe naive income is
a. Only statement 1 is true. also presented.

b.​ ​Only statement 2 is true. a. Statement 1 is True; Statement 2 is False

b. Statement 1 is False; Statement 2 is True
c. Both statements are true. c. Both statements are True
d. Both statements are False
d. Both statements are false.
Dela Cruz, Marilyn F.

It shows a distinction between current and noncurrent

2. All of the following is a general features of FS, assets and current and non-current liabilities.
except: a. Classic presentation
b. Classified Presentation
c. Unclassic Presentation
 d. Unclassified Presentation

Statement 1 : A financial concept capital is regarded as Arriane A. Piad

the invested money or invested purchasing. Capital is 1. Which is the correct Statement about Recognition.
synonymous with equity, net assets, or net worth. I. It is the process of including in the financial position or
Statement 2 : Net Income is income less expenses, the statement of financial performance an item that
excluding the components of other comprehensive meets the definition of one of the financial statement
income. elements ( i.e., asset, liability, equity, income or
expense).
a. Only statement 1 is True II. This involves recording the item in words and in
b. Only statement 2 is True monetary amount and including that amount in the totals
c. Both are False of those statements.
d. Both are True III. The amount at which an asset, a liability or equity is
recognized in the statement of financial position is
Notarte, Nove C. referred to as it's carrying amount.
1. Statement 1: Inappropriate accounting policies
cannot be rectified by mere disclosure A. Statement I
Statement 2: PAS 1 permits a departure from a B. Statement II
PFRS requirement if the relevant regulatory C. Statement III
framework requires or allows such a departure. D. All the statement above is correct.
a. Only statement 1 is true
b. Only statement 2 is true 2. It provides information in addition to those presented
c. Both are true in the other financial statement. It is an integral part of a
d. Both are false complete set of financial statement.

2. All financial statements shall be prepared using the A. Notes

accrual basis of accounting except, B. Frequency of reporting
a. Statement of financial position C. Statement of Profit or loss
b. Statement of changes in equity D. Statement of financial position
c. Statement of cash flow
d. Statement of retained earnings Borje, Kylie Shane J.

1.)The primary users' decisions about providing

Robin, Rheza Mae T.
1. In analyzing an entity’s financial statements,
which financial statement would a potential
investor primarily use to assess liquidity and
financial flexibility?
a. Statement of financial position
b. Income statement
c. Statement of retained earnings
d. Statement of cash flows
2. Statement 1: According to PAS 1
Presentation of Financial Statements,
inappropriate accounting policies are rectified by
mere disclosures.
Statement 2: According to PAS 1, an entity is never
allowed, in any circumstance, to depart from a provision
of a PFRS.
a. Only statement 1 is true
b. Both statements are true
c. Only statement 2 is true
d. Both statements are false
resources to the entity involve decisions on the following,
except
a. exercising, voting or similar rights that
could influence management’s actions
relating to the use of the entity’s
economic resources
b. to help users of financial statements
in evaluating changes and trends,
financial statements also provide
comparative information for at least
one preceding reporting period
c. buying, selling or holding investments
d. providing or settling loans and other
forms of credit
2.)​Statement​ ​I:​ One example of offsetting is presenting
gains and losses from sales of liabilities net of related
expenses.
Statement II​: The first step in the hierarchy of selection
and application of accounting standards or policies is to
 consider whether IFRS standards deal with similar and
related issues.
a. Only statement I is true
b. Only statement II is true
c. Both statements are true
d. Both statements are false
Bolima, Kim Cejie A.
1. Statement A.​ Fair Value is the “price that would
be received to sell an asset, or paid to transfer a
liability, in an orderly transaction between
market participants at the measurement date.”
Statement B.​ ​Financial concep​t of capital is
regarded as the entity’s productive capacity,
e.g., units of output per day. ​(Physical
Concept)
a. Only statement A is true
b. Only statement B is true
c. Both statements are true
d. Both statements are false
2. Each material class of similar items is presented
separately. A class of similar items is called a
“line item”. Dissimilar items are presented
separately unless they are immaterial.
Individually immaterial items are aggregated
with other items.
a. Accrual Basis of Accounting
b. Offsetting
c. Frequency of reporting
d. Materiality and Aggregation
Adrales, Deverly Dawn T.
1. Statement I: Comparability states that it is appropriate
for an enterprise to leave its accounting policies
unchanged when more relevant and reliable alternatives
exist.
Statement 2: Accounting information must be both
relevant and faithfully represented to be useful to
decision makers.
A. Only statement I is True
B.​ ​Only statement II is True
C. Both statements are True
D. Both statements are False
2. Which of the following statements best describes the
term “financial position”?
A. The net income and expenses of an entity
B. The net of financial assets less liabilities of
an entity
C. The potential to contribute to the flow of
cash and cash equivalents to the entity
D. The assets, liabilities, and equity of an
entity.
Paolo Felipe
1. A complete set of financial statements includes
a. directors report
b. income tax return
c. notes
​d. all of these
2. An entity can rectify inappropriate accounting
policies either by disclosure of the accounting
policies used or by notes or explanatory
material.​ (​True​/​False​)
Benavides, Laiah Grace
1. ___________ is ________ if omitting, misstating
or obscuring it could reasonably be expected to
influence decisions that the primary users of a specific
reporting entity’s general purpose financial statements
make on the basis of those financial statements.
A. Information, Relevant
B. Information, Material
C. Information, Neutral
D. Information, Complete
2. Statement 1: Deferred tax assets and liabilities are
always presented as current items, regardless of their
expected dates of reversal.
Statement 2: An unclassified presentation shall be used
except when an classified presentation provides
information that is reliable and more relevant.
A. Statements 1 and 2 are False
B. Statement 1 is True but Statement 2 is
False
C. Statement 1 is False but Statement 2 is
True
D. Statements 1 and 2 are True
Quiles, Mary Grace D. 2. All financial statements shall be prepared using the
accrual basis of
1. Accountants might recognize losses but not accounting except for the statement of cash flows, which
gains in certain situations. For example, the is prepared using
company might write-down the cost of inventory, cash basis.
but will not write-up the cost of inventory. Which A. Materiality
principle/guideline is associated with this action? B. Offsetting
C. Accrual Basis of Accounting
A.Conservatism D. Going Concernatement 1 true,statement 2 false
Longno, Mary Joy P.
B. Materiality 1​. Which of the following is an example of
offsetting?
C. Monetary Unit a. Presenting a net amount the realized gains and
losses arising from trading securities.
2. The principle/guideline requires the company's b. Presenting gains and losses from sales of asset
financial statements to have footnotes containing net of related administrative expenses.
information that is important to users of the financial c​. Provision a loss from a provision net of a
statements is full disclosure. reimbursement from a third party.
d. All of the above.
Answer: True
ORTIZ, KRIZIA MARIE L. 2. Statement 1. A classified presentation shall be
used except when an unclassified presentation provides
1. Which of the following is the change in equity during a information that is not reliable and less relevant.
period resulting from transactions and other events Statement 2. Working Capital is equal to current and
,other than those changes resulting from transactions non- current assets minus current and non-current
with owners in their capacity as owners? liabilities.
a. financial position
b.notes a. Statements 1 & 2 are true.
c. comprehensive income b. Statement 1 is true but statement 2 is false.
d.cash flow c. Statements 1&2 are false.
d. Statement 1 is false but statement 2 is true.
2. Statement 1: Profit or loss is income less
expenses,excluding the components of other
comprehensive income.
Statement 2: An unclassified presentation shows Hernaez, Cheddy Mae, C.
distinction between current and noncurrent assets and Module 1
current and non-current liabilities. True or False:
(I) Derecognition is the adding up of a previously
a. both statement are true recognized asset or liability from the entity's statement of
b.both statement are false Financial Position. (II) Materiality is an entity specific
c. statement 1 false, statement 2 true aspect of Faithful Representation.
d. Statement 1 true, statement 2 false
a. Only (I) is true
Laplano, Fernalou A. b. Only (II) is true
1. I. Other comprehensive income is the sum of profit or c. Both statements are correct
loss and other d. Both statements are incorrect
comprehensive income. Answer: D
II. The statement of changes in equity shows total
comprehensive income for the period. Multiple Choice:
A. Only statement I is true. ____1. Which is NOT a qualitative characteristic of
B. Only statement II is true. Conceptual Framework?
C. Both statements are true. a. Relevance
D. Both statements are false. b. Comparability
c. Liquidity
d. Understandability C. Measurement
Answer: C D. Material cost

Module 2 Villanueva, Angelica Faith A.

True or False 1) What item has Subsequent Measurement of
(I) Classified Presentation shows distinction between Lower of Cost and Net Realizable Value?
current and non-current assets and current and A. Inventory
non-current liabilities. (II) Financial Statements are B. Property, Plant, & Equipment
prepared at least weekly. C. Intangible Asset
D. Investment Property
a. Only (I) is true
b. Only (II) is true 2) ​Statement I: When selecting a measurement
c. Both statements are correct basis, it is important to consider the qualitative
d. Both statements are incorrect characteristics, the cost constrain, and other factors.
Answer: A Statement II: The nature of information provided
by a particular measurement basis
Multiple Choice is important to consider in selecting
____1. Which is NOT a line item? a measurement basis.
a. Accounts Receivable A. Only (I) is true
b. Deferred Tax Liabilities B. Only (II) is true
c. Land C. Both statements are correct
d. Discount on Loan Payable D. Both statements are incorrect
Answer: B
Vacal, Cyra C. 3) Arrange the steps for selecting and applying
accounting policies for a transaction, other event or
1. According to PAS 1, this general feature of financial
statements requires the presentation of the last year’s condition.
financial statements together with the current year’s
financial statements. I. ​Consider whether IFRS Standards
deal with similar and related issues.
A. Frequency of reporting
II. ​Refer to and consider the
B. Comparability applicability of the Conceptual
C. Comparative Information Framework for Financial Reporting.
III. ​Consider whether an IFRS
D. Two-statement presentation Standard specifically applies to the
2. Management is responsible for an entity’s financial transaction, other event or condition.
statements. These responsibilities are expressly stated A. III,I & II
in a document called “Statement of Management’s B. I,II & III
Responsibility for Financial Statements”, which is
C. II,I & III
attached to the financial statements as a cover letter.
This document is signed by the entity’s (all of the D. I,III & II
following are true except) Bijasa, John Kenneth M.

A. Chairman of the Board

Statement 1 : The initial measurement of intangible
B. Chief Executive Officer asset is cost
Statement 2 : The subsequent measure of intangible
C. Chief financial officer
asset is carrying value (if cost model), Fair value (if fair
D. Managing Staff value model)
Pusayen, Wilma A.
1. An item is recognized if it meets the definition of an a. Both statements are true
asset, liability, equity, income or expense.​ ​TRUE b. Both statements are false
c. Only first statement is true
2. It is the removal of a previously recognized asset or d. Only the second statement is true
liability from the entity’s statement of financial position.
A. Recognition The initial measurement of Property, Plant and
B. Derecognition Equipment is at cost and subsequently measure at
Carrying Value (if Cost Model), Higher of Fair
Value/Value in use (if Revaluation Model)

Answer: True
Barsolaso,Ella Neccole

1. I. Physical concept of capital referred to as the capital

spent or the purchase invested. Equity, net assets, or
net worth are synonymous with capital.
II. Financial statements also contain comparable details
for at least one previous reporting period to assist users
of financial statements in determining adjustments and
trends.

a. Only statement 1 is true

b. Only statement 2 is true
c. Both statements are true
d. Both statements false

2. Information is selected or presented without bias.

A. Neutrality
B. Completeness
C. Free from error
D. Verifiability
Abano, John Vincent D.

1. (I). Current Assets are expected to be realized within

12 months before the reporting period. (II). Current
Liabilities are due to be settled within 12 months after
the reporting period.

a. Only statement 1 is true

b. Only statement 2 is true
c. Both statements are true
d. Both statements are false

2. ________ is permitted when it presents a loss from a

provision net of a reimbursement from a third party.

a. Materiality and Aggregation

b. Offsetting
c. Comparative Information
d. Consistency of Presentation