MODULE 1 – IFR

TF The conceptual framework both covers general purpose and special

purpose financial statements. False

TF In case of a conflict, the related PFRS shall prevail if such was

issued only after the conceptual framework, otherwise the conceptual
framework shall prevail. False

TF Despite being understandable, an item which is not faithfully

represented but is relevant is still not useful. True

TF Without any categorical and contrary statement in the related

standard, an income or expense item is taken to profit or loss rather than
OCI. True

TF In case of doubt, accountants should understate assets and income

and overstate liabilities and expenses. False

TF A categorical reference to future economic benefits is included in

the asset and liability definition in the CF. False

TF Other comprehensive income is defined separately from income and

expenses in the conceptual framework. False

TF Both fair value and historical costs are exit prices. False

TF All components of a complete set of financial statements are

prepared using the accrual basis of accounting. False

TF General purpose financial reports are designed to show the

reporting entity’s value. False

TF To a large extent, financial reports are based on virtually exact

depictions of transactions. False

TF A notes receivable with 13 months maturity received from a trade

transaction is classified as current. True

TF Both office and production (manufacturing) supplies are classified

as inventories. False

TF A PCF with both bills and coins and paid PC vouchers must be
measured in the course of the SFP preparation at the imprest balance. False

TF If an entity elects the nature of expense presentation of the

statement of profit or loss and OCI, additional disclosures related to the
nature of the expenses must be presented in the notes. False

TF If an entity elects the nature of expense presentation of the

statement of profit or loss and OCI, additional disclosures related to the
nature of the expenses must be presented in the notes. False

MODULE 2 – IFR
MC Sui Corporation started its operations on Mach 1, 2018. On 2018,
Sui complied with all existing PFRS except for PFRS 7. On 2019, Sui
complied with all the requirements of the relevant PFRS including PFRS 7.
Which is correct?
a) Sui’s first-time adoption of PFRS is 2018
b) Sui is PFRS compliant starting 2019 correct
c) Sui is PFRS compliant since 2018
d) Sui’s 2018 FS will include an explicit and unreserved statement of
compliance

MC Which is true about cash funds?

a) Cash funds for operating purposes are presented as other current
assets, separate from cash
b) Cash funds for operating purposes are presented as part of cash
c) Interest fund should be presented as other non-current financial
assets
d) Sinking fund should be presented as part of cash

MC Which can be part of trade and other payables?

a) Trade notes payable
b) Income taxes payable
c) Provisions for warranties
d) Provisions for litigation losses

MC Which the most liquid among these assets?

a) Notes Receivable
b) Accounts Receivable
c) Financial asset at FVPL
d) Inventory

MC Where would you find the disclosure about the additions to the
property, plant, and equipment account?
a) Summary of Significant Account Policies
b) Supporting Schedule
c) Statement of Compliance
d) All of the choices

MA Hui Company recorded the yearend inventory based on the physical

count. Which should be adjusted in the books?
a) Inventory sold FOB shipping point, in transit
b) Inventory purchased FOB destination, in transit
c) Goods held on consignment
d) Goods held out on consignment

MC Peh Company purchased 50 pieces of Peh Company shares with P10 par
at a prices of P11. Which is correct?
a) Shares presented as current assets at P11 each
b) Shares presented as current assets at P10 each
c) Shares presented as contra-equity, P11 each
d) Shares presented as contra-equity, P10 each

MC Bat Company’s deferred tax assets as at 2021 are expected to

reverse in 2022. Bat should present these as:
a) Current asset due to the timing of reversal
b) Current asset regardless of the timing of reversal
c) Noncurrent asset due to the timing of reversal
d) Noncurrent asset regardless of the timing of reversal
MC Umi Company’s classifies a land as held for sale. Before the
reclassification, the carrying amount of the land is P1,100,000. At the
same time, the fair value of the land is P1,200,000 with a cost of disposal
of P300,000. How should Umi account for the transfer.
a) Transfer the land to asset held for sale at P1,100,000 with no
impairment loss
b) Transfer the land to asset held for sale at P1,200,000 with no
impairment loss
c) Transfer the land to asset held for sale at P1,100,000 with an
impairment loss of P200,000
d) Transfer the land to asset held for sale at P900,000 with an
impairment loss of P200,000

MC Share dividends distributable are part of:

a) Current liabilities
b) Noncurrent liabilities
c) Share capital
d) Retained earnings

NUM Go to page 85 of your text, how much is the total current assets of
Diamond Company? 1,790,000

NUM Go to page 85 of your text, how much is the trade and other
receivables of Diamond Company? 510,000

NUM Go to page 85 of your text, how much is the noncurrent assets of

Diamond Company? 5,020,000

NUM Go to page 85 of your text, how much is the shareholders’ equity

of Diamond Company? 4,330,000

NUM Go to page 85 of your text, how much is the shareholders’ equity

of Diamond Company assuming that 5,000 paid petty cash vouchers are
included in the cash balance? 4,325,000