QUIZ BEE REVIEWER
IIIhttps://docs.google.com/document/d/14ak8hPs7Q
Q1. What are the two types of Obligation (relation to
provision)?
Legal & Constructive
Legal and constructive obligation
Legal Obligation & Constructive Obligation
legal obligation & constructive obligation
Legal & Constructive Obligation
legal & constructive obligation
legal and constructive obligation
Q2. What are the three conditions/criteria required to
recognize a provision?
Probable, Estimable, Present Obligation
Q3. True or False: When there is a large population, the
provision is based on expected value.
True
Q4. True or False: Contingent Assets are recognized when
the inflow of economic benefits is already probable.
False – certain
Q5. True or False: Costs during research phase of internally
generated intangible assets are never capitalized.
True
Q6. True or False: Expenditure on brands and customer
lists are never capitalized.
False – Capitalized
Q7. Which of the following costs will not be capitalized?
Cost of Staff Hiring
Cost of staff hiring
Q8. Which of the following are among the capitalization
criteria for the development phase of internally generated
intangible?
i. The project is technically feasible.
ii. There is an intention to complete the
intangible asset and use or sell it.
iii. The entity has adequate resources to
complete the development and to use or sell
the intangible assets.
Iv. The attributable expenditure can be
measured with certainty.
I, II, and
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Q9. True or False: An intangible Asset with a finite useful
life is amortized on a systematic basis over its useful life.
True
Q10. True or False: Intangible assets with indefinite useful
life are amortized over a maximum.
False - finite
Q11. The account title inventories as shown on an entity’s
financial statements include:
A. Goods held on consignment.
B. Goods sold with a buyback arrangement.
C. Unused supplies for administrative purposes
D. Goods in transit, purchased FOB buyer.
B.
Q13. Government grants related to depreciable assets are:
a. Recognized as income when the
grants are received.
b. Recognized as income at the end of
useful life of the assets received.
c. Recognized as income over the
periods and on the same basic as
depreciation for that asset.
d. Not recognized
C.
Q14. An item of PPE acquired in an exchange transaction
where the configuration of the asset received is significantly
different from the configuration of the asset given up, shall
be initially recorded at:
D. For value of the non-cash asset given up, plus
cash paid or minus cash received.
Q15. Which of the following shall not be presented as PPE?
C. Land held for lease providing the entity with
significantly rental revenue.
Q16. True or False: as regards non-current assets held for
sale, Depreciation ceases while the asset is being held for
sale.
True
Q17. True or False: as regards non-current assets held for
sale, The asset is always reclassified back to PPE if it is not
sold within a period of 12 months after the balance sheet
date.
 False - if the criteria for held for sale are no longer
met
Q18. True or False: A gain may be recognized if the fair
value less cost to sell exceeded the carrying value of the
asset.
True
Q19. In the cash flow statement, alternatively interest
received, and dividend may be classified as cashflow from:
C. Investing Activities
Q20. True or False: Government Grants.
Government grants related to depreciable assets are
recognized as income at the end of useful life of the asset
received.
False - over the useful life
Q21. True or False: Government Grants.
Government grants related to depreciable assets are
recognized as income when the grants are received.
False- deferred income
Q22. True or False: Government Grants.
Government grants related to depreciable assets are
recognized as income over the periods and on the same
basis as depreciation for that asset.
True
Q23. Statement of Comprehensive Income
Income from operation includes finance cost.
False - excludes
Q24. Statement of Comprehensive Income
Income from continuing operation plus the income from
discontinued operation equals total comprehensive income
already.
False - does not equal
Q25. True or False: PPE
If payment is deferred beyond normal credit terms, the
difference between cash price equivalent and total payment
is recognized as interest expense over the life of the asset.
False - over the period of credit
Q26. True or False: PPE
If an entity is able to determine reliably the fair value of both
the asset given up and asset received in an exchange, the
fair value of the asset given up is used to measure the cost
of asset received in exchange.
False - asset received is used to measure
Q27. True or False: Non-current asset held for sale.
For a sale to be highly probable, the sale should be
expected to qualify for recognition as a completed sale
within one year after the reporting period.
False - within one year
Q28. True or False: Impairment
The increased carrying amount due to reversal should not
be more than what the depreciated historical cost would
have.
True
Q29. True or False: PPE
An improvement made to a machine that increased its
production capacity should have be capitalized in the
machine account.
True
Q30. True or False: Provisions
Future events that may affect the amount required to settle
the obligation shall be reflected in the amount of the
provision where there is sufficient objective evidence that
the future events will occur.
True
Q31. True or False: PPE
An expenditure made in connection with a machine being
used by an entity should be capitalized if it maintains that
machine in normal operating condition.
False - Expensed
Q32. True or False: A building owned by the entity and
leased out under one or more operating leases is an
example of investment property.
True
Q33. True or False: A property intended for sale in the
ordinary course of business or in the process of
construction or development for such sale is an example of
an investment property.
False - Inventory
Q34. Under the five-step approach in revenue from
contracts, the third step is:
Determine the transaction price
Q35. Under the five-step approach in revenue from
contracts, the fifth step is:

Recognize revenue.when (or as) a performance

obligation is satisfied

Q36. True or False: if an entity received information after

the reporting period about the conditions that existed at the
end of the reporting period, it does not need to update the
disclosures that relate to those conditions, in the light of the
new information.

False - need to update

Q37. True or False: Interim Financial Reporting

The overriding goal of materiality as defined to ensure that

an interim financial report includes all information that is
relevant to understanding an entity’s financial and
performance during the interim period.

True

Q38. True or False: Freight Terms

Under FOB Destination, transfer of title happens when the

goods reach the hands of the freight company.

False - customer or buyer

Q39. True or False: If an entity holds, directly, or indirectly,

less than 20% of the voting power of the investee, it is
presumed that the entity does not have significant
influence, unless such influence can be clearly
demonstrated.

True

Q40. True or False: Reports presented outside the financial

statement – including reviews by management,
environmental reports, and value added statements are
within scope of PAS 1.

False – Outside

Q41. True or False: The general principle in PAS 8 is that

an entity need not correct all material prior period errors
retrospectively in the first set of financial statements
authorized after issue.

False, need to correct all