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- 1. Multiple Choice
An onerous contract is a contract in which ________________ of meeting the obligation under the contract __________________ the economic benefits expected to be received under
A. Avoidable costs; are less than
B. sunk costs; exceed
C. Opportunity costs; are less than
D. unavoidable cost; exceed
- 2. Multiple Choice
The deferred income tax liability:
a. Can result in a deferred income tax asset
b. Is never recorded.
c. Is a contingent liability
d. Represents income tax payments that are deferred until future years because of temporary differences between GAAP rules and tax accounting rules.
- 3. Multiple Choice
How is an equity instrument defined?
a. The instrument includes no contractual obligation to deliver cash or another financial asset.
b. The instrument includes no contractual obligation, and the instrument will/may be settled in the issuer's own equity instrument
c. The instrument includes a contractual obligation, and the instrument will/may be settled in the issuer's own equity instrument
d. The instrument includes contractual obligation and will/may be settled in the issuer's own debt instrument
- 4. Multiple Choice
The elements directly related to the measurement of financial position are?
a. Asset, liability, equity, income, and expenses
b. Asset and liability
b. Asset and revenue
d. Asset, liability, and equity
- 5. Multiple Choice
It is a present economics resources controlled by the entity as a result of past events
a. expenses
b. assets
c. equity
d. liabilities
- 6. Multiple Choice
Which statement in relation to income is true?
a. Revenue encompasses both income and gain
b. Income encompasses both revenue and gain
c. Income encompasses revenue only
d. Gain encompasses both income and revenue
- 7. Multiple Choice
What is fair value of an asset?
a. The price that would be received to sell an asset in an orderly transaction between market participants.
b. The price that would be paid to transfer a liability in an orderly transaction between participants
c. The undiscounted value of future cash flows
d. The discounted value of future cash flows
- 8. Multiple Choice
Impairment loss is reported
a. As direct deduction from retained earnings
b. As a component of income from continuing operations
c. As a change in accounting estimate
d. As a component of discontinued operation
- 9. Multiple Choice
Which is the recoverable amount of an asset?
a. Value in use
b. Fair value less cost of disposal
c. Fair value less cost of disposal or value in use, whichever is lower
d. Fair value less cost of disposal or value in use, whichever is higher
- 10. Multiple Choice
The process of identifying, measuring, recording, and communicating financial information about a company's activities so decision makers can make informed decisions
a. Finance
b. Accountancy
c. Accounting
d. Business
- 11. Multiple Choice
Any cash flows directly related to earning income, including cash sales and collections of accounts receivable as well as cash payments for goods, services, salaries, and interest.
a. Cash flows from financing activities
b. Cash flows from investing activities
c. Cash flows from operating activities
d. Current assets
- 12. Multiple Choice
Completeness is an ingredient of the primary quality of
a. verifiability
b. faithful representation
c. relevance
d. understandability
- 13. Multiple Choice
A measure that is computed as: Current Assets/Current Liabilities
a. Current ratio
b. Financial ratio
c. Quick assets
d. Liquidity Ratio
- 14. Multiple Choice
A financial statement that provides relevant information about a company's cash receipts (inflow of cash) and cash payments (outflow of cash) during an accounting period.
a. Income statement
b. Cash flow statement
c. Statement of changes in equity
d. Balance sheet
- 15. Multiple Choice
Probable future sacrifices of economic benefits; usually requires the payment of cash, the transfer of assets other than cash, or the performance of services.
a. Liability
b. Asset
c. Equity
d. Expenses
- 16. Multiple Choice
The excess of a company's revenue over its expenses during a period of time.
a. Net profit margin
b. Asset
c. Equity
d. Net income
- 17. Multiple Choice
The federal agency established by Congress to regulate securities markets and ensure effective public disclosure of accounting information. Has the power to set accounting rules for publicly traded companies.
a. Department of Health
b. Bureau of Internal Revenue
c. Security and Exchange Commission
d. PhilHealth
- 18. Multiple Choice
A financial statement that reports how much of the company's income was retained in the business and how much was distributed to owner's for a period of time.
a. Income statement
b. Cash flow statement
c. Statement of retained earnings
d. Balance sheet
- 19. Multiple Choice
The average time that it takes a company to purchase goods, resell the goods, and collect the cash from customers.
a. Operating Cycle
b. Fiscal Year
c. Cash Flow
d. Life Cycle
- 20. Multiple Choice
Which of the following is not an example of a financial asset/liability?
A. A contract that will be settled in the company's own equity
B. Advances received on a construction project
C. You Answered Shares
D. Cash
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