28689014-Mock-Cpa-Board-Exams-rfjpia-R-12-w

28689014-Mock-Cpa-Board-Exams-rfjpia-R-12-w - 2 ND...

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RFJPIA-R12 2 ND Annual Regional Convention 2008 Mock CPA Board Examinations THEORY OF ACCOUNTS 1. Which of the following statements is (are) true, for purposes of financial reporting in the Philippines? I. Philippine practice is to present in the balance sheet current assets before non-current assets, current liabilities before non-current liabilities; and equity accounts before liabilities II. Notes are normally presented in the following order: Significant accounting policies; statement of compliance of PRFSs; supporting information on items presented on the face of the financial statements; and lastly, other disclosures III. The IAS term ”Reserves” in present Philippine practice, may refer to revaluation increment, translation adjustments recognized in equity; unrealized gains and losses from available for sale securities recognized in equity. a. I and II only b. I and III only c. II and III only d. I, II and III 2. An entity purchases a building and the seller accepts payment partly in equity shares and partly in debentures of the entity. This transaction should be treated in the cash flow statement as follows: a. The purchase of the building should be investing cash outflow and the issuance of shares and the debentures financing cash outflows. b. The purchase of the building should be investing cash outflow and the issuance of debentures financing cash outflows while the issuance of shares investing cash outflow. c. This does not belong in a cash flow statement and should be disclosed only in the notes to the financial statements. d. Ignore the transaction totally since it is a non-cash transaction. No mention is required in either the cash flow statement or anywhere else in the financial statements 3. The scope of PAS 39 includes all of the following except a. Financial instruments that meet the definition of a financial asset b. Financial instrument that meet the definition of a financial liability c. Financial instruments issued by the entity that meet the definition of an equity instrument d. Contracts to buy or sell non-financial items that can be settled net. 4. Deposits in foreign countries which are subject to a foreign exchange restrictions should be a. Valued at current exchange rates and shown as current assets b. Valued at historical exchange rates and presented as noncurrent assets c. Valued at current exchange rates and presented as noncurrent assets / d. Valued at historical exchange rates and presented as current assets 5. What is the proper accounting for credit card sales if the credit card company is Affiliated with a bank Not affiliated with a bank a. Sale on account Cash sales b. Sale on account Sale on account c. Cash sale Cash sale d. Cash sale Sale on account 6. Losses which are expected to arise from firm and non-cancellable commitments for the future purchase of inventory items, if material should be a. Recognized in the accounts by debiting loss on purchase commitments and crediting estimated liability for loss on purchase commitments
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This note was uploaded on 08/12/2010 for the course ACC 452 taught by Professor Mr.cula during the Spring '10 term at Abraham Baldwin Agricultural College.

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28689014-Mock-Cpa-Board-Exams-rfjpia-R-12-w - 2 ND...

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