accounting synthesis midterm exam
DESCRIPTION
Exam on PFRS on SMEsTRANSCRIPT
ATENEO DE DAVAO UNIVERSITYSchool of Business and Governance
Davao City
5th Year BSA Synthesis Midterm ExamS.R. Abapo, Accountancy Program
NAME: _________________________________________
INSTRUCTIONS: Write “TRUE” if the statement is true, or “FALSE” if the statement is false. Each question is equivalent to 4 points. Handwriting which is illegible will not be interpreted in favor of the examinee. Good Luck!
____________ (1) The measurement bases for PFRS for SMEs are historical cost, current cost, realizable value, and present value.____________ (2) An entity whose financial statements comply with PFRS for SMEs shall make an explicit and unreserved statement of such compliance in the notes.____________ (3) PFRS for SMEs requires that total assets classified as held for sale be presented.____________ (4) One of the components of Other Comprehensive Income (OCI) under the PFRS for SMEs is the gain or loss from translating the financial statements of a foreign operation.____________ (5) Under PFRS for SMEs, an entity shall present any items of income or expense as extraordinary.____________ (6) Joint ventures include subsidiary or subsidiaries of joint ventures.____________ (7) PFRS for SMEs require the presentation of Earnings per share (EPS).____________ (8) A change in accounting estimate is an adjustment of the carrying amount of an asset.____________ (9) Prospective application means that the new accounting policy is applied to events and transactions occurring after the date at which the policy is changed.____________ (10) Prior period errors are adjusted retrospectively by adjusting the opening balance of retained earnings and affected assets and liabilities.____________ (11) The loss on inventory writedown is a components of impairment.____________ (12) Direct Labor is a specific type of Cost of Conversion.____________ (13) Commercial papers or bills are included in the definition of basic instrument.____________ (14) Derivative Contracts are basic financial instruments.____________ (15) Hedging Instruments are basic financial instruments.____________ (16) Commitment to receive a loan if cannot be settled in cash is not included among the basic financial instruments.____________ (17) Income tax payable is not considered a financial liability.____________ (18) Significant influence is presumed to exist when investor holds at least 20% of the voting power.____________ (19) Under PFRS for SMEs, investments in associates shall be accounted for using the equity method.____________ (20) Profit and loss from upstream and downstream transactions is covered under the PFRS for SMEs.____________ (21) Under PFRS for SMEs, a government grant is recognized when there is reasonable assurance that the entity will comply with the specified conditions.____________ (22) Under PFRS for SMEs, a government grant is a deferred income until the conditions are actually satisfied.____________ (23) Under PFRS for SMEs, an SME shall recognize all borrowing costs as expense of the period when incurred.____________ (24) PFRS for SMEs allows the capitalization of interest even if the interest is directly attributable to the acquisition, construction, or acquisition of a qualifying asset.____________ (25) Under Full PFRS, research costs in relation to an intangible asset are expensed when incurred.