intermediate accounting finals

R.A No. 9298

R.A No. 9298

What is the law regulating the practice of accountancy in Philippines?

Board of Accountancy

It is the body authorized by law to promulgate rules and regulation affecting the practice of the accountancy profession in the Philippines

10

a member of the Boards of Accountancy must be duly registered CPA with at least ___ years of work experience in any scope of practice of accountancy

Auditing

what is the primary service of CPAs in public practice?

Private accounting

accountants employed in entities in various capacity as accounting staff, chief accountants or controller are said to be engaged in ___

Government accounting

it is the area of the accountancy profession that encompasses the process of analyzing, classifying, summarizing, and communicating all transactions involving the receipt and disposition of government funds and interpreting the results thereof

Continuing Professional Development

it is required for both renewal of CPA license and accreditation to practice the accountancy profession

the state government

certified public accountants are licensed by

decision usefulness

the underlying theme of the conceptual framework is?

existing and potential investors, leaders and other creditors

The primary focus of financial reporting has been on meeting the needs of which of the following groups?

decision usefulness

the overriding qualitative characteristics of accounting information is?

relevance

according to the conceptual framework, predictive value and confirmatory value are ingredients of?

neutrality

the qualitative characteristic of faithful representation includes?

objectivity

which accounting concept states that an accounting transaction shall be supported by sufficient evidence to allow two or more qualified individuals to arrive at essentially similar conclusions?

comparability

relates to both relevance and faithful representation

economic entity

what is being violated if an entity provides financial reports in connection with a new product introduction?

going concern

what is the accounting concept that justifies the usage of accruals and deferrals?

economic entity

when a parent and subsidiary relationship exists, consolidated financial statements are prepared in recognition of

accounting period

which underlying assumption serves as the basis for preparing financial statements at artificial points in time?

going concern

the relative stable economic, political, and social environment supports

cost

the conceptual framework includes which constraint?

cost-benefit

the usefulness of providing information in financial statement is subject to the constraint of?

at the point of sale

generally, revenue is recognized at?

derecognition

it is the removal of all part or part of a recognized asset or liability from the statement of financial position

historical cost and current value

the measurement bases include

classification

it is the sorting of assets, liabilities, equity, income, and expense with similar characteristics

historical cost

the physical capital concept requires which measurement?

analyze transactions from source documents

the first step in accounting cycle

journal

the accounting record where a transaction is initially recorded

journal

the book of original entry is known as

temporary accounts

nominal accounts are also called

current asset

asset to be sold, consumed, or realized as part of the normal operating cycle are?

current liabilities

liabilities that an entity expects to settle within the normal operating cycle are classified as?

revenue minus expenses

net income equals?

LIFO

the inventory cost flow assumption where the cost of the most recent purchase is likely to remain in inventory

FIFO

the inventory cost flow assumption where the cost of the most recent purchases is likely to remain in inventory

LIFO

the inventory cost flow assumption where the oldest cost of inventory items is likely to remain on the balance sheet is

cost

the account inventory will appear on the balance sheet at an amount that often reflects the of the merchandise on hand

periodic

the inventory system does not update the inventory account automatically at the time of each purchase or sale is which method?

LIFO

a company in the computer industry is experiencing continuously high costs. its last two purchases of 2018 were 20 units on december 20 at a cost of 14 per unit and 30 units on december 30 at a cost of 15 per unit. On december 28, 2018 the company made its last sale for the year when it sold 10 units. which inventory cost flow assumption will cause the 15 cost per unit to be expensed as part of the year 2018’s cost of goods sold?

purchase discount

net purchases is gross purchases minus purchase return and allowances and ____

ending inventory

the difference between the cost of goods available and the cost of goods sold is?

amortized cost using effective interest method

subsequent to initial recognition, loans and receivables are measured at?

substance over form

accounting for the interest in a noninterest bearing note receivable is an example of what aspect of accounting theory?

maturity value

short-term non-interest bearing notes receivables are usually recorded at their ____

present value

long-term notes receivables which nominally bear no interest or an interest which is unreasonably low should be recognized at ___

factor’s holdback

it is a predetermined account withheld by a factor as protection against customer returns, allowances, and other special adjustments

merchandise inventory

reported as a current asset on he balance sheet

raw materials

items waiting to be used in production are considered to be

finished goods inventory

in a manufacturing business, inventory that is ready for sale is called?

manager’s judgement

the factor which determines whether or not goods should be included in a physical count of inventory is?

cost of goods available for sale

beginning inventory plus the cost of goods purchased equals?

carrying amount cost

the amount at which an asset is currently presented in the statement of financial position

cost

the amount of cash or cash equivalents paid, or the fair value of other consideration given to acquire an asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognized

fair value

the price that would be the price that would be received to sell an asset or paid to transfer a liability on an orderly transaction between market participants at the measurement date

investment

an asset held by an entity for purposes of accretion of wealth through the distribution of interest, royalties, dividends and rentals

investment property

property (land or building) earn rentals or for capital appreciation purposes both as opposed to being held as ___

fair value model

where the fair value of the biological asset cannot be determined reliably, the biological asset shall be measured at ____

profit or loss

a gain or loss arising on the initial recognition of a biological asset and from a change in the fair value less cost of disposal of the biological asset shall be included in?

PAS 2, inventories

where there is a long aging or maturation process after harvest, the accounting for such product shall be dealt with by

current cost

when the agricultural produce is harvested, the harvest shall be accounted for as inventory. for the purpose, cost at the date of harvest is deemed to be ____

historical cost

gain or loss from the disposal of investment property shall be determined as the difference between the ___

present value

long-term notes receivable which nominally bear no interest or an interest which is unreasonably low shall be recognized initially at ___

current liabilities

credit balances in accounts receivable shall be classified as

allowance method

which method of recording bad debt loss is consistent with accrual accounting?

matching principle

which accounting principle primarily supports the use of allowance for doubtful accounts?

allowance for doubtful accounts

when the allowance method of recognizing bad debt expense is used, the journal entry to record the writeoff of a specific uncollectible account would decrease

petty cash fund

money kept on hand for making minor disbursements of coin and currency rather than by writing checks

noncurrent assets

under which classification is cash restricted for plant expansion reported?

financial accounting

it is the process of identifying, measuring, and communicating financial information about an economic entity to various users groups within the legal, economic, political and social environment

accounting principle

financial information, economic entity, user groups and legal, economic, political, social environments

debit and credit

information that is or not governed by rules set forth by the accounting standard setting bodies

demand for financial information

decision regarding risks and rewards of resource allocation, information is required to aid indecision making, economic entities produce financial information