CFAS

Question 1

PAS 1 or PFRS 18?

Answer 1

Presentation of financial statement

Question 2

Are those statements that cater to the common needs of a wide range of primary external users?

Answer 2

General purpose financial statement

Question 3

The statement of financial position may be presented either showing current or non-current distinction (classified) or based on liquidity. PAS 1 encourage__?

Answer 3

Classified presentation

Question 4

These are always presented as non-current items in a classified statement of financial position

Answer 4

Deferred tax asset and deferred tax liability

Question 5

Does PAS 1 prescribe order or format in which an entity present items?

Answer 5

No

Question 6

Income and expenses may be presented?

Answer 6

A. Single statement of profit or loss and other comprehensive income or
B. Two statements income statement and a statement presenting comprehensive income

Question 7

OCI comprises items of income and expenses including reclassification adjustments that not recognize in P/L . Other comprehensive income include:

Answer 7

A. Changes in revaluation surplus
B. Remeasurements of the net defined benefit liability asset
C. Unrealized gains and losses on FVOCI investment
D. Translation gains and losses on foreign operation
E. Effective portion of gains and losses on hedging instrument in a cash flow hedge

Question 8

__ are amounts classified from OCI to profit or loss

Answer 8

Reclassification adjustment

Question 9

OCI may be presented __

Answer 9

Net or gross of related taxes

Question 10

Total comprehensive income includes __

Answer 10

All non-owner changes in equity. It comprises profit or loss and other comprehensive income

Question 11

True or false
Presenting extraordinary items in the financial statements including the notes is prohibited

Answer 11

True

Question 12

Expenses may be presented using either:

Answer 12

Nature of expense or function of expense. Additional disclosure is required when function of expense is use

Question 13

Dividends are disclosed either in the

Answer 13

Statement of changes in equity or in the notes

Question 14

PAS 2?

Answer 14

Inventories- include goods that are help for sale in the ordinary cost of business in the process of production for such sale and in the form of materials and supplies to be consumed in the production

Question 15

Inventories are measured at the

Answer 15

Lower of cost and net realizable value

Question 16

The cost of inventories comprises all?

Answer 16

Cost of purchase cost of conversion and other cost incurred in bringing the inventories to the present location and condition

Question 17

True or false
Trade discounts rebates and other similar items are deducted in determining the cost of purchase

Answer 17

True

Question 18

The following are excluded from the cause of inventory

Answer 18

Abnormal cost
Storage cost unless necessary
Administrative cost
Selling cost

Question 19

The cost formulas permitted under pas2 are

Answer 19

Specific identification - use in inventories which are not ordinarily interchangeable
Fifo
Weighted average

Question 20

It is the estimated selling price in the ordinary course of business less the estimated cost of completion and estimated cost necessary to make the sale

Answer 20

Net realizable value

Question 21

True or false
Raw materials inventory is not written down below cost if the finish good in which they will be incorporated are expected to be solved at or above cost

Answer 21

True

Question 22

True or false
Reversals of inventory write downs shall not exceed the amount of the original write down

Answer 22

True

Question 23

PAS 7?

Answer 23

Statement of cash flow- shows historical changes in cash and cash equivalents during the period.

It assess entities ability to generate cash and cash equivalent the timing and certainty

Question 24

Differentiate cash flows

Answer 24

A. Operating activities- include transaction that enter into the determination of profit or loss
B. Investing activities- include transaction that affect non-current asset and other non-operating asset
C. Financing activities- include transaction that affect equity and non operating liabilities

Question 25

True or false Only transaction that affected cash and cash equivalents are included in statement of cash flows, non cash transaction are excluded and disclones only.

Answer 25

True

Question 26

Interest and dividends may be presented as:

Answer 26

Interest income receive- operating or investing Interest expense paid- operating or financing Dividend income received- operating or investing Dividend paid to owners- financing or operating

Question 27

Cash flows from operating activities may be reported using?

Answer 27

Direct method - show major class of gross cash receipts and gross cash payments Indirect method- profit or loss is adjusted for effects of non cash items and changes in operating assets and liabilities

Question 28

PAS 8?

Answer 28

Accounting policies,changes in accounting estimates, and errors

Question 29

Two types of accounting changes are:

Answer 29

1. Change in accounting policy- adapted by an entity in preparing and presenting is financial statement 2. Change in accounting estimate

Question 30

When it is difficult to distinguish a change in accounting policy from a change in accounting estimate that change is treated as

Answer 30

Change in accounting estimate

Question 31

Voluntary change in accounting policy is accounted for by

Answer 31

Retrospective application

Question 32

Change in accounting policy- change in measurement basis

Answer 32

Accounting treatment A. Transitional provision B. Retrospective application C. If impracticable prospective application Effect of adjustment : On the beginning balance of retained earnings if accounted retrospectively

Question 33

Change in accounting estimate- changes in realization of expected inflow or outflow of economic benefits from asset or liabilities

Answer 33

Accounting treatment A. Prospective application Effect of adjustment: In profit or loss of current and future period if the change affects both

Question 34

Correction of prior period error- misapplication of principles oversight or misinterpretation of facts and mathematical mistakes

Answer 34

Accounting treatment A. Retrospective restatement B. If impracticable prospective application Effect of adjustment: On the beginning balance of retain earnings if accounted retrospectively

Question 35

PAS 10?

Answer 35

Events after the reporting period- events that occur between the end of the reporting period and the date when the financial statement are authorized for issue

Question 36

Are events that provide evidence of condition that existed at the end of the reporting period this require adjustment and financial statement

Answer 36

Adjusting events after the reporting period -Settlement after reporting period of court case (entity has present obligation at end of reporting period) -asset was impaired at end of reporting period (bankruptcy, sale of inventories after reporting period evidence to their NRV) - legal or constructive obligation at end of reporting period to make profit sharing or bonus payments -discovery of fraud or errors

Question 37

Our events that are indicative of condition that arose after the reporting period. This do not require adjustment but disclose if they are material

Answer 37

Non adjusting events after the reporting period - changes in fair values foreign exchange rates interest rates or market prices after reporting - casualty losses ( fire,storm, earthquake) after reporting period before authorized for issue

Question 38

PAS 12?

Answer 38

Income taxes

Question 39

The varying treatments of economic activities between the pfrs and tax laws results to

Answer 39

Permanent differences - those that do not have future tax consequences Temporary differences- are either taxable temporary differences or deductible temporary differences

Question 40

It arise when financial income is greater than taxable income or the carrying amount of an asset is greater than its tax base

Answer 40

Taxable temporary differences

Question 41

It arise when financial income is less than taxable income or the carrying amount of an asset is less than its tax base

Answer 41

Deductible temporary differences

Question 42

True or false Taxable temporary differences result to deferred tax liabilities while deductible temporary differences result to deferred tax asset

Answer 42

True

Question 43

If the increase in deferred tax liability exceeds the increase in deferred tax asset the difference is

Answer 43

Deferred tax expense - opposite, the difference is deferred tax income or benefit

Question 44

Income tax expense or benefit is computed using pfrs it comprises:

Answer 44

Current tax expense and deferred tax expense income or benefit

Question 45

Current tax expense is computed using

Answer 45

Tax laws

Question 46

True or false Deferred tax asset and liabilities are discounted

Answer 46

False

Question 47

PAS 16?

Answer 47

Property plant and equipment

Question 48

PPE are initially measured at

Answer 48

Cost- A. purchase price plus non-refundable tax minus trade and cash discount. B. Direct cost. C. Initial estimate of dismantlement removal and restoration cost

Question 49

PPE acquired in exchange with commercial substance is measured at

Answer 49

A. First value of asset given up B. Fair value of asset receive C. Carrying amount of asset given up If exchange lack commercial substance ppe acquired is measured at carrying amount of asset given up

Question 50

Recognition of cost in the carrying amount of item of ppe stop or ceases when

Answer 50

the time is in the location condition necessary for it to be capable of operating in the manner intended by the management

Question 51

Subsequent measurement of ppe

Answer 51

A. Cost model - B. Revaluation model Shall apply the policy to an entire class of ppe

Question 52

It is the systematic allocation of the depreciable amount of an asset over its estimated useful life

Answer 52

Depreciation

Question 53

Changes in depreciation method useful life or residual value are treated as change in

Answer 53

Accounting estimate

Question 54

An asset is fully depreciated when it's

Answer 54

Carrying amount is zero or equal to residual value

Question 55

True or false Depreciation does not cease when the asset becomes idle or is retired from active use

Answer 55

True