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ACCGOVP > Chapter 6: Financial Assets > Flashcards

Chapter 6: Financial Assets Flashcards

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1
Q

Any contract that gives rise to both a financial asset of one entity and a financial liability or equity instrument of another entity.

A

Financial Instrument

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2
Q

Any contract that gives rise to both a financial asset of one entity and a financial liability or equity instrument of another entity.

A
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3
Q

A contractual right to receive cash or another financial asset from another entity.

A

Financial Asset

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4
Q

A contractual right to exchange financial instruments with another entity under POTENTIALLY FAVORABLE conditions.

A

Financial Asset

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5
Q

A contractual obligation to deliver cash or another financial asset to another entity.

A

Financial Liability

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6
Q

A contractual right to exchange financial instruments with another entity under POTENTIALLY UNFAVORABLE conditions.

A

Financial Liability

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7
Q

Any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

A

Equity Instrument

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8
Q

The most basic financial instrument and is also the medium of exchange.

A

Cash

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9
Q

Initial Recognition of Financial Assets

A

Recognized when an entity becomes a party to the contractual provisions of the instrument.

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10
Q

Initial Measurement of Financial Assets

A

Fair Value + Transaction Costs, except for Financial Assets at FV through Surplus or Deficit

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11
Q

Incremental costs that are directly attributable to the acquisition, issue, or disposal of a financial instrument.

A

Transaction Costs

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12
Q

One that would not have been incurred if the entity had not acquired, issued, or disposed of the financial instruments.

A

Incremental Costs

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13
Q

Comprises cash on hand, cash in bank, and cash treasury accounts.

A

Cash

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14
Q

Checks drawn but not yet given to the payees.

A

Unreleased Checks

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15
Q

How are unreleased checks adjusted?

A

Reverted back to cash.

Cash in Bank, Local Currency xx
Accounts Payable xx

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16
Q

These are checks that are staled, voided, or spoiled.

A

Canceled Checks

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17
Q

A check which has been outstanding for over 6 months from its date.

A

Stale Check

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18
Q

How are canceled checks pertaining to the CURRENT YEAR adjusted?

A

Reverted back to cash.

Cash-MDS, Regular xx
Accounts payable xx

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19
Q

How are canceled checks pertaining to the PRIOR PERIOD adjusted?

A

Reverted back to cash.

Accumulated Surplus/Deficit xx
Accounts payable xx

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20
Q

Amount granted to duly designated PCF custodian for payment of authorized petty or miscellaneous expenses which cannot be conveniently paid through checks or ADA.

A

Petty Cash Fund

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21
Q

For how long the PCF amount is sufficient to defray petty expenses?

A

1 month

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22
Q

The PCF custodian shall be properly bonded if the established PCF amount exceeds what amount?

A

Php 5,000

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23
Q

What system is used to maintain PCF?

A

Imprest System

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24
Q

PCF shall not exceed what amount?

A

Php 15,000

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25
Is splitting of PCF transactions prohibited?
Naur.
26
A canvass from how many suppliers are needed for purchases amounting to Php 1,000 and above?
At least 3 suppliers.
27
How often do you replenish PCF?
If disbursements reached at least 75% or as needed.
28
Is the unused balance of PCF closed at year-end?
Naur.
29
When shall be the unused balance of PCF closed?
Upon termination, separation, retirement, or dismissal of the PCF custodian.
30
When are journal entries made under PCF?
When replenished and/or adjusted.
31
What is the JE for the establishment of PCF?
Petty Cash xx Cash-MDS, Regular xx
32
What is the JE for the replenishment of PCF?
Various Expenses xx Cash-MDS, Regular xx
33
What is the JE if the PCF is not replenished but has disbursements?
Various Expenses xx Petty Cash xx
34
What is the JE if the PCF custodian retired and the PCF is closed?
Cash-Collecting Officer xx Petty Cash xx
35
What is the JE for cash shortage?
Due from Officers & Employees xx Advances for/to... xx Cash-Collecting Officer xx Due from Officers & Employees xx Cash-Treasury/Agency Deposit xx Cash-Collecting Officers xx
36
What is the JE for cash overage?
Cash-Collecting Officer xx Miscellaneous income xx Cash-Treasury/Agency Deposit xx Cash-Collecting Officers xx
37
A check that is not accepted when presented for payment.
Dishonored Checks
38
This shall be issued by the Collecting Officer when a check is dishonored.
Notice of Dishonored Checks
39
Dishonored checks are recorded to the:
Other Receivables
40
What is the JE for dishonored checks REMITTED TO BTr in the CURRENT YEAR?
Other Receivables xx Cash-Treasury/Agency Deposit xx
41
What is the JE for dishonored checks REMITTED TO BTr in the PRIOR PERIOD?
Other Receivables xx Accumulated Surplus/Deficit xx
42
What is the JE for dishonored checks REMITTED TO AUTHORIZED GOV'T DEPOSITORY BANK in the CURRENT YEAR?
Other Receivables xx Cash in Bank-Local Currency xx
43
What is the JE for dishonored checks REMITTED TO AUTHORIZED GOV'T DEPOSITORY BANK in the PRIOR PERIOD?
Other Receivables xx Cash in Bank-Local Currency xx
44
A report prepared for the purpose of bringing the balances of cash per records and bank statement into an agreement.
Bank Reconciliation Statement
45
A report issued by a bank that shows credits and debits to the depositor's account during a period.
Bank Statement
46
He/She shall prepare bank reconciliations.
Chief Accountant
47
He/She shall prepare bank reconciliations.
Chief Accountant
48
Preparation of bank reconciliations shall be made within what number of days?
10 days
49
A method under bank reconciliation in which unadjusted book and bank balances are brought to an adjusted balance.
Adjusted Balance Method
50
Submission of bank reconciliations shall be made within what number of days?
20 days
51
These are short-term, highly liquid investments that are readily convertible to known amounts of cash.
Cash Equivalents
52
For debt instruments to qualify as cash equivalents, their acquisition shall be:
Within 3 months before scheduled maturity.
53
Claims for cash or other assets from other entities.
Receivables
54
Amounts due from customers arising from regular trade and business transactions.
Accounts Receivables
55
Represents claims, usually with interest, for which a formal instrument of credit is issued as evidence of debt.
Notes Receivables
56
Used in the BTr-NG books to recognize loans extended by the National Government to Government Financial Institutions.
Loans Receivable
57
Initial Measurement of Receivables
Fair Value + Transaction Costs
58
Subsequent Measurement of Receivables
Amortized Cost
59
4 Classifications of Financial Assets
Financial Asset at FV through Surplus/Deficit (Held for Sale or As Is) Held-to-Maturity Investments (only debts) Loans and Receivables Available-for-Sale Financial Assets
60
Initial Measurement of FINANCIAL ASSET AT FV THROUGH SURPLUS/DEFICIT
Fair Value
61
Subsequent Measurement of FINANCIAL ASSET AT FV THROUGH SURPLUS/DEFICIT
Fair Value; Changes in FV are recognized in SURPLUS/DEFICIT.
62
Initial Measurement of HELD-TO-MATURITY INVESTMENTS
Fair Value + Transaction Costs
63
Subsequent Measurement of HELD-TO-MATURITY INVESTMENTS
Amortized Cost
64
Initial Measurement of LOANS AND RECEIVABLES
Fair Value + Transaction Costs
65
Subsequent Measurement of LOANS AND RECEIVABLES
Amortized Cost
66
Initial Measurement of AVAILABLE-FOR-SALE INVESTMENTS
Fair Value + Transaction Costs
67
Subsequent Measurement of AVAILABLE-FOR-SALE INVESTMENTS
Fair Value; Changes in FV are recognized in EQUITY.
68
Investments in unquoted equity instruments whose FV cannot be reliably measured are measured at:
Cost
69
In case of impairment of Accounts Receivable, this account is used:
Allowance for Impairment
70
The process of removing a previously recognized asset, liability, or equity from the statement of financial position.
Derecognition
71
A financial instrument derives its value from the changes in the value of some other underlying asset that requires no initial net investment.
Derivative
72
A specified price, rate, or other variable.
Underlying
73
This the very purpose of derivatives in which it is the process of identifying the desired level and actual level of risk.
Risk Management
74
A method of offsetting a potential financial loss to reduce risk.
Hedging
75
A hedge of the exposure to changes in the fair value.
Fair Value Hedge
76
A hedge of the exposure to changes in the fair value.
Fair Value Hedge
77
A hedge of the exposure to variability in cash flows.
Cash Flow Hedge
78
A hedge of the exposure to variability in cash flows.
Cash Flow Hedge
79
A designated derivative or a designated non-derivative financial asset/liability whose FV or cash flows are expected to offset changes in the FV or cash flows of the hedged item.
Hedging Instrument
80
An asset, liability, firm commitment, or net investment that exposes that entity to risk of changed in FV or cash flows and is designated as being hedged.
H
81
An asset, liability, firm commitment, or net investment that exposes that entity to risk of changed in FV or cash flows and is designated as being hedged.
Hedged Item
82
An asset, liability, firm commitment, or net investment that exposes that entity to risk of change in FV or cash flows and is designated as being hedged.
Hedged Item

ACCGOVP (9 decks)

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