[SELF ASSESSMENT] REVIEW OF FINANCIAL STATEMENTS

Question 1

CURRENT OR NON-CURRENT: Cash and Cash Equivalent

Answer 1

CURRENT

Question 2

CURRENT OR NON-CURRENT: Property, plant and equipment

Answer 2

NON-CURRENT

Question 3

CURRENT OR NON-CURRENT: Financial assets

Answer 3

CURRENT

Question 4

CURRENT OR NON-CURRENT: Prepaid expenses

Answer 4

CURRENT

Question 5

CURRENT OR NON-CURRENT: Long-term investments

Answer 5

NON-CURRENT

Question 6

CURRENT OR NON-CURRENT: Intangibles

Answer 6

NON-CURRENT

Question 7

CURRENT OR NON-CURRENT: Trade and other receivables

Answer 7

NON-CURRENT

Question 8

CURRENT OR NON-CURRENT: Inventories

Answer 8

CURRENT

Question 9

Cash on hand and cash in bank is valued at

Answer 9

face amount

Question 10

Cash on hand and cash in bank is treated as

Answer 10

Current asset as part of line item cash and cash equivalents provided unrestricted for current operations

Question 11

Cash in foreign currency is valued at

Answer 11

current exchange rate

Question 12

Cash in foreign currency is treated as

Answer 12

Current asset as part of line item cash and cash equivalent provided unrestricted for current operations

Question 13

Cash deposits in foreign countries is valued at

Answer 13

current exchange rate

Question 14

Cash deposits in foreign countries is treated as

Answer 14

Current asset as part of line item cash and cash equivalent provided unrestricted for current operations

If subject to restrictions and amount is material, shown as part of non-current assets

Question 15

Cash in closed-bank or under receivership is valued at

Answer 15

net realizable value

Question 16

Cash in closed-bank or under receivership is treated as

Answer 16

Current asset as part of line item cash and cash equivalent provided unrestricted for current operations

Question 17

Bank overdraft is valued at

Answer 17

excess amount drawn against deposit

Question 18

Bank overdraft is treated as

Answer 18

Current liability and not offset against bank account with debit balance except (1) amount is immaterial and (2) there are two or more bank accounts maintained in one bank

Question 19

Compensating balance is valued at

Answer 19

face amount

Question 20

Compensating balance is treated as

Answer 20

Current asset as part of line item cash and cash equivalent provided not restricted for withdrawal.

If restricted and related loan is short term – presented as a separate item in current assets

If restricted and related loan is long-term – presented as noncurrent investment

Question 21

Petty cash fund is valued at

Answer 21

net amount established

Question 22

Petty cash fund is treated as

Answer 22

Current asset and part of line item cash and cash equivalent. Petty cash unreplenished vouchers should be excluded

Question 23

Post dated checks are valued at

Answer 23

face amount of check
issued/received

Question 24

Post dated checks are treated as

Answer 24

Post dated checks received from:

a. Customers – treated as receivables (part of line item trade and other receivables)
b. Suppliers/ creditors – liability

Question 25

Accounts/ notes receivable are valued at

Answer 25

Initially valued at face amount of original invoice price. Subsequently valued at net realizable value

Question 26

Accounts/ notes receivable are treated as

Answer 26

Current assets and part of the line item trade and other receivable

Question 27

Short-term loans and other receivables are valued at

Answer 27

fair value usually equal to original exchange price

Question 28

Short-term loans and other receivables are treated as

Answer 28

Current assets and part of the line item trade and other receivable

Question 29

Non-interest bearing long term loans and other receivables are valued at

Answer 29

face value

Question 30

Non-interest bearing long term loans and other receivables are treated as

Answer 30

Noncurrent asset as long term investment or other noncurrent assets, whichever is appropriate

Question 31

interest bearing long term loans and other receivables are valued at

Answer 31

Initially valued at present value. Subsequent acquisition, valued at amortized cost

Question 32

interest bearing long term loans and other receivables are treated as

Answer 32

Noncurrent asset as long term investment or other noncurrent assets, whichever is appropriate

Question 33

Trading securities (debt or equity securities) are valued at

Answer 33

fair value usually equal to original purchase price plus all cost directly related to the acquisition

Question 34

Trading securities (debt or equity securities) are treated as

Answer 34

Current assets as a separate line item after cash and cash equivalents

Question 35

Available for sale securities are valued at

Answer 35

fair value

Question 36

Available for sale securities are treated as

Answer 36

Usually classified as noncurrent asset unless held for less than 1 year in which case it will be shown as current assets

Question 37

Held to maturity securities are valued at

Answer 37

Initially valued at fair value Subsequent to the acquisition, valued at amortized costs

Question 38

Held to maturity securities are treated as

Answer 38

Non-current assets

Question 39

Inventories are valued at

Answer 39

lower of cost or net realizable value

Question 40

Inventories are treated as

Answer 40

Current assets as one line item INVENTORIES

Question 42

Investment in equity securities are valued at

Answer 42

cost

Question 42

Sinking fund is valued at

Answer 42

cost adjusted for other assets in the fund

Question 43

Investment in equity securities are treated as

Answer 43

Noncurrent asset as one line item LONG TERM INVESTMENTS

Question 44

Sinking fund is treated as

Answer 44

noncurrent as part of line item long term investment. If related bonds payable is reclassified to current liabilities, sinking fund is shown as part of the current asset

Question 45

Noncurrent funds are valued at

Answer 45

cost as adjusted for other assets in the fund

Question 46

Noncurrent funds are treated as

Answer 46

Noncurrent asset as part of the line item LONG TERM INVESTMENT

Question 47

Property plant and equipment is valued at

Answer 47

cost of acquisition Subsequent to acquisition, valued using cost model or revaluation model

Question 48

Intangibles are valued at

Answer 48

Initially, valued at cost Subsequently, valued using cost model or revaluation model

Question 49

Intangibles are treated as

Answer 49

Classified as noncurrent assets as one line item INTANGIBLE

Question 50

Liabilities are valued at

Answer 50

Initially, valued as fair value Subsequently, measured at amortized cost

Question 51

Liabilities are treated as

Answer 51

current if they meet the criteria for current liabilities, else classified as noncurrent liabilities