Rfjpia Mockboard - 2008 (Crc Ace)

RFJPIA-R12

2ND Annual Regional Convention 2008

Mock CPA Board Examinations

THEORY OF ACCOUNTS

1. Which of the following statements is (are) true, for purposes of financial reporting in the Philippines?

I. Philippine practice is to present in the balance sheet current assets before non-current assets, current liabilities before non-current liabilities; and equity accounts before liabilities

II. Notes are normally presented in the following order: Significant accounting policies; statement of compliance of PRFSs; supporting information on items presented on the face of the financial statements; and lastly, other disclosures

III. The IAS term ”Reserves” in present Philippine practice, may refer to revaluation

increment, translation adjustments recognized in equity; unrealized gains and losses from available for sale securities recognized in equity.

a. I and II only b. I and III only c. II and III only d. I, II and III

2. An entity purchases a building and the seller accepts payment partly in equity shares and partly in debentures of the entity. This transaction should be treated in the cash flow statement as follows:

a. The purchase of the building should be investing cash outflow and the issuance of shares and the debentures financing cash outflows.

b. The purchase of the building should be investing cash outflow and the issuance of debentures financing cash outflows while the issuance of shares investing cash outflow.

c. This does not belong in a cash flow statement and should be disclosed only in the notes to the financial statements.

d. Ignore the transaction totally since it is a non-cash transaction. No mention is required in either the cash flow statement or anywhere else in the financial statements

3. The scope of PAS 39 includes all of the following except

a. Financial instruments that meet the definition of a financial asset

b. Financial instrument that meet...