IA codesss-WPS Office - Hirap mabuhay ng walang alam kaya mag aral ka ng mabuti amen hallelujah Hirap PDF

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Hirap mabuhay ng walang alam kaya mag aral ka ng mabuti amen hallelujah Hirap mabuhay ng walang alam kaya mag aral ka ng mabuti amen hallelujah...

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IA codesss

1 When an entity issued a note solely in exchange for cash, the present value of the note at issuance is equal to a.

Face amount

b.

Face amount discounted at the prevailing interest rate

c.

Proceeds received

d. Proceeds received discounted at the prevailing interest rate

2. If the present value of a note issued in exchange for a property is less than face amount, the difference should be a.

Included in the cost of the asset

b.

Amortized as interest expense over the life of the note

c.

Amortized as interest expense over the life of the asset

d.

Included in interest expense in the year of issuance

3. An entity borrowed cash from a bank and issued to the bank a short-term noninterest bearing note payable. The bank discounted the note at 10% and remitted the proceeds to the entity. The effective interest rate paid by _the entity in this transaction would be a.

Equal to the stated discount rate of 10%

b. More than the stated discount rate of 10% c.

Less than the stated discount rate of 10%

d.

Independent of the stated discount rate of 10%

4. At issuance date, the present value of a promissory note is equal to the face amount if the note a.

Bears a stated rate of interest which is realistic.

b. Bears a stated rate of interest which is less than thepervailing market rate for similar notes. c. Is noninterest bearing and the implicit interest rate is less than the, prevailing market rat? for sigilar notes. d. Is noninterest bearing ånd the implicit mtérest rate is equal to the prevailing market rate for similar notes.

5.

Which statement concerning discount on note payable is incorrect?

a. Discount on note payable may be debited when entity discounts its own note with the bank. b. The discount on note payable is a deduction from the face amount note payable. c. The discount on note payable represents interest charges applicable to future periods. d. Amortizing the discount on note payable gradually decreases the carrying amount of the liability over the life of the note.

6. When a note payable with no ready market is exchanged for property whose fair value is currently indeterminable a. rate.

The present value of the note payable must be approximated using an imputed interest

b. The note payable should not be recorded until the fair value of the property becomes evident. c. The entity receiving the property should estimate a value for the property. d. Both entities involved in the transaction should negotiate a value to be assigned to the property.

7.

When a note payable is issued for property, the present value of the note is measured by

a.' The fair value of the property b. The fair value of the note payable c. Using an imputed interest rate to discount all future payments on the note payable d.

All of these are considered in measuring the present value of the note payable

8. When a note payable is exchanged for property, the stated interest rate is presumed to be fair when a.

No interest rate is stated.

b.

The stated interest rate is unreasonable.

c. The face amount of the note is materially different from the cash gale price for similar property. d.

The stated interest rate is equal to the market rate•

9. The discount resulting from the determination of the present value of a note payable should be reported as a. Deferred credit b, Direct deduction from the face amount of the note C. Deferred charge d. Addition to the face amount of the note

10. statement is correct when an entity issued a note payable with no stated interest rate in exchange for a depreciable asset? a.

The asset should be depreciated over the term of the note payable.

b. If fair value is unavailable, the note payable should be recorded at present value discounted at the market rate of interest. c.

Both the note and the asset are recorded at the face amount of the note payable.

d. The note payable is recorded at face amount even if the fair value of the asset is readily available.

1. In a debt restructuring considered an asset swap, the gain on extinguishment is equal to a. Excess of fair value of asset over carrying amount b. Excess of carrying amount of the debt over the fair value of the asset c. Excess of fair value of asset over the carrying amount of the debt d. Excess of carrying amount of the debt over the carrying amount of the asset

2. For a debt restructuring involving substantial modification of terms, it is appropriate for a debtor to recognize a gain when the carrying amount of the debt a.

Exceeds the total future cash payments.

b.

Is less than the total future cash payments.

c.

Exceeds the present value of the future cash payments.

d.

Is less than present value of future cash payments.

3. For a debt restructuring involving a substantial modification of terms, which of the following specified by the new terms would be compared to the carrying amount of the debt to determine if the debtor should report a gain on extinguishment? a.

The total future cash payments

b.

The present value of the new debt at the original interest rate

c. The present value of the new debt at the modified interest rate d. The amount of future cash payments

4. Under a debt restructuring involving substantial modification of terms, the future cash flows under the new terms shall be discounted using a.

Original effective interest rate

b.

Interest rate under the new terms

C.

Market rate of interest

d. Prime interest rate

1. An entity shall initially measure equity instruments issued to extinguish a financial liability at a. Fair value of the equity instruments issued b. Fair value of the liability extinguished c.par value of the equity instruments issued d. Carrying amount of the liability extinguished

2. If the fair value of the equity instruments issued cannot be reliably measured, the equity instruments issued to extinguish a financial liability shall be measured at

a.

Fair value of the liability extinguished

b.

Par value of the equity instruments issued

c.

Carrying amount of the liability extinguished

d.

Book value of the equity instruments issued

3, If both the fair value of the equity instruments issued and the fair value of the financial liability extinguished cannot be measured reliably, the equity instruments issued shall be measured at

a. Carrying amount of the liability extinguished b. Par value of equity instruments issued c.

Carrying amount of the equity instruments issued

d.

Value assigned by the Board of Directors

4. The gain or loss from extinguishment of a financial liability by issuing equity instruments is presented as a.

Other income or other expense

b.

Separate line item in the income statement

c.

Component of other comprehensive income

d.

Component of finance cost

1.

Which entities are required to apply deferred accounting?

a.

Public entities

b.

Nonpublic entities

c.

Both public and nonpublic entities

d.

Neither public entit,ies nor nonpublic entities

2. It is t,he income for a period determined in accordance with the rules éstablished by tax authorities upon which income taxes are payable. a.

Accounting income

b.

Taxable income

c.

Net income

d.

Accounting income subject to tax

3.

It is the income for a period before deducting tax expense.

a. Accounting income b.

Taxable income

c.

Gross income

d.

Net income

4. These are differences that will result in future taxable amount in determining taxable income of future periods, a. Temporary differences b.

Taxable temporary differences

c.

Deductible temporary differences

d.. Permanent differences

5'. These are differences that result in future deductible amount in determining taxable income. in future periods a.

Taxable temporary differences

b.

•Deductible temporary differences

c.

Taxable temporary and permanent differences

d.

Deductible temporary and permanent differences

6. It is ther deferred tax consequence attributable to a taxable temporary difference. A Deferred tax liability b.

Deferred tax asset

c.

Current tax liability

d.

Current tax asset

7. It is the deferred tax consequence attributable to a deductible temporary difference and operating loss carryforward. a.

Deferred tax liability

b.

Deferred tax asset

c.

Current tax liability

d.

Current tax asset

8. It is the amount -of income tax payable in respect of taxable income. a.

Current tax expense

b.

Total income tax expense

c.

Deferred tax expense

d.

Deferred

benefit

9. It is the aggregate amount included in the determination of net income for the period in respect of current tax and deferred tax. a.

Tax expense

b.

Current tax expense

c.

Deferred tax expense

d.

Deferred tax benefit

10.

The deferred tax expense is equal to

a.

Increase in deferred tax asset less increase in deferred tax liability.

b.

Increase in deferred tax liability less increase in deferred tax asset.

c.

Increase in deferred tax asset.

d.

Increase in deferred tax liability.

1. A deferred tax asset is recognized för deductible differences and operating loss carryforward when a. It is probable that taxable income will be available against which the deferred tax asset can be used. b. It is probable that accounting income will be available against which the deferred tax asset can be used. c. It is possible that taxable income will be available against which the deferred tax asset can be used, d. It is possible that accounting income will be available against which the deferred tax asset can be used.

2.

An entity shall offset a deferred tax asset and deferred tax liability

a.

When the income 'taxes are levied by diffqrent authority.

b.

When the entity has no legal enforceable offset.

c. When the income taxes are levied by the same taxing authority and the entity has a legal enforceable right to offset current tax asset against a current tax liability d. Under all circumstances.

3.

is correct about deferred tax assets and liabilities?

a.

Current deferred tax assets are netted against current deferred tax liabilities.

b.

All noncurrent deferred tax assets are netted against noncurrent deferred tax liabilities.

c.

Deferred tax assets are never netted against deferred tax liabilities.

d. Deferred tax assets are netted against deferred tax liabilities if they relate to the same tax authoritY•

4. Which statement is incorrect concerning tax assets and a.

Deferred tax assets and liabilities shall be discounted.

b. Tax assets and liabilities shall presented separately from other assets and liabilities in the statement of financial position. c. Deferred tax assets and liabilities shall be distinguished from curent tax assets and liabilities. d. When an entity makes a distinction between current and noncurrent assets and liabilities, it shall classify deferred tax assets and liabilities as noncurrent.

5. All of the following must be disclosed separately, except

a.

The tax bases of major items on which deferred tax has been calculated.'

b. The amount of deductible temporary differences for which no deferred tax asset is recognized. c. The amount of taxable temporary differences associated with investments in subsidiaries and associates for which no deferred tax liability is recognized. d.

The amount of income tax relating to each component of other comprehensive income.

1. Justification for the method of determining periodic deferred tax expense is based on the concept of A.

Matching of periodic expense to periodic revenues

b.

Objectivit,y in t,he calculation of periodic expense.

c.

Recognition of asset, and liability.

d.

Consistency of tax expense measurement with actual tax planning strategies.

2.

Which of following differences would result in future taxable amount?

a.

Expenses or losses that are deductible after they are recognized in accounting income.

b. Revenues or gains that are taxable before they are recognized in accounting income. c. Expenses or losses that are deductible before they are recognized in accounting income. d. Revenues or gains that are recognized in accounting income but are never included in taxable income.

3.

A temporary difference which would result in a deferred tax liability is

a.

Interest revenue on municipal bonds

b.

Accrual of warranty expense

c.

Excess of tax depreciation over accounting depreciation

d.

Subscription received in advance

4.

A temporary difference which would result in a deferred tax asset is

a.

Tax, penalty or surcharge.

b.

Dividend received on share investment.

c.

Excess tax depreciation over accounting depreciati0n•

d. Rent received in advance included in taxable income at the time of receipt but deferred for accounting purpOSeS•

5. An entity, cash basis taxpayer, prepared accrual basis financial statements. In the year-end statement of financial position, the deferred income tax liability increased compared to the prior year. Which of the following would cause the increase in deferred tax liability?

a.

An increase in prepaid insurance

b.

An increase in rent receivable

c, An increase in warranty obligation d, An increase in prepaid insurance and increase in rent receivable

6. An entity reported deferred tax asset and deferred tax liability at the end of the prior year and at the end of the current year. For the current year, the entity should report deferred tax expense or benefit équal to the a.

Decrease in the deferred tax asset

b.

Increase in the deferred tax liability

c. Amount of the current liability plus the sum of the net changes in deferred tax asset and deferred tax liability d.

Sum of the net changes in deferred tax asset and deferred tax liability

7. Because an entity uses different methods to depreciate equipment for accounting and income tax purposes, the entity has temporary differences that will reverse during the next year and add to taxable income. Deferred taxes that are based on these temporary differences should be Classified in the statement of financial position as a.

Contra account to current assets

b.

Contra account to noncurrent assets

c.

Current liability

d.

Noncurrent liability

8.

A deferred tax liability is computed using

a.

Current tax law regardless of expected or enacted future tax law

b.

Expected future tax law regardless of whether enacted or not

c. Current tax law unless a future enacted tax law is different d. Either current or expected future tax law regardless of whether the expected future tax law is enacted or not

9. Which statement is true regarding reporting deferred income taxes in the financial statements? a.

Deferred tax asset is always netted against deferred tax liability.

b. Deferred taxes of one Jurisdiction are offset against another jurisdiction in the netting process. c.

Deferred tax asset and liability may only be classified as noncurrent.

d. Deferred tax asset and liability are classified as current and noncurrent based on expiration date.

10. At the current year-end, an entity had a deferred tax liability that exceeded a deferred tax asset which is expected to reverse in the next year. Which of the following should be reported in the current year-end statement of financial position? a. The excess of the deferred tax liability over the deferred tax asset as a noncurrent liability. b.

The excess of the deferred tax liability over the deferred tax asset as a current liability.

c.

The deferred tax liability as a noncurrerit liability.

d.

The deferred tax liability as a current liability.

1.

The purpose of interperiod tax allocation is to

A. Allow entities to utilize carryforward loss. b. Allow entities whose tax liabilities vary significantly from year to year to smooth tax payments. C. Recognize an asset or liability for the tax consequences of temporary differences that exist at year-end. d. Amortize the deferred tax liability.

2.

Intraperiod tax allocation

a.

Involves the allocation of income taxes between current and future periods.

b.

Associates tax effect with different items: in the income statement.

c.

Is not generally acceptable.

d.

Arises because different income statement items are taxed at different rates.

3.

Which is true about intraperiod tax allocation?

a. Intraperiod tax allocation arises because certain items are recognized for accounting and tax purposes. b.

Intraperiod tax allocation is required for the effect of accounting policy

c. The purpose is to allocate income tax expense evenly over a. number of accounting periods. d. The purppse is 'to relate the income tax expense to the items which affect the amount of tax.

4.

All would require intraperiod tax allocation, except

a.

Discontinued operation

b.

Prior period error

c.

Change in accounting estimate

d.

Income from continuing operations

5.

Tax expense should be allocated to all, except

a.

Discontinued operation

b.

Prior period error

c.

...