Qualifying Exam Reviewer 2017 (FAR) PDF

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Junior Philippine Institute of AccountantsJunior Philippine Institute of Accountants College of Business AdministrationCollege of Business Administration University of the East - CaloocanUniversity of the East - CaloocanQualifying Exam evie!er "#$%Qualifying Exam evie!er "#$% &am...

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Junior Junior Philippine Philippine Institute Institute of of Accountants Accountants College College of of Business Business Administration Administration University University of of the the East East -- Caloocan Caloocan

Qualifying Qualifying Exam Exam evie!er evie!er "#$% "#$% &inancial &inancial Accounting Accounting and and eporting eporting

I.

De v elop m en t of of Ac co u nt ing Pr Pro fes sion 1. It is the body body authorized authorized by law to to promulgate promulgate rules an d regulations regulations affecting affecting of of the the accountancy accountancy professions professions in in the the Philippines. Philippines. a. Phili ppine ppine Institut Institute e of Certif ied Public Public Accou Accountan ntants ts b. Boar Bo ard d of Acc Accou ount ntan an cy c. Secur Securiti ities es and and Echan Echange ge Commi Commissi ssion on d. Professi Prof essional onal !egulati !egulation on Commissio Commission n b. Boar Board d of A ccou ccount ntan ancy cy ". #he inter internati national onal accounting unting stand standards are a. !ules$ba !ules$based sed rather rather that that princi principles ples based based b. Principle Principle $based $based rath rather er t han rule based bas ed c. Based Based on on regula regulatio tions% ns% not not conc concept ept d. &ocuse &ocused d on 'ua 'uanti ntitat tati(e i(e rule rules s

b. Principl Principle-ba e-based sed rathe ratherr than than rule rule based. based. ). #his accounting accounting concept *ustifies the usage usage of of accruals accruals and deferrals. deferrals. a. +ate +ateri ria a l ity b. Cash Cash bas b asis is of ac counti counting ng

c. Con Consis si sten ten cy d. ,oin ,oing g conc concer ern n

d. Goin Going g con conce cern rn -. An item can not be recogniz recognized ed in the bala nce sheet sheet or the income income stateme stateme meets meets the the two two criteria criteria of of a.

Cr i ter io n 1 Comp le te ne ss

Cr ite ri on " + e as ur em e nt re li ab ility

/. #he IASB &ramewor0 outlines two underlying assumptions of financial s #hese are a. b. c. d.

Assumption 1 Accrua l b asis of accoun ting Cash b asis of a ccoun ti ng Accrua l b asis of accounting Cash b asis of a ccoun ti ng

Assumption " !ele(ance a nd reliability In sol(ency a ssumption ,oing concern assumption P erpetu al life con cept

c. Accrual basis of accounting; going concern assumption . 2hich of the following statements concerning the &ramewor0 is incorrect3 a. Primary responsibility for the preparation and presentation of t statements rests with the management. b. #he &ramewor0 pro(ides th at the tr ansa ctions must be accou accordance with their legal form. c. &inancial statemen ts must not eclude comple matters in order understandability. d. 2here any conflict arises between the Framework and a PFRS% the of the P&!S pre(ails.

b. he !rame"or# provides that the transactions must be accoun accordance "ith their legal form. 4. In respect to information included in financial statements% the accounting 5prudence6 ensures that7 a. #he financial statements report what they purport to report . b. A degree of caution in the eercise of *udgments about estimates is m c. An appropriate balance is achie(ed between the rele(ance and the information that has been included. d. Information is pro(ided to users within the time period in which it is m bear on their decisions.

b. A degree of caution in the e$ercise of %udgments about estimate II.

&ash and &ash '( uivalen ts 8. Information about the sources and uses of an ente rprise9s cash and cash e' pro(ided in the a. Balance sheet b In come statement

c. Statement of change d Cash flow statement

Current account a t PB Payr oll accou nt &ore ign ban0 accou nt ? restricte d =in peso> Postage tamps Emp loyee 9s post dated chec0 I@ from co ntrol ler9 s sister Credit memo from a (endor for a purchase re turn #ra(eler9s chec0 ot$su fficient funds$chec0 +one y o rd er Petty cash fun d =- %...