CFAS- Final Exam Questions with
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Preparing financial statements at least annually is an application of
which of the following accounting concepts? - ANS ✓Time Period
Accrued interest on bonds that are purchased between interest dates
- ANS ✓Increases the amount a buyer must pay.
Entity A has an account receivable of P200,000 from Entity B. In
addition, Entity A also has an account payable of P160,000 to Entity B.
The account receivable is due in 30 days while the account payable is
due in 90 days. Entity A intends to settle first the account receivable. If
Entity A has a legal right of set-off, how much account receivable will
be shown in its statement of financial position? - ANS ✓40,000
When a debt investment at FVPL is reclassified to amortized cost,
what is the new carrying amount at amortized cost? - ANS ✓Fair value
at reclassification date
Which of the following is not a required disclosure of accounting
policies?
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A. The measurement basis used in the financial statements
B. Key management personnel involved in preparing the summary of
significant accounting policies
C. The nature of operations and the policies that the users of the
financial statements would expect to be disclosed
D. Disclosures required by PFRS - ANS ✓B. Key management personnel
involved in preparing the summary of significant accounting policies
The fair value option allows an entity to - ANS ✓Record income when
the fair value increases.
The interest income for the year would be higher if the bond was
purchased at - ANS ✓A discount
Which of the following should not be taken into account when
determining the cost of inventory?
A. Import duties on shipping of inventory inward
B. Storage costs of part-finished goods
C. Recoverable purchase taxes
D. Trade discounts - ANS ✓C. Recoverable purchase taxes
The interest income for the year would be lower if a bond is
purchased at - ANS ✓A premium
A bearer plant is a living plant that
CFAS- Final Exam
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A. Has a remote likelihood of being sold as agricultural produce,
except for incidental scrap sales.
B. Is used to bear produce for more than one period.
C. Must possess all of these characteristics.
D. Is used in the production or supply of agricultural produce. - ANS
✓C. Must possess all of these characteristics.
Which statement is true about biological assets?
A. Where there is production cycle of more than one year for
biological asset, separate disclosure is encouraged for physical change
and price change.
B. All of these statements are true about biological assets.
C. When fair value cannot be determined reliably, the biological asset
shall be measured at cost less accumulated depreciation and
impairment losses.
D. Biological assets are measured at fair value less cost of disposal. -
ANS ✓B. All of these statements are true about biological assets.
Agricultural produce as it grows on bearer plant is measured at the
end of each reporting period prior to harvest at - ANS ✓Fair value less
cost of disposal
Bonds usually sell at a discount when investors are willing to invest in
bonds - ANS ✓At rate higher than the stated interest rate
What is the purpose of information presented in the notes to financial
statements? - ANS ✓To provide disclosures required by generally
accepted accounting principles
CFAS- Final Exam
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