Allow ance

he Answer  method is required for financial reporting purposes when bad debts
are material.

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When the Cash in Bank account has a credit balance, it is said to be an ________.

Select one:

a.
Postage Expense

b.
Overdraft

c.
Cash

d.
Cash Equivalents
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Question 3
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Cash flows arising from the purchase and sale of dealing securities are classified as
operating activities.

Select one:

a.
Noncash Transaction

b.
Dividends

c.
Trading Securities

d.
Income Tax
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Is reported as a part of selling and administration expense in the income statement. Thus, it
is hard to determine the exact amount.

Answer: 

Question 5
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T
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Those activities that result in changes in size and composition of owners capital and
borrowing of the organization. It includes receipts from issuing shares, debentures, bonds,
borrowing and payment of borrowed amount, loan.

Select one:

a.
FINANCING ACTIVITIES

b.
INVESTMENT ACTIVITIES

c.
SPECIAL ACTIVITIES

d.
OPERATING ACTIVITIES
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The INVESTING
Receivables
 Answer  refers to amounts due from individuals and companies. It claims that are
expected to be collected in cash. 

Question 7
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The activities of acquisition and disposal of long term assets and other investments not
included in cash equivalent. It includes making and collecting loans, acquiring and disposal
of debt and equity instruments, property and fixed assets.

Select one:

a.
OPERATING ACTIVITIES

b.
INVESTMENT ACTIVITIES

c.
SPECIAL ACTIVITIES

d.
FINANCING ACTIVITIES

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Question 8
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These are principal revenue producing activities of the enterprise.
Select one:

a.
FINANCING ACTIVITIES

b.
INVESTMENT ACTIVITIES

c.
SPECIAL ACTIVITIES

d.
OPERATING ACTIVITIES

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The process of determining the monetary amounts at which the elements of the financial
statements are to be recognized and carried in the statement of financial position and
income statement.

Measurement
Answer: 

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 Question text
Face Value
Cash is valued at Answer .

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Is the standard medium of exchange in business transactions. It refers to the currency and
coins which are in circulation and legal tender.

Select one:

a.
Cash Equivalents

b.
Money

c.
Debts

d.
Stocks
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 Question text
The fees charged by the bank against the borrower for the creation of the loan known as
origination fees.

ORIGINATION POINTS
Answer: 

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Investing and financing transactions that do not require use of cash or cash equivalents shall
be excluded from the statement of cash flows.

Select one:

a.
Trading Securities

b.
Dividends

c.
Income Tax

d.
Noncash Transaction
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 Question text
As short-term and highly liquid investment that are readily convertible into cash and so near
their maturity that they present significant risk of changes in value because of changes in
interest rates.

Select one:

a.
Cash Equivalents

b.
Debts

c.
Cash

d.
Stocks
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Are the accounts receivable that cannot be collected because of bankruptcy of the customer
or any other reason.

Uncollectible Accounts
Answer: 

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A write-off affects only balance sheet accounts.  Cash realizable value in the balance sheet,
therefore, remains the same.

Select one:
True 
False

Question 17
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A loan receivable is measured at amortized cost using the effective interest method.

Select one:
True 
False

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Represent claims for which formal instruments of credit are issued as evidence of debt.
Credit instrument normally requires payment of interest and extends for time periods of 60-
90 days or longer.

Select one:
a.
Accounts Receivables

b.
Notes Receivables

c.
Interest Receivables

d.
Other Receivables
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Amounts owed by customers on account. Result from the sale of goods and services

Select one:

a.
Accounts Receivables

b.
Interest Receivables

c.
Other Receivables

d.
Notes Receivables
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Is the discounted value of the future cash flows using the effective interest rate.

Present Value
Answer: 

Is the harvested product of an entity’s biological assets.

AGRICULTURAL PRODUCE
Answer: 

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Is one that buys and sells goods in the same form purchased.

Select one:

a.
Non-trading concern

b.
Trading concern
c.
Going concern

d.
Manufacturing concern

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Are assets held for sale in the ordinary course of business, in the process of production for
such sale or in the form of materials or supplies to be consumed in the production process
or in rendering of services.

INVENTORIES
Answer: 

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Is required in determining of the definition of the bearer plant is met especially in deciding
whether the sales of the plant itself are incidental scrap sales.

JUDGEMENT
Answer: 
Question 5
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Is defined as the price that would be received to sell an asset in an orderly transaction
between market participants at the measurement date.

FAIR VALUE
Answer: 

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Is the detachment of produce from a biological asset or the cessation of a biological asset’s
life process.

HARVEST
Answer: 

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Agricultural land is not deemed a biological asset.

Select one:
True 
False

Question 8
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Is the power to participate in the financial and operating policy decision of an entity, but not
control of those policies.

SIGNIFICANT INFLUENCE
Answer: 

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A ____________ concern is one that buys goods which are altered or converted into another
form before they are made available for sale.

Select one:

a.
Going concern

b.
Manufacturing concern

c.
Non-trading concern
d.
Trading concern

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Is the power over investee or the power to govern the financial and operating policies of an
entity so as to obtain benefits.

CONTROL
Answer: 

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Is the management by an entity of the biological transformation and harvest of biological
assets for sale or for conversion into agricultural produce or into additional biological
assets.

AGRICULTURAL ACTIVITY
Answer: 

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 COST OF PUR
The Answer  of inventories comprises the purchase price, import duties and
irrecoverable taxes, freight, handling and other costs.

Question 13
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Assume that “goods first purchased are first sold” and consequently the goods remaining in
the inventory at the end of the period are those most recently purchased or produced

Select one:

a.
LIFO METHOD

b.
LILO METHOD

c.
FIFO METHOD

d.
WEIGHTED AVERAGE

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Assumes that the goods last purchased are first sold and consequently the goods remaining
in the inventory at the end of the period are those first purchased or produced.

Select one:

a.
FIFO METHOD

b.
LILO METHOD

c.
LIFO METHOD

d.
WEIGHTED AVERAGE

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Assistance by government in the form of transfers of resources to an entity in return for past
or future compliance with certain conditions relating to the operating activities of the entity.

Select one:

a.
Beneficiary Grant

b.
Government Grant

c.
Employee Benefits

d.
SEC
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Intragroup related party transactions and outstanding balances are eliminated in the
preparation of consolidated financial statement of the group.

Select one:
True 
False

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Are living animals and living plants.

BIOLOGICAL ASSET
Answer: 

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Is the estimated selling price in the ordinary course of business less the estimated cost of
completion and the estimated cost of disposal.

Select one:

a.
Present Value

b.
Net realizable value or NRV

c.
Fair Value

d.
Cost Value
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Are similar to an item of property, plant and equipment being constructed before he
intended use.

Select one:

a.
Bearer Plants

b.
Mature Bearer Plants

c.
Property, Plant and Equipment

d.
Immature Bearer Plants

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Is used in the production or supply of agricultural produce. It is expected to bear produce
for more than one period.

BEARER PLANT
Answer: