Scribd
Upload
100 views

Problem 2-2 Multiple Choice (PAS 1)

This document contains 10 multiple choice questions related to the classification of current and noncurrent assets and liabilities. Some key topics covered include: 1) When current and noncurrent presentation is most useful 2) Factors that determine classification as current or noncurrent 3) Common practices for presenting assets and liabilities in the Philippines

Uploaded by

Coleen Biocales
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
100 views

Problem 2-2 Multiple Choice (PAS 1)

This document contains 10 multiple choice questions related to the classification of current and noncurrent assets and liabilities. Some key topics covered include: 1) When current and noncurrent presentation is most useful 2) Factors that determine classification as current or noncurrent 3) Common practices for presenting assets and liabilities in the Philippines

Uploaded by

Coleen Biocales
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Problem 2-2 multiple choice (PAS 1)

1. Current and noncurrent presentation of assets and liabilities provides useful


information when the entity
a. Supplies goods or service within a clearly identifiable operating cycle
b. Is a financial institution
c. Is a public utility
d. Is a nonprofit organization
2. A presentation of assets and liabilities in increasing or decreasing order of liquidity
provides information that is faithfully represent and more relevant for.
a. Financial institution
b. Public utility
c. Government-owned entity
d. Service provider
3. It is the time between acquisition of assets for processing and their realization in
cash.
a. Operating cycle
b. Cash to receivable cycle
c. Business cycle
d. Cash to inventory cycle
4. When the normal operating cycle is not clearly identifiable, the duration assumed to
be
a. Twelve months
b. Six months
c. Three months
d. Twenty four months
5. Which obligations are classified as current even if the obligation are due to be
settled after more than twelve months from the end of reporting.
a. Trade payable
b. Current portion of noncurrent financial liabilities
c. Bank overdraft
d. Dividends payable
6. An entity shall classify an asset as current under all of the following conditions,
except
a. The entity expects to realize the asset or intends to sell or consume the
asset within the entity’s normal operating cycle.
b. The entity holds the asset for the purpose of trading.
c. The entity expects to realize the asset within twelve months after the
reporting period.
d. The asset is cash or a cash equivalent that is restricted to settle a liability for
more than twelve months after the reporting period.
7. An entity shall classify an as liability as current under all of the following conditions,
except
a. The entity expects to settle the liability within the entity’s normal operating
cycle
b. The entity holds the liability primarily for the purpose of trading
c. The liability is due to be settled within twelve months after the reporting
period
d. The entity has an unconditional right to defer settlement of the liability for
at least twelve months after reporting period.
8. In the Philippines the common practice is to present in the statement of financial
position.
a. Current assets before noncurrent assets, current liabilities and equity after
liabilities
b. Noncurrent assets before current assets, noncurrent liabilities before
current liabilities and equity after liabilities
c. Current assets before noncurrent assets, noncurrent liabilities before
liabilities and equity after liabilities.
d. Noncurrent assets before current assets, current liabilities before
noncurrent liabilities and equity after liabilities.
9. A financial liability that is due to be settled within twelve months after the end of
reporting period is classified as noncurrent when.
I. An agreement to refinance or reschedule payment on a long-term basis is
completed on or before the end of reporting period and before the financial
statement are authorized for issue.
II. The entity has the discretion to refinance or rollover the obligation for at
least twelve months after the end of reporting period under an existing loan
facility.
a. I only
b. II only
c. Both I and ii
d. Neither I nor II
10. When an entity breaches an understanding under a long-term loan agreement on or
before the end of reporting period with the effect that the liability becomes payable
on demand.
I. The liability is classified as current even if the lender has agreed after the
end of reporting period and before the issuance of the statements not to
demand payment as a consequence of the branch.
II. The liability is classified as noncurrent if the lender agreed on or before the
end of reporting period to provide a grace period for at least twelve months
after the end of reporting period within which to rectify the breach.
a. I only
b. II only
c. Either I or II
d. Neither I nor II

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy