ACTG-6257 - Intermediate Accounting oed answer key

Showing 101 to 117 of 117 total answers.

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Awesome StudentQuestion • Intermediate Accounting 3

Prior period errors are omissions from and misstatements in the financial statements of one or more periods arising from a failure to use or misuse of reliable information that

Answer

Both I and II

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Awesome StudentQuestion • Intermediate Accounting 3

In a statement of cash flows using indirect method of presenting cash flow from operating activities, depreciation is treated as an adjustment to reported profit because depreciation

Answer

reduces the reported profit but does not involve an outflow of cash.

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Awesome StudentQuestion • Intermediate Accounting 3

Winner Company has estimated that total depreciation expense for the year ended December 31, 2020 will amount to P 500,000, and that 2020 year-end bonuses to employees will total P 1,200,000.

Answer

P 850,000

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Awesome StudentQuestion • Intermediate Accounting 3

A. Corp. has a total equity of P 200 at the beginning of the period. During the period, A Corp. earns a profit of P 40 and declares dividends of P 10. The total equity at the end of the period is P 250.

Answer

FALSE

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Awesome StudentQuestion • Intermediate Accounting 3

Firm B’s total equity at the beginning of the period was P 40. During the period, Firm B incurs loss of P 4 and declares total dividends of P 10. Total equity of Firm B at the end of the period is P 26.

Answer

TRUE

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Awesome StudentQuestion • Intermediate Accounting 3

These are the present obligations of an entity arising from past transactions or events the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

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Awesome StudentQuestion • Intermediate Accounting 3

The statement of financial position may be presented either showing current/ non-current distinction (classified) or based on liquidity (unclassified) PAS 1 Presentation of Financial Statements encourages the

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Awesome StudentQuestion • Intermediate Accounting 3

Brook Corporation reports operating expenses in two categories (1) selling, and (2) general and administrative. The adjusted trial balance at December 31, 20x1, including the following expense and loss accounts:

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Awesome StudentQuestion • Intermediate Accounting 3

Entity C’s total equity at the end of the period is P 230. During the period, Entity C earns profit of P 40 and declares total dividends of P 10. Entity C’s total equity at the beginning of the period was P 200.

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Awesome StudentQuestion • Intermediate Accounting 3

The effects of transactions and other events on economic resources and claims are depicted in the periods in which those effects occur even if the resulting cash receipts and payments occur in a different period.

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Awesome StudentQuestion • Intermediate Accounting 3

The total equity of D Co. at the beginning of the period was P 100. during the period D Co. reports total comprehensive income of P 40 and declares total dividends of P 10. The net change in equity during the period is an

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Awesome StudentQuestion • Intermediate Accounting 3

On December 31, 2019, CAL Company sold merchandise for P 750,000 to Biday Company. The terms of the sale were net 30, F.O.B. shipping point. The merchandise was shipped on December 31, 2019, and arrived at Biday on January 5, 2020.

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Awesome StudentQuestion • Intermediate Accounting 3

Financial statements are structured representation of the financial position and performance of an entity. The objective of general purpose financial statements is to provide information about the entity’s (choose the incorrect one)

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Awesome StudentQuestion • Intermediate Accounting 3

Tiny Company started operations at the beginning of current year. The entity failed to recognize accruals and prepayments at end of the reporting period. The income before tax, accrual and prepayments at the end of the current year are:

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Awesome StudentQuestion • Intermediate Accounting 3

A company required a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance. In a statement of cash flows, what amount is included in investing activities for the above transaction?

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Awesome StudentQuestion • Intermediate Accounting 3

During the year ended December 31, 2020, Zoila Company paid interest totaling P 100,000. The prepaid interest expense is P 23,500 and P 18,000 respectively on December 31, 2019 and 2020. The interest payable is P 45,000 and P 53,500, respectively on December 31, 2019 and 2020.

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Awesome StudentQuestion • Intermediate Accounting 3

Red Company which began operations on January 2019 has elected to use cash basis accounting for tax purposes and accrual basis accounting for financial statements. The entity reported sales of P 1,750,000 and P 800,000 in the tax returns for years ended December 31, 2020 and 2019, respectively. The entity reported accounts receivable of P 300,000 and P 500,000 on December 31, 2020 and 2019, respectively.

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ACTG-6257 - Intermediate Accounting oed answer key

Prior period errors are omissions from and misstatements in the financial statements of one or more periods arising from a failure to use or misuse of reliable information that

In a statement of cash flows using indirect method of presenting cash flow from operating activities, depreciation is treated as an adjustment to reported profit because depreciation

Winner Company has estimated that total depreciation expense for the year ended December 31, 2020 will amount to P 500,000, and that 2020 year-end bonuses to employees will total P 1,200,000.

A. Corp. has a total equity of P 200 at the beginning of the period. During the period, A Corp. earns a profit of P 40 and declares dividends of P 10. The total equity at the end of the period is P 250.

Firm B’s total equity at the beginning of the period was P 40. During the period, Firm B incurs loss of P 4 and declares total dividends of P 10. Total equity of Firm B at the end of the period is P 26.

These are the present obligations of an entity arising from past transactions or events the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

The statement of financial position may be presented either showing current/ non-current distinction (classified) or based on liquidity (unclassified) PAS 1 Presentation of Financial Statements encourages the

Brook Corporation reports operating expenses in two categories (1) selling, and (2) general and administrative. The adjusted trial balance at December 31, 20x1, including the following expense and loss accounts:

Entity C’s total equity at the end of the period is P 230. During the period, Entity C earns profit of P 40 and declares total dividends of P 10. Entity C’s total equity at the beginning of the period was P 200.

The effects of transactions and other events on economic resources and claims are depicted in the periods in which those effects occur even if the resulting cash receipts and payments occur in a different period.

The total equity of D Co. at the beginning of the period was P 100. during the period D Co. reports total comprehensive income of P 40 and declares total dividends of P 10. The net change in equity during the period is an

On December 31, 2019, CAL Company sold merchandise for P 750,000 to Biday Company. The terms of the sale were net 30, F.O.B. shipping point. The merchandise was shipped on December 31, 2019, and arrived at Biday on January 5, 2020.

Financial statements are structured representation of the financial position and performance of an entity. The objective of general purpose financial statements is to provide information about the entity’s (choose the incorrect one)

Tiny Company started operations at the beginning of current year. The entity failed to recognize accruals and prepayments at end of the reporting period. The income before tax, accrual and prepayments at the end of the current year are:

A company required a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance. In a statement of cash flows, what amount is included in investing activities for the above transaction?

During the year ended December 31, 2020, Zoila Company paid interest totaling P 100,000. The prepaid interest expense is P 23,500 and P 18,000 respectively on December 31, 2019 and 2020. The interest payable is P 45,000 and P 53,500, respectively on December 31, 2019 and 2020.

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