b. Asser d. I'.quitv 37. Accordirrg to the Conceptual Framework of Accounting,, which of the following is not a constraint of re levant and reliable information? B a. 'I'imeliness c. Balance between benefit and cost _.b. Neutrality d. Balance between qualitative characteristics ,.f0., Wttictr of tt',. fotto* ingis not necessarily rcgartled as nonprotit organizations? B '' a. Cooperatives .g: Country clubs h. PartnershiPs 'd' l'abor unions is that an entity qualilving for them should purchase, construct' c. Covernment gi[i d. Govemnrentappropriation c. Statement of changes in equitY d. Statentent of ctsh flows which tax rates are used? .!i-' ftnacted future tax rates d. Past years' tax rates long-term payable requiring a commitment to pay money at a c. Net realizable value d. Prescnt value of luture cash flows Transaction costs that are directly attributable to the issuance ofnew shares should be TA Mock Exam THEORY of ACCOUNTS Mock CPA Board Examination (Page 3) 30. Wtrlcn glthe fbllowing statements regardirrg accounting concepts or theoly is incorrect? Cl a. Accounting concepts are human-made b" Accountiug concepts are components ol'accounting thcory c. . Accounting theory has <Ieveloped primarily in response to government regulation i: Accountin! theoiy can be defined as a coherent set of hypothetical, conceptual and pragmatic principles. i0. ]'hese are govemment grants whose primary condition or otherwise acquire long-ternt assets. A a. Grants related t0 assets b. Grants related to income 3 i . A ma.ior objective o1'most cash control systems is to D a. Ensure that current obligations are met -tr. Ilnsure that excess cash does not exist c, Eltsure that unused cash is invested d. Hnsure the sat'eguarding of cash 32. Exchange differences arising frorn tronslatior of financial statements of a foreign entity arc C e. Recognized directt;- in retained earnings b. Recognized as accumulated translation adjustments in protit or loss c. Recognized as accumulated translation adjustments in the equity section d. Capitalized iltht: clifference:i resulted fiom severe devaluation of a currency tlll. Which of the flnancial statement should an investor primarily use to assess the amounts, timing, and uncertainty of investing and financing activities of ABC C--onrpany? a. ExpensedirnmediatelY b.- Deducted from equitY c. Charged to retained earnings d. Deducted from equity, net of any related incorne tax benefit 39. l'his accounting objective emphasizes the importance of the lncorne Statement,as it is geared toward proper income or ' performance determination
The Oakes Company Has A Loan Due For Repayment in Six Months' Time, But Oakes Has The Option To Refinance For Repayment Two Years Later. Oakes Plans To Refinance This Loan
The Correct Answer Is "The Amount in The Statement of Financial Position After Accumulated Depreciation and Impairment Losses". IAS16 para 6 Defines The Carrying Amount
A The Lower of Its Carrying Amount and Its Recoverable Amount B The Higher of Its Carrying Amount and Its Recoverable Amount C The Lower of Its Carrying Amount
A The Cost (Or An Amount Substituted For Cost) of The Asset Less Its Residual Value B The Amount at Which The Asset Is Recognized in The Statement of Financial Position
A An Excess of Equity Over Current Assets B Resources To Meet Financial Commitments As They Fall Due C The Residual Interest in The Assets of The Entity After Deducting All Its Liabilities
A An Excess of Equity Over Current Assets B Resources To Meet Financial Commitments As They Fall Due C The Residual Interest in The Assets of The Entity After Deducting All Its Liabilities