TOA 2012 Mock Exam.pdf

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OcrosrR 2412 Barcn

Mocr< CPA Bo,qnp ExamtNATtoN l. l) C t]

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2. 3.

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LJneler the Conceptual Franrework 1or Fir.rancial Reporting 20t0, what are the two lundamental qualitative c haracteristi cs of accou nti n g in lbrnr ation') c. Reliabilit_v- and understandability a. Relevancc and prudence b. Reliability and conservatism ,-d,' Relevance and laithful rcprc'sentation tror hedging purposes, derivative instruments may be broadly designated as either a. Cost hedge or lhir value hedge F.' Fair value hedge or cash l1ow hedge d- Fair value hedge or nrarket hedge b. Cost hedge or cash florv hedge What is rhe correct sequence in dealing with the national budget for various government agencies'?

a. b. c. d.

Allocation, appropriation, liquidation, obligation Appropriation, allocation, obligation, liquidation

Obligation, appropriation. liquidation. allocation Appropriation, obligation, ailocation, liquidation A bank reconciliation is prepared monthly in order fbr the enterprise to c. Crirrect bank errors 4 Arrive at thc correct cash balancc d. Correct book errors h. Unearth an-v undctccted caslt fraud Current tax expetrse plus deferred tax expense is c. l-ax deductible expense a. A meaningless sum None of these d. ,b.' lncome tax expense payment partly in equity shires and partly in debeniures of the seller accepts and the purchases atuilding An entity entit-v. This transastion should be treated in the cash flow staternent as follows a -l'he purchase of the building should he investing cash outilow and the issuance of shares and the debentures financing cash outllows b. 'Ihe purchase of the building should be investing cash outflow and the issuance ol debentures fin;incing cash outflows while the issuahce of shares investing cash outflow c. 'fhis does not belong in a cash flow statetnent and should be disclosed only in the notes to the tinancial statements

4. 7

C

.

8. Cg. C C

C

A

Ignore thc transaction totally sincc

it is a non-cash transaction. No mention is required in either the

i:ash florv statement or in the notes to the flnancial statements Which of the following reports is not a component of the financial statements according to PAS l? Director's repoft Balance sheet Notes to the financial statements Statement of change s in

a. b.

-{ d.

equity

A t,olttntur.\, hea{th und v,elfare organization is required to prcpare

a

a: Statcment of functional expetlses a. Staternent of changes in cquitl' d. Staternent of management responsibility inconrc comprchensive oi b. Statement Accounting concepts are NO1'derived from which clf the following? [.aws of nature a. [nductivc rcasoning b.

,s: d.

Experience

Pragnratism (practicality)

10.'I'heclassificationofaleaseaseitherctperatingorlinancelease isbasedon

a. b. .c. d.

The length of the lcase

l'he economic lif'e of the

asset

The transier of the risks and rcwards of ownership The minimum lease paynrents being at least 50% of the tair value I l. When it is impracticable to deternrine the efJbct of an eror for all prior periods, the entity a. Restates comparative inlirrmation prospectively ltom the earliest date practicable b. Restates col-nparative infbrmation prospectively up to the latest date practicable pa Restates comparative infbrrnation retrospcctively fiom the earliest date practicable d. Restates comparative intbrmation retrospectively up to the latest date practicable 12. An SME, whose onl,"- changes to its equity in the periods tbr which flnancial statements are presented arise from profit or lqs;. payment of dividends. corrections of prior period error and changes in acc