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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

SANTA MARIA, BULACAN CAMPUS
THEORY OF ACCOUNTS
MOCK 2ND EVALS
1. One of the basic features of financial accounting is
a. Direct measurement of economic resources and obligations and changes in them in terms of money and
sociological and psychological impact.
b. Direct measurement of economic resources and obligations and changes in them in terms of money
c. Direct measurement of economic resources and obligations and changes in them in terms of money and
sociological
d. Direct measurement of economic resources and obligations and changes in them in terms of money and
psychological impact
2. Which of the following statements is not normally an objective of financial reporting?
a. To provide information about an entitys assets and claim against those assets
b. To provide information that is useful in assessing an entitys sources and uses of cash
c. To provide information that is useful in lending and investing decisions
d. To provide information about an entitys liquidation value
3. The enhancing qualitative characteristics of financial information are
a. Comparability and understandability
b. Verifiability and timeliness
c. Comparability, understandability and verifiability
d. Comparability, understandability, verifiability and timeliness
4. Which category of expense is subject to immediate recognition in the statement of comprehensive income?
a. Utilities expense for the production line of a manufacturer
b. Repairs and maintenance expense incurred on production equipment of a manufacturer
c. The salary of the production foreman
d. The salary of the entitys president
5. If the cash balance shown in a companys accounting records is less than the correct cash balance, and neither the company nor
the bank has made any errors, there must be
a. bank charges not yet recorded by the bank
b. Outstanding checks
c. deposits credited by the bank but not yet recorded by the company
d. deposits in transit
6. Which of the following is not true?
a. The imprest petty cash system in effect adheres to the rule of disbursement by check.
b. The petty cash account is debited when the fund is replenished.
c. Entries are made to the Petty Cash account only to increase or decrease the size of the fund or to adjust
the
balance if not replenished at year-end
d. The account Cash short/over if debit balance, is represented as part of operating expenses
7. Credit balances in accounts receivable should be shown as
a. Current liabilities
b. Part of accounts payable
c. Non-current liabilities
d. Netted from accounts receivable
8. Which of the following statement is true?
a. When specified customers account which had already been written off is later collected; sales revenue is increased
by the amount of the recovery.
b. A non-interest bearing promissory note is measured on the statement of financial position at face value
less the
amount of unamortized discount.
c. When individual customers account has credit balances of material amounts, these must be deducted
from the
debit balances in other customers accounts on the statement of financial position
d. It is appropriate to measure the impairment on receivable based on recognized sales or other revenue.
9. Which of the following is not true of the perpetual inventory method?
a, Purchases are recorded as debits to inventory account.
b. After a physical inventory count, inventory is credited for any missing inventory.
c. The entry to record a sale includes a debit to cost of goods sold and a credit to inventory.
d. Purchases returns are recorded by debiting accounts payable and crediting purchase returns and allowances
10. The following are excluded from the cost of inventories, except
a. selling costs
b. freight charges on goods acquired FOB destination
c. abnormal amounts of wasted materials, labor and other production costs
d. storage costs that are necessary in the production process prior to a further production stage
11. Which of the following statement is incorrect regarding biological assets and agricultural produce?
a. The price is an active market is considered to be the best basis for determining the fair value of biological assets
and agricultural produce.
b. Agricultural produce shall be measured at cost less accumulated depreciation and impairment losses,
when its
fair value cannot be estimated reliably
c. The changes in fair value less estimated point of sale costs of biological assets is reported as income or
loss in
the statement of comprehensive income in the period in which the change arises.
d. Biological assets whose fair value cannot be determined reliably shall be measured at cost less accumulated
depreciation and impairment losses.
12. Which is not an essential characteristic of property, plant and equipment?
a. The property, plant and equipment are subject to depreciation.
b. The property, plant and equipment are tangible assets.
c. The property, plant and equipment are used in production or supply of goods and services for rental
purposes
and for administrative purposes.
d. The property, plant and equipment are expected to be used over a period of more than one year.
13. When payment for item of property, plant and equipment is deferred beyond a normal credit terms, the difference between
the cash price equivalent and the total cost payment should be recognized as
a. interest expense over the credit period
b. interest expense of the current year

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c. component of cost of the property, plant and equipment
d. interest expense over the life of the asset
14. The cost of an item of property, plant and equipment that is acquired in exchange for a combination of monetary and
nonmonetary asset with commercial substance is measured at the
a. book value of the assets received plus amount of any cash or cash equivalent
b. fair value of the assets given up plus amount of any cash or cash equivalent transferred
c. fair value of the assets received plus amount of any cash or cash equivalent transferred
d. book value of the assets received plus amount of any cash or cash equivalent transferred
15. Which statement is incorrect concerning derecognition of property, plant and equipment?
a. The carrying amount of an item of property, plant and equipment shall be derecognized on disposal or
when no
future economic benefits are expected from its use or disposal.
b. The gain or loss from derecognition shall be included in equity
c. if it is not practicable for an entity to determine the carrying amount of the replaced part, it may use the
replacement cost as an indication of what the original cost of the replaced part was at the time it was
acquired
or constructed.
d. Derecognition gains shall not be included in revenue but treated as other income.
16. A revaluation increase shall be recognized as income
a. when the revalued asset in non depreciable
b. always
c. when it reverses a revaluation decrease of the same asset previously recognized as expense
d. when the revalued asset is depreciable
17. A purchased patent that has a remaining legal life of 15 years should be
a. amortized over its useful life if less than 15 years
b. amortized over its useful life
c. expensed in the year of acquisition
d. amortized over 15 years regardless of the useful life
18. A lessee incurred cost to construct walkway and landscaping to improve leased property. The estimated useful life of the
walkway and landscaping is fifteen years. The remaining legal term of the nonrenewable lease is twenty years. The walkway and
landscaping cost should be
a. Capitalized as leasehold improvement and depreciated over twenty years.
b. Capitalized as leasehold improvement and depreciated over fifteen years.
c. Capitalized as leasehold improvement and expenses in the year in which the lease expires
d. Expense as incurred
19. Goodwill should be tested periodically for impairment
a. For the entity as a whole
b. At the subsidiary level
c. At the industry segment level
d. At the operating segment level or one level below
20. Broadcast rights and franchise are an example of which category of intangible asset?
a. Market related
b. Customer related
c. Artistic related
d. Contract-based
21. Shares in lieu of cash dividend are recorded as
a. Income at fair value of the shares received
b. Income at par value of the shares received
c. Income at the cash dividend that would have been received
d. Stock dividends
22. Cash received in lieu of stock dividends is accounted for as
a. Dividend income
b. Return of investment
c. Partly dividend income and partly return of investment
d. If the stock dividends are received and subsequently sold at the cash received and gain or loss is recognized
23. A preference share that provides for mandatory redemption on a specified date or at the option of the holder is
a. A financial asset
b. A financial liability
c. An equity instrument
d. Neither a financial liability nor an equity instrument
24. When reclassification is made from owner-occupied property to investment property that will be carried at fair value, any
excess of the fair value over the carrying amount at the date of transfer is
a. ignored
b. recognized as a gain in profit or loss
c. credited to asset revaluation surplus
d. recorded as a credit to a liability account
25. If the company pays insurance premium on a life insurance policy of an officer and the officer or his heirs are designated
beneficiary, any cash surrender value is
a. ignored
b. credit to life insurance expense
c. recorded as incomer
d. shown as part of non-current assets on the statement of financial position
26. A corporation declares an distributes dividend that is a result of current earnings. How will the receipt of the dividends affect
the investment balance of the investor under each of the following classification?
Equity Investment at FVOCI Investment in Associate
a. No effect
decrease
b. Increase
decrease
c. No effect
no effect
d. Decrease
no effect
27. An investor uses equity method to account for investment in associate. The purchase price implies a fair value of the
investees depreciable assets in excess of the investees net asset carrying values. The investee amortization of the excess
a. decrease the investment account
b. decrease the goodwill account
c. increases the investment account
d. does not affect the carrying amount of the investments

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28. These investments are initially recorded at purchase price plus transaction costs.
a. Equity investments at fair value
b. Investment in Associate
c. Equity investment as FVPL and investment in associates
d. Equity investment at FVOCI and investment in associates
29. Unrealized holding gains or losses which are taken to profit or loss are from securities that are classified as
a. held to maturity
b. investment in associates
c. equity investments at FV through profit or loss
d. Equity investments at FV through OCI
30. It is a entity over which the investor has significant influence and it neither a subsidiary nor an interesting joint venture
a. associate
c. subsidiary
b. venture
d. affiliate
31. Which statement is incorrect concerning the equity method?
a. The investment in associate in initially recorded at cost
b. The investment in associate is increased or decreased by the investors share of the profit or loss of the investee after
the date of acquisition
c. The investors share of the profit or loss of the invested is not recognized in the investors profit or loss
d. Distributions received from the investee reduce the carrying amount of the investment
32. Which of the following is correct regarding the disposal of equity investments?
a. No gain or loss is recognized on disposal of equity investments at fair value through profit or loss
b. No gain or loss is recognized on disposal of investment in associates
c. A gain or loss is recognized on the disposal of investment in associates for the difference between the net net
disposal proceeds and the carrying amount of the investment
d. A gain or loss is recognized on the disposal of equity investments at fair value for the difference between the net
disposal proceeds and the acquisition cost of the equity investments
33. When the investor properly discontinues the use of the equity method.
a. the investment account is adjusted ad any adjustment is included in the other comprehensive income
b. the carrying value of the investment is adjusted to confirm with its recoverable amount
c. the carrying value of the investment at the date it ceases to be an associate shall be recognized as its cost on initial
measurement as a financial asset
d. the fair market value of the investment at the date it ceases to be an associate shall be regarded as its cost on initial
measurement as equity investment at fair value
34. The existence of significant influence by an investor is usually evidence in
a. provision of technical expertise
b. interchange of managerial personnel
c. participation in the policy making processes
d. representation in the shareholders meeting
35. Debt investment at amortized cost are reported after initial recognition at
a. acquisition cost
b. fair value
c. amortized cost using straight line method
d. amortized cost using effective interest method
36. Under IFRS 9, the classification of debt investment shall be made on the basis of
a. the business model for managing the financial asset
b. contractual cash flow characteristics of the financial asset
c. managements intention oh holding the debt instrument.
d. both the business model for managing the financial asset and the contractual cash flow characteristic of the financial
asset
37. Interest revenue for debt instrument at fair value through profit or loss is computed based on the instruments
a. carrying amount using effective interest rate
b. carrying amount using the nominal interest rate
c. face value using the effective interest rate
d. face value using the nominal interest rate
38. Interest revenue for debt investments at amortized cost us computed based on the instruments
a. carrying amount using effective interest rate
b. carrying amount using the nominal interest rate
c. face value using the effective interest rate
d. face value using the nominal interest rate
39. When there is an objective evidence of impairment in value of debt investments measured at amortized costs, the carrying
amount of the asset shall be reduced directly or through the use of allowance and the amount of the loss shall be
a. ignored
b. recognized in equity
c. recognized in profit or loss
d. deferred until the date of derecognition
40. No amortization of premium or discount is required for this class of debt investment
a. at amortized cost and at fair value through profit or loss
b. at amortized cost
c. at fair value through profit or loss
d. neither amortized cost nor fair value through profit or loss
41. How is the premium or discount on debt investments at fair value through profit or loss accounted for?
a. as part of the amortized cost and amortized over the life of the bonds
b. as part of the cost until the disposal of the asset.
c. as expense or revenue in the period the bonds are purchased
d. all of the above
42. The use of the effective interest method in amortizing bond premium and discount results in
a. varying amount being recorded as interest income form period to period
b. uniform/constant amount of interest income from period to period
c. varying rate of interest being recorded as interest income from period to period
d. similar interest for all period
43. Investment in debt securities at amortized cost should be recorded on the date of acquisition at
a. lower of cost or market
b. market value

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c. market value plus brokerage fees and other costs incident to the purchase
d. face value plus brokerage fees and other cost incident to the purchase
44. Which of the following is correct about the effective interest rate method of amortization?
a. the effective interest method applied to investments in debt securities is different from the applied to
bonds
payable
b. Amortization of a discount decreases from period to period
c. amortization of a premium decreases from period to period
d. the effective interest method produces a constant rate of return on the carrying amount of the investment from period
to period
45. Which of the following would not be classified as Investment Property?
a. Land held for long term capital appreciation rather than for short term sales in the ordinary course of business
b. Land held for currently maturing undeterminable future use
c. Land held for short term sales in the ordinary course of business
d. Building owned by the entity or held under a finance lease and leased out under one or more operating leases
46. An investment property shall be measure initially at
a. cost
b. cost less accumulated impairment losses
c. depreciable cost less accumulated impairment losses
d. fair value less accumulated impairment losses
47. The following are examples of investment property, except
a. Land held for currently undetermined used
b. property that is being constructed or developed for use as an investment property
c. existing investment property that is being redevelop for continuing use as investment property
d. property occupied by the company officers
48. Which of the following statement best describes owner occupied property according to IAS 40 Investment Property?
a. Property held for sale in the ordinary course of business
b. Property held for use in the production and supply of goods or services or for administrative purposes
c. Property held to earn rentals
d. Property held for current undetermined future use
49. Under IAS 40, Investment property, which of the following additional disclosures must be made when an entity chooses the
cost model as it accounting policy for investment property?
a. fair value of the property
b. the present value of the property
c. the value in use of the property
d. the net realizable value of the property
50. Which of the following properties fall under the definition of investment property and therefore within the scope of IAS 40
Investment Property?
a. Land held for future use
b. Property occupied by an employee of the entity
c. Property being constructed on behalf of third parties
d. A building owned by an entity and leased our under operating leases
51. What could be a valid reason for transfer of investment property to property plant and equipment
a. when there is change of use
b. based on the accountants decision
c. when the entity adopts the fair value model
d. when there is a decrease in the fair value
52. When reclassification is made from owner-occupied property to investment property that will be carried at fair value, any
excess of the fair value over the carrying amount at the date of transfer is
a. ignored
b. recognized as gain on the income statement
c. credit to asset revaluation surplus
d. recorded as a credit to a liability account
53. A gain arising from a change in the fair value of an investment property for which an entity has opted to use fair value model
is recognized in
a. profit or loss for the year
b. general reserve in the shareholders equity
c. valuation reserve in the shareholders equity
d. none of the above
54. In case of the property held under an operating lease and classified as investment property
a. the entity had to account for the investment property under the cost model only
b. the entity had to use the fair value model only
c. the entity has the choice to use the between cost and fair value model
d. the entity needs only to disclose the fair value and can use the cost model
55. Which of the following is not characteristic of an investment property?
a. A land and or a building
b. held by an owner or a lessee under finance lease
c. held to earn rentals or for capital appreciation
d. always accounted under for using the fair value model only
56. If an entity is the owner and designated beneficiary of the life insurance policy covering the companys officer, any increase
in cash surrender value is
a. credit to life insurance expense
b. credited to a other income account
c. debited to life insurance expense
d. ignored
57. Cash surrender value of life insurance is recognized in the entitys books when the entity pays the insurance premiums of its
officers and
a. the entity is the named beneficiary
b. the named beneficiary is other than the entity
c. the officer remains with the entity for at least 10 years
d. the life insurance policy is expected to be surrendered after 10 years
58. The key characteristic for the classification of an asset as held for sale is that the carrying amount of the asset
a. must be higher than it net realizable value
b. must be lower than initial cost of the assets.

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c. must be principally recovered through the a sale transaction
d. must be principally recovered through continuing use
59. Non-current asset held for sale shall be presented on the financial statements
a. among the PPE in the statement of financial position
b. as other non-current financial assets in the statement of financial position
c. separately from other asset under current asset in the statement of financial position
d. only in the notes
60. Any gain on subsequent increase in the fair value less cost to sell of a non current asset classified as held for sale should
a. be recognized
b. not be recognized
c. be recognized but not in excess of the cumulative impairment loss
d. be recognized but only in retained earnings
61. Non-current asset held for sale or disposal group as held for sale shall be measured at
a. carrying amount
b. fair value less cost to sell
c. lower between the FV less cost to sell and the carrying amount
d. higher between the FV less cost to sell and the carrying amount
62. The Minor Company classified a noncurrent asset accounted for under the cost model as held for sale on December 31, 2012.
Because of no offers were received at an acceptable price, Minor decided on July 1, 2013 not to sell the asset but continue to use
it. In accordance with IFRS 5, Non-current asset held for sale and discontinued operations, the asset should be measured on July
1, 2013 at
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 on the basis that it had never been classified as held for sale and its
recoverable amount
d. the higher of its carrying amount on the basis that it had never been classified as held for sale and its
recoverable amount
63. A brand name that was acquired separately should initially be recognized according to IAS38 Intangible assets at
a. recoverable amount
b. either cost or fair value
c. fair value
d. cost
64. One of the essential characteristic of an intangible asset is
a. indefinite useful life
b. controlled by the enterprise
c. subject to amortization
d. has physical substance
65. Under IAS16 Property Plant and Equipment, which of the following relating to non-current assets should be capitalized?
(1) Replacement of roof of a building for 15 years
(2) Maintenance of an asset on a three-monthly basis
(3) Installation and assembly costs
(4) Replacement of small spare parts annually
a. (1) and (3)
b. (1) only
c. (3) only
d. (3) and (4) only
66. If the qualifying asset is financed by general borrowings, the capitalizable borrowing cost is equal to
a. actual borrowing cost
b. total expenditures on the asset times weighted interest rate
c. average expenditure on the assets on the asset multiplied by weighted interest rate or actual interest incurred
whichever is lower
d. average expenditure on the assets on the asset multiplied by weighted interest rate or actual interest incurred
whichever is higher
67. if the qualifying asset is financed by specific borrowing, the capitalizable borrowing cost is equal to
a. actual borrowing cost
b. actual borrowing cost incurred up to completion of asset
c. actual borrowing cost incurred up to completion of asset minus any investment income from temporary
investment of the borrowing.
d. zero
68. Which of the following terminologies best describes the removal of an asset from an entitys accounts?
a. Derecognition
b. Impairment
c. Write Off
d. Depreciation
69. Which of the following disclosures must be made under IAS16 Property, Plant and Equipment?
(1) Existence and amounts of restrictions on title
(2) A narrative discussion of future capital expenditure plans
(3) The disposal proceeds of each major asset sold in the period
(4) The measurement bases used for determining the gross carrying amount
a. (1) only
b. (2) and (3)
c. (1) and (4)
d. (4) only
70. Under the principles of IAS16 Property, Plant and Equipment, which of the following should be included in the cost of an
item of property, plant and Equipment?
(1) Initial delivery cost and handling cost
(2) Interest cost on borrowing cost for the purchase of equipment
(3) Costs of training staff on the new asset
(4) installation and assembly costs
a. (1), (2) and (3)
b. (1) and (2)
c. (1) and (4)
d. (4) only

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71. if the present value of a note in exchange for an item of property, plant and equipment is less than its face amount, the
difference should be
a. included in the cost of the asset
b. amortized as interest expense over the life of the note
c. amortized as interest expense over the life of the asset
d. included as interest expense in the year of issuance
72. The cost of an item of property, plant and equipment comprises all of the following, except
a. purchase price
b. import duties and non refundable purchase taxes
c. any cost directly attributable in bringing the asset to the location condition for its intended use
d. fines paid for violation of import regulations
73. Which of the type of expenditure occurs when an entity installs higher capacity boiler to heat its plant
a. addition
b. betterment
c. repair and maintenance
d. replacement
74. Which of the following is the assumption on which straight line method of depreciation is based
a. the operating efficiency of the asset decreases in later years
b. service value declines as functions of time rather than use
c. service value declines as functions of obsolescence rather than use
d. Physical wear and tear is more important than economic obsolescence
75. In a period of falling prices, the use of which of the following inventory cost flow method would result in the highest cost of
goods sold?
a. FIFO
b. LIFO
c. Weighted average method
d. Moving Average method
76. In a period of rising prices, the use of which of the following inventory cost flow method would result in the highest reported
Net Income?
a. FIFO
b. LIFO
c. Weighted average method
d. Moving Average method
77. When using a perpetual inventory system
a. purchase account is used
b. a cost of goods sold is not used
c. two journal entries are required to record a sale
d. a physical count of goods is necessary at the end of the period
78. Which of the following inventory costing method report most closely the current cost of inventory on the statement of
financial position?
a. FIFO
b. Specific Identification method
c. Weighted average method
d. Moving Average method
79. Net realizable value is
a. acquisition cost plus costs to complete and sell
b. selling price
c. selling price plus costs to complete and sell
d. selling price less cost to complete and sell
80. The use of a Discount Lost account implied that the recorded cost of a purchased inventory is its
a. invoice price
b. invoice price plus purchase discount lost
c. invoice price less purchase discount lost
d. invoice price less purchase discount lost whether taken or not
81. The use of a Purchase Discount account implied that the recorded cost of a purchased inventory is its
a. invoice price
b. invoice price plus purchase discount lost
c. invoice price less purchase discount lost
d. invoice price less purchase discount lost whether taken or not
82. Which statement is not true about the gross profit method of inventory valuation?
a. It may be used to estimate inventories for interim statements
b. It may be used to estimate inventories for annual statements
c. It may be used by auditors
d. It may be used to estimate inventory pilferage
83. The costing method that is appropriate for inventories that are segregated for a specific project and inventories that are not
ordinarily interchangeable is
a. specific identification method
b. standard cost
c. weighted average method
d. moving average method
84. If a merchandise company ended a period with a larger inventory than it had at the beginning of the period, which of the
following statements must be true?
a. the cost of goods sold was greater than net purchases
b. Profit was greater than gross profit on sales
c. The cost of goods sold was smaller than net purchases
d. The cost of goods available for sale was smaller than the cost of goods sold
85. Which of the following would be included in the computation of goods available for sake at both cost and retail under retail
inventory method?
a. Freight in
b. Normal losses
c. Abnormal losses
d. Net Mark ups
86. The most common method of computing depletion is

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a. Percentage of depletion method
b. Decreasing charge method
c. Straight line
d. Production method
87. This is defined as an arrangement of which two or more parties have joint control
a. Joint operation
b. Joint venture
c. Joint arrangement
d. Joint undertaking
88. It is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligation
for the liabilities relating to the arrangement.
a. Joint operation
c. Joint asset
b. Joint venture
d. Joint entity
89. It is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets and
obligation for the liabilities relating to the arrangement.
a. Joint operation
c. Joint asset
b. Joint venture
d. Joint entity
90. The parties to a joint venture are called
a. Joint operators
c. Investors
b. Joint venturers
d. Incorporators
91. The parties to a joint operation are called
a. Joint operators
c. Investors
b. Joint venturers
d. Incorporators
92. What is the method of accounting for investment in joint venture
a. Cost method
c. Consolidation method
b. Equity method
d. Fair value method
93. Under PFRS 9, a financial asset shall be measured subsequently at amortized cost when
I. The business model of the entity is to hold the financial asset in order to collect contractual cash flows on specified
dates
II. The contractual cash flows are not solely payments of principal and interest on the principal amount outstanding
a. I only
c. Either I or II only
b. II only
d. Both I and II
94. Which is true concerning recognition of unrealized gains and losses on financial assets?
I. Unrealized gains and losses on financial assets held for trading shall be included in profit or loss
II. Unrealized gains and losses on financial assets measured at amortized cost shall be included as component of other
comprehensive income.
a. I only
c. Both I and II
b. II only
d. Neither I nor II
95. When stock dividend of different class is received
a. No formal entry is made but only a memorandum
b. Cash is debited and dividend income is credited
c. A new investment account is debited and dividend income is credited
d. A new investment account is debited and original investment account is credited
96. If there is any excess of the investors share of the net fair value of the associates identifiable asset and liabilities over the
cost of investment that is bargain purchase, how should that excess be treated?
a. It should be included in the other comprehensive income
b. It should be included in the retained earnings
c. It should be included as income in determination of the investors share of the associate profit or loss for the
period
d. It should be disclosed separately as part of the investors equity
97. Effective interest rate on bonds is higher than the stated rate when bonds sell
a. At maturity value
c. Below Face value
b. Above face value
d. At face value
98. An impairment loss recognized for goodwill
a. Shall not be reversed in a subsequent year
b. Maybe reversed fully in a subsequent year
c. Maybe reversed partly in a subsequent year
d. Shall be reversed in a subsequent year
99. Website development cost incurred for the purpose of promoting and advertising an entitys product or service should be
a. Expense when incurred
b. Recognized as an intangible asset with definite life
c. Recognized as an intangible asset with indefinite life
d. Included as component of other comprehensive income
100. Solen Company and Nolse Company exchanged truck with fair value in excess of carrying amount. In addition, Solen paid
Nolse to compensate for the difference in truck fair value. As a consequence of the exchange, Solen shall recognize
a. A gain equal to the difference between the fair value and carrying amount of the truck given up
b. A gain determined by the proportion of cash paid to the total consideration
c. A gain equal to the difference between the fair value and carrying amount of the truck received
d. A loss determined by the proportion of cash paid to the total consideration
101. Agricultural activity includes all of the following except
a. raising livestock
c. floriculture and aquaculture
b. annual perennial cropping d. ocean fishing
102. Which of the following is accounted for under IAS 40 Agriculture?
a. Sausages
c. apples
b. Processed fruit
d. sugar

Have patience. All things are difficult before they become easy.- Saadi
------------GOOD LUCK AND GOD BLESS!!!---------------------