1 pts

Transaction costs directly attributable to the issuance of new shares include all of the
following, except _____________.
Documentary stamp tax
Underwriting fee
SEC registration fee for new shares
Road show presentation

1 pts
An ordinary shareholder does not possess which of the following?
The right to share in the earnings of the corporation when dividends are declared.
The right to vote in the election of the board of directors of the corporation.
The right to direct ownership of the corporate assets.
The right to share proportionately in the corporate assets in case of liquidation if such
assets exceed the claims of creditors.

1 pts
How would the declaration and subsequent issuance of a small stock dividend affect
share capital and share premium when the fair value of the shares is equal to the par
value?
Increase both share capital and share premium
Increase share capital and no effect on share premium
No effect on share capital and increase share premium
No effect on both share capital and share premium

1 pts
Which of the following features of preference shares would most likely be opposed by
ordinary shareholders?
Convertible
Callable
Redeemable
Participating

1 pts
A restriction of retained earnings is most likely to be required by ___________.
Purchase of property, plant, and equipment
Purchase of treasury shares
Payment of last maturing series of a serial bond issue
Funding of past service cost
1 pts
When treasury shares are subsequently re-issued at less than cost, what is the order of
priority for the accounts to be charged?
1 Share premium from treasury shares of the same class
11 Share premium from original issuance
111 Retained earnings
II, III
I, III
II, I, III
I, II, III

1 pts
If shares are issued for a noncash consideration, the shares issued shall be measured
by _________________.
Fair value of the shares issued
Par value of the shares issued
Fair value of the noncash consideration received
Carrying amount of the noncash consideration received

1 pts
The accounting for a quasi-reorganization accomplished via recapitalization usually
includes _____________.
Write-up of assets and write-down of retained earnings
Write-down of both assets and retained earnings
Write-down of assets and elimination of a deficit
Write-up of assets and elimination of a deficit

1 pts
Which of the following statements is true regarding the types of appropriation of retained
earnings?
1 Contractual appropriations are those required by contract, such as in the case of
treasury shares
11 Legal appropriations are those required by law, such as in the case with bondholders
who may impose restrictions on the payment of dividends
111 Voluntary appropriation is a matter of discretion on the part of management, such
as those for plant expansion or contingencies
aII only
III only
I and II only
II and III only
1 pts
An entity declared a cash dividend on a certain date payable on another date. Retained
earnings would ___________.
Not be affected on declaration date
Decrease on record date
Not be affected on payment date
Decrease on ex-dividend date

1 pts
It is a contract that gives employees the right, but not the obligation, to subscribe to the
entity’s shares at a fixed or determinable price for a specified period of time.
Share option
Share warrant
Share appreciation right
Share split

1 pts
For cash settled share-based payment transactions, until the liability is settled, the entity
is required to re-measure the fair value of the liability at each reporting date and at the
date of settlement and any changes in fair value are ________________.
Included in profit or loss
Included in retained earnings
Treated as other comprehensive income
Not recognized

1 pts
Ordinary shares issued as part of a business combination are included in the EPS
calculation from _____________.
The beginning of the accounting period
The date of acquisition
The end of the accounting period
None of the above choices are correct

1 pts
Which of the following statements is true in relation to the call price of preference
shares?
The call price is the amount paid to preference shareholders upon redemption of
preference shares during the lifetime of the entity.
The call price is used in computing book value per share.
In the absence of call price, the liquidation value is disregarded and the par or stated
value is instead used.
All of these statements are true.

1 pts
Options and warrants are dilutive if _________________.
The exercise price is lower than the average market price
The exercise price is higher than the average market price
The exercise price is equal to the average market price
The options represent 20% of the ordinary shares outstanding

1 pts
Compared to cash basis net income for the current year, an entity’s accrual basis net
income decreased when it __________________.
Declared a cash dividend in the prior year that it paid in the current year
Had higher prepaid expenses at the end of the year than at the beginning of the year
Had higher accrued expenses at the end of the year than at the beginning of the year
Sold used equipment for cash at a loss in the current year

1 pts
An understatement of ending inventory in the current period would result in income of
the next period being _______________.
Understated
Overstated
Correctly stated
Cannot be determined

1 pts
Government assistance includes all of the following, except _____________.
Free technical advice
Provision of guarantee
Government procurement policy that is responsible for a portion of the entity’s sales
The construction of infrastructure in developing areas

1 pts
Repayment of grant related to income shall be _______________.
Recognized as component of other comprehensive income
Charged to retained earnings
Expensed immediately
Applied first against the deferred income balance and any excess shall be recognized
immediately as an expense
1 pts
When there is a production cycle of more than one year for a biological asset, PAS 41
encourages separate disclosure for _______________.
Physical change only
Price change only
Total change in value
Physical change and price change

1 pts
Which of the following would be classified as a product that is the result of processing
after harvest?
Cotton
Tea leaves
Oranges
Lumber

1 pts
In exchange for the right inherent in an option contract, the owner of the option will
typically pay a price __________________.
Only when a call option is exercised
Only when a put option is exercised
When either a call option or a put option is exercised
At the time option is received regardless of whether the option is exercised or not

1 pts
It is a contract traded on an exchange that gives the owner the right but not the
obligation to buy or sell a specified quantity of a commodity at a specified price in the
future.
Interest rate swap
Forward contract
Futures contract
Option

1 pts
Current cost financial statements should report holding gains during the period for which
of the following?
Goods sold
Inventory
Both goods sold and inventory
Neither goods sold nor inventory
1 pts
During a period of deflation, an account balance remains constant. With respect to this
account, a purchasing power loss will be recognized if the account is a
____________________.
Monetary asset
Monetary liability
Non-monetary asset
Non-monetary liability

1 pts
Which of the following is a non-monetary item?
Discount on bonds payable
Equity securities measured at fair value
Accounts payable
Prepaid interest

1 pts
If the foreign operation reports in the currency of a hyperinflationary economy, assets
and liabilities of the prior period for comparative financial statements are translated at
_________________.
Closing rate of the prior period
Closing rate of the current period
Average rate of the prior period
Average rate of the current period

1 pts
An entity that has the PHP as its functional currency recently expanded in another
country, whose currency was the USD. The subsidiary has a significant degree of
autonomy and its cash flows are sufficient enough to service its obligations without
funding from the entity. Which of the following is true?
The subsidiary’s functional currency is the USD
All assets and liabilities of the subsidiary are translated at the closing rate
Any gain or loss on foreign currency arising from the subsidiary’s transactions is
reported in profit or loss
Both a and b are true

1 pts
A sale of goods in a currency other than the entity’s functional currency resulted in a
receivable fixed in terms of the foreign currency that would be received. The resulting
gain from change in exchange rates should be included as _______________.
Translation gain reported as part of other comprehensive income
Transaction gain reported as part of other comprehensive income
Translation gain reported as part of profit and loss
Transaction gain reported as part of profit and loss

1 pts
An entity shall disclose all of the following in relation to a construction contract, except
______________.
The method used to determine the stage of completion
The method used to determine the contract revenue recognized in the period
Advances received in cash, analyzed according to each material contract
Total amount of contract revenue recognized in the period

1 pts
Which of the following statements is true regarding separating and combining
construction contracts?
1 If a contract covers a number of assets, construction for each is treated separate if
each asset has been subject to separate negotiation and the contractor and customer
have been able to accept or reject that part of the contract relating to each asset.
11 A group of contracts with different customers may not be treated as a single
construction contract even if they are closely interrelated or performed concurrently.
I only
II only
Both I and II
Neither I nor II

1 pts
When an investment in joint venture is held by a venture capital organization, mutual
trust fund, unit trust, and insurance-linked fund.
The entity must apply the equity method of accounting
The entity must apply the fair value method of accounting
The entity may elect to measure the investment in joint venture at FVTPL
The entity may elect to measure the investment in joint venture at FVOCI

1 pts
A joint arrangement structured without a separate vehicle should be accounted for as?
Joint operation
Joint venture
Either joint operation or joint venture
Neither joint operation nor joint venture
1 pts
Which of the following is included in determining whether a joint arrangement with a
separate vehicle is a joint venture or joint operation?
1 Legal form of the separate vehicle.
11 The terms of the contractual arrangement.
111 The businesses or industries that parties involved are operating in
Other relevant facts and circumstances.
I, II, and III only
I, II, and IV only
II, III, and IV only
I, II, III, and IV

1 pts
Which of the following is true in relation to business combination achieved in stages?
The pre-existing equity interest shall be re-measured at fair value with any resulting gain
or loss included in P&L
The pre-existing equity interest shall be re-measured at fair value with any resulting gain
or loss included in OCI
The pre-existing equity interest shall be not be re-measured
The pre-existing equity interest shall be re-measured at fair value with any resulting gain
or loss included in RE

1 pts
If impairment of the value of goodwill acquired in a business combination is deemed
reversed, the entity shall ________________.
Reverse the impairment charge and credit income
Reverse the impairment charge and credit OCI
Reverse the impairment charge and credit retained earnings
Not reverse the impairment charge

1 pts
Where a new entity A1 was created to acquire two pre-existing entities, A2 and A3,
which of the entities should be designated as the acquirer?
A1
A1 or A2
A2 or A3
A1, A2, or A3

1 pts
Company S owns 75% of Company P. Which of the following can be found in both
separate and consolidated financial statements of the group?
Goodwill
Non-controlling interest
Retained earnings - S
Share premium - P

1 pts
A parent entity controls 100% of an overseas subsidiary. Because of exchange controls,
it is difficult to transfer funds out of the country to the parent entity. How should the
subsidiary be accounted for?
The subsidiary should be excluded from consolidation and the equity method should be
used.
The subsidiary should be excluded from consolidation and measured at cost
The subsidiary should be excluded from consolidation and accounted for as a financial
asset
The subsidiary is not permitted to be excluded from consolidation because control is not
lost

1 pts
An entity is preparing its financial statements for the first time in accordance with PFRS
for SMEs in 2015. If the entity’s fiscal year-end is 30 June 2015, Its date of transition to
PFRS for SMEs is ____________.
30 June 2015
30 June 2014
01 July 2014
01 July 2013

1 pts
In the preparation of its financial statements, a micro-business entity is required to use
________________.
1 Full PFRS
11 PFRS for SMEs
111 Another acceptable basis of accounting
III only
Either I or III
Either II or III
I, II, or III

1 pts
Which can be considered an SME?
An insurance company with total liabilities of Php3,000,000
A local electricity distributor with total assets of Php250,000,000
A restaurant with total liabilities of Php300,000,000
None of the above

1 pts
A first-time adopter of PFRS for SMEs must prepare at least how many statements of
financial position?
One
Two
Three
None of the above

1 pts
Company X is a manufacturing firm with total liabilities of Php3,000,000. During the
year, it borrowed funds from the bank to purchase machinery. How should it account for
the specific borrowing costs related to the loan?
Capitalized since the borrowing is for a qualifying asset
Expensed since Company X is an SME
Capitalized whether or not Company X is an SME
Expensed whether or not Company X is an SME

1 pts
Which of the following enhancing qualitative characteristics is not mentioned explicitly in
the PFRS for SMEs?
Verifiability
Comparability
Understandability
Timeliness

1 pts
Which qualitative characteristics are mentioned explicitly in the PFRS for SMEs?
Faithful Representation and Prudence
Reliability and Materiality
Conservatism and Completeness
Substance over Form and Consistency

1 pts
Company A is a credit union with total assets of Php100,000,000. Which of the following
is/are not required line item/s in its statement of financial position?
Assets classified as held for sale
Investments in joint venture
Liabilities included in the disposal group classified as held for sale
a and c

1 pts
A single statement of income and retained earnings is ______________.
Allowed only under full PFRS
Allowed only under PFRS for SMEs
Allowed under both full PFRS and PFRS for SMEs
Allowed under neither full PFRS nor PFRS for SMEs

1 pts
Which of the following are not required disclosures under the PFRS for SMEs?
1 Segment information
11 Related party transactions
111 Earnings per share
I and II only
I and III only
II and III only
I, II, and III

1 pts
According to the PFRS for SMEs, this qualitative characteristic is the quality of
information that assures users that the information is free from bias and error, and
faithfully represents what it purports to represent.
Reliability
Faithful representation
Relevance
Completeness

1 pts
Company B, a merchandising entity with total liabilities of Php175,000,000, is listed as
an Industrial company in the Philippine Stock Exchange. Which of the following is true
regarding its other comprehensive income?
Company B is not allowed to record any revaluation surplus.
Gains or losses from translation of a foreign operation is allowed.
Company B has the option to present actuarial gains or losses on defined benefit plans
as either part of other comprehensive income or as a component of profit or loss.
All of these are correct statements

1 pts
How are prior period errors treated?
Retrospective application
Retrospective restatement
Prospective application
Prospective restatement

1 pts
Company C is an SME engaged in the leasing business. In a lease that is recorded as a
sales type lease by the company, interest expense ___________.
Does not arise
Should be recognized in full as revenue at the inception of the lease
Should be recognized in full as revenue at the end of the lease term
Should be recognized over the lease term using the effective interest method

1 pts
Which of the following is not a basic financial instrument?
Loans receivable
Investments in non-puttable ordinary shares
Commitments to receive a loan if the commitment cannot be net settled in cash
Commitments to make a loan to another entity

1 pts
Company K is a power generation and distribution company with total assets of
Php150,000,000. Which of the following is true with regard to its inventory?
Any write-down in inventory is recognized as impairment loss separate from cost of
goods sold.
Inventory shall be measured at the lower of cost or net realizable value
The company need not disclose carrying amount of inventories pledged as security for
liabilities
Both a and b are true.

1 pts
Company I, a retailer with Php350,000,000 in total liabilities, acquired 20% of Company
A. Which of the following methods can Company I use to measure its investment in
Company A?
Cost model
Equity method
Fair value model
Any of the above, with the option to be applied to all other similar investments

1 pts
A building is held by a subsidiary to earn rentals under an operating lease from the
parent. The parent manufactures its products in the rented building. The fair value of the
building can be measured reliably without undue cost or effort on an ongoing basis. The
building is ______________.
Accounted for as property, plant, and equipment by both the subsidiary and the group.
Accounted for as property, plant, and equipment by the subsidiary and investment
property by the group.
Accounted for as investment property by the subsidiary and property, plant, and
equipment by the group.
Accounted for as investment property by both the subsidiary and the group.

1 pts
Which of the following is not true regarding any property, plant, and equipment held for
sale by an SME?
Such item is separately presented as part of non-current assets
Unlike full PFRS, such item shall continue to be depreciated
A plan to dispose of the PPE item is an indicator of impairment
All of the above are correct statements

1 pts
Company D, a franchisee with total assets of Php300,000,000, has a ten-year franchise
with a restaurant that can be renewed indefinitely. Which of the following is not true with
regard to this asset?
The franchise is included as part of intangible assets.
The franchise is to be amortized over ten years.
Impairment on the franchise should be tested at least annually, or when indicators for
impairment arise.
All of the above are correct statements

1 pts
Which of the following items of other comprehensive income under full PFRS can be
reported under PFRS for SMEs?
Unrealized gains and losses for instruments carried at fair value through other
comprehensive income
Fair value changes attributable to credit risk for liabilities carried at fair value through
profit or loss
Revaluation surplus for property, plant, and equipment
None of the above

1 pts
Which of the following revenue recognition criteria for the sale of goods are applicable
only to full PFRS and not to PFRS for SMEs?
The entity retains neither continuing managerial involvement nor effective control over
the goods sold.
The amount of revenue can be measured reliably
It is probable that economic benefits associated to the transaction will flow to the entity
None of the above

1 pts
Which of the following R&D costs can be capitalized by an SME?
Laboratory research aimed at discovering or obtaining new knowledge
Conceptual formulation and design of possible product or process alternatives
Design, construction, and testing of preproduction prototypes and models
None of the above

1 pts
An SME may use the fair value model for measuring which of the following assets?
I. Investments in joint ventures
II. Intangible assets
III. Investments in debt securities
IV. Biological assets
I and III only.
II and IV only.
II and III only.
I and IV only.

1 pts
An SME shall account for the transaction cost of any equity transaction as
An expense immediately
A deduction from equity
An addition to equity, net of income tax benefit
A deduction from equity, net of income tax benefit

1 pts
Which of the following is not true regarding an SME’s presentation of li5abilities in the
statement of financial position?
When the entity presents current and noncurrent liabilities, deferred tax liabilities are not
classified as current
Trade and other payables are presented as a minimum line item
Liabilities may be presented broadly in order of liquidity if such presentation is more
relevant
All of the above are correct statements

1 pts
All of the following events would be classified as non-adjusting events after the reporting
period, except ____________.
The entity announced the discontinuance of its assembly operation
The entity entered into an agreement to purchase the freehold of the currently leased
office building
The entity’s major production plant was destroyed by fire
A mistake was discovered in the calculation of the allowance for uncollectible accounts
receivable

1 pts
Which of the following is not a joint venture under the PFRS for SMEs?
Jointly controlled arrangement
Jointly controlled operation
Jointly controlled asset
Jointly controlled entity

1 pts
Company L and Company M agree to establish a new entity, Company K, with both
having joint control over the entity and rights over the net assets of the new company.
Company L is a retailer with Php300,000,000 in total liabilities. Which of the following
methods can Company L use to measure its investment in Company K?
Cost model
Equity method
Fair value model
Any of the above, with the option to be applied to all other similar investments

1 pts
Company L and Company M agree to establish a new entity, Company K, with both
having joint control over the entity and rights over the net assets of the new company.
Company M is a real estate company with Php300,000,000 in total assets. Which of the
following methods can Company M use to measure its investment in Company K?
Cost model
Equity method
Fair value model
Any of the above, with the option to be applied to all other similar investments

1 pts
Company P, a securities broker with Php325,000,000 in total assets, acquired 60% of
Company S. Which of the following is true with regard to the transaction?
Any transaction cost is included in the cost of combination
Any goodwill that arises from the transaction is tested for impairment only when there is
an indication that it may be impaired
Any non-controlling interest is to be presented within equity separate from equity of the
owners of the parent
Any contingent consideration is included only if it is probable and can be measured
reliably.

1 pts
What is a compensating balance?
Savings account balances.
Margin accounts held with brokers.
Temporary investments serving as collateral for outstanding loans.
Minimum deposits required to be maintained in connection with a borrowing
arrangement.

1 pts
Under which section of the statement of financial position is "cash restricted for plant
expansion" reported?
Current assets.
Non-current assets.
Current liabilities.
Equity.

1 pts
A cash equivalent is a short-term, highly liquid investment that is readily convertible into
known amounts of cash and ____________.
is acceptable as a means to pay current liabilities.
has a current market value that is greater than its original cost
bears an interest rate that is at least equal to the prime rate of interest at the date
of liquidation.
is so near its maturity that it presents insignificant risk of changes
interest rates.

1 pts
Bank overdrafts generally should be ____________.
reported as a deduction from the current asset section.
reported as a deduction from cash.
netted against cash and a net cash amount reported.
reported as a current liability.

1 pts
Deposits held as compensating balances __________.
usually do not earn interest.
if legally restricted and held against short-term credit may be included as cash.
if legally restricted and held against long-term credit may be
included among current assets.
none of these.

1 pts
What is the preferable presentation of accounts receivable from officers, employees, or
affiliated companies on a statement of financial position
As offsets to equity.
By means of footnotes only.
As assets but separately from other receivables.
As trade notes and accounts receivable if they otherwise qualify as
current assets.

1 pts
Which of the following is an appropriate reconciling item to the balance per bank in a
bank reconciliation?
Bank service charge.
Deposit in transit.
Bank interest.
Chargeback for NSF check.

1 pts
Which of the following is not true?
The imprest petty cash system in effect adheres to the rule of disbursement
by check.
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.
The Petty Cash account is debited when the fund is replenished.
All of these are not true.

1 pts
A Cash Over and Short account ___________.
is not generally accepted.
is debited when the petty cash fund proves out over.
is debited when the petty cash fund proves out short.
is a contra account to Cash.

1 pts
The journal entries for a bank reconciliation ___________.
are taken from the "balance per bank" section only.
may include a debit to Office Expense for bank service charges.
may include a credit to Accounts Receivable for an NSF check.
may include a debit to Accounts Payable for an NSF check.

1 pts
When preparing a bank reconciliation, bank credits are _____________.
added to the bank statement balance.
deducted from the bank statement balance.
added to the balance per books.
deducted from the balance per books.

1 pts
The effect of compensating balance is ___________.
to provide greater security for the borrower.
to decrease the yield on the loan to the lender.
to increase the yield on the loan to the borrower.
to increase the yield on the loan to lender.

1 pts
Which of the following may properly be included as part of cash to be reported in the
December 31, 2016 statement of financial position?
Treasury bills maturing on March 31, 2017, acquired on December 1, 2016.
Customer’s check dated January 1, 2017 and sent to bank for deposit on December 31,
2016.
Shares of stocks to be sold on the first week of January 2017.
Preference shares with mandatory redemption and acquired three months prior to
redemption date.

1 pts
Which of the following statements is correct?
Cash which is restricted and not available for use within one year of the reporting
period should be included in noncurrent assets.
Cash in a demand deposit account, being held specifically for the retirement of long
term-debts not maturing currently , should be excluded from current assets and shown
as a noncurrent investment.
Investments which can be liquidated at once and with little risk of loss of principal
may be classified as cash equivalent and included in the caption “cash and Cash
equivalent”
Cash and cash equivalents is always presented first in statement of financial position
when presenting current and non-current classifications.

1 pts
These are short-term, highly liquid investments that are so near their maturity that they
represent insignificant risk of changes in value due to changes in interest rates.
Cash and cash equivalents
Treasury bills
Treasury notes
Cash equivalents.

1 pts
Compensating balance agreements that do not legally restrict the amount of funds
shown on the balance sheet should:
be reported in the current asset section.
be reported in the long-term investment section.
be reported in the other asset section.
be reported in the footnotes.

1 pts
Bank overdraft ______________.
is a debit balance in cash in bank account.
is offset against demand deposit account in another bank.
which cannot be offset is classified as current liability.
which cannot be offset is classified as non current liability.

1 pts
Cash in foreign currency is valued at _________________.
face value
current exchange rate
current exchange rate reduced by allowance for expected decline in peso.
estimated realizable value.

1 pts
If material, deposit in foreign countries which are subject to foreign exchange restriction
should be shown separately as ___________.
current asset with no disclosure of the restriction
non-current asset with no disclosure of the restriction
current assets with disclosure of the restriction
non-current asset with disclosure of the restriction.

1 pts
Which of the following is least likely the purpose of preparing bank reconciliation?
to bring cash in bank balance per books and per bank statement in agreement.
as an internal control procedure for safeguarding assets.
to detect fraud.
to recognize items such as expenses and assets not recorded.

1 pts
For effective control over the disbursement of payroll checks , an enterprise makes a
specific amount of cash available in a checking account for this limited purpose. The
type of account used for this purpose is called a(n):
general checking account
imprest bank account
lockbox account
compensating balance.

1 pts
The principal purpose of voucher system is to provide assurance that
all cash receipts are deposited intact in the bank.
all cash disbursements are approved before a check is issued.
all cash receipts are recorded in the accounting records.
all purchase invoices are supported by debit memoranda.

1 pts
Which is not a key element of internal control over cash receipts?
daily recording of all cash receipts in the accounting records.
daily entry in a voucher register
immediate counting by the person opening the mail or using the cash register.
daily deposit intact.

1 pts
This occurs when collection of receivable from one customer is misappropriated and
then concealed by applying a subsequent collection from another customer.
lapping
window dressing
kiting
fraud.

1 pts
This occurs when cash shortage is concealed by overstating the balance of cash. This
is performed by exploiting the float period (the time it needs for a check to clear at the
bank it was drawn).
lapping
window dressing
kiting
fraud

1 pts
This refers to measures taken by management to make a business looks as strong as
possible in its statement of financial position, statement of profit and loss and other
comprehensive income, statement of cash flows. It occurs when books are not closed at
year-end and transactions in the subsequent period are deliberately recorded in current
period in order to improve the entity’s financial performance or financial ratios.
lapping
imprest system
kiting
window dressing.

1 pts
Which of the following is true when accounts receivable are factored without recourse?
The transaction may be accounted for either as a secured borrowing or as a sale,
depending upon the substance of the transaction.
The receivables are used as collateral for a promissory note issued to the factor by the
owner of the receivables.
The factor assumes the risk of collectibility and absorbs any credit losses in collecting
the receivables.
The financing cost (interest expense) should be recognized ratably over the collection
period of the receivables.

1 pts
Which of the following statements is incorrect regarding the classification of
accounts and notes receivable?
Segregation of the different types of receivables is required if they are material.
Disclose any loss contingencies that exist on the receivables.
Any discount or premium resulting from the determination of present value in notes
receivable transactions is an asset or liability respectively.
Valuation accounts should be appropriately offset against the proper receivable
accounts.

1 pts
Which form of receivable financing is equivalent to an absolute sale of
accounts receivable?
pledge of accounts receivable
assignment of accounts receivable
factoring
discounting of notes receivable

1 pts
Which of the following is not a required disclosure for loans and
receivables?
The names of the debtors who defaulted on the payments of their loans or accounts.
The criteria for recognition and basis of measurement applied.
Material items of income and expense and gains and losses resulting from
receivables.
The nature and amount of impairment loss recognized in profit or loss.