Pablo Borbon Campus

College of Accountancy, Business, Economics & International Hospitality Management -Rosario Campus

LONG QUIZ
FM 305 – MONETARY POLICY AND CENTRAL BANKING

Name: Room: Score:

Procter: Section: Time: Date:

Identification
Direction: Identify the word or group of words being described for each statement. Write your answer in the space
provided. (25 pts)

external audit
_____________________ 1. This is conducted by an independent firm of accountants. Their opinion is the expression on the
truth and fairness or the fair presentation of financial statement.
accrual basis
_____________________ 2. Part of assumption where transactions are recognized when their effects occur rather than when
cash flow rises.
_____________________
component of the entity 3. To classify as _______, the part of the business must be capable of being clearly distinguished
from the rest the rest of the entity, both in terms of operations and cash flow.
_____________________
historical cost 4. This is bringing an asset into their working condition. Price of the asset plus the additional cost
occurred which is also capitalized in the balance sheet.
financial reporting
_____________________ 5. This has to be regulated because there will always be disagreements and uncertainties when
preparers are left to prepare without constraints and guidance.
income , tax purposes
_____________________ 6. Accounting profit less any ______ that is not subject to tax; add any expense that are not
allowable for _______;
_____________________
income statement 7. Less any allowances that are deductible for tax but not shown in the ____________.
_____________________
revaluation reserve 8. Gain on revaluation are normally credited to the ________, which appears in in the equity
section of financial position.
_____________________
statement of comprehensive 9. A financial statement that summarizes both standard net income and other comprehensive
income income (OCI).
fair value
_____________________ 10. Amount for which an asset could be exchanged between knowledgeable, willing parties in an
arm’s length transaction.
_____________________
SME / Small and medium-sized 11. This entity has total assets of between 3 million and 350 million or total liabilities of 3 million
enterprises and 250 million.
_____________________
borrowing costs 12. The capitalization of __________ ceases when the asset is substantially ready for its intended
use or sale.
_____________________
purchase price 13. The cost of an item might include more than the basic ________.
_____________________
reducing balance method 14. Method where it reduce more in the earlier years with charge declining in later years.
_____________________
income tax 15. A tax imposed by the national government on businesses and individuals generating income
inside or outside of the Philippines.

Find the income tax payable at the end of the year given the net income below:
16. 180.10 251,200.67 21. 402,195.16 1,998,780.65
17. 2,098,967.04 7,654,890.12 22. 15,001.32 350,008.78
18. 402,968.24 2,001,560.80 23. nontaxable / tax exempt 169,000.56
19. nontaxable / tax exempt 125,000 24. 1,098,800.20 4,321,000.67
20. 402,500.57 2,000,001.90 25. 283,214,234.68 810,890,670.50

Leading Innovations, Transforming Lives, Building the Nation

RESTRICTED
Multiple Choice
Direction: Choose the letter of the correct answer and write it on the blank before the number. ( 25 pts)

_______ 26. Refers to a financial statement that reports a company's assets, liabilities, and shareholder equity at a specific
point in time. Also provide the basis for computing rates of return for investors and evaluating a company's
capital structure.
a. Balance sheet c. Shareholder’s equity
b. Income Statement d. Expenses
_______ 27. Machine useful life has been consummated after 5 years of business operation. After the 5th year, its worthiness
is 50,000 compared to what it’s worth before. What does this called?
a. Depreciation c. Expense
b. Residual value d. Accumulated depreciation

Based on given figure below determine the historical cost, current purchasing power, and current cost. (44-46)
Factory machine 520,000 Historical cost - 601,900
Shipping cost 15% of factory machine - 78,000 Inflation rate - 31,900.70
Labor cost 5% of shipping cost - 3,900 CPP - 633,800.70
CC - 635,146.20
Inflation rate 5.3%
Replacement/additional 1,345.50

a. 633,800.70 c. 635,146.20
b. 635,146.22 d. 601,900

_______
D 28. Historical cost
_______
C 29. Current cost
_______
A 30. Current purchasing power

_______ 31. Recognition of elements of financial statement must be probable that any future economic benefit associated
with the items will to or from the entity and must have a cost value that can be measured reliably.
a. True b. False
_______ 32. Process of recording assets recognizing them as having no future economic value.
a. Capitalize c. Expense
b. Write-off d. Asset retirement
_______ 33. These are the business taxes credit for future taxes. Reduces the income tax liability and in non-current assets.
a. Deferred tax asset c. Reconciliation
b. Financial position d. Liability
_______ 34. Refers to a service that operates, manages or controls for public use any of the following: (1) Distribution of
Electricity; (2) Transmission of Electricity; (3) Petroleum and Petroleum Products Pipeline Transmission
Systems; (4) Water Pipeline Distribution Systems and Wastewater Pipeline Systems.
a. Public utility c. IFRS
b. Transition relief d. Accounting Standard

Get the accumulated depreciation and depreciation that will be capitalized on the following year below. .
Acquired a commercial building last 2015.
▪ Cost – 16,250,000
▪ Labor cost – 820,650.78
▪ Scrap Value – 180,000
▪ Useful Life – 30

A
_______ 35. Recognized depreciation for year 2018
B
_______ 36. Recognized depreciation for year 2015
_______
C 37. Recognized depreciation for year 2020
_______
D 38. Recognized depreciation for year 2022
a. 15,381,586.11 15,381,585.71 c. 14,254,935.33 14,255,542.33
b. 17,070,650.78 d. 13,128,891.05 13,129,498.95
_______ 39. Checks the accuracy of the figures in the bookkeeping records and then checks that the financial statements
based on those bookkeeping records comply with all applicable rules and regulations before expressing such as
opinion.
a. Accounting standard c. Finance
b. External auditors d. Board of Directors
_______ 40. Provides general guidance that is intended to “fill in the gaps” if a policy needs to be developed in the absence
of a specific accounting standard.
a. IAS 8 c. IAS 33
b. IAS 12 d. IA16
_______ 41. Comparison of different Financial statements in order to check that they add up the same balance.
a. Financial reporting c. Earning per share
b. Reconciliation d. Balance
_______ 42. An important basis for many standard. It requires that the financial statements reflect the economic substance of

Leading Innovations, Transforming Lives, Building the Nation

RESTRICTED
 transactions or relationships rather than their legal form. If something looks like a duck and quacks like a duck,
then it’s a duck.
a. Neutrality c. Relevance
b. Substance over form d. Prudence
_______ 43. Accounting policy is reliable if it is _____________. Choose the criteria that is not included in the list.
a. Represents faithfully c. Complete in all material respects
b. Prudent d. Supports decision making
_______ 44. Capitalization is
▪ suspended for any extended period when asset is being actively developed
▪ ceases when the asset itself is completely or ready for sale.
▪ finance charges ceases on those parts for which work is completed
a. True b. False
_______ 45. When it is discovered that previously published financial statements contained material errors, the errors should
be corrected by ________ the figures retrospectively.
a. Restating c. Reissuing
b. Revaluing d. Review
_______ 46. Requires disclosure of the factors that were used to identify the entity’s reportable segments. Like, a measure of
profit and loss and total assets should be reported for each segment, and measure of liabilities if that information
is normally provided for managers.
a. Operating Segments c. Segmental Reporting
b. Segmental Disclosure d. Discontinued Activities
_______ 47. IAS 1 and Solutions:
▪ Forbids the treatment of any items of income and expense as ordinary.
▪ Does require the separate disclosure of items of income and expense that are material.
a. True b. False
_______ 48. Comparison to the current market price to see if their stocks is overvalued/undervalued.
a. Stock’s revaluing c. Stock’s valuation
b. Stock’s checking d. Stock’s reinvest
_______ 49. In this state, objects are used as a means of exchange a limited number of times after which, they must be
consumed as a commodity or they will deteriorate.
a. Store of wealth c. Perishable
b. Precious metals d. Indivisible
_______ 50. In this characteristic, one would not want to accept money as payment if its value fluctuates. When money starts
losing its value people will stop using it as a store value.
a. Durability c. Portability
b. Stability d. Difficult to counterfeit

Goodluck and God Bless!

Bonus – Full name of your prof FM203

Leading Innovations, Transforming Lives, Building the Nation

RESTRICTED