Editedquiz_chapter-15_miscellaneous-topics

Chapter 15 Miscellaneous Topics QUIZ 1. During the period, Entity A acquires an item of PPE in a foreign currency transaction. As at the reporting date, the payment for the purchase is not yet settled; however, the item of PPE was already delivered and accepted by Entity A. Which of the following would need to be translated at the reporting date? a. The related payable. b. The cost of the PPE. c. The depreciation expense. d. All of these. 2. The grantor in a service concession arrangement is a a. government entity c. controlled entity b. private entity d. a or b 3. According to the GAM for NGAs, a service concession asset is initially measured at a. cost d. either a or b b. fair value c. fair value less costs to sell 4. Which of the following is a joint venture that is classified as ‘jointly controlled assets’? a. Two parties agree to contribute money to acquire a piece of land and subdivide it after the acquisition. Each party will get title to its share in the subdivided lot. b. Two parties agree to contribute capital in incorporating a new entity. The new entity will issue shares of stocks to both parties, representing each party’s interest in the new entity. c. Two parties agree to coproduce a product using their existing facilities. Each party bears its own costs but share in the revenue from sales of the coproduced product. d. Two parties agree to contribute resources to acquire a warehouse. Each of the parties shall have equal rights over the use of the warehouse but shall share in the maintenance costs. 5. Which of the following is not one of the forms of joint ventures under the GAM for NGAs? a. Jointly controlled operations b. Jointly controlled net assets c. Jointly controlled assets d. Jointly controlled entities 6. A separate set of books of accounts would most likely be established in this type of joint venture. a. Jointly controlled operations b. Jointly controlled journals and ledgers c. Jointly controlled assets d. Jointly controlled entities

7. According to the GAM for NGAs, spot exchange rate is a. the exchange rate for immediate delivery. b. the exchange rate at the reporting date. c. the ratio of exchange for two currencies. d. a currency other than the functional currency of the entity. 8. According to the PPSAS, a service concession asset is an asset used to provide public services in a service concession arrangement that a. the operator constructs, develops, or acquires from a third party b. is an existing asset of the operator c. is an existing asset of the grantor d. any of these 9. Entity A, a government entity, acquires a machine for $10,000 on November 1, 20x1, on account, and settles the account on January 3, 20x2. The machine is estimated to have a useful life of 5 years and a residual value of 5% of cost. Entity A uses the straight line method of depreciation. The exchange rates are as follows: November 1, 20x1 $1:₱50 December 31, 20x1 $1:₱40 January 3, 20x2 $1:₱45 How much is the net foreign exchange gain (loss) recognized in surplus or deficit from the transaction? a. ₱10,000 c. (₱5,000) b. (₱10,000) d. ₱5,000 D [$1,000 x (₱50 - ₱45)] = 5,000 gain 10. According to the GAM for NGAs, exchange differences on nonmonetary items are recognized in a. surplus or deficit c. a or b b. equity d. not recognized

“He will have no fear of bad news; his heart is steadfast, trusting in the Lord. His heart is secure, he will have no fear; in the end he will look in triumph on his foes.” (Psalm 112:7-8)

- END -