Accounting > QUESTIONS & ANSWERS > Western Leyte College of Ormoc city, Inc. - FAR 1011. Liabilities. ( ALL ANSWERS CORRECTLY HIGHLIGHT (All)

Western Leyte College of Ormoc city, Inc. - FAR 1011. Liabilities. ( ALL ANSWERS CORRECTLY HIGHLIGHTED IN RED )

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LIABILITIES Easy: 1. Which does PFRS 7 not require to be disclosed about exposure to risks arising from financial instruments? a. Qualitative and quantitative information about operational risk b... . Qualitative and quantitative information about credit risk c. Qualitative and quantitative information about market risk d. Qualitative and quantitative information about liquidity risk 2. Current liabilities are a. due and payable within one year b. due and payable for more than one year c. due, but not receivable for more than one year d. due and receivable within one year 3. Under PFRS 7, market risk refers to a. The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities b. The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the market prices (e.g. currency risk, interest rate risk, and other price risk) c. The risk associated with the extent of fixed charges incurred in a business operation d. The risk that one party to a financial instrument will cause a financial loss for the other party failing to discharge an obligation 4. Current liabilities are: a. due and payable for more than one year. b. due and receivable within one year. c. payable if a possible subsequent event occurs. d. due and to be paid out of current assets within one year. Average: 5. Which of the following is not acceptable treatment for the presentation of current liabilities? a. Offsetting current liabilities against assets that are to be applied to their liquidation b. Listing current liabilities according to amount c. Showing current liabilities immediately below current assets to obtain a presentation of working capital d. Listing current liabilities in order of maturity [Show More]

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