CFAS- Final Exam questions with verified answers(2022)

CFAS- Final Exam questions with verified answers(2022)If doing so eliminates or reduces an accounting mismatch Under what condition can an entity classify financial asset that meets the amortized cost criteria at FVPL? Integral part of the entity's basic financial statements An entity shall prepare and present a statement of cash flows as Cost of designing product for specific customers Costs incurred in bringing the inventory to the present location and condition include C. Production of agricultural produce Biological transformation results from asset changes through all of the following, except A. Procreation B. Degeneration C. Production of agricultural produce D. Growth D. Biological asset and agricultural produce Agricultural activity results in which of the following type of asset? A. Neither biological, asset nor agricultural produce B. Agricultural produce C. Biological asset D. Biological asset and agricultural produce Inventory Consumable stores or supplies to be consumed in the production process are reported as B. to rectify inappropriate accounting policies Which of the following is not a purpose of the notes? A. to present information about the basis of preparation of the financial statements and the specific accounting policies B. to rectify inappropriate accounting policies C. to disclose the information required by PFRSS that is not presented elsewhere in the financial statements D. to provide information that is not presented elsewhere in the financial statements but is relevant to an understanding of any of the financial statements. C. Entity A considers the items included in these line items as dissimilar and cannot be included in material classes of similar items and are also individually immaterial to warrant separate presentation. The financial statements of Entity A shows line items described as "Other current assets," "Other noncurrent liabilities," and "Miscellaneous expenses." Which of the following is correct? 1/1 A. Entity A considers the items included in these line items as individually material but with dissimilar nature or function. B. This manner of presenting items is unacceptable under PAS 1. C. Entity A considers the items included in these line items as dissimilar and cannot be included in material classes of similar items and are also individually immaterial to warrant separate presentation. D. Entity A considers the items included in these line items as comprising a material class of similar items. Other Comprehensive Income This term comprises items of income and expense including reclassification adjustments, that are not recognized in profit or loss as required or permitted by PFRS. More than the face amount of the bond When an investor purchased a bond between interest dates at a premium, the cash paid to the seller is D. Systematic allocation of administrative overhead The costs of conversion of inventory include all of the following, except 1/1 A. Costs directly related to the units of production, such as direct labor B. Systematic allocation of variable production overhead C. Systematic allocation of fixed production overhead D. Systematic allocation of administrative overhead Accrual Basis On Day 1, a customer buys goods from Entity A and promises to pay the sale price on Day 30. Entity A recognizes sales revenue on Day 1 rather than on Day 30. This is an application of which of the following accounting concepts? B. All of these statements are true. Which statement is true when a financial asset at FVOCI is reclassified to FVPL? 1/1 A. The cumulative gain or loss previously recognized in OCI is reclassified to profit or loss. B. All of these statements are true. C. The fair value at reclassification date becomes the new carrying amount. D. The financial asset continues to be measured at fair value.