Reference no: EM132950018

Problem 1: Sin sin Company declared cahs dividend before the end of the reporting period for 2020. This will be paid in first quarter of 2021. Under 2020 statement of cash flows, the dividend declared shall be presented as

a. A use of cash from operating activities

b. Use of cash from investing activities

c. Noncash transaction presented in a separate schedule

d. Noncash transaction presented in financing activities

Problem 2: Sunshine company voluntarily changed one of its accounting policies. This change shall be accounted for as

a. Account for the change retrospectively

b. Treat the effect of the change ass a component of the other comprehensive income

c. Inform shareholders prior to taking the decision

d. Treat the change prospectively and adjust the effect of the change in the current period and future periods

Problem 3:  A change in accounting policy includes all of the following, except

a. The change from cost model to revaluation model in measuring property, plant and equipment

b. Change in depreciation method from sum of years' digits to straight line

c. Initial adoption of a policy to carry assets at revalued amount

d. Change in inventory valuation from FIFO to weighted average method

Problem 4: COCO entity's management is having difficulty in distinguishing the change between a change in accounting estimate and a change in accounting policy. In such case, the change shall be treated as

a. Change in accounting policy

b. Change in accounting estimate with appropriate disclosure

c. Correction of an error

d. Change in accounting estimate with no appropriate disclosure