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Problem 1: Over the past 5 years, the entity was able to report income. However, it realizes that income was not enough to allot h business to acquire new sets of equipment. Which of the following is true? [S1] The entity was able to maintain its financial capital. [S2] the entity was able to maintain its physical capital.
a. only S2 is true b. Both S1 and S2 are false. C Both S1 AND s2 ARE TRUE D. Only S1 is true
Problem 2: What us the accounting standard setting bod in the Philippines at the present time?
a. Financial Reporting Standards Council b. Philippine Accounting Standards Board c. Accounting Standards Council d. Auditing and Assurance Standards Council
Problem 3: Which of the following statements are true? (1) In the absence of the CONSEPTAL Framework, the specific accounting standard shall apply. (2) Incase there is a conflict, the requirements of the standards shall prevail. (3) Nothing in the Conceptual Framework overrides any of the accounting standards.
a. 1 and 2 only b. 1 and 3 only c. 2 and 3 only d. 1, 2 and 3
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
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