The document is a quiz about PAS 20 Accounting for Government Grants and Disclosure of Government Assistance. It contains 5 multiple choice questions that test understanding of key concepts in PAS 20, including what is considered a government grant, how income from grants should be recognized over time, and how repayable grants are accounted for. The last line provides a biblical verse about wisdom and knowledge.
The document is a quiz about PAS 20 Accounting for Government Grants and Disclosure of Government Assistance. It contains 5 multiple choice questions that test understanding of key concepts in PAS 20, including what is considered a government grant, how income from grants should be recognized over time, and how repayable grants are accounted for. The last line provides a biblical verse about wisdom and knowledge.
The document is a quiz about PAS 20 Accounting for Government Grants and Disclosure of Government Assistance. It contains 5 multiple choice questions that test understanding of key concepts in PAS 20, including what is considered a government grant, how income from grants should be recognized over time, and how repayable grants are accounted for. The last line provides a biblical verse about wisdom and knowledge.
The document is a quiz about PAS 20 Accounting for Government Grants and Disclosure of Government Assistance. It contains 5 multiple choice questions that test understanding of key concepts in PAS 20, including what is considered a government grant, how income from grants should be recognized over time, and how repayable grants are accounted for. The last line provides a biblical verse about wisdom and knowledge.
PAS 20 Accounting for Government Grants and Disclosure of
Government Assistance QUIZ:
1. Which of the following is considered a government grant under PAS 20?
a. Award of major government contracts b. Cancellation of an existing loan from the government c. Free technical advice d. Public improvements
2. Which of the following is not considered a government grant under PAS 20? a. Financial aid b. Benefit of subsidized loans c. Tax breaks d. Forgivable loans
3. The main concept used in recognizing income from government grants is
a. capital approach b. historical cost c. matching d. materiality
4. In 20x1, Entity A proposes an environmental clean-up project for a river. The
government supports this project and gives Entity A a ₱1M monetary grant conditioned that the money will only be spent on the proposed project. The proposed project is expected to take about 2 years to complete. Entity A starts the clean-up project in 20x2. How should Entity A recognize income from the government grant? a. in full when Entity A receives the grant b. over 2 years starting in 20x1 c. over the period of the project as expenses are incurred d. the grant is not recognized as income
5. According to PAS 20, a government grant that becomes repayable is accounted for a. retrospectively. b. prospectively. c. a or b d. not accounted for
“The fear of the LORD is the beginning of knowledge, but fools despise wisdom and instruction.” (Proverbs 1:7)
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