Reference no: EM132787766

Question 1: Which of the following applies to business entities but not to government entities?

a. Presenting information on earnings per share.

b. Continued depreciation of idle equipment.

c. Accounting for biological assets at fair value less costs to sell.

d. Preparation of interim financial statements.

Question 2: If plotted on a graph, the periodic interest expenses recognized on bonds issued at a premium will show a: (X axis - time; Y axis - ?)

a. curvilinear line sloping here and there

b. downward line sloping to the right

c. straight line

d. upward line sloping to the right

Question 3: A private not-for-profit hospital provided P150,000 in charity care for the current year. The hospital should report this charity care as

a. As an unpaid accounts receivable on the balance sheet.

b. Only in the notes to the financial statements.

c. Net patient service revenue of P150,000 and patient care expense of P150,000.

d. Net patient service revenue of P150,000 on the statement of operations.