Long Test for Final Examination in Conceptual Framewor...

(BSA
2-1 STA. MARIA: 1ST SEM AY 2020-2021)
INSTRUCTION: Choose the Best Answer! You are given three hours to accomplish this final departmental
examination in Conceptual Framework and Accounting Standards. It is advisable that you save a screenshot of your
answers as proof that you submitted your responses in case of possible problems in your submission.

Points:
64/90
11,

By placing my full name [ LAST NAME, FIRST NAME & MIDDLE INITIAL ], I
clearly state that all work here is entirely my own and does not violate the
University's academic policy especially on matters of honesty.Required to
answer. Single line text.
22,

COURSE, YEAR & SECTIONRequired to answer. Single line text.

33,

Which of the following is not part of the summarizing phase of financial

accounting process?Required to answer. Single choice.
(1/1 Point)
Financial statements are prepared.

Adjusted trial balance is prepared.

Journal entries are posted to the ledger.

Adjusting entries are journalized and posted to the ledger.

Correct answers: Journal entries are posted to the ledger.
44,

Max Company reported the following data for the current year: Legal and audit
fees – P1,700,000 Rent for office space – P2,400,000 Interest on inventory loan
– P2,100,000 Loss on abandoned data processing equipment – P350,000 The
office space is used equally by the sales and accounting departments. What
amount should be classified as general and administrative expenses?Required to
answer. Single choice.
(2/2 Points)
5,000,000

3,250,000

2,900,000

4,100,000
Correct answers: 2,900,000
55,

Regent Company, a publicly owned entity, is subject to the requirements of

segment reporting. In the income statement for the year ended December 31,
2020, the entity reported revenue of P60,000,000 excluding intersegment sales
of P15,000,000, expenses of P50,000,000 and net income of P10,000,000.
Expenses included payroll costs of P20,000,000. The combined identifiable assets
of all operating segments on December 31, 2020 totaled P40,000,000. External
revenue of reportable operating segments must be at leastRequired to answer.
Single choice.
(2/2 Points)
45,000,000

37,500,000

33,750,000

56,250,000
Correct answers: 45,000,000
66,

When converting from cash basis to accrual basis of accounting, which of the
following adjustments should be made to cash payments for expenses to arrive
at the accrual basis expenses?Required to answer. Single choice.
(1/1 Point)
Add beginning accrued expenses

Deduct beginning prepaid expenses

Add ending prepaid expenses

Add beginning prepaid expenses

Correct answers: Add beginning prepaid expenses
77,

A related party transaction is a transferRequired to answer. Single choice.

(1/1 Point)
Between unrelated parties when a price is charged

Between related parties, regardless of whether a price is charged

Between unrelated parties, regardless of whether a price is charged

Between related parties when a price is charged

Correct answers: Between related parties, regardless of whether a price is charged
88,

Under the accrual basis, rental income of Agate Company for the calendar year
2017 is P60,000. Additional information regarding rental income during 2017
follows: Unearned rental income, January 1 P5,000 Unearned rental income,
December 31 7,500 Accrued rental income, January 1 3,000 Accrued rental
income, December 31 4,000 How much actual cash rental was received by Agate
Company in 2017?Required to answer. Single choice.
(2/2 Points)
58,500

62,500

61,500

65,500
Correct answers: 61,500
99,

In the income statement for the current year, Drum Company reported revenue
P50,000,000, excluding intersegment sales P10,000,000, expenses P47,000,000
and net income P3,000,000. Expenses incurred payroll costs of P15,000,000. The
combined identifiable assets of all operating segments at year-end totaled
P40,000,000. What is the minimum amount of sales to a major customer?
Required to answer. Single choice.
(2/2 Points)
4,700,000

6,000,000

4,000,000

5,000,000
Correct answers: 5,000,000
1010,

Which of the following statements is true regarding single-entry accounting

system?Required to answer. Single choice.
(0/1 Point)
It is adopted by organizations with complex and numerous transactions.

Transactions are analyzed in terms of debits and credits.

Single entry method of determining net profit is the transaction approach.

It is also called incomplete records because only minimal accounting records are kept without
the benefit of a complete accounting system.
Your answer to question 10 is wrong. Correct answers: Single entry method of determining net
profit is the transaction approach.
1111,

X Corporation incurs costs unevenly throughout the financial year. Advertising

costs of P2,000,000 were incurred on February 28, 2020 and staff bonuses are
paid at yearend based on sales. Staff bonuses are expected to be around
P30,000,000 for the year, based on sales of P300,000,000. Total sales for the
quarter ending March 31, 2020 were P70,000,000. What costs should be
included for the quarter ended March 31, 2020 for advertising costs and staff
bonuses, respectively?Required to answer. Single choice.
(0/2 Points)
2,000,000 & 7,500,000

2,000,000 & 7,000,000

500,000 & 7,000,000

500,000 & 7,500,000

Your answer to question 11 is wrong. Correct answers: 2,000,000 & 7,000,000
 1212,

During the year 2020, Max Company received interest amounting to P61,500.
Additional information relating to interest income is shown below. How much is
the accrual basis interest income for the year 2020? Accrued interest income,
January 01, 2020 3,000 Accrued interest income, December 31, 2020 4,000
Unearned interest income, January 01, 2020 5,000 Unearned interest income,
December 31, 2020 7,500Required to answer. Single choice.
(2/2 Points)
62,500

61,500

60,000

58,500
Correct answers: 60,000
1313,

Type BONUS and enjoy two (2) pointsRequired to answer. Single line text.
(2/2 Points)
1414,

Which of the following statements best describes the Modified cash basis of
accounting method?Required to answer. Single choice.
(0/1 Point)
The Modified cash basis method follows GAAP.

The Modified cash basis framework is universally applied.

Unlike a traditional cash basis system, the Modified cash basis method will always record
revenues in the period earned.

The user can decide what items to report using cash basis and what items to report using
accrual basis.
Your answer to question 14 is wrong. Correct answers: The Modified cash basis framework is
universally applied.
1515,

Which part of notes to financial statement should below paragraph appear? The
consolidated financial statements of the Group have been prepared in
compliance with Philippines Financial Reporting Standards (PFRS), which include
the availment of the relief granted by the SEC under Memorandum Circular Nos.
14-2018 and 3-2019 as of 2018 for the following implementation issues of PFRS
15 affecting the real estate industry: • Exclusion of land in the determination of
percentage of completion (POC) discussed in PIC Q&A No. 2018-12-E •
Accounting for significant component discussed in PIC Q&A No. 2018-12D •
Accounting to Common Usage Services Area (CUSA Charges discussed in PIC
Q&A) No. 2018-12-H • Adoption of PIC Q&A NO. 2018-14: PFRS 15 – Accounting
for Cancellation of Real Estate SalesRequired to answer. Single choice.
(1/1 Point)
Identification of Financial Statements

A statement of compliance with PFRSs

Supporting information or computation

A summary of significant accounting policies applied

Correct answers: A statement of compliance with PFRSs
1616,

Moonstone Company keeps single-entry records for its business. The accounts
payable per files on May 1 was P110,000, and on May 31 was P140,000. During
the month, P45,000 was paid for cash purchases; P22,500 was allowed on
purchase returns; P280,000 was paid on accounts payable; and P10,000 was
paid for freight-in. The inventory on May 1 was P50,000 and on May 31 was
P60,000. What is the cost of sales for the month of May?Required to answer.
Single choice.
(2/2 Points)
345,000

175,000

365,000

355,000
Correct answers: 355,000
1717,

Move On Na Corp.’s trial balance contained the following account balances at

December 31, 2019: Accumulated depreciation P900,000 Equipment and
furniture P1,080,000 Equity investment @FVPL 300,000 Patent 240,000 Prepaid
insurance 60,000 Accounts receivable (net) 960,000 Cash 660,000 Land (held for
future business sites) 1,500,000 Inventory 1,800,000 How much is the total
current assets in Move On Na’s December 31, 2019, balance sheet?Required to
answer. Single choice.
(2/2 Points)
3,780,000

4,380,000

4,860,000

4,020,000
Correct answers: 3,780,000
1818,

M Company reported the following balances on December 31. The entity paid
supplier P4,900,000 during the year ended December 31, 2020. Under the
accrual basis, what amount should be reported for the cost of goods sold in
2020? 2019 2020 Inventory 2,900,000 2,600,000 Accounts Payable 500,000
750,000Required to answer. Single choice.
(0/2 Points)
4,350,000

5,450,000

4,850,000

4,950,000
Your answer to question 18 is wrong. Correct answers: 5,450,000
1919,

Orange Company is engaged in small export business. The company maintains

limited records. Most of the company’s transactions are summarized in a cash
journal; noncash transactions are recorded by making memo entries. The
following are abstracted from the company’s records: What is the amount of
gross sales?Required to answer. Single choice.
(0/2 Points)
1,925,000

2,145,000

1,625,000

2,225,000
Your answer to question 19 is wrong. Correct answers: 2,225,000
2020,

Below are YEHEY’s transactions for the third quarter. How much is the total
expense for the third quarter? Payment of quick response insurance premium for
calendar year (payment was made during the first quarter) 400,000 Loss from
earthquake 980,000 Write-down of inventories (loss on P/L) 720,000Required to
answer. Single choice.
(2/2 Points)
2,100,000

2,000,000

1,800,000

1,260,000
Correct answers: 1,800,000
2121,

Under Diamond Company’s accounting system, all insurance premiums paid are
debited to prepaid insurance. For interim financial report, Diamond Company
makes monthly estimated charges to insurance expense with credits to prepaid
insurance. Additional information for the year ended December 31, 2017 is as
follows: Prepaid insurance, January 1, 2017 P 420,000 Charges to insurance
expense during 2017 (including year-end adjustment of P70,000) 1,750,000
Prepaid insurance, December 31, 2017 490,000 What was the amount of
insurance premiums paid by Diamond Company during 2017?Required to
answer. Single choice.
(0/2 Points)
1,820,000

1,750,000

1,680,000

1,330,000
Your answer to question 21 is wrong. Correct answers: 1,820,000
2222,

It is a business segment or a geographical segment for which segment

information required to be disclosedRequired to answer. Single choice.
(1/1 Point)
Ordinary segment

Reportable segment

Accountable segment

Measurable segment
Correct answers: Reportable segment
2323,

May Iba Na Sya Company, the following information is available: Cost of goods
sold- P60,000; Dividend revenue- P2,500; Income tax expense- P6,000;
Operating expenses- P23,000 and Sales- P100,000. In May Iba Na Sya’s single-
step income statement, gross profitRequired to answer. Single choice.
(0/2 Points)
Should be reported at P42,500

Should be reported at P13,500.

Should not be reported.

Should be reported at P40,000

Your answer to question 23 is wrong. Correct answers: Should not be reported.
2424,
Which of the following statements is incorrect regarding cash basis of
accounting.Required to answer. Single choice.
(1/1 Point)
It is useful in evaluating enterprise performance because cash receipts and cash payments and
the related accomplishments and efforts occur in different periods.

It is simple and less costly to maintain.

It does not present the financial position or operating results of an enterprise in conformity with
the generally accepted accounting standards.

It does not reflect the results of all profit-directed activities that took place during the period.
Correct answers: It is useful in evaluating enterprise performance because cash receipts and cash
payments and the related accomplishments and efforts occur in different periods.
2525,

Nasaktan Ko Siya Company provided the following information for 2019: Current
asset, Jan 1- P240,000; Property, Plant and Equipment, Jan 1- P1,600,000; Non-
current liabilities- P580,000; Property, Plant and Equipment, Dec 31- P1,700,000;
Current liabilities- P130,000. All assets are reported at year-end. Working capital
of P90,000 remained unchanged. Net income for 2019 was P60,000. No dividend
was declared during the year and there were no other changes in the
shareholders’ equity. How much is the amount of current assets on Dec. 31,
2019?Required to answer. Single choice.
(2/2 Points)
90,000

220,000

130,000

40,000
Correct answers: 220,000
2626,

During 2017, Zircon Company had P200,000 in cash sales and P3,000,000 in
credit sales. The accounts receivable balances were P400,000 and P485,000 at
December 31, 2016 and 2017, respectively. If Zircon Company desires to prepare
a cash basis income statement, how much should be reported as sales for 2017?
Required to answer. Single choice.
(2/2 Points)
3,285,000

3,115,000

2,915,000

3,200,000
Correct answers: 3,115,000
2727,

The following information pertains to Nixon Corp. and its divisions for the year
ended December 31, 2020: Sales to unaffiliated customers, P2,500,000
Intersegment sales of products similar to those sold to unaffiliated customers,
P750,000 Interest earned on loans to other operating segments, P50,000 Nixon
and all of its divisions are engaged solely in manufacturing operations. Nixon has
a reportable segment if that segment's revenue exceedsRequired to answer.
Single choice.
(2/2 Points)
250,000

325,000

330,000

255,000
Correct answers: 325,000
2828,

Statement 1: Each material class of similar items shall be presented separately in

the financial statements. Items of a dissimilar nature or function shall be
presented separately unless they are immaterial. Statement 2: Assets and
liabilities, and income and expenses, shall not be offset unless required or
permitted by a Standard or an Interpretation. Statement 3: Comparative
information shall be included for narrative and descriptive information when it is
relevant to an understanding of the current period’s financial
statements.Required to answer. Single choice.
(0/1 Point)
Only statement 1 and 3 are correct.
Only statement 1 and 2 are correct.

Only statement 2 and 3 are correct.

All statements are correct.

Your answer to question 28 is wrong. Correct answers: All statements are correct.
2929,

The following data are extracted from the records of Park Shin Hye Inc. for the
year 2021: • Payments on accounts payable - 100,000 • Accounts payable, Jan.
1 - P10,000 • Accounts payable, Dec. 31 - P15,000 • Cash discounts taken on
purchases - P5,000 • Trade discounts taken on purchases - P8,000 • Purchase
returns and allowances - P12,000 • Inventory, Jan. 1 - P23,000 • Inventory, Dec.
31 - P18,000 How much is the gross purchases during the period?Required to
answer. Single choice.
(0/2 Points)
130,000

Cannot be determined

163,000

171,000

122,000
Your answer to question 29 is wrong. Correct answers: 122,000
3030,

If a business entity entered into certain related party transactions, it would be

required to disclose all of the following information except theRequired to
answer. Single choice.
(1/1 Point)
Peso amount of the transactions for each of the periods for which an income statement is
presented.

Nature of the relationship between the parties to the transactions.

Nature of any future transactions planned between the parties and the terms involved.

Amounts due from or to related parties as of the date of each statement of financial position
presented.
Correct answers: Nature of any future transactions planned between the parties and the terms
involved.
3131,

Jun Phyo Co. engages in five diversified operations namely, operations A, B, C,

D, and E. Information on these segments are shown below about the revenues,
profits, and assets, respectively: • Segment A: P3,200; P800; P40,000 • Segment
B: P3,200; P400; P8,000 • Segment C: P200; P40; P4,000 • Segment D: P600;
P80; P8,000 • Segment E: P800; P280; P24,000 Additional information: A. For
internal and external reporting purposes, segments A and B are considered as
one operating segment and are similar in all the aspects indicated in IFRS 8. B.
Segment E is considered as an operating segment for internal decision-making
purposes. C. Segments C and D have similar economic characteristics and share
a majority of the aggregation criteria and are to be reportable as per
management’s discretion. Applying the provisions of IFRS 8, what are the
reportable segments?Required to answer. Single choice.
(2/2 Points)
A and B as one segment, E, and C and D as one segment

A, B, C, D and E

A, B and E

A and B as one segment and E

Correct answers: A and B as one segment, E, and C and D as one segment
3232,

Interim period is a financial reporting period forRequired to answer. Single

choice.
(1/1 Point)
a period of any length of time

six months

a period shorter than one year

longer than one year

Correct answers: a period shorter than one year
3333,
Statement 1: Accounting standards help to ensure the relevance of financial
information provided to external users. Statement 2: IASB has an authority to
require compliance with its accounting standards. Statement 3: One of the
objectives of the Philippine Interpretations Committee is to comment on
exposure drafts of proposed accounting standards or proposed regulations with
accounting relevance that may be issued by government agencies, such as the
Securities and Exchange Commission, Bangko Sentral ng Pilipinas, and Insurance
Commission.Required to answer. Single choice.
(1/1 Point)
All the statements are correct.

Only two statements are correct.

Only one statement is correct.

All the statements are incorrect.

Correct answers: Only two statements are correct.
3434,

Operating segments that do not meet any of the quantitative thresholdsRequired

to answer. Single choice.
(1/1 Point)
May be considered reportable if the information is for internal use only

May be considered reportable and separately disclosed if this is the practice within the
economic environment in which the entity operates

May be considered reportable and separately disclosed if management believes that information
about the segment would be useful to the users of the financial statements

Cannot be considered reportable

Correct answers: May be considered reportable and separately disclosed if management believes
that information about the segment would be useful to the users of the financial statements
3535,

Which of the following statements are incorrect? Statement I. In a modified cash

basis, depreciation is reported normally. Statement II. Cash basis is acceptable in
the existing accounting standards.Required to answer. Single choice.
(1/1 Point)
Neither I nor II
II only

I only

Both I and II
Correct answers: II only
3636,

What are the disclosures required in relation to operating segments?Required to

answer. Single choice.
(1/1 Point)
General information about the operating segment

Reconciliations of total segment revenue, total segment profit or loss, total segment assets and
total segment liabilities to the corresponding amounts in the entity’s financial statements.

Information about segment profit or loss, including specified revenue and expenses included in
profit or loss, segment assets and segments liabilities

All of these are required to be disclosed

Correct answers: All of these are required to be disclosed
3737,

P Company is engaged in a small business in Teresa Street. The company

maintains limited records. Most of the company’s transactions are summarized in
a cash journal. Non-cash transactions are recorded by making memo entries. The
following are abstracted from the company’s records. What is the amount of
gross sales?Required to answer. Single choice.
(0/2 Points)
2,062,000

2,130,000

1,780,000

2,080,000
Your answer to question 37 is wrong. Correct answers: 2,062,000
3838,

The trial balance prepared at December 31 did not balance. Debit total was
P159,250 and credit total was P153,200. In determining the cause of the
difference, you discovered the following errors: a credit to Cash of P650 was not
posted; a P3,000 credit to be made to Sales account was credited to the
Accounts Receivable account instead; the Wages Payable account balance of
P9,300 was listed in the trial balance as P3,900. What is the correct trial balance
total?Required to answer. Single choice.
(2/2 Points)
160,600

161,600

158,600

156,800
Correct answers: 161,600
3939,
Master Corporation had the following data for each of the first three quarters of
2021. How much income tax provision should be reported for the third quarter?
Income Before Tax Effective Tax Rate First Quarter 1,000,000 30% Second
Quarter 3,000,000 30% Third Quarter 2,000,000 35%Required to answer. Single
choice.
(2/2 Points)
900,000

2,050,000

1,050,000

1,200,000
Correct answers: 900,000
4040,

Key Management Personnel Compensation includes I. short term employee

benefits II post-employment benefits III other long term employee benefits IV
termination benefits V share-based paymentRequired to answer. Single choice.
(1/1 Point)
I, III, V

I, II, III, V

I, III

I, II, III, IV, V

Correct answers: I, II, III, IV, V
4141,

Conceptually, interim financial statements can be described as

emphasizingRequired to answer. Single choice.
(1/1 Point)
reliability over relevance

comparability over neutrality

relevance over comparability

timelines over reliability

Correct answers: timelines over reliability
 4242,

Which of the following is true regarding interim reporting?Required to answer.

Single choice.
(1/1 Point)
Permanent inventory decline should not be recorded in the interim period but rather at year-
end

Interim in reporting is required under IFRS

Comprehensive income is not required

Each statement must be marked “unaudited”

Correct answers: Each statement must be marked “unaudited”
4343,

Statement 1: The Revised Conceptual Framework paragraph 6.44 states that in

most cases, no single factor will determine which measurement basis should be
selected. The relative importance of each factor will depend on facts and
circumstances. Statement 2: The Revised Conceptual Framework paragraph 7.22
states that effective communication of information in financial statements makes
that information more relevant and contributes to a faithful representation of an
entity’s assets, liabilities, equity, income and expenses. Statement 3: The
Revised Conceptual Framework paragraph 8.5 states the financial capital
maintenance concept requires the adoption of the current cost basis of
measurement.Required to answer. Single choice.
(0/1 Point)
All statements are correct.

Only statement 1 and 2 are correct.

Only statement 2 and 3 are correct

Only statement 1 and 3 are correct.

Your answer to question 43 is wrong. Correct answers: Only statement 1 and 2 are correct.
4444,

For interim financial reporting, a loss from earthquake occurring in the second
quarter should beRequired to answer. Single choice.
(1/1 Point)
recognized ratably over all four quarters with the first quarter being restated

disclosed by a note only the fourth quarter

recognized in the second quarter

recognized ratably over the last three quarters

Correct answers: recognized in the second quarter
4545,

Based on the Revised Conceptual Framework paragraph 4.39, obligations to

transfer an economic resource may include the following examples
exceptRequired to answer. Single choice.
(1/1 Point)
obligations to receive cash.

obligations to exchange economic resources with another party on unfavourable terms. Such
obligations include, for example, a forward contract to sell an economic resource on terms that
are currently unfavourable or an option that entitles another party to buy an economic resource
from the entity.

all are examples of obligation to transfer an economic resource

obligations to deliver goods or provide services.

obligations to transfer an economic resource if a specified uncertain future event occurs.

Correct answers: obligations to receive cash.
4646,

PAS 1, par. 69, provides that an entity shall classify a liability as current, when,
exceptRequired to answer. Single choice.
(0/1 Point)
The entity expects to settle the liability within the entity’s operating cycle.

The entity holds the liability primarily for the purpose of trading.

The liability is due to be settled within twelve months after the reporting period.

The entity has an unconditional right to defer settlement of the liability for at least twelve
months after the reporting period.
Your answer to question 46 is wrong. Correct answers: The entity has an unconditional right to
defer settlement of the liability for at least twelve months after the reporting period.
4747,
Companies should disclose all of the following in interim reports exceptRequired
to answer. Single choice.
(0/1 Point)
dividends paid.

balance in accounts receivable.

changes in accounting policies.

seasonal revenue, cost, or expenses.

Your answer to question 47 is wrong. Correct answers: balance in accounts receivable.
4848,

An entity prepares reversing entries at the beginning of the accounting period.

Which of the following adjusting entries should not be reversed?Required to
answer. Single choice.
(1/1 Point)
The entry to take up unused supplies at the end of the period.

The entry to record salaries incurred but not yet paid at the end of the period.

The entry to record interest earned but not yet collected at the end of the period.

The entry to take up the expired portion of the insurance premium paid in advance.
Correct answers: The entry to take up the expired portion of the insurance premium paid in
advance.
4949,

A law firm began operations in July with office supplies of P86,000. During the
month, the firm purchased supplies of P116,000. At July 31, supplies on hand
total P96,000. The adjusting entry at July 31 will result in supplies expense
ofRequired to answer. Single choice.
(2/2 Points)
84,000

180,000

96,000

106,000
Correct answers: 106,000
 5050,

Total profit over the life of an entity isRequired to answer. Single choice.
(1/1 Point)
Higher under the cash basis than under the accrual basis.

The same under the cash basis and under the accrual basis.

Not possible to measure.

Lower under the cash basis than under the accrual basis.
Correct answers: The same under the cash basis and under the accrual basis.
5151,

Two or more operating segments may be aggregated into a single operating

segment if all the following conditions are satisfied, exceptRequired to answer.
Single choice.
(1/1 Point)
The segments share a majority of the nature of product or service, nature of production
process,

The aggregation is not consistent with the core principle of segment reporting.

The aggregation is not inconsistent with the core principle of segment reporting.

The segments have similar characteristics.

Class of customer, method of product distribution and regulatory environment

Correct answers: The aggregation is not consistent with the core principle of segment reporting.
5252,

The trial balance of Gold Company at June 30, 2020, the end of its accounting
period, is P212,000. Year-end adjustments were made as follows: • Depreciation
of office equipment, P4,000 • Accrued salaries of employees, P2,500 • Accrued
interest on notes receivable, P2,800 • Expired insurance, P2,100 What is the
adjusted trial balance total?Required to answer. Single choice.
(2/2 Points)
223,100

212,000

223,400
221,300
Correct answers: 221,300
5353,

All of the following are related party transactions, exceptRequired to answer.

Single choice.
(0/1 Point)
Transferred goods from inventory to a subsidiary

Sold an entity’s property to the wife of the entity’s president

Paid a huge bank loan

Sold an asset to an associate

Your answer to question 53 is wrong. Correct answers: Paid a huge bank loan
5454,

Salty adopts the calendar year as its reporting period and published interim
financial reports for the quarter ended September 30, 2020. Which of the
following financial reports does not bear a correct date/period?Required to
answer. Single choice.
(0/1 Point)
Statement of financial position as of September 30, 2020 and as of December 31, 2019.

Statement of comprehensive income for the quarter ended September 30, 2020 and for the
quarter ended September 30, 2019

Statement of financial position of as September 30, 2020 and as of September 30, 2019

Statement of comprehensive income for the nine months ended September 30, 2020 and for
the nine months ended September 30, 2019.
Your answer to question 54 is wrong. Correct answers: Statement of financial position of as
September 30, 2020 and as of September 30, 2019
5555,

The statement of financial position of Twin Seas Company, a partnership,

showed the following accounts and their balances on January 1 and December
31, 2020. January 1 December 31 Cash 42,800 50,200 Accounts receivable (net)
43,100 65,000 Inventory 20,200 59,000 Accounts payable 12,000 15,000
Salaries payable 5,000 8,500 During the year 2020, the owners of Twin Seas
made additional investments for a total of P55,000 and withdrawals amounted to
P30,000. How much is the profit of Twin Seas for the year 2020?Required to
answer. Single choice.
(2/2 Points)
61,600

36,600

68,600

86,600
Correct answers: 36,600
5656,

On July 1, 2017, Bronze Company obtained fire insurance at an annual premium

of P72,000 payable on July 1 of each year. The first premium payment was made
on July 1, 2017. On October 1, 2017, Bronze Company paid P24,000 for real
estate taxes to cover the period ending September 30, 2018. This prepayment
was made to obtain a discount. In its December 31, 2017 statement of financial
position, Bronze should report prepaid expenses ofRequired to answer. Single
choice.
(0/2 Points)
60,000

36,000

42,000

54,000
Your answer to question 56 is wrong. Correct answers: 54,000
5757,

Which of the following is incorrect when an entity presents a subtotal in the

statement of financial position in accordance with IAS 1 par. 55A?Required to
answer. Single choice.
(1/1 Point)
Those subtotals shall be presented and labelled in a manner that makes the line items that
constitutes clear and understandable.

Those subtotals shall be consistent from period to period.

Those subtotals shall be comprised of line items made up of amount recognized and measured
in accordance with IFRS.

Those subtotals shall be displayed with more prominence than the subtotals and totals required
in IFRS for the balance sheet.
Correct answers: Those subtotals shall be displayed with more prominence than the subtotals and
totals required in IFRS for the balance sheet.
5858,

Condura and its divisions are in the cooling machineries manufacturing industry.
Below are its transactions for year 2020 in which operations were conducted by
its industries. What are the reportable segments?Required to answer. Single
choice.
(2/2 Points)

Y, O, C, P, A

Y, U, C

O, P, A, C

O, P, A, U

O, P, A
Correct answers: Y, O, C, P, A
5959,

A Corp. has P616,000 net income after interest expense of P30,000 and income
tax expense of P264,000. It reported P40,000 gain on sale, P70,000 depreciation
expense, and P50,000 loss on sale. Changes in current asset and current liability
accounts during 2020 were as follows: Accounts receivable – P60,000 increase
Merchandise inventory – P50,000 increase Accounts Payable – P90,000 decrease
Salaries and wages payable – P30,000 increase Interest payable – P5,000
increase Income tax payable – P25,000 decrease Compute the cash from
operations.Required to answer. Single choice.
(0/2 Points)
421,000

506,000

526,000

501,000
Your answer to question 59 is wrong. Correct answers: 506,000
6060,

In the income statement for the current year, Drum Company reported revenue
P50,000,000, excluding intersegment sales P10,000,000, expenses P47,000,000
and net income P3,000,000. Expenses incurred payroll costs of P15,000,000. The
combined identifiable assets of all operating segments at year-end totaled
P40,000,000 What is the minimum amount of external revenue to be disclosed
by reportable segments?Required to answer. Single choice.
(2/2 Points)
22,500,000

30,000,000

37,500,000

33,750,000
Correct answers: 37,500,000
6161,

Coconut Company incurred an inventory loss from market decline of P600,000 on

June 30, 2020. What amount of the inventory loss should be recognized in the
quarterly income statement for the three months ended June 30, 2020?Required
to answer. Single choice.
(2/2 Points)
300,000

600,000

200,000

250,000
Correct answers: 600,000
6262,
Which of the following is not one of the quantitative thresholds of a reportable
segment?Required to answer. Single choice.
(1/1 Point)
10 per cent or more of the combined revenue, internal and external, of all operating segments

10 per cent or more of the combined assets of all operating segments

10 per cent or more of the greater, in absolute amount, of the combined reported profit or
reported loss, respectively

10 per cent or more of the combined liabilities of all operating segments

Correct answers: 10 per cent or more of the combined liabilities of all operating segments
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