Advacc 3 Answer Key Set b165 Pcs

RIZAL TECHNOLOGICAL UNIVERSITY
Junior Philippine Institute of Accountants

Boni Avenue, Brgy. Malamig, Mandaluyong City
MULTIPLE CHOICE-ANSWERS (Theory)
1 D Budget execution documents (Budget ng Bayan)

2 A Unrestricted funds (AICPA)
3 A To ensure that insurance companies could comply with IFRS (Dayag P2
Reviewer 2015 ed.)
4 D Not included in the FS (Valix)
5 C Both I and II
An insurance contract is a "contract under which one party (the insurer) accepts
significant insurance risk from another party (the policyholder) by agreeing to
compensate the policyholder if a specified uncertain future event (the insured event)
adversely affects the policyholder." [IFRS 4.Appendix A]
6 A 10% (Philippine Financial Reporting Framework for Cooperatives)

7 C NCA (Budget ng Bayan)
8 B (Philippine Financial Reporting Framework for Cooperatives)
Statement of financial condition, statement of operations, statement of changes in
equity, statement of cash flows, notes
9 D Pension plan (Dayag P2 Reviewer 2015 ed.)
A shelter for the homeless
10 C
(Valix)
11 A Basic information as a whole (Dayag P2 Reviewer 2015 ed.)
Other operating revenue
12 B
(AICPA)
13 A Contribution revenue- unrestricted, when expended (AICPA)
14 B A revenue offset account (Adapted)
Not false thus true (COA
15 C
website)
17 A General fund (Guerrero, Peralta Adapted)
18 D The event must be future. (PFRS 4)
19 D Cash inflow – Cash outflow = Fund (Adapted)
Quasi-endowment fund (Guerrero,
20 C
Peralta)
21 B Expiration of donor-imposed restriction (See SFAS 117)
22 D GOCCs and Korean fans club (Adapted)
23 A Contractual adjustment (Valix)
24 D 3% (Philippine Financial Reporting Framework for Cooperatives)
25 A Single entry bookkeeping (Punzalan, Cardona)
26 A Single entry bookkeeping (Punzalan, Cardona)
27 B Personal Services must be Personnel
(Punzalan)
Budgetary accounting
28 B
(Adapted)
29 A Finance by the BIR (Guerrero, Peralta Adapted)
Problem 1&2 NCR Frontliners
1. C 2. D
Gross patient service revenue 980,000 980,000
Contractual adjustments (115,000) (100,000)
Allowance for discounts - employees (15,000) (15,000)
Net Patient Service Revenue 850,000 865,000
Problem 3 (PPSAS No. 17) Punzalan, Cardona
The accounting records of Agency ABC show the following depreciable assets, with 10% fair market value at the
end of useful life***, using the straight line method:
Assets Cost Physical life* Service life** Diff.

Buildings 50,000,000 20 20 0
Machinery 150,000 5 5 0
Office Equipment 100,000 6 5 1
Furniture & Fixtures 75,000 10 10 0
Motor Vehicles 10,000,000 10 10 0
Books 10,000 6 5 1
The service life of an asset should be distinguished from physical life.

*Service life is the period of time an asset shall be used by an entity. The service life is the equivalent of useful
life.
**Physical life refers to how long the asset shall last.
***Fair market value at the end of useful life is the equivalent of salvage value
3. A- Correct Answer
Depreciable Cost
Assets Service life** Depreciation
(x90%)
Buildings 45,000,000 20 2,250,000
Machinery 135,000 5 27,000
Office Equipment 90,000 5 18,000
Furniture & Fixtures 67,500 10 6,750
Motor Vehicles 9,000,000 10 900,000
Books 9,000 5 1,800
Total 3,203,550
4. B 1,800
5. C 27,000
Problem 4 Punzalan, Cardona
SF Performance
Particular 2016 2015
Revenue 40,000,000 30,500,000
Other Operating Revenue 10,000,000 15,000,000
Total Revenue 50,000,000 45,500,000
Expenses (45,000,000) (35,000,000)
Surplus 5,000,000 10,500,000
SCIE
Particular 2016 2015
Opening accumulated surplus 80,500,000 70,000,000
Surplus for the period 5,000,000 10,500,000
Closing accumulated surplus 85,500,000 80,500,000
6. A
7. A 34,000,000=30,500,000+3,500,000
8. A 14,000,000=10,500,000+3,500,000
9. B 89,000,000
10. A 70,000,000
11. A 45,000,000
As restated 2016 2015
Revenue (5) 40,000,000 34,000,000
Other Operating Revenue 10,000,000 15,000,000
Total Revenue 50,000,000 49,000,000
Expenses (45,000,000) (35,000,000)
Surplus (6) 5,000,000 14,000,000
As restated 2016 2015
Unadjusted Opening Accumulated Surplus
80,500,000 70,000,000
(8)
Correction of error 3,500,000 -
Adjusted Opening Accumulated Surplus 84,000,000 70,000,000
Surplus for the period 5,000,000 14,000,000

Closing Accumulated Surplus (7) 89,000,000 84,000,000
Problem 5
12. A (Hoyle) 7,000
13. C (Hoyle) 7,000
14. B (Hoyle) 17,000
Problem 6
15. B 2,000,000
16. B 700 uncollected
17. D (Hoyle)
18. B (Hoyle)
Problem 7 (Dayag)
19. A 12,000
20. A 14,000

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RIZAL TECHNOLOGICAL UNIVERSITY

Junior Philippine Institute of Accountants

MULTIPLE CHOICE-ANSWERS (Theory)

1 D Budget execution documents (Budget ng Bayan)

6 A 10% (Philippine Financial Reporting Framework for Cooperatives)

Problem 3 (PPSAS No. 17) Punzalan, Cardona

Assets Cost Physical life* Service life** Diff.

The service life of an asset should be distinguished from physical life.

Adjusted Opening Accumulated Surplus 84,000,000 70,000,000

Surplus for the period 5,000,000 14,000,000

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