ALL BOARDS SUBJECT CUP-average

On June 1, 2004, Noll Corp. sold merchandise with a list price of ₱30,000 to Linn on account. Noll allowed trade discounts of 30% and 20%. Credit terms were 2/15, n/40 and the sale was made f.o.b. shipping point. Noll prepaid ₱600 of delivery costs for Linn as an accommodation. On June 12, 2004, Noll received from Linn a remittance in full payment amounting to

• 16,464.

• ₱17,052.

• ₱17,064.

• ₱16,794.

The balance in Stockwell Company's accounts payable account on December 31, 2002, was ₱1,225,000 before the following information was considered:

· Goods shipped FOB destination on December 21, 2002, from a vendor to Stockwell were lost in transit. The invoice cost of ₱45,000 was not recorded by Stockwell. On December 28, 2002, Stockwell notified the vendor of the lost shipment.

· Goods were in transit from a vendor to Stockwell on December 31, 2002. The invoice cost was ₱60,000, and the goods were shipped FOB shipping point on December 28, 2002. Stockwell received the goods on January 6, 2003.

What amount should Stockwell report as accounts payable in its December 31, 2002, balance sheet?

• 1,330,000

• 1,285,000

• 1,270,000

• 1,225,000

An entity has financial assets held under a business model with the objective of holding financial assets in order to collect contractual cash flows. Prior to maturity date, the entity sells a significant portion of the financial assets. Which of the following statements is correct?

• The change in circumstance is a prior period error.

• Under the “hold to collect” business model, the entity needs to hold financial assets until their maturity dates. A significant sale of financial assets before their maturity date evidences an inability to hold and collect cash flows. Therefore, the remaining financial assets shall be reclassified to either FVPL or FVOCI.

• The remaining financial assets within the “hold to collect” business model need not be reclassified. However, the change in circumstance may be relevant in assessing the business model for new financial assets that have been acquired or originated.

• The entity shall change its business model because of the change in circumstance. The remaining financial assets shall be reclassified after the entity changes the business model.

The equity method of accounting for investments is discussed under

• PAS 28

• PAS 29

• PAS 21

• PFRS 2

The Kinis Company produces a cosmetic product in 60-gallon batches. The basic ingredients used are material X, costing P70 per gallon, and material Y, costing P170 per gallon. No more than 18 gallons of X can be used, and at least 15 gallons of Y must be used. How would the objective function (minimization of product cost) be expressed?

• 70X + 170Y

• 18X + 15Y

• 170X + 70Y

• 18X + 42Y

What is the turnover of (net) working capital for 2015?

• 7.9

• 6.5

• 8.3

• 8.7

Joy borrowed PhP 50,000.00 from Sadness. The obligation bears interest of 10% per annum. To secure the debt, Joy agreed with Sadness that the fruits from the agricultural lot of Joy shall answer for the interest and the principal obligation. Assuming the form required by the law was complied with, the contract entered into between Joy and Sadness for the application of the fruits of the lot to the interest and principal obligation is known as:

• Real Mortgage

• Antichresis

• Chattel Mortgage

• Simple Loan

Which of the following statement is false?

· Contracts must bind both contracting parties and its validity or compliance cannot be left to the will of one of them. This is the principle of relativity of contracts.

· Contracts are perfected by mere consent of the contracting parties. This is the principle of obligatory force of contracts.

• Both statements are true.

• I only

• II only

• Both statements are false.

A VAT-registered taxpayer treated the excess of output VAT over input VAT as expense and was shown in the Statement of Income and Expenses. Is it the proper treatment of VAT?

• Yes. VAT is treated as expense and is properly shown in the Statement of Income and Expenses.

• No. VAT payable is considered as current liability and must be shown in the Statement of Financial Condition.

• Yes. But the taxpayer has the option to show it in the Statement of Financial Conditional if it is favorable to him.

• No. There is no clear rule on how to treat VAT payable.

Which of the following statements is incorrect?

a. When compensation is received in money, the measure of the income is the amount of money received

b. When compensation is received other than in money, the fair market value of the thing taken in payment is the measure of income.

• When compensation is received in money, the measure of the income is the amount of money received

• When compensation is received other than in money, the fair market value of the thing taken in payment is the measure of income.

• If services were rendered at a stipulated price, in the absence of the proof to the contrary, such price will be presumed to be the fair market value of the compensation received.

• The fair discounted value of a non interest bearing note issued as security for payments shall be treated as income as of the time of receipt.