WorksheetsAGNES Zone- Preliminary Round
Total questions: 10
Worksheet time: 20mins
What is the effect of mark-down cancellation on the cost-retail ratio when using the conservative retail method?
No effect on the cost-retail ratio
Increases the cost-retail ratio
Depends on the amount of the mark-down cancellation
Decreases the cost-retail ratio
Which of the following statements about investment decision models is true?
The discounted payback rate takes into account cash flows for all periods
The payback rule ignores all cash flows after the end of the payback period
The net present value model says to accept investment opportunities when their rates of return exceed the company's incremental borrowing rate.
The internal rate of return rule is to accept the investment if the opportunity cost of capital is greater than the internal rate of return.
The market for auditing services is driven by
The regulatory authority of the Securities and Exchange Commission
A demand by external users of financial statements
Pronouncements issued by the AASC
Congress through RA No. 9298
A weakness in internal control over recording retirements of equipment may cause an auditor to
Inspect certain items of equipment in the plant and trace those items to the accounting records.
Review the subsidiary ledger to ascertain whether depreciation was taken on each item of equipment during the year.
Trace additions to the "other assets" account to search for equipment that is still on hand but no longer being used.
Select certain items of equipment from the accounting records and locate them in the plant
Which statement is incorrect regarding the audit evidence?
The greater the risk, the more audit evidence is likely to be required
The higher the quality, the more may be required
Merely obtaining more audit evidence may not compensate for its poor quality
Obtaining audit evidence relating to a particular assertion is not a substitute for obtaining audit evidence regarding another assertion
In franchise agreements, there is substantial performance, when:
I. the franchisor has no remaining obligation or intent to refund any cash received or forgive unpaid notes or receivables
II. Initial services required by the franchise agreement are substantially performed
III. No other material conditions or obligations exist.
I, II, and III
II and III only
I and II only
I and III only
The percentage of completion of a construction contract is based on all of the following except
The proportion that contract costs incurred for work performed to date bear to the estimated total contract costs
Survey of work performed
Completion of a physical proportion of the contract work
Progress payments and advances received from customers
The requirement of equality or theoretical justice is-complied with if the tax is
Progressive
Regressive
Ad valorem
Specific
There shall be no liability for loss due to fortuitous events in one of the following cases. Which is it?
When the debtor delays.
When the parties so stipulated that there shall be a liability even in case of loss due to fortuitous events.
When the nature, of the obligation, requires the assumption of risks.
When the obligation is to deliver a determinate thing and there was no stipulation as to the liability of the debtor in case of loss due to fortuitous events.
A, B and C all are capitalist partners form a partnership and agree to have a total contributed capital of P 30,000.
However, the partners failed to agree as to the extent of their respective share in the capital contribution. In this case, which of the following statement is not correct:
A, B and C must contribute P10,000 each to the partnership.
If A, B, and C failed to stipulate on how to distribute profit and loss, the profit and loss will be distributed equally between them.
The partnership contract is void because there is no agreement as to the capital contribution of each partner.
If A, B, and C mutually agreed that partner A will be excluded from the share in the losses, such agreement is void.
