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WorksheetsThe Valiant Cup: Rise of Resurgence | Easy Round
Total questions: 10
Worksheet time: 2mins
1) An asset has a nine-year useful life and is to be depreciated under the sum of the years’ digit method. The annual depreciation expense would be the same as that under the straight-line method in the _____.
a. Third year
b. Fifth year
c. Seventh year
d. Ninth year
2) On July 1, 2021, Wise Company purchased an equipment for P5,000,000. Residual value was estimated at P200,000. The equipment is depreciated over ten years using the double declining balance method. What is the depreciation expense for 2022?
a. 1,000,000
b. 900,000
c. 768,000
d. 960,000
3) Which of the following forms of evidence is most reliable?
a. An internal memorandum explaining the issuance of a credit memo
b. Recently issued Quarterly Report filed to PSE by the company
c. Actuarial valuation report of an actuary employed by the auditee to determine the value of retirement liability and plan assets
d. Confirmation reply received from the bank to confirm cash in bank balance of the entity
4) What is the presumption whenever the thing is lost in the possession of the debtor in the absence of earthquake, flood, storm or other natural calamity ?
a. The loss was due to force majeure
b. The loss was due to fortuitous event
c. The loss was due to debtor's fault
d. The loss was due to creditor's fault
5) During periods of rising prices, when the FIFO inventory cost flow method is used, a perpetual inventory system would
a. Not permitted
b. Result in a higher ending inventory than a periodic inventory system
c. Result in the same ending inventory as periodic inventory system
d. Result in a lower ending inventory than a periodic inventory system
6) Which of the following accounts best distinguish a merchandising entity from a service providing entity?
a. Cost of goods sold
b. Trade accounts payable
c. Furnitures and fixtures
d. Interest expense
7) Which of the following is not an area discussed in Generally Accepted Auditing Standards, or GAAS?
a. Standards of Reporting
b. Standards of Fieldwork
c. Conceptual Framework
d. All of the above are areas discussed in GAAS
8) A contract of sale possesses three of the following characteristics. Which is the exception?
a. Bilateral, since the parties are bound by reciprocal prestations
b. Commutative, because the parties give almost equivalent values.
c. Onerous, since there is an exchange of valuable consideration.
d. Real, because the object of sale must be delivered for the perfection of the contract
9) JKL Souvenir Factory manufactured a variety of party souvenirs. The owner has recently decided to implement a JIT Costing System. Transactions during February were as follows
Compute the amount of over-applied or under-applied overhead for the month
a. 120,000 over-applied
b. 380,000 under-applied
c. 50,000 over-applied
d. 240,000 under-applied
10) Which of the following is subject to VAT?
a. Importation of personal or household effects belonging to the residents of the Philippines returning from abroad and non-resident resident citizen coning to resettle in the Philippines where such goods were subjected to customs duties.
b. Importation of passenger or cargo vessel and aircrafts, including engine, equipment and spare parts thereof for domestic or international transport operation.
c. Importation of fuel, goods and supplies by persons engaged in international shipping or air transport operations.
d. Sale of real property not primarily held for sale to customers or held for lease in the ordinary course of business.
