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Total questions: 59
Worksheet time: 30mins
Which of the following statements concerning the formation of partnership business is correct?
PFRS allows recognition of goodwill arising from the formation of partnership
The juridical personality of the partnership arises from the issuance of certification of registration
The parties may become partners only upon contribution of money or property but not of industry or service
The capital to be credited to each partner upon formation may not be the amount actually contributed by each partner.
What is Entity A's total equity after the business combination?
2,010,000
2,490,000
2,249,000
2,620,000
What is the goodwill or (gain on bargain purchase_ arising from business combination?
(150,000)
(70,000)
50,000
120,000
Compute the combined:
Net income P370,000
Cost of goods sold P480,000
Net income P200,000
Cost of goods sold P480,000
Net income P132,000
Cost of goods sold P467,500
Net income P200,000
Cost of goods sold P467,000
The PFRIC 12, applies only if:
the grantor controls or regulates what services the operator must provide...
the grantor controls - through ownership, beneficial entitlement...
both a and b
None of the above
The General Accounting Manual enumerates the following components of the General Purpose Financial Statements of National Government Agencies, except
Statement of Retained Earnings
Statement of Financial Position
Under the Government Accounting Manual (GAM), the financial reporting system of the Philippines government consists....Which of the following is incorrect under the Government Accounting Manual?
Each entity of the National Government (NG) maintains complete set of accounting...
The BTr account for the cash, public debt and related transaction of the NG
Each entity maintains budget registries which are ...
Each entity shall maintain Regular Agency (RA) Books...
What is the cost per unit of conversion cost under FIFO process costing?
5
9
8
7
What is the cost per unit of direct material under FIFO process costing?
10
9
8
7
what is the amount of net assets available at the end of liquidation?
80,000
40,000
120,000
200,000
What is the amount received by the holder of accounts payable at the end of liquidation?
85,000
15,000
40,000
60,000
At the time of partnership liquidation, which credits shall be settled first?
Those amount owing to third persons
Those amount owing to partners other than capital contribution and share in porfit
Those amount owing to partners with respect to capital contribution
Those amount owing to partners with respect to share in profit
A streamlined accounting system;
Standard costing
Job Order costing
Process Costing
Backflush costing
Compute the cost of each unit of Job 102 using Activity-Based Costing:
P340
P392
P440
P520
Under IFRS 3, in a business combination achieved in stages, if the acquisition date fair value of the net of the acquisition-date amount of the identifiable assets acquired and the liabilities of the acquiree is lower than the aggregate of the (1) acquisition date fair value of the consideration transferred by the acquirer; (2) amount of noncontrolling interest measured at fair value or proportionate share;.....the difference shall be accounted for by the acquirer in its consolidated financial statement as
Goodwill classified as noncurrent asset not subject to amortization but subject to annual impairment test
Gain on bargain purchase to be recognized as part of profit or loss
Expense as incurred
deduction directly to retained earnings
The Bureau of Treasury received P20,000 cash remittance from Department of Agrarian Reform (DAR) from its miscellaneous income. What is the journal entry of the Bureau of Treasury in its accounting books to record the receipt of cash remittance from the income of a national government agency?
Debit cash in Bank, Local Bank P20,000 and Credit Cash-Treasury/Agency Deposit, Regular P20,000
Debit cash in Bank, Local Bank P20,000 and Credit Miscellaneous Income of DA P20,000
Debit cash in Bank, Local Bank P20,000 and Credit Savings of DA, Regular P20,000
Debit cash in Bank, Local Bank P20,000 and Credit Cash-Collecting Officer, DA P20,000
At the time of retirement, a retiring partner receives more than the amount of his capital contribution while the remaining partners capital increase after the retirement. Which of the following is most valid reason?
Goodwill during retirement is recognized
Asset revaluation is recognized
Bonus is given by retiring to remaining partners
Bonus is given by retiring to retiring partners
On the fiscal year ended June 30, 2012, how much revenue from franchise fee will the franchisor recognize?
0
208,885
246,900
83,554
What amount of foreign currency transaction gain from the forward contract should be included in net income for 2018?
50,000
40,000
30,000
0
What amount of foreign currency transaction loss should be included in income from the revaluation of account payable for 2018/
40,000
50,000
10,000
0
Which of the following costs shall be considered conversion cost but not prime cost?
Acquisition price of the main material of the product
Depreciation of the administrative building
Salary of the factory supervisor, factory janitor and factory security guard
Employee benefits of the factory machine operator
What is the amount of sales revenue to be reported by Entity A concerning it interest in Entity C?
2,300,000
2,100,000
3,000,000
2,500,000
What is the amount of total liabilities to be reported by Entity B concerning it interest in Entity C?
1,800,000
2,200,000
2,800,000
2,400,000
What is the amount of total assets to be reported by Entity A concerning it interest in Entity C?
5,400,000
3,000,000
3,600,000
5,000,000
what is the classification of the joint arrangement when the arrangement is structured without a separate vehicle such as when the rights of each party to the total assets and obligations for total liabilities relating to the arrangement are clearly established?
It shall be classified as joint venture
It shall be classified as joint operation
Neither joint venture nor joint operation
It can be either a joint venture or joint operation depending on the company policy of the parties to the joint arrangemnt
What is the classification of the joint arrangement when the assets and liabilities relating to the arrangement are held by a separate vehicle or when the arrangement is established with a separate vehicle?
It shall be classified as joint venture
It shall be classified as joint operation
Neither joint venture nor joint operation
It can be either a joint operation or joint venture depending on the legal form of the separate vehicle, terms of the contractual arrangement or other relevant facts and circumstances.
What is the consolidated net income attributable to parent's shareholders for the year ended December 31, 2021?
766,800
596,800
606,800
626,800
What is the non-controlling interest in net assets for the year ended December 31, 2021?
100,800
59,200
51,200
88,000
What is the consolidated gross profit for the year ended December 31, 2021?
1,120,000
1,048,000
1,280,000
1,152,000
What is the consolidated sales revenue for the year ended December 31, 2021?
2,600,000
2,320,000
3,000,000
2,720,000
What is the amount of consolidated retained earnings on December 31, 2020?
3,012,200
2,991,200
2,952,200
2,945,200
What is the consolidated net income attributable to parent shareholders for the year ended December 31, 2020?
1,102,200
1,162,000
1,141,200
1,095,200
What is the non-controlling interest in net assets on December 31, 2020?
124,800
130,200
126,000
133,800
What is Entity A's amount of total assets after the business combination?
4,520,000
4,810,000
4,750,000
4,440,000
What is Entity A's amount of total liabilities after the business combination?
2,240,000
2,150,000
2,320,000
2,130,000
What total amount should be expensed as incurred at the time of business combination?
20,000
70,000
30,000
50,000
What is the goodwill or gain on bargain purchase arising from business combination?
50,000 goodwill
150,000 gain on bargain purchase
120,000 goodwill
70,000 gain on bargain purchase
Which of the following creditors can always fully recover its claim from a dissolved corporation during corporate liquidation?
Fully secured creditors
Partially secured creditors
Unsecured creditors with priority
Unsecured creditors without priority
Which of the following unsecured debts with priority shall be paid first during corporate liquidation?
Corporate liabilities to employees
Obligations arising from corporate crime
Corporate liabilities arising from taxes to government
Obligations arising from corporate tort or quais-delicts
After the date of corporate dissolution, what is the maximum period allowed by law to a dissolved corporation to complete its liquidation process?
1 year
2 year
3 year
4 year
Compute the total overhead costs that should be assigned to Job 1234.
P31,955
P27,750
P26,000
P32,000
Charlie and Delta formed a partnership. Charlie invested cash worth 85,000 and a machine. On the other hand, Delta contributed cash worth 55,000 and equipment which has a mortgage of 35,000 which Delta will pay personally. The total capital after formation was 360,000. They also further agreed to reflect a 55:45 ratio as to their capital balances respectively. No other investment or withdrawal occurred other than mentioned to reflect their capital ratio agreement.
How much is the fair value of the machine?
113,000
105,000
107,000
115,000
Charlie and Delta formed a partnership. Charlie invested cash worth 85,000 and a machine. On the other hand, Delta contributed cash worth 55,000 and equipment which has a mortgage of 35,000 which Delta will pay personally. The total capital after formation was 360,000. They also further agreed to reflect a 55:45 ratio as to their capital balances respectively. No other investment or withdrawal occurred other than mentioned to reflect their capital ratio agreement.
How much is the fair value of the equipment?
115,000
107,000
150,000
142,000
On July 1, 2020, D and J formed DJ partnership with initial investment of 1M and 2M, respectively. D is appointed as the managing partner. The articles of co-partnership provide that profit or loss shall be distributed accordingly:
30% interest on original capital contribution ratio
Monthly salary of 20,000 and 10,000 respectively for D and J
D shall be entitled to a bonus equivalent to 20% of net income after interest, salary and bonus.
The remainder shall be distributed in a ratio of 3:2 for D and J, respectively.
For the year ended December 31, 2020, the partnership reported net income of 750,000.
What is the share in net income of D for the year ended December 31, 2020
400,000
250,000
350,000
500,000
On July 1, 2020, D and J formed DJ partnership with initial investment of 1M and 2M, respectively. D is appointed as the managing partner. The articles of co-partnership provide that profit or loss shall be distributed accordingly:
30% interest on original capital contribution ratio
Monthly salary of 20,000 and 10,000 respectively for D and J
D shall be entitled to a bonus equivalent to 20% of net income after interest, salary and bonus.
The remainder shall be distributed in a ratio of 3:2 for D and J, respectively.
For the year ended December 31, 2020, the partnership reported net income of 750,000.
What is the share in net income of J assuming the bonus is equivalent to 20% of net income after interest and salary but before bonus for the year ended December 31, 2020?
351,600
398,400
350,000
500,000
Juliet and Kilo have capital balances of 200,000 and 220,000 respectively before admission of Lima. Their profit and loss agreement was 35:65. Lima was to be admitted for 40% interest in the partnership and 20% in the profits and losses by contributing a used machine which had a cost of 205,000 and an appraised value of 180,000. After the admission of Lima, Juliet and Kilo agreed to share profits and losses equally. At the end of the year the new partnership generated net income of 130,000.
How much is the capital balance of Kilo after admission of Lima?
174,500
259,000
181,000
240,000
Juliet and Kilo have capital balances of 200,000 and 220,000 respectively before admission of Lima. Their profit and loss agreement was 35:65. Lima was to be admitted for 40% interest in the partnership and 20% in the profits and losses by contributing a used machine which had a cost of 205,000 and an appraised value of 180,000. After the admission of Lima, Juliet and Kilo agreed to share profits and losses equally. At the end of the year the new partnership generated net income of 130,000.
How much is the capital balance of Juliet at the end of the year?
231,000
221,000
224,500
247,000
Juliet and Kilo have capital balances of 200,000 and 220,000 respectively before admission of Lima. Their profit and loss agreement was 35:65. Lima was to be admitted for 40% interest in the partnership and 20% in the profits and losses by contributing a used machine which had a cost of 205,000 and an appraised value of 180,000. After the admission of Lima, Juliet and Kilo agreed to share profits and losses equally. At the end of the year the new partnership generated net income of 130,000.
Assuming there is an implied undervaluation or overvaluation of an asset, how much is the undervaluation or (overvaluation) of the asset?
300,000
(150,000)
(300,000)
150,000
Juliet and Kilo have capital balances of 200,000 and 220,000 respectively before admission of Lima. Their profit and loss agreement was 35:65. Lima was to be admitted for 40% interest in the partnership and 20% in the profits and losses by contributing a used machine which had a cost of 205,000 and an appraised value of 180,000. After the admission of Lima, Juliet and Kilo agreed to share profits and losses equally. At the end of the year the new partnership generated net income of 130,000.
Assuming there is an implied undervaluation or overvaluation of an asset, how much is the capital balance of Kilo at the end of the year?
467,000
77,000
369,500
174,500
In the liquidation of limited partnership, which of the following credits shall be paid last?
Those owing to third persons
Those owing to limited partners
Those owing to general partners for their share in profits
Those owing to partners for their capital contribution
Bancarote Inc is under court-supervised liquidation due to its insolvency. The court appointed liquidator has provided the following data after conducting an inventory of Bancarote’s assets and liabilities:
The total assets which are not used as security for any liability amounted to 5M while the total unsecured liabilities amounted to 20M
The total assets which are used as collateral or security for corporate obligations amounted to 10M. ¾ of these assets secure a mortgage payable with book value of 2M including interest while the remainder secure a note payable with book value of 3.5M including interest.
Salaries payable amounted to 2M while taxes due government amount to 1M.
What is the estimated recovery percentage of unsecured creditors without priority?
25%
37.5%
41.67%
52.5%
Bancarote Inc is under court-supervised liquidation due to its insolvency. The court appointed liquidator has provided the following data after conducting an inventory of Bancarote’s assets and liabilities:
The total assets which are not used as security for any liability amounted to 5M while the total unsecured liabilities amounted to 20M
The total assets which are used as collateral or security for corporate obligations amounted to 10M. ¾ of these assets secure a mortgage payable with book value of 2M including interest while the remainder secure a note payable with book value of 3.5M including interest.
Salaries payable amounted to 2M while taxes due government amount to 1M.
What is the amount received by partially secured creditors?
2,750,000
2,875,000
2,916,700
3,025,000
In case of admission of a new partner in an existing partnership through investment to the partnership, which of the following scenario will result to bonus to new partner and asset revaluation?
The total contributed capital of all partners s equal to the total agreed capital of new
partnership while the agreed capital of new partner is higher than the amount he has
contributed.
The total contributed capital of all partners is more than the total agreed capital of new
partnership while the agreed capital of new partner is lower than the amount he has
contributed.
The total contributed capital of all partners is less than the total agreed capital of new
partnership while the agreed capital of new partner is higher than the amount he has
contributed.
The total contributed capital of all partners is more than the total agreed capital of new
partnership while the total agreed capital of old partners is equal to the amount they
contributed.
The value of Zest to be deducted from the joint costs is:
P5,000
P3,000
P2,000
Zero
Which of the following will not result in the dissolution of a partnership?
Insolvency of the partnership
Admission of a new partner in an existing partnership
Assignment of an existing partner’s interest to a third person
Retirement of a partner
It is a construction contract in which the contractor is reimbursed for allowable or otherwise defined costs, plus a percentage of these costs or a fixed fee.
Fixed price contract
Cost plus contract
Variable contract
Mixed contract
DJD Builders Construction Company enters into a contract with a customer to build a 50 kilometers road
for P100,000,000 with a performance bonus of P60,000,000 that will be paid based on the timing of
completion. The amount of the performance bonus decreases by 10% per week for every week beyond the agreed-upon completion date. The contract requirements are similar to contracts that DJD Builders has performed previously and management believes that such experience is predictive for this contract.
Management estimates that there is a 60% probability that the contract will be completed by the agreed-
upon completion date, a 30% probability that it will be completed one week late, and only a 10%
probability that it will be completed two weeks late. Determine the probability-weighted amount for the
management to determine the transaction price
96,000,000
111,000,000
142,200,000
157,000,000
IFRS 15 provides that the initial franchise fee shall be recognized as revenue over time (percentage of completion method) if any one of the following criteria provided below is met. Which of the following indicator shows that the initial franchise fee shall be recognized as revenue at a point in time instead over time?
When the franchisee simultaneously receives and consumes the benefits provided by the franchisor’s performance as the franchisor performs.
When the franchisor’s performance creates or enhances an asset that the franchisee controls as the asset is created or enhanced
When the franchisor’s performance does not create an asset with alternative use to the franchisor and the franchisor has an enforceable right to payment for performance completed to date
When the franchisee has legal title to the franchise and has the significant risks and rewards of ownership of the franchise
Compute the gross profit for Pep:
P 0
P70,000
P80,000
P100,000
