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Total questions: 70
Worksheet time: 6hrs 50mins
What is the amount of overhead applied to Department A?
3,360,000
5,950,000
5,025,000
3,730,000
What is the amount of overhead applied to Department B?
5,220,000
4,480,000
5,466,667
6,700,000
What is the joint cost allocated to Product A? (Round allocation ratio to the nearest percentage ex. .71545 = 72%)
25,500
54,060
32,640
28,560
What is the joint cost allocated to Product B? (Round allocation ratio to the nearest percentage ex. .71545 = 72%)
69,360
76,500
47,940
73,440
What is the approximated/estimated net realizable value of Product B at the split-off point?
1,360,000
931,200
1,344,000
952,000
What is the estimated deficiency?
15,000
25,000
10,000
5,000
What is the amount received by the holder of the accounts payable?
60,000
75,000
50,000
65,000
What is the estimated market value of the inventories?
350,000
200,000
450,000
150,000
What is the cost of goods manufactured at the end of the year?
195,492
180,900
143,700
180,912
What is the cost of goods manufactured for Job 03?
105,300
43,020
47,172
103,300
What is the cost of goods manufactured for Job 04?
47,172
40,920
42,300
43,020
What is the cost of goods manufactured for Job 05?
8,340
57,600
34,680
105,300
Assuming Job 06 was also completed, what is the cost of goods manufactured of Job 06?
6,252
20,580
40,920
16,680
What is the proper period for recording direct labor rate variance?
At the time of payment of salaries to factory workers
At the time of hiring of factory workers
At the time of rendition of services by factory workers
At the time of termination of employment of factory workers
What is the net income of the agency for the two months ended November 30, 2020?
17,431
28,366
29,875
26,866
By what amount did the Allowance for Overvaluation before adjustment increased during the year?
336,000
756,000
462,000
420,000
In the books of the home office, what is the amount of adjustment to Income Summary –
Branch account at the end of the year?
2,331,000
510,996
294,000
462,000
Before closing, the Home Office Current account in the separate books of the branch is understated by what amount?
2,793,000
462,000
336,000
2,331,000
What is the unadjusted balance of Home Office Current account in the books of Makati branch?
52,150
87,200
107,250
92,950
What is the unadjusted balance of Home Office Current account in the books of Pasig branch?
236,250
122,000
115,150
84,850
How shall expenses of a nonprofit organization be presented in its statement of activities?
Addition to temporarily restricted net assets
Addition to permanently restricted net assets
Deduction from permanently restricted net assets
Deduction from unrestricted net assets
What is the cash account to be used by national government agencies for cash payments?
Cash modified disbursements system (MDS) regular
Cash treasury agency (TA) deposit regular
Cash in bank – Land Bank of the Philippines
Cash on hand
What is the excess of construction in progress over progress billings (excess of progress billings over construction in progress) on December 31, 2018?
8.75M
19.25M
14M
10.5M
What is the realized gross profit (loss) for the year ended December 31, 2019?
(87.5M)
(52.5M)
(70M)
(17.5M)
What is the amount of construction cost presented in the Statement of Comprehensive Income in 2019?
122.5M
105M
140M
245M
What is the amount of account receivable to be reported by MDC on December 31, 2020?
33.25M
49M
43.75M
31.5M
Under PFRS 10, which financial statements must be presented by a parent corporation?
Separate financial statements
Combined financial statements
Consolidated financial statements
Condensed financial statements
Under PFRS 10, which of the following is not an essential element of control?
Power
Ability
Exposure or Right
Ownership of majority of voting stocks
Under IFRS 15, what is the amount of Sales Revenue to be credited by Tea-Account Inc. on December 31, 2020?
55,603
162,175
83,404
69,504
Under IFRS 15, what is the amount of Service Revenue to be credited by Tea-Account Inc. on
December 31, 2020?
162,175
217,778
228,978
287,282
Which of the following costs incurred by the acquirer in relation to business combination shall be expensed as incurred?
Bond issue costs of financial liability at amortized cost
Direct costs of business combination
Stock issuance costs
Contingent consideration
Which of the following statements regarding the transactions above is TRUE?
XYZ will debit an expense account upon remittance to QRS.
QRS will debit a liability account upon receipt of the remittance from XYZ.
XYZ will prepare a memo entry for the P37,500 freight.
QRS will credit an asset account in the amount of P159,000 upon receiving the sales report.
Under PFRS 15, when shall an entity recognize its revenue from contract with customers?
When an entity enters into a contract with its customers
When an entity receives the consideration from its customers
When an entity satisfies its performance obligation to its customers
When an entity transfers the risk and rewards of ownership of the goods or services to its customers
When will the equivalent unit of production of direct materials under FIFO Process Costing be always equal to Average Process Costing?
When all direct materials are added at the start of production process
When all direct materials are added at the end of production process
When all direct materials are added at the middle of production process
When direct materials are added uniformly throughout the production process
200,000
300,000
400,000
0
What is the investment loss to be reported by Entity A in relation to the joint venture for the year ended December 31, 2022?
(5,000,000)
(6,000,000)
(5,400,000)
(5,500,000)
What is the investment income to be reported by Entity B in relation to the joint venture for the year ended December 31, 2023?
3,000,000
2,400,000
1,500,000
900,000
Which of the following claims shall be preferred in the liquidation of general partnership?
Just and equitable share of industrial partner in partnership profit
Proportionate share of capitalist partners in partnership profit
Advances to partnership by managing partner
Capital contribution of controlling partner
Which of the following claims during corporate liquidation shall be settled last?
Book value per share of ordinary shareholders
Liquidation value per share of preferred stockholders
Redemption value of redeemable preferred shareholders
Claims of unsecured creditors without priority
160,000
200,000
150,000
210,000
If the entity is translating from foreign currency to functional currency, what is the amount of total assets to be presented by the entity at the end of reporting period?
60,000,000
80,000,000
65,000,000
75,000,000
Assuming the entity is translating from functional currency to its presentation currency, what is the amount of total assets to be presented by the entity at the end of reporting period?
60,000,000
80,000,000
65,000,000
75,000,000
Under Equity Method, what is the book value of Investment in Entity S to be reported by Entity P on its December 31, 2021 Statement of Financial Position?
7,105,000
7,000,000
7,175,000
7,070,000
If Entity P uses Cost Method, what is the income to be reported by Entity P in relation to its investment in Entity S in its separate income statement for the year ended December 31, 2021?
70,000
140,000
175,000
75,000
Which of the following costs shall be classified as conversion costs?
Direct labor costs and direct material costs
Direct labor costs and factory overhead costs
Direct material costs and factory overhead costs
Direct material costs, direct labor costs and factory overhead costs
What is the consolidated depreciation expense on the said equipment that will be reported by Entity P for the year ended December 31, 2021?
30,000
15,000
10,000
13,500
What is the consolidated gain (loss) on sale of equipment to be reported by Entity for the year ended December 31, 2021?
(35,000)
10,000
(8,000)
15,000
What is the proper classification of infrastructure asset if the concession operator has right or license to charge users of the infrastructure asset over a specific period but it does not have guaranteed right to receive cash from the grantor?
Property, plant and equipment
Investment property
Intangible asset
Financial asset
What is the accounting method to be used by an acquirer to treat each business combination?
Equity Method
Acquisition Method
Cost Method
Fair Value Method
500,000
400,000
300,000
100,000
Which of the following transactions will increase the capital balance of a partner?
Share in other comprehensive loss of the partnership
Share in profit of the partnership
Drawing made during the period
Share in impairment loss arising from admission of a new partner
What is the foreign currency gain or (loss) to be reported by the entity for the year ended December 31, 2022?
(5,000) loss
6,000 gain
(4,000) loss
2,000 gain
What is the book value of accounts payable to be reported by the entity on December 31, 2021?
59,000
55,000
50,000
52,000
When translating an entity’s financial statements from its functional currency to its presentation currency, what is the exchange rate to be used to translate income or expense accounts?
Closing rate
Average rate
Transaction rate
Rate at the end of reporting period
In which method of accounting of investment in subsidiary in the separate financial statements of parent corporation will the dividend income from subsidiary not appear?
Equity method
Cost method
FAFVPL
FAFVOCI
41,000
44,250
41,167
47,500
Which of the following transactions will result to debit to investment in branch account?
Reporting net loss of the branch
Collection by the branch of home office’s receivable
Return by the branch to the home office of shipped inventory
Payment by the home office of its own liability
In which of the following contract shall the resulting revenue be recognized over a period of time?
Long-term construction contract
Consignment sale contract
Sale or return arrangement
Installment sale contract
335,000
375,000
410,000
435,000
Which of the following statements is true?
Contributed services and facilities are recognized both as asset and contributions revenue, net of expense.
Financial statements of not for profit organization, focuses on distinctions between current and non-current fund.
Unconditional pledges are recognized as receivables and contributions revenue when collected.
The required financial statements for nonprofit organizations include: statement of financial position, statement of cash flows, statement of activities and specifically for Voluntary Health and Welfare Organizations – Statement of Functional Expenses.
Where shall foreign currency gain or loss arising from translating foreign currency denominated elements of financial statements to entity’s functional currency be presented?
Income from Continuing Operation of Profit or Loss Section of Statement of Comprehensive Income
Income from Continuing Operation of Profit or Loss Section of Statement of Comprehensive Income
Other Comprehensive Income with Reclassification Adjustment Section of Statement of Comprehensive Income
Other Comprehensive Income without Reclassification Adjustment Section of Statement of Comprehensive Income
261,667
128,333
390,000
305,000
321,155
364,286
450,000
375,000
211,165.50
70,000
632,642.50
633,762.50
Max decided to withdraw from his partnership with Fried and Chic. Before his withdrawal, Max’ capital balance was P58,000, while Fried’s was P64,000 and Chic’s was P77,000. Also, the partnership’s total assets amounted to P450,000, but the partners agreed that a fixed asset was under depreciated by P15,000. Max, Fried and Chic share profits and losses in the ration of 2:4:4, respectively.
If Max was paid P53,200 upon his retirement, how much is the remaining partnership net assets after Max’ withdrawal?
182,800
197,800
130,800
160,800
40,400
24,750
36,000
33,000
120,000; 120,000; 120,000
126,000; 114,000; 120,000
126,668; 113,322; 120,000
140,000; 120,000; 100,000
What is the proper classification of Joint Arrangement when the parties exercising joint control over arrangement has rights to the net assets of the said arrangement?
Joint operation
Jointly controlled asset
Joint venture
Jointly controlled operation
During 2020, Agency ABC transferred cash of P300,000 to Agency QRS for a land beautification project. Subsequently, Agency ABC received a report from Agency QRS about the project. What is the journal entry of Agency ABC to record the transfer of funds?
Debit Due from ABC P300,000 and Credit Cash, MDS, Regular P300,000.
Debit Cash-Treasury/Agency Deposit/Trust P300,000 and Credit Cash-Collecting Officers P300,000.
Debit Cash Collecting Officers P300,000 and Credit Due to ABC P300,000
Debit Cash-Treasury/Agency Deposit/Trust P300,000 and Credit Cash-Collecting Officers P300,000
An entity spent P5,600,000 (inclusive of VAT) in acquiring its new software package from outside party at the beginning of the year. Such software shall be installed and used to speed up processing the entity’s operations. The useful life of the software is determined to be 10 years and no residual value was assigned to it.
What is the journal entry to record the purchase of a software package?
dr. Computer Software 5,600,000
cr. Cash-MDS, Regular 5,600,000
dr. Computer Software 5,600,000
cr. Cash Disbursing Officer 5,250,000
cr. Due to BIR 350,000
dr. Computer Software 5,600,000
cr. Cash-Treasury/Agency Deposit 5,000,000
cr. Due to BIR 600,000
dr. Computer Software 5,600,000
cr. Cash-MDS, regular 5,250,000
cr. Due to BIR 350,000
