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Quiz 2 Answers Solutions
Quiz 2 Answers Solutions
Financial Position
Cash P124,000
Equity investments at fair value through
profit or loss (at cost) 87,000
Notes receivable 92,000
Trade accounts receivable 122,000
Allowance for uncollectible accounts 6,000
Employees income tax withheld 4,000
Notes payable 150,000
Trade accounts payable 75,000
Merchandise inventory 136,000
Bonds payable 250,000
Share dividends distributable 15,000
Income tax payable 28,000
a. P572,000
b. P587,000
c. P590,000
d. P602,000
Answer: C
Quiz 2, Conceptual Framework and Accounting Standards
a. P339,000
b. P324,000
c. P304,000
d. P234,000
Answer: B
The 50,000 bonds payable will mature within one year. It should
be presented as current liability.
a. P6,000,000
b. P4,000,000
c. P2,000,000
d. P0
Quiz 2, Conceptual Framework and Accounting Standards
Answer: B
a. P5,700,000
b. P6,200,000
c. P5,500,000
d. P5,650,000
Answer: D
Premium on note payable means the note was issued above its
face value.
MC 5 T Corp. reported the following for the year ended December 31,
2020:
a. P1,870,000
b. P1,890,000
c. P1,970,000
d. P1,990,000
Answer: C
Comprehensive Income
a. P117,000
b. P115,000
c. P97,000
d. P20,000
Answer: A
a. P6,500,000
b. P6,100,000
c. P5,500,000
d. P5,100,000
Answer: A
a. P4,800,000
b. P4,000,000
c. P3,700,000
d. P3,600,000
Answer: A
Advertising 1,500,000
Freight out 800,000
Rent for office space (2,200,000/2) 1,100,000
Sales salaries and commissions 1,400,000
4,800,000
MC 9 Max Company reported the following data for the current year”
a. P2,900,000
b. P3,250,000
c. P4,100,000
d. P5,000,000
Quiz 2, Conceptual Framework and Accounting Standards
Answer: A
Answer: D
Changes in Equity
2020 2019
FIFO ending inventory P360,000 P440,000
Average ending inventory 320,000 350,000
a. P28,000
b. P40,000
Quiz 2, Conceptual Framework and Accounting Standards
c. P63,000
d. P90,000
Answer: C
2019
FIFO ending inventory 440,000
Average ending inventory 350,000
Difference 90,000
Less: Income Tax (30%) (27,000)
Net Adjustment, after tax 63,000
Answer: A
Answer: D
Answer: A
a. Sales revenue
b. Net profit
c. Dividends
d. Share capital issued
Answer: A
• profit or loss;
Cash Flows
a. P2,650,000
b. P2,525,000
c. P1,910,000
d. P1,430,000
Answer: B
a. P1,095,000
b. P999,000
c. P951,000
d. P855,000
Answer: C
12/31/20 12/31/19
Cash and cash equivalents P540,000 P100,000
Accounts receivable (net) 510,000 510,000
Inventory 680,00 600,000
Equity investments through other 320,000 330,000
comprehensive income
Property, plant, and equipment 1,600,000 1,000,000
Accumulated depreciation (450,000) (450,000)
Franchise 120,000 120,000
Accumulated amortization (30,000) (20,000)
Total assets P3,290,000 P2,190,000
a. P690,000
b. P925,000
c. P975,000
d. P985,000
Answer: D
a. P1,000,000
b. P895,000
c. P850,000
d. P815,000
Answer: C
MC 20 What is the 2017 net cash from (used in) financing activities?
a. P305,000
Quiz 2, Conceptual Framework and Accounting Standards
b. P440,000
c. P455,000
d. P545,000
Answer: A
Notes to FS
Answer D:
a. 1, 2, 3, 4
b. 2, 1, 3, 4
c. 3, 1, 2, 4
d. 4, 1, 3, 2
Answer: A
• Other disclosures
a. True, True
b. True, False
c. False, True
d. False, False
Answer: D
Answer: A
MC 25 G Bank Inc. has total assets of P10 million and total liabilities
of P5 million. Which framework should it apply in the
preparation of financial statements?
a. Full PFRS
b. PFRS for Small and Medium-Sized Entities
c. PFRS for Small Entities
d. PFRS for Micro Entities
Answer: A
Public Entities should use Full PFRS (slide 231). Banks are
public entities since they are holder of secondary licenses issued
by BSP.
Quiz 2, Conceptual Framework and Accounting Standards
Recording
a. True, True
b. True, False
c. False, False
d. False, True
Answer: C
Answer: C
Cash 140,000
Service Revenue 140,000
c Cash 1,500
Wages expense 600
Advertising expense 900
Answer: D
Debits are recorded first while Credits are indented. This applies
to both account title and amounts.
Answer: A
Answer: D
Answer: D
Under the net price method, the recorded amount would be net
of trade discount and cash discount. Hence, the account
receivable and sales would be recorded at P92,610 (105,000 x
90% x 98%).
a. P1,200,000
b. P1,260,000
c. P1,140,000
d. P1,100,000
Answer: A
Total debit and credit will not be affected. The transaction will
increase office supplies and decrease cash whose balances are
both reflected in total debit amount.
Quiz 2, Conceptual Framework and Accounting Standards
a. P602,000
b. P673,000
c. P678,000
d. P698,000
Answer: D
Adjusting
a. P21,000
b. P24,000
c. P29,000
d. P45,000
Answer: B
Purchases 29,000
Office Supplies, beg. (21,000)
24,000
a. P118,000
b. P84,000
c. P77,000
d. P43,000
Answer: D
a. P49,000
b. P59,000
c. P95,000
Quiz 2, Conceptual Framework and Accounting Standards
d. P108,000
Answer: C
Answer: C
Answer: B
a. P26,000
b. P28,000
c. P36,000
d. P38,000
Answer: A
a. P288,000
b. P264,000
c. P266,667
d. P240,000
Answer: D
= 2,400,000 x 90% / 10
= 216,000
= Installment x PV Factor
= 959,264/5 x (((1-(1+10%)^-4)/10%)+1)
= 191852.80 x 4.169865446
= 800,000
Total depreciation is
a. P741,000
b. P744,000
c. P746,800
d. P758,800
Answer: C
a. P160,650
b. P160,600
c. P159,250
d. P153,200
Alternatively,
Completing
a. P48,000 income
b. P10,000 income
c. P48,000 loss
d. P10,000 loss
Answer: D
Revenues P7,000
Expenses
Wages Expense P2,000
Rent Expense 1,000
Supplies Expense 300
Advertising Expense 200
Insurance Expense 100
Total Expense 3,600
Net Income 3,400
Answer: D
Revenues 7,000
Income Summary 7,000
Answer: D
a. P0
b. P847,000
c. P872,000
d. P881,000
Answer: A
a. P2,220,000
b. P2,247,000
c. P2,452,000
d. P2,662,000
Answer: A
Answer: C
Answer: B
Answer: B
Quiz 2, Conceptual Framework and Accounting Standards
Correct entry
Cash 350,000
Unearned Service Revenue 350,000
Per Books
Cash 350,000
Accounts Receivable 350,000
Correcting Entry