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Day 2
Day 2
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DAY 2 of 150
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DAY 2 of 150
• December 15, 2020 - Declared the required annual cash dividends on preference shares for 2020.
The dividend was paid on January 15, 2021.
• January 8, 2021 - Before closing the accounting records for 2019, PETMALU became aware that no
depreciation had been recorded for 2019 for a machine purchased on July 1, 2019. The machine was
properly capitalized at P864,000 and had an estimated useful life of eight years when purchased.
The correcting entry was recorded on the same date.
• Adjusted net income for 2020 was P756,000.
Based on the preceding information, determine the correct December 31, 2020, balances of the following:
(Ignore income tax implications.)
AT
61. Assurance services differ from consulting 62. An assurance engagement should have which
services in that assurance services of the following elements?
I. Focus on providing advice I. Subject matter
II. Involve monitoring of one party by another II. Sufficient appropriate evidence
a. Yes Yes a. Yes Yes
b. Yes No b. Yes No
c. No Yes c. No Yes
d. No No d. No No
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c. It supplies a listing of open accounts and 67. The adjusting entry for depreciation has the
their balances. same effect as the adjusting entry for
d. It proves that debits and credits were a. An unearned revenue
properly entered in the ledger accounts. b. A prepaid expense
64. Adjusting entries affect c. An accrued revenue
a. One nominal account and one real account d. An accrued expense
b. Two nominal accounts
c. Two real accounts 68. Which statement is not true about accrual and
d. No particular combination of nominal and deferral?
real accounts
a. An accrued expense is an amount not paid
and currently matched with earnings.
65. Adjusting entries b. A prepaid expense is an amount paid and
a. Are often prepared after the statement of not currently matched with earnings.
financial position date, but dated as of the c. An accrued income is an amount not
statement of financial position date. collected and currently matched with
b. Are necessary to enable the financial expenses.
statements to conform with IFRS. d. A deferred income is an amount collected
c. Include both accruals and deferrals. and currently matched with expenses.
d. All of the choices are correct regarding
adjusting entries. 69. Closing entries
a. Are optional in the accounting cycle
66. An adjusting entry should never include b. Affect only real accounts
a. A debit to revenue and a credit to liability c. Determine the amount of net income or net
b. A debit to expense and a credit to liability loss for the period
c. A debit to liability and a credit to asset d. Reduce the balances of temporary
d. A debit to asset and a credit to revenue accounts to zero
MAS - ECONOMICS
70. A decrease in the price of a complementary d. people spend a large share of their income
good will on the product
a. shift the demand curve of the joint
commodity to the left 72. Which of the following has the highest price
b. increase the price paid for a substitute elasticity coefficient?
good
c. shift the supply curve of the joint a. Milk
commodity to the right b. Macaroni and cheese
d. shift the demand curve of the joint c. Bread
commodity to the right d. Ski boats
71. Demand for a product tends to be price 73. The local video store’s business increased by
inelastic if 12% after the movie theater raised its prices from
P65 to P70. Thus, relative to movie theater
a. the product is considered a luxury item admissions, videos are
b. few good complements for the product are
available a. substitute goods
c. the population in the market area is large b. superior goods
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RFBT – OBLIGATION
78. Which of the following statements concerning c. A stranger gives support to a child of
the kinds of quasi-contract is correct? another person without the knowledge of
I. Negotiorum Gestio refers to the voluntary the person obliged to give support.
management of the property or affairs of another d. A person saves the property of another
without the knowledge or consent of the latter. person during fire, flood, storm or other
calamity without the knowledge of the
II. Solutio Indebiti refers to the juridical relation owner.
which is created when something is received e. A person caused injury to another person
when there is no right to demand it and it was through fault of negligence.
unduly delivered through mistake.
a. I only
b. II only 80. What is the nature of the responsibility or
c. Both I and II liability of two or more officious managers in a
d. Neither I nor II negotiorum gestio?
a. Generally, it shall be solidary unless the
management was assumed to save the
79. The following are examples of quasi- thing or business from imminent danger
contracts, except which will make their liability to be joint
a. A person receives something when there is only.
no right to demand it or it was unduly b. Generally, it shall be joint unless the
delivered through mistake. management was assumed to save the
b. A person takes charge of the agency or thing or business from imminent danger
management of business or property of which will make their liability to be
another without authority or without solidary.
consent of the latter. c. It is always solidary.
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83. What is the nature of responsibility or liability 88. What is the nature of civil liability of two or
of two or more payees in solutio indebiti when more persons (criminas) who are convicted of
there has been payment of what is not due? crime?
a. Solidary a. Solidary
b. Joint b. Joint
c. Pro-rata c. Pro-rata
d. Subsidiary d. Subsidiary
84. When will a person who accepts an undue 89. Article 100 of the Revised Penal Code provides
payment of a sum of money be liable for interest? that every person criminally liable for a felony is
a. When he receives the undue payment in also civilly liable for damages. Under Article 12 of
bad faith. the Revised Penal Code, the following persons will
b. When he receives the undue payment in not be imprisoned (exempted from criminal
good faith. liability) but will still be liable for civil damages
c. When he receives the undue payment, (civil liability) for their acts, except
regardless of being bad or good faith. a. An imbecile or insane person.
d. Under all instances. b. A minor or any person under 18 years of
age.
c. Any person who acts under the
85. When will a person who in good faith accepts compulsion of an irresistible force.
an undue payment of a thing certain or d. Any person who acts under the impulse of
determinate be responsible for the impairment or an uncontrollable fear of an equal or
loss of the same or its accessories and greater injury.
accessions? e. Any person who acts under self-defense or
any person who acts in the performance of
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his official duty or any wife suffering from 93. What degree of evidence must be proved by
battered woman syndrome who killed or the plaintiff in order to recover civil damages
injured his batterer. arising contract or quasi-delict?
a. Proof beyond reasonable doubt
90. The civil liabilities arising from crimes are as b. Clear and convincing evidence
follows, except c. Preponderance of evidence
d. Substantial evidence
a. Restitution which refers to restoration of
the thing itself even though it be found in
the possession of a third person who has 94. In the prosecution for the crime of criminal
acquired it by lawful means. negligence, the accused is acquitted on the
b. Reparation of the damage caused which ground of failure of the prosecution to prove his
shall be determined by the Court taking guilt beyond reasonable doubt. May the private
into consideration of the price of the thing offended party file another civil case based on
and its sentimental value. quasi-delict?
c. Indemnification for consequential a. Yes, because a single act may result to
damages which shall include not only different sources of obligation and crime
those caused the injured party but also and quasi-delict are separate and distinct
those suffered by his family or by a third sources of civil liability but the private
person by reason of the crime. offended party (plaintiff) cannot recover
d. Compromise of the criminal liability. twice civil damages for a single act since
civil damages are awarded to compensate
91. What degree of evidence must be proved by the victim for the injury caused to him but
the prosecution for the conviction of an accused not to unjustly enrich him.
of a crime? b. No, because the accused shall not be
subject to double jeopardy.
a. Proof beyond reasonable doubt c. Yes, only if there is a contract between the
b. Clear and convincing evidence contending parties.
c. Preponderance of evidence d. No, because the private offended party is
a. Substantial evidence barred by the principle of res judicata.
92. What degree of evidence must be proved by 95. It refers to a Source of an obligation wherein a
the private offended party to be entitled to civil person by act or omission causes damage to
damages arising from crime or delict? another, there being fault or negligence.
a. Proof beyond reasonable doubt a. Contract
b. Clear and convincing evidence b. Quasi-contract
c. Preponderance of evidence c. Quasi-delict or culpa aquiliana or torts
d. Substantial evidence d. Delict
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b. Due process of law and equal protection of c. No appropriation of public money for
the laws religious purposes
c. Non-impairment of the jurisdiction of the d. Power to tax cannot be delegated to
Supreme Court in tax cases private persons or entities
d. Tax must be for public purpose
ANSWERS
AFAR AP AT FAR MAS RFBT TAX
50. A 56. C 61. C 63. D 70. D 78. C 96. D
51. B 57. C 62. A 64. A 71. D 79. E 97. D
52. A 58. B 65. D 72. D 80. A 98. C
53. D 59. A 66. C 73. A 81. D 99. C
54. A 60. C 67. B 74. B 82. C
55. C 68. C 75. C 83. A
69. D 76. D 84. A
77. B 85. A
86. A
87. A
88. A
89. E
90. D
91. A
92. C
93. C
94. A
95. C
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