Professional Documents
Culture Documents
\t followi.ng changes m :\.nemone Company's assets and liabilities during the year a.re as foUow s
: lncreag<~ (Decrease)
Cash and cash eqq.ivalems P 730,000
1\ cuJ\.U! l S receivables (150,000)
~Uowance for ba1 debts (15,000)
Inventory 80,000
1
AUowance for invfntory decline 5,000
f manci.al mstrumum@ FVTPL 100,000
Land \ 260,000
Building 175,000
Accumulated depreciation ·- Building 50,000
r\cccmnts payable . 160,000
r\. cn '1. l t:d expenses\ (80,000)
Bunds p:.yable , 500,000
Dlsco unt on bonds payable 65 ,000
D\1ni1g the vear, Anemone Company issued 20,000 of its P10 par value ordinary shart>s for P28 5,00()
T,~t;u dividends declared aniounted to P60 000
Tl~e net income for the year,is '
.l I 285,000 b j 385,000 c. 415,000 d. 51 5,000
I
l 1~c. t~ l'. fo llowing for items 2 - 4
Du ttcy:llp Com pany is attempting to deter~~ _the amo~t to be reported as Cash and cash c::9uivakn t:; m
l LS Dq:cmbcr 31 , 2018 balance sheet. In its uutial draft tt reported a cash and cash equivalents balance of
P2 ,6' l000 broken down as foll~ws ·
Cash on hand P 375,000
I c~sh in barik 1,845,000
Prmy ca~h fund 50,0Q0
F .i.rthf r analysis of the sa.id accctunts revealed the following: .
1
• C:\~n otJ hand included the following; collections from January 2 - 5, 2019, of P40,000: customers'
ct cb of Pl 15,000 rw:1ved before December 31 , 2018 of wbch P35,000-were <lated in JanullJ 2019 ;
,iryd a postal money order in the amount of P60,000.
• Cish in bank included the' following demand deposit accounts in BDO, BPI and MBTC with balances
o~Pl, 140,000, P825,000 md P(120,000) respectively. Further analysis revealed the following:
, I 11,e BDO accourrt balance was ween from the ledger Checks amounting to P260,000 wert
! oumanding as of bitlance sheet date . Furthermore, a check dated and recorded on December 21),
I 2.0 t 8 for P35,000 in payment for various repairs remained on hand at balance sheet date.
• The BPI account balance was taken from the bank statement. Checks amounting to P65 ,000 were
1
Ioutstanding as of balance sheet date. In addition, a cbeck for P12,000 whic.h cleared by Dccembe.r
was recorded in the books as P21 ,000
1
• The petty cash account was maintained under the fluctuating system of recording. As of December 31,
1
8, rhe tor.al unrcplcnishcd receipts was P30,000.
2. " e cash on hand amount to be included under cash and cnsh equivnlent ts
~ 220,000 b. 240,000 c. 300,000 d 340,000
?. I lle c:i~h 1n bank - l.WI amount to be mcluded under cash and cash eqwv.lent 1s
a , 7 60,000 b. 769 ,000 c. 825,000 d. 834 ,000
+ ·ntc total rnsb and cash equivalent amount reported in the 2018 statement of financial position i.5
~ I '.'. J5 9,000 . b.. 2,255,000 c. 2,285,000 d. 2,294,(?(l0
!
lh_' ,\ 1__'b IJ1\ \ · Fi r~l Prc-13onrd Examinations (Odober 2018 batch)
,\ h 111 k n, ndu ft ex ists whcu the cash m bank account lrns a cred it balann.: (:i 1nrH111 1, c,( <, li r e k
1 <u m ( c wcic 11 , r:s ,·c~s uf 1'1 ,· anv-,111 ,1 ~ depositeJ JO the accoun t) Th e fc1U ow1ng ·,1:1tu11cn 1·.. 11• 1,, ,, .
Jc hit bul~ ncc pro \·1dcd the sa id accou nt is maintained Ul the same bar,k
h \ _- redir balance (\)n:rJraft) 10 a bank account tnay he off~c t against an othe r accou11 1 h.,, 1n;• .,
d, 1) 1: hal,111 1. e w\ 1c.: th n the ~aid Kcount is maintainctl in 1he s,1.mt b:mk or in :•. d1ffe1c11 1 CJ.in k
,'\ crcJ:1 b:ilancc (oc crdrn fc) in ,1 h:i nk acc:o\l nt which cann ot be n ffsct sh()u lc.J br cl:1,s1 11td ·t .,
ru rrrn 1 lt:1bil1 t1·
J ,\ crcJit lnlancc (oveulra ft) 10 a b::mk account may be offse t ag:\UlSt anoth er acc o1111 1 l..,v 1r,~ -,
dcbi: li:d~ncc n1a.111taine<l 111 a differen t bank if the amount is unmatena!
\ check ! cn ;rJed fo t: 115,000 and issued in March 28, cleared the: lxink 111 April for it~ C<) ri c,'
__ ,; ni,,: mr ui PiSl,000. t--:o correcuuns had been made by the book as of !\.pril 30
(,
l ht" ,1.c\1usl(.:d u sh m bank balance is
93J,UOO b. 897,000 c. 872,000 J 840 ,000
rh c b~hncc per bank statement as of :\pril 30, 2018 is .
:i l ,ll32,000 b. 982,000 c. 918,000 <l 7(,2,0fJO
R 1f ' li e ,_ ash bal?.ncc shown in a rnmpany's accounting records is less than the correc t ca ~b balance .u id
nrn hcr the cu mp any nor the bank ,ha~ made any errors, thcic must be
a. Lo~n proceeds credited by the bank but not yet recor~ed by the company
l,i_ lJeposns 10 transit
c. Our , ;:-i ncl ing checks
rJ Ba;ik cha rges not yet recorded by the company
( ;k,,·c Company and received a P750,000 uoninterest bearing note from Fox Glove Comp:iny . Tiic· fa t1
-,- alut of the r:.ruck and the market value of the note were not determinable. 'The prevailing internt r.1<c CJ!
f1,1 :: , mubr note was 8%. Furthermore, the agreement requires Fox Glove Company to pa y 5 c o l 1.1 1
1n s1·3lJnents ~tarti ng un Jul y l , 2019
D., ff odil Coi_n pa.ny men rhc calendar year for reporting purposes
9 n\t g:un 0oss) on the sale of the used truck included in the 2018 proftt ot loss statemen t
a. (39,563) b 48,907 c. 96,819 <l. 200.000
i O The 1n t:.t r t~ t income io relation to note received frotn Echiruicea Company reported u12019
l 37,7US b. 130,013 c. 126,166 cl. 113,589
11.,ci th <.: foUowing Lransc1ctiom in relation to it~ tcadc and othet receivables:
,\~signed ll 1,500 ,000 of its receivables co Hyacinth Company on a notif:ic~tio11 basi~. Hyau11 1h
Co mpim shaU adva nce 80% of the receivables assigned to Gerbcrn Company le~~ a srrvicc d 1:uge ur·
2 S% based on the loan arnoum
' 8ETA.
1
'' \ \ I I'. \ I
1• I/ /
I .. " IJ\I , .;~ t Iv ! - 1:, cl :,,• ~ (11~c· .\r,u d:i y~) . A hllldlrnck c,111 :d [() (," ,t ' ,f i ii, IC( (I \ ;,l, 1, ' ., ·'' ., .,, '• i 'I .,
h ,. h f 1 .1 t t ,..._ ._
1
'c i nc :nJk,,\· utg (1Jr 1r(' :1b \ :l. !)
i., ,, i!:tc· c:u n· p 1rn , tr,1ck .1C( u u1 1h 1cu 11· ahk lu hncc A, );inu :1n· I, ~1111') ·, .is P l. ~' 1.' .. ' 11.1 1-
, ., b ,~- \l~ :~ _C..!)() . .
1), ,, ,,1 , , ~\)18. !.1., nunc Co mpan •; rL·p,m cd ,ak~ uf P6,lOU,OiJO. 20'\:; 1JI "'!"s ,11 2 ,:x -.,,, . 1 '. 1.:1 · • ,· ,;
1
',;' \\'t1' urnler :t credi t tern, r.f8./ l0, ,[,120, n/ 60. '.)ale, r ctu l'f' • m ,, ,1 -n r--ci ,1, , 1:· 11. ,.
u i, .i c~ •; 11 nt
''"'°' iii .v 111 ch ti,( ..:u~tumers wen: rdi.tnd\'.d· and P 15,i)t)O f,.J r cn.:dn qk ~.
i,,:.I ,\d i1t ,,, t.\5 h dunng rht' periuJ l1•1 ,•l20.0()0 wh ich 1nr.l u<lc5 rn lk c!H111 , (L,1::1 t' :: •. i,., ,,:-. -·• ·- 1
1 0 1
v' t: i, ,.~ l1>t.t! n)!. !'2\,_)(JO. U r' th e r crn:1m i 1,i' :irnuum 51) ,, wert fr ,J n ! c::~'. 'J ;, w r~ -.,·/:. r,;,.,J ,,-'.' r·
,,.-•,ir .:,n,.: ,l ~;\le , ~o~ .. \\. t'l't fr,rn, Cll ~l<• me r; wh o n:::d bc::r, mJ iO hut \\ .11 11111 2rl J ::·.' , .. Jl: ·h. ,· 11 .:,
,,,._i I ii,· 1·c ,t l•<: •·c111d tht d1, cc».1n1 f.>i:nud R12, , 1vabl~~ WrJil~Jl -,., ff Iii 20\x. r ,1_1 _1Y 11.1
1: 11 ,:· 11 ,, i·•J ci cko ,, were rL·c o rJ eJ d ·,1ru~~ d1 t ve·.11 ba.sc.: d c,n 1_::,•:,,, o! .2 l'>·' crcd1 r , ,d, - 1 " : 1. •,. ,
:,c-., · bk,, ,;' !: 1, mmc- Cumpan:. d,., ,10; h~ ,-c :i ,1grufic1n t fin ar. u ng , ( ,1 11 1p ,; ;iv:11. i'l; , ,,/, 1 .,1.,
1 1
:, • 'Jl L!'H :0 1al n ::1\ CI\J ?·,·cr i,·.il>k,.
,- I ht~ 11,1 11,, n acle ;ic co11 n1~ rt cc11ab le December 31, 2018 i,
;ii
:'.,:<lu~--u b 2,:F, ,J.'! () c. 2,872,?.: U J. _·,,,, ,;_,1,,,,
, ::_
1
h,_ \i... 1r•:1: J ~1J )u ~11n t u t :.r1 lcco rdi1lg rhc 2018 bad debts cxpens~ b
2(J_.) () b. 3 1, M ) C 45.,.3 (, d. ,(,, l l 1 1
' i--:. J n ;c;i r v u f> :1 w Co n,r ~nv reported ;in cnclin~ inv.:nto(\· ·rJi l;i,9SU,(lr li l 11,1, c:r. ,11: ,1 phy:-. ll ;11 ,·, 11 11,r
Dcc ern l1,:t 2' 1 • 20 i 8. The- foll nwing 111form:n.ion w, re· p1u 1· ic.li:--<.I UJ J ,:'.c ,n -..i1101g the .un ,1 1
,, I •n11 n l
• ( 'J'.I c1 I gund, ~uld i··OR d,'. :, tuu tiun . ,i;1pptd un Di:( r111bc1 2-- , :2d/ M, l' '.! S(·,1l1t, ~~ J'(• tu. 1,
1c,,:1, rd 1)-, bu 1c:r ,J ll jan u:i1< :. 2(1)\l
.. ( v , t ,, ( g0r,J;; ,\\)J r U H :, h1p p 11 ;g point, ·, h1ppd <) \) D ecember 2h. 2l1l ~. I' \ IJ.J.(/1Jt_l, l. r•c• tc- ,! I
SETA
J
l RC ,\C L.VA I I irsl Pr1.;-Board Exa111in11tions (October 2018 batch) P1Vil
1 ,, ;"C 1ull ow111g ,1 a\l·me, 1ts rt'latc 10 d,r. different cost mcasurcme111 meth o<l~. which 1~ fali,r -
" l~.:- r 1f1l 1dcnuC1ca t1 nll should be applied to Items th:it are not v1t<:1c h,t1 1gcab lc ,11 \1.I ;· , ,,i
,·1, ice~ p1 od uccd fo r sp1:c:1fic prOJCCts .
1
) l . 11d<.:r di e 1· l rO method , the babnec of inventory on hand at an y p<,mt rc pcc~•·r. · , 'i l l : ; 1, , ,
, cccn1 pun_has1:s 0r ptoducuon
l he I· 11~0 ,nc 1hod attempts 10 match current costs with current rr.v l'n uc~ so rb1 rnt p;o!i1 , 1
lo~s aceouni e:,clud es die effects of holding gain~ and losses
d Ir. pn 1ods o f nsmg prices, the ending inventory balance: under tht !·!!-() mr , hnJ "-''1 ti! d ,
l•:gkr 1.h:i n 1. he ending .nve11 tor:y balance under the Lll·O mcthot.1
I
?J, Co)t o f gc,ods sold in relation to the Ro~c inventory
7P, ,G(,L' b. 138,780 c . 235,980 d '.?57 ,640
&ET .A.
·--
,~ "
, , I ,l- \U P.\ I l'nsi Pr~'. -1\o,nd l-. x,11111 1111 11011~ ~Octobl!r 2018 hatrl 1J I' t\ I , I
I ,1 1111 .,
11 1•·1,· c1·"•u 1--.l 11·• rL' I:1nu n rot Irn .~u~
c-
p,u>rt IIIV!!nl lllr acc ,, un r 1,
' .'h2
! (i ' lJ 'i'i9X., 2 c: 692 ,'128
" l 11 , u n 1 ..: ., pcn,e in '.'.0 [9 i11 n.:ht1 on ro the nr:)1c 1~~ut:J
i l 17 .:- :: ~ 6. 0lJ ,'.l S5 C % ,2(,5
-) l h: r,1lin\\'111p. items we re r.d(r n fcom Tulip Co mpany 's :id)LVitcd 111 ~1 'J ;\ :~111: ,: ; ·. " : p l \. ,: I , :,
I ,11,J 1n~ :, cu ,.i n t~
\,,_ ,·,,; nl< l'LC"CJ \· ., b lc r 251).( 100 ln;;ento rv
\ccu un r, pa1.1 b\r \illJ .t)OO T ulip, capiu l
\rL.rn eJ lntnc, t Fx 11<: !1,;c 6'i,()U0 Prqi:,id suppli L. ,
\L.,-1uc·J Intnc~t Rc vrn uc- )0 ,000 R. <: nr rn -cnuL· ( ,11_. ,,
11
\,\ ··, l r $ f1• ,m etts ro m cr~ 50,lJU(J ~alarics expense
r ·"" ,i :' ,:-i_b 40.0l)O Saks
1.i :-11r111e and tixn.m: s _\\0 ,000 Sal\:s rcrurns ;ind ~1il ,\1·;11 1cL , I,''
Y\ l'hc ra.-. i; ma tc1nh inventor'.( a(cuun1 of Wis Lena· Comp:1ny at Dn:c,nbt:r 31 , ~ll l 0 con~,,: ": . 1·' 1_,'
1. ,
l.l t1i of X.rlo, rm cad, ::o~cing J>25 . ,\~ nf Do1.:t'.tnbe~ :ii , '.20\8, d1l marke t pri( 1· ,11· 1i1c \ •·ic_•_,1:., "·
, ,n l) P20 <:;<.eh, The 1cl<l1tionul cc~ t pci· urur to cuniplct<: and dioprJ~c .hl pl()duu 1'., f' ; ..\ lh · 1·11 ,.. , ,
1
SET .A.
UZC-1\ CEIPJ\ I : First Pre-Boo.rd bJ.niinations (October 2018 batch) PACiL (;
20 I (1 2() I 7 20 l K
l11,· cn t<1 ry. bcp, P P 900,00U P 1,1 0O ,uflri
Net Purc h~scs 4,500,000 5,000,000 '1 ,2110,01)(1
Invento ry, end 900,0IJ0 1,100,000 ~5/J ,1)()0
In r, rr p:,nng ilw 20 18 fi nancial sta tement~ of Yellow BeU Company the fo!Jowing Jr cms w<' rt nutcd
fl 1c cn d u1g 1nven tu ry re ported Ul the pasr three years were based on ph ys1o l count:, rrndc 1r1 y ,. i;. ,,1
llcJJ ( : 0111 pa 1w' :; wa reho us es.
Cuod~ o u, o n con,1gnmcnt at the end of 201 6, 2017 ancl 2018 were jJ I ) 0,000, P l 8t l.000 :,nJ P 1 \ I I JI 11,
1espccuvely
The l:is t purcha~e im:01ce recorded in 2018 was PB0,000. Tb1:se goods were ship ped on DeLcmL er ~')
20 18 l llldt: t th e_tcrms fob shippmg point and arrived oo January 3, 2019
3<1 Tlw pnor pcnod ad jus tment to bt: recorded on January l , 2018 is
a LI b. 30,000 c. 150,000 d. I BCJ,000
3~ Tl
\e ;:1w,u n1 10 br reported as cost of s:dcs in the 2018 income statcmrnt of YcUou- Bell (<,nq ,an · :,
4 J7ll,OOO b. 4,410,000 c. 4,450,000 d. 4.4 1JU,0()0
Y, /.en o bi, Cornpanv acquued p~tent nghts and pays advance royalties tn so me c:1,e; , :1 rd 1n ' ,t h L·i ·
'. u•. ;dnes a, e p.ud wtrhin 90 da y~ after year end. The following ;i.re incluJcd in lc noh1a C " m [Y• n .- ·
l)t:c1•rnher 3: h:ila ncc sheets:
2.Qlli 2011
l 't epa1d ro 1aitie~ P 55,000 P 45,000
JZoyaltic~ pa yable 80,000 75,000
Dunng 20 l 8. Zenobi.3 ·Company remitted royalties of P300,000. Tn irs income statemen t fo r the ,s: ir
rncicd Dccc:rnhcr 3 l , 20 I 8, Zenobia Company sh ould teport royalt)' expen se of
0 285 ,000 b. 295,000 c. 305,000 d. 3 I 5,000
:r;- r: 1r tht: yea r 2018, P(100,000 of ~ages expense was repot!ed in the income statcmept. Thl' vn.,,-1uu,
\'ear·~ statemen t of fmancrn l positio □ reported P125,000 of wages papble An an:ilym of the pavrol !
recoi:d.s , howed wage; payments <lunog the year of PS?S,000. If the previous year's r1J1 ust1ng c· n1ry fc.1
rhc t,np:u ci wages w~s reversed on Januarv 1, 2018, the amoun t o i the ?.<ljust.ing en try frir ;i1.nucJ
";ig-:s o n December 3 1, 201 8 is
.,. 0 b. 25,000 c. 100,000 d. t 'i0 ,000
Ji5. The fo!Jowmg erro rs were made ,in preparing a trial balance, the Pl,250 l?alancc of invencon \ \ ;J ,
ommcJ; rhe p ,~S0 b?.lance of Rent payable was listed as a debit; and tl1c:: ~J300 balance of Salar1c'~
Ex perhe w:1s li ste d as L tiliues Expense.
lhe debit ~!lCi credi t totals of the tnal balance would differ by
SU b. 350 c. 650 ,d. 1,250
\ · " ndh ci <.Y e lo1'•·d <.:"rtccptu .d tr:1 mc.:w v rk n { cunrt:pLS :1 11d o li 1c<.r11·c, -\" ,•.dd
\ \\\(I,.\ , , r111 ,1:,c1:. ! \ ),\( 1·1·1,·11 1 11• c r,' l1 1l de 1:;1~11d.i ng r,( :,nrl 1 ,,11 tid ,·, 1, , Il l 11 :1 1 I • I
I, 1·nL.1 11u , ,, 111 j1,11,il 1ili1 1· :1m n11 /!. uJ m ~1arn ,·< finnnc 1ai , r:,1e mc11 1s
t'. \, '" l k\i 111d ,. 111<· rGing J' l ,IC : t, ~ i pr, ,tile t11 , IP 1Jf 111 11r,: <JIH, 1,I - ,I · , , I
iJ d\ ,, f rh r,Q
1
! 1· : • •\ll l<J i, ,- t' :he <.' X[) " ~u1, dr Jft for c<, tn m r nr r,, <.I-'.\ prr ,fr .:;1, ,: 1,1b .111, . .,i, ,·1 11 1' '
p l ' •; '
\ l'i l 1 · .. ! I,_, :he hn :11 1u:1 '. k.(' pOJ:ll ilt' ::i ta.11Jarcl s , ~n un ,:d 1_f-]h ('1 ,111 ,I c·, • r, ;,., .:,. I • 1:
l'11> f: ' 'll• l :i, I !{,·gu b uon c. ,11 1n1i~w Jn
(rR( )
I\ IJ• 111 liL 111,J:11;1 :he PRC U tfo.:ia l G·,1:c:cll c:.ind 1rt :1ncw, p:iiJ n <., l i-(l' l.,·r ..!, L, •· 11 •' ' •1'
-14 \\ 1•,( h 011 1 ut 1..hc fo llowi ng GociJn 1s responsible for rc: vK WJllg a(co11mi.ng 1, ~1. ,·: 1\:.11 ..ic .J..
:c-. u, , J 11 : 1;'.crn ,_, r u n .1cc c p 1 :;l )lr:: i,eatmto l in the: ab~t:ncc 1, f :1c 1:1<.> r1t:WI'<.' ~u1 d .1•1,.,. ·.1. h1 ' ·, •,•
.\, ch1 11~·. l ' ,11.,u 1,1 1, . 1, :o i1; 1;; :1pr rup r1 atc ~CCu Uflting (rea t mc111 )
\ \11 :ern,11.1 ,, 11 :d Fu i:u 1u ~I Rep• >1 ung lntu t1 rcr:i.riom Corn.m1 :1n:'. :l t-~1.1 1:
II " (: .1t< L 1,i , \cln,o r•, ( ,1 un,: 1, :~ ;\ C;
\1i:u11.:,1 rn 1.1 l ,\, u ,11 1rn11 g '._;t:ir·ch i:li s U,,,11 d \L\ :-i /.)_;_
I 1 : 'l' ,1 11 ~, ri1.> 1\ a l .\ C, <>u nr;ng S•.:11 H.ia1d, ( .urnm 1tt ti.' t- 0uml:11 1on ,_ I 1\, · h1 .i i: .l.1L1 •11:
: 1. <. !,
\ , ,, ,, l:tilOll 11 ( l{crd,1ll'~ lll thr l'hw pp tlll'S si::clu ng rarn b :' l'Jil l<'I u,(' Jl \-. i I
, , .- . 1.1t h e 1 u1.ir 1 P \~ l,S Knic11,.,,' !.n ~\..t n un ang fc ,1 L~~L .~l' ~l ,:11~ u.1:1.:;,11,,_ fJ , )J1 ..
T h'- b,,,11 1c,; po n:;1blc for adJrL":<, mg 1h :, :1ccou ,11 1:11; 1, ,,., , , 11 ,. . , ,
, 11J ,_ ,r; u1u 1u 11 il 11 1ld c:·.,
u11 " c11 ~u -; ,1, : .. , the :JJ' P''-'fHt~I<.: :1c( u u 11cmg u,--., unelll is the
l1 1,n 11 .111u1J:il l·,n ~n n:i l R,Tc1rti11g l111nrnt'r~ uo 11s Comm11 1cc- •, lFR I( )
1,, !·1 11.1 11, 1,.l l ~c j>0 1Ung ::; 1,rnd:ml , CCJun u! (FRSC)
JJh1Lip p1 nc l n t~rp rc Ln in11 , ( u 11urnt tt'f' (PI C)
U I111 cr11 :11r<,n:, ! ,\ cc1J1 1:iLi:'lg '.) t;inJ arc.ls Bu:irc.l (L-\ SB )
.:1: \\ 1: 1,:h ut 1h c :,J Umrn 1g (~·,) H l' nOl lrut COl\Cc' rt1tng ~ con..:ep r•. 1:i. l f1o 1>1n 1 o rk 101 1c t 0 •11.',11c'.·
I1 -li<.• tdd tJ(· a IJ;r-1 , fr ,r ,rindan!-serti ng.
I, -li<> tcid .il :1,•.~ I' ' :1cr1e;,l ;-J1 uhicm , ro b,: SlJ!ved murc 91uck.Jy b1 rd u n 1<, :, , 11
11 , h111,id be b~ , <.'.,\ 1Jil r'unJ :1mtlll:il rr,.1 ths th:it :ne dn 1v l'J fro ,,1 1he l~\I'> u: r1.1 tt1 1,
d ,\II or' 1he :, bc,vc (;i -c ) an'. tru e.
..J .' \\ hJ , I, ,,1 1hc J,Jllowi11g ,1 aten1 c: 11 s 1:, , lots not pc:rtam ,>r is 001 an a, p!'.ct uf ' ·go u1 l_; c0 1n·c1 1:' ·
.\ l1ni n·,111.·ri :d C'J SI of oftic ..: e({uipmcntwith a hfr of three \'Cat~ i~ churgrd 11, n ,1h· 1u·
II \ ,,, 1:: li ,IJhi lia bilmcs ~).I: lC'jl <.l rtt'c.l tn rhe ti11anci 1I st a tt'Jnt:l\t':' u , 1: 1~ J ''t tirre: ,: ' ' .1,1 J !I ,,,
C U IT•.' ill ' ' 1:\:t ~S)fil..~ [l(JI I
:in·. rcc.,gu r1.c,I 11 \ acc01111Ut1/ 1·v1: to1 b .icu111b .1 nd ,·1•c11 "
.\ l cr u~ ), .rnd defcn ~I,
Il IJ h r:iu~ure uf U'(Hlblcd -dt'lir r•:~ trncn.inn~ unJ daci1~11 l'.fl p:tg<.• 111 tile 1111tc, r,, 11n .,1!•. 1•.:
, 1~1r r, 11'1l h
1,., \11 ,he l1 11c rn ~u,, n:,I Ac.ul un 1u11:1, \t~ncbrds l.lo,1rd\ ,!.\ ~B's) Co11c t.:p tllld h .1111t· \\ "(i, , •: :1 !11.,·I\,
( l·:t1 .1l l.J:.'l'l , UC,
.\ ,(· <'t•Jl oiJncd t1 thc L i"unc..larnt.: 1ll~ I 1,1r i:ult,11 1cmg,
II ( ·•11 ttr 1hu t<.' 11) iht: dtc1s1c,n -u~du l11i::$S of ftna11cial rqi, >rtlll g 1nt'orni a1i .. ,n
l), ~Ul \)1U l; h b <:tl l'.f utf0).111.tl )IJ!I rwm mfo.:rio1 Ulformilll <.ltl for d c(.1.ii () tl · m~k.1 :1,; i:1u? .J ' ' '
S .E T A
R., ,\ L I:. I',-\ I . Ftr~t l'n;- Uou rd h :11rn i1111t io11s (Oc tober 2018 bntd1) I',\ 1, ~
1
· h, 111101 1.,ti,) n,d 1\ cc uu mm~ :- rnnJanls 110:ud's roru;cru1:i l fr :,111 nv n rk 111 cluJ ,.. <..U• I h r·,11 ·/11
•I'
,-,, ns tnu nt. \\ lu, Ii ,, ( the fo ll owlng bc51 dc scnbcH the co~1-bc.:11c fi1 u im , r, 111 1>
i-J-1< l.H'nl'ftt> uf Lite in for m~u on 111us1 bt gtrntcr than the co~t, of pnw 1d111v, 1t
II 1 111 :i iH ·i:J 11 1f. , rr11:1tlll ll should be free from cost to u~er, o f lh c:: mfor m~t.Jc,r1
t ' " ' ' l' f ptlw 1d1n1s tin nnual ,n fo rm:ilion rue not alw~ys c: v1dcnt ur me~ sw "hlc , l1u1 ,n •, ·I,
,·u1b1ck rr.J .
l) -\ II o r the ch,)IC <'~ :tre cor.recr.
D 1L ;, b , cos tl y to apply
54 \l?hc. t 1s meant b~· consistency when discussing financial accounting informa1l rn11
A. Jnform,1110n thar 1s measured and reported in a similar fashion .1eross po in ts in ilrne .
H info rrnao on 1s timely.
C. Information is measured similarly across the industry.
0 lnformation is verifiable
!'. JividrncJ ckcla1ttl by the cnuty bcfon: its year-end and payable to ir~ shart holckr~ rhr rc :iw r,th,
,1 ft n rhc encl o f tht" reporting peood is cfassitied as:
:-i :i non -current fubitiry c. equity
b. ~ currenr Liability d a current asset
Which of the following statements about the accounting process _is incorrect?
.A All 0 ( th e accounts of a specific busuless c:ntcrprisc Rre rderrcd to 1s n le<lg~r
LI Clos ing 1..he books is not part oi the accounrjng process
SET .A.
1: i' \
1k, .1 ln h nct ,i1ce ! th c pr ,s1 cl,, .. 1;1g lt1:il b ahn c-t rrm •J in , ,, 1: -. , .. ' ._.. -,
1
. :\, r-. n rh:-,t Jo nt1e 11« t • 1, rccogn1 zc:d on th e i.1 cr ,1 :1e ~,:1r l'.:n L• 11 ,.,l!. _ ,,
, ,J1I ,, n 1 c.1,\, h'."l, Li c ,· :1 m:i dt 1:1 the ; am1.: pc:w ,c.\
1
.\ \( • •JI 1h c foi.low,~,e ,: ~t cmcn t;; about the inst:s of :ICLOUflflnV, r(lr 111r1 , r,1l .1 11<: ·. , ',,
1 , ,.1 ( )?~:·1t1'.1g opc.i1,c ~ will bl.' 1hc 5amc under pure o,li ,;iJ r:1-A':1 ·• 1.. 1 • •• t,
:~ lt. , r. 1c :,nJ c·,r, n~t5 '.\' ll h C,.tsh il1w, <\ [ t' rt-cvg n1zec Ul ( ·. b l:. 'Ti ,cJoi·:•: •..: r :,,:,
b tG(1l d r ,,,!-. b:-,.\ 1, \\cl _l' !clJ the , arnc: G w s·, P r 1Jfi1 .1rr. 0 u r o1 , . \ ~er-~,.· l •
• .J , , ll lH •1~ ,; t .1t 1..owir!n1; lk 1:-~ n , 1· rec(,~1 11.c :u;, ~d)"J ~1:np, ,::l' : ·, .• 1 c 11 , · :
•! c11c fuJv\l. ng , t-.1tem.: 11 t, 1, w, /:i rl&su n fvr prcp~. ::ng c.:11 J '-·· :,ci•_.
', :1, l· 1q11, :1cu0n c ~; Lc:id b c1· r.,1 :d " li e ;.ccuun ,mll p•: r, t,c.l
·: i,e · hc ln i0 p ,ui-)cd, 1!lt.~ ,u rc the pcnnd 's 1,e 1 1-,cu.r. e \ l ! :ict ),,.,
:, t:"\.cd ,l( L i.., l '.nt~ ;kmlcl lie ,:i \1l ll llU th ctr red :HH.l 11omu1,, '. cb 1.c.:,
· r~r r, (!.l •( .,,·c:rG :i: rh~ coJ vi 1hr j.: t: , 10-:l shouid be cor;-,_uc.l ,r, · J· · ·
.l i1. t' k '.-:o;;r.ci,.i icporr ~