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Ma in· F c. Villaroman Bldg. 873 P Campa St. cor E~pan,1, Sampaloc, Marnia 11 (02) 735 8')CJ1 / 7 35 90·11
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Branch : Rudel Bldg. v , Lower Mablnicor Diego Sllang, B.iguio City• (074) 442 -1'1 40
3/ F GCAM Bld11.. Monteverde St. Davao Cltv 9(082\285-8805 / 0925-7272.223

fl NA N CI AL ACCOUNTlNG & REPORTING OCTOBER 2018 BATCH


F IRST PRE-BOARD E,XAMINATION AUG 6, 2018 ; lUOAM -2:50l'M
SETA.
r~ STRUCT IONS· Select the c0rrcct answer for e~ch of the foll owing qu<'stinn s. M3 rk only one ~n .w rr
ln r rlc h ite m by Shading t~c corresponding letter of your choice on the an~wer sheet pr rJ·.- 1cl cLI
ST RI[,TLY NO E RASU RES ALLOWED. Use Pencil No. 2 oniy.
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\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
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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: .
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• 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
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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
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• 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,, ,, .

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,1.-\ 1.. icJ.it l.d a ucc (o,·c(draft) m n bank nccount may be offset ag:um r an other acc0u n1 h:" '· ·,'. ,.

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!

l',C' 1h •, to\lnw rne. for items 6 • K


r_,u-moc,n C.o mp,;ny has gathered the following information in relation t o Jts checku1g AC LOL1n L 1n f'i'-' P, r,,.
il1r 111on L1 u( 1\pril
1

B,.lan cc per b,;c,ks /\ prtl 30, \>975,000;


Dep,),Lt in transit: March :~1, Pl 25,000; April 30 P170,000
N~f- checks retumed by the bank: March, P60,000; April,PS0,000
l D1cre ~1 o n deposlt ; tviarch P4,500; April 8,000
Oursrnriding checks March 31 , P2t5,000; April 30, P280,000
Deporns of ( 3mw on Company on ,\pril 12 for P25,000 was rccordnl by the ban k 111 Cn:i,, :Jo ll
I 1 ,mp:rnv 's ac,ounr.

\ 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

L , t chr (o il owmg for items 9 • 10


Un -\ pril L 20 Hl, Daffodil Company sold a parcel of land having a ca rrying value of PlJCI0,00() 11)
f h111:1u:;1 Cump,my anJ received a note with a face amount of P2,J87 ,S00. No in teres t ra te w~ , , tipub tn l
011 1h C" Do te . !-'urth.::m,orc , the note rcquues seven equal annual installments to sur t on March 31. 2Pl 'J
1 !J __ pre,·:-\1!.J., ig rate of interes t for this type of note at time of the sale was 9%.
0 11 Junc- 10, 2018. Daffodil Company sold a used trnck which had a carrying value of PSS0 ,00() 10 J-ci;

( ;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

L\ e foll owuig for item~ 11 - 13


~l t'
l 11 t.h c Dect:mber 31, 2018 statement of finanrnl position of Gerbera Company , the total curren t asset ,
;u 1.J c 1rre1:1 babiliues were P4,355,000 a.nd P3,250,000 respectively. On Januiuy l , 20 I9, Gcrbt'la Comp,u 1\
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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.
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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 ,..._ ._

'>,,, ,,lutic d ,c }J.t, Hl,1. 1'.)(1, ')",;, I0 -11lfJ11th wit<· cl~rc<l


Ju ly I , 2()1~ Jl ,1 ' "''' · d I. '",
1h, ,.~ Ii !' >•w eed ~ )l.til r LHn l liy 1bt ab v,'e menurin ccl tr:111 ~a c r.11Jt1 ' •A':c·,
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2 (,jrJ .i lt)O h 2./i .17. ~O() c 2,(,44 .HUU ,! .' · 11, · ·•" 1
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, tr:1ns:n ll'1n ., tcpv rln I 111 rI1c· 1•r•.•1·It I or :, , , •
,, 'i' 1 ,·, ,1 111Hr hcns1,·l· l llLO ll l l: ~l a l c tnellt I~
:'1\, ..!l)il L, ~1 .20() ( . >5.>,2fJ() d ;, I ,,,,
; \ l lw \\ · >I ~ 11lh l :1 p1t.:-1I rn 11u :1t[ er th\' :1bovt rnc n1ionrd 1ran ~actt c,11:; Wd>
1 )1 b. '3 c 112 J , 1,,

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'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 · • ,· ,;
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',;' \\'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,,,,
, ::_
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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

ren:1n:d by 1hc l1uyc[ o n _!a11uan· 3, 201 CJ


• r ·c, t ,, f g<1od:, ~nld FOB shJj![1lrlg pui nt. shipped on Dcc cmbn :0, 20 1\ !'1:2\J,;>\ J(l cc~., . 1 , ...

hu:, n rm Dccn r,bet J l, 20 i 1'


• r ·o sr o f gt,ods soid FO ~ d1:~ll !la:j u1!, sh ipped un Dc:ctmb,·r .>U, .' 1) 18. i1hU .' iU1'. :L e..: .. , , I I_ . ,· ,

IJ1,11 : on l)ccc-rnhc ;- .11 , 211 1"

i h< rnv c1 u n n L, alu 11cc lO be ,rpur! (.d al Dcu:mbtr 31, 20181s


i,'10{_,_t)OIJ b. 2,0U0,000 C. 2,080,'J(II I li ~.i21 1 ' i• ·•:

;,,: die h liuwmg r·(J \ l'.t i l1 .~ I 7 · l 'J


1 h n ec t- 111 l,,·r !, 201R , f.11 1 <.:u n 1p:1uv st;u:tc.:d oper.0011> .!ld h:t, i die i',,ibll' t1 11•, tu 11, .1 , 11,,11 1,·L, ,, 1 ·
ti I ',1 (. l: ~,); \

Purc h.1 sc:, l.l ntt~ l;ni t COS! Saks L'1111 ,


l) c cc ml> cr 600 20(1 Decembt>r 5 JQ( I
Uccc:rnl.H:1 ! tsOIJ :'il)!J December 1 l otlU
l J<.: ctn il >tr lo 500 +00 Dccembe1 16 \tl( ;
Ucccmber 20 600 45IJ December 25 .j(J\ I
1li.:u mbc r 27 20U SOO Deccmbt:r 30 JSP
u, 1 u! g00d, ~olcl under th c: a1·c1.~g(: pcrpe1ual inn :nrory ~ystc-n1
rl 62fj1JO b. (>49,2Llll c. 706,IIV cl . ":l/:i_(\1 /0
I, I h, l<J t .d ,:i le~ J rnuunt if Lily r :umpuny 11w111tatnt"J ,, m.11k up nf '!5"-,. .rnd 1, ,c , ii ·, I i h I i '' 1 I 1, l

\ l t V('l1il) I')' S)" I Cm

·.'X l . \-:':, b. 0)6 /16'7 c. H82,G3 ,


t-.ii J cn.; u1v, 1\ tu ry under LIFO pnprtual i11vcn rory ~r~ tcm
1.)5 ,00t) b. 20<'.,SOO c. 2U,?,000

SETA

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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

-~ 1 months show pwThases of product ?YP a.s fo!.l ou.: s


\\'fr\1 igo iJ <_, 0 1np:u1y 's first ,,t
Scptc:mber Octobtr \:<Jv<:mher Decem be r
t\lu mlit:: r of umts 3,800 4,200 3,600 2, '.)(J ()
Cosr P 9S,570 P 114,030 P 102,%0 P !!X, - -. t,
1 ht cnd.11 1g 1m en ton• o f P242 ,490 w;i, computed under tht: J .lFO periodi c 1nvcntr,r) sys ,(m
1 he cnd in f uwenrot;, Lin der the FIFO penod.ic mve:1tory wsrem 1,
1 23 2,-ns b. 243,28:> c. 25,4,620 d. 2C,5.(J(} C,

I_J -; c rhc hl \.-,w mg 1nform:11Jon fo r numbers 21 . 22


1lie re• ,,rd, <Jt Nvmph ca ancl Ordud Company show the following for the currenr y~,:
Cost Rcta u
!:kg1nnrng I.Tl vcn tc rr P 126,000 P 2kt1.0(JU
Purdi a,c, · 456,950 ~65,U1JO
he1gh t- ln 50,000
Pu1c li:1.s e returns 28,350 ·+ 5'()(J(I
l' urch:i~e discou·ms and allowances 5,000
Uepa nmemal transfers Ln 5(>,700 90,000
Depucmental transfers out 34,650 SS,000
Add11Jo nal mark -up 105.0UO
.'\ dJ 1uona! mark -up cancellacion 70,000
1\ b rkdown , (10 ,l)OO
Mukdvurn o ncellatto n 4\000
Sales 580:000
:->ale s disco unts 9~_;.lllO
Sales retu rns ·HWOO
( rnployee discounts 6U.0(JU
Shn nbge , Spotlage 2S ,000
Shuplifong losses 10,000
') l /-. nd1ng uwt111ury -- cost undtr the average retail method is
~ Fn ,S CI-~ b. 2U7 ,85 3 c. 247,482 d . 2 (i k ,(l \ (\
.~ 3 CrJ 5t of , ales un der tb e Flf<O reui.l method is
a 314,168 b. 353,()40 c, 248,168 d. 227 ,040

U~ c th e: 1ollow1.0g info rmarjon for items 24 · 28


O n Septe rnl;tt 2.5, 20 l 8, Petunia Comp:in>' acquired a crate of items which Pcru111J C0mpan) wit: r,r,_,,:e , ,
f-.irrh cr an d ni~de read y foe sale. In payment, Petunia Company iss ued a f!l .233,600 iacc \·;i luc n,,1r ~ li <
nc,1e orries a ra te o f 9% . In addition , the agn:ernent was for Pcrurua Cclmpany to p·.,, , 1c< , 11 1, u ,i
'. !l Srn lm cnts startmg October 1, 2018.
nt crat.c includ ed the following items:
Prod uc t Code Units F~ir value per unit Coovrrsion co,1 , l'111ts so ld
Q uin ct 16,00U 22.Sfl P 234 ,000 7,601,
Rmc 14,400 1500 129,600 ltl,S00
Soapwo rt 20 ,000 43.20 414 ,720 8,000
\ n;iual r ~rmcGl tn relatJon to chc note isrn ed is
,, 10 5,000 b. 240,000 275,000
c. t.1 . ."120.U\IU
l' uichasc pncc: recorded (a llocatt.:d) to the Quince inventory account
~ )08,400 b. 3GO,OOO c. 391,600 cl 7 ~0, 1~li

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?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

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, , 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

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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,''

1o:.e.r(st (.:X f'(tbe 1 \\100 Unearned rent inrn n w 1


\ 1 I

ln: nc~ ! i ccrn.ic 90,000 lirihrit~ e., pcn ~c


bl ul.ip Comp~ny's post-closing uia'. balance, the creJic total would ~r;i u:.i!: '. :o
~ 68S.'Jlil1 b. 7S0,000 c. 94'i.00tl d I ,l I I I l I )1• ii I

' ,· ,Le r,A1c,,111g fo r 1: t:n , 30 . 31


1
'n , i:iite,ntx - 3U. :!.1)1 >3 , :1 !! r e a \ c~,uu.1 Cuni p:1r1.-·s onlr w·,ut:l10ust· J:un :,g, d 1: , L.,:: r· · ·111 <· 1: · • '
I-,~ [l)}lo,;•lfl)< u1Cormacio11 Wt:I C made avail.,i,1e .frnm ·cr,i,11;1 C o miJ .ll li .. > n: L:,, rci , r,_, r the ·111 ·- ·· 1 .. ·-
:,Jd \ cpl ::ml>cr lU , 20 18:
In- ::1~rory ~t Janu,iry 1, 2018 l·
·1nt?.l purc ha..,es re ceived and recorded from }anuarv to d:ne of ftre
·1,-,,:i i f,c,~ht cost o ( good~ purch.iscd ~ncl recfr;rd
i r,1 .,! \.. H:dir mt:rn o rcce 1\·ed qn gu,xl~ pw-ch:1scd and rtce1nt.l
l •,tc.i d.i oLOUO\ c ta.l..en '.)11 rurch?.5(' ~
k,· u1c.c ,cc<:1vc:d for goods purchased li1 tramit on S.eptember 311. F0 13 ,1::pping p :,m ; : · '· ·
T" t3l d e, deh•; crcJ ao d reco rded fro m January to date of foe
l 1:rt:mrdcd .sa b invoice for gooch <ldivered ·
rrira l , ,des rrturris :iccou'.lted and recorded 10 dace nf fire
I ,, LJ! sa le~ cii~counG t4.c.n by customers on recorded sales
.-\ ph l" '.: 1uJ inv cnwr) di, clo, ed u~a blc damagccl goods which Ursini.1 Cr,mp;111 y c ,t.1 111:1 tc , c.,r, I, <: , ,.. :,
,, 1u bl.icr t()l rso,ooo
'1,1 .\;svinmg r_hat Lrs1nta C:ompa.ny ha s ma 1rtta i11cd a pro tit rr~1 rgm ,1f :,(1°, c, th a.,11);hvu 1 · he
c,>, t o f Lfic grJods d,:Hr.oycd by th e fare 1s
;i i ,04 5,000 b. 1,095,000 c. 1,195,000 d. , ,2'\:i .l ll )'.·
, 1 /¾<~01rjn i( that l~.rsm.ia Company ba s mainmined a m.'l!k-up rate of 2S''Jo th rm1gbc'. 11 i\1, • .• 1 , •.
c, rn11,1tt d ur-,-cntory r..os 1 at the nmc of the fire is
~. :fi0,000 b. ii00J)OO c 100 ,000 l! (i:i 1,11 1 u·,
\ ,, ,b Company 1~ con tr.:mph1ung 00 ti 1e appropcia 1C.: dcpreciatw n pa, rt m tu ;i[>p lv
ma nuf;ruurrng e~u1pmcn1.
Yc;ir Straight-line Sum-of r.hc .Ye.i.rs ' digit Doublt-dccl1m.nf; b:1l.1 11n
I 1O'J.SOO 182,500 LW ,OOll
2 109,500 146,000 I 3(i,8U0
3 109,500 109.500 . 82,iJ80
7 3,000
4 109,500 ~9.248
5 109,500 36,SOO Sl,37'.~
l'ht cos t of rhe ·nrnc:hinc is
i , 5VJ}50 . b. 547;500 C. SS8,75U

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

\>rud l!n lrns :m e,wna1ed $e' Umg prici.: c,f 114'.2 .


,·,: ,; ,un 0 u , 1l u f 10 , c-nto 1:y-,q·1t1:-clow n 1
0 bl:' ttported as pan of cxpe 11'C , 111 ::OIf. is
.. ;,,J)(J ,000 b. <AO,GOU C. 160,00(1 u U

SET .A.
UZC-1\ CEIPJ\ I : First Pre-Boo.rd bJ.niinations (October 2018 batch) PACiL (;

l ,e 1\ic fnllow111g 111 fot11DU 0 11 fo r 1teq1s 34 - 3S


1 cllPw tldl Corn pn ny started operations on March 2016. The follow ing mfon n ati o n wi:rr prr ,v irJ n l in
1\'l.1 L1- 1111011 :, 111 vc11 tury (or 1h c: past chiree years

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

LJ ;c d ie followi ng for 11e1m 39 - 40


On Dece mber IS, 2018, Ethan Company acquires 9,600 ordinary shares of Luther Company' s, 80.0()(1. F: li
pa r l'aluc ordinary shares outstanding for Pl 15,200. Ethan Company classified tbc security inve stme1m :1,
finan cta l ::mets measured at FVTOCI. Commission and other fees incurred on the acquisition \\'CH'
PU ,910
Un Deumber 7.4, 20 18, Ethan Company acquires 18,000 ordinary shares of Bcnp Companr's 12(1,UUO.
P 12 par value ordinary shares outstanding for P254,700., Ethan Company cl11ss1fit:d the ;ccw1 r,
11!,· c, one nts as finano al assets measured at FVTPL. Commission nnd other fees Lonmtd 011 tht'
.Kq1:i ~iou n were P15,300.
U n December 31 , 200l8 , the Luther Company antl Benji Company shares wde 9uo1eci o, F I4.6Ll ~nd
l' ! (1h n.:specri vely Esumated disposal cosrs would be 0.8% of the shares quoteci pnce .
Y) T ht L!.Il reali zed gRU1 or loss included in the profit or loss sccuon of t.hc 20Hi rnmp , chen, i, c 1ncon1<
,I d t <.:JI\C OI JS
a. I J ,04/J b 22,500 c. 24,960 · d. 37,800
4 ·l ·:·l.J, uureaLzed g,un or. toss mcluded in · the other comprehensive income section of Lhc ~(; : '11
w mpr ehrnsive income statement is
c. 22,500 d. 11,040
:i Yi ,SUO b. 24,960
l
\· ·- ,,, I\ I I' \ I
I' ,,,
111
\\ Ii " 1 th, t,, ll , •11 '' 'I '. , 1:1rc111 ci 11, :il.1,1111 rl11· l,t1 1vri , nl !J.1,_l1,,1.. u11d "' •· ' •u 1•t1 11,•
l I !i,i,, ricd d .,i:1 ~h,",. th~ , the (' ,1rl1t·, 1 st• inblan cc.: , 11·· 1c eL p111~ 111 · ,1 , I. ,,1 ,. ,, " ·
ti ,· n 1 " 1111 • tli ,· l,,1111, cn1h tv 1111 1r1'
\ I ,\ ii lt:ili:1 1: l l \ <' llk 1rn p 1rn,1·d ,h,· w ~tc:ni uf rn t, n l-kc, jl lll\'. I_. , .1111, ,d,.," , . ""
d clJll rn J ut d 1t
,l ( )1 1h J 1,
11'\J I_
I :111 d 11 M c ll ' "
b ,I. \ h-1 tlH: I I 111) 1 II h i '• ll

\ · " 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 tl 11'! ll,)\·,,


\ , , IJ , I ' ,

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

11 i\ ll ,, \ I li e ' hn1cu H1 ' cnt rel!

· 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.

I he l11tc rn:1t.1onal Accou 111111g Standards Bonrd's (IASB) conceptual frarncwurk


lr...:l11dc~ the co n..:cp t of prudence or con~nvatism wluch mean, when in rio ub t, d1 ,,, ,~, ','
~olu uo11 that wtU uclt:asr li.kcly ro overstate assets or mcomc anJ / ur undcr~ta lt li~hil 1n c·
LXpemcs.
l 1 L:-:clu dt:, the concept of prudence or comen,atisrn because tt r, 111c •)rb 1st e 11t w 1il 1 ri r u •·J li n
\\'hi ch rncompas,es freedom fro m bias .
l- Jnc ludcs the conce pt of prudence or conserv:irism which n1ean~ whcr. 1n doubr. rh nose thL
~o tuuo n tha t wiU be least likel y ro understate assets or income ,wd / or oversLll c t1 :i',r l J[l c ' ' 1
ex pe o,cs.
J Inclu dc ~ tht.: co ne ept of prudence or conservatism as a desirable , but not tl'.lj u irt'.d. 9 u.1li · 'i'
(1nanc1:JJ repo rting in forma tio n·.

I \\. h1ch of rhe fo llowing statements is not an objective of financial reporting?


·\ 'Pro\ tde information th at is useful in investment and credit decisio ns.
B. Prnnde u.fonnation \lbout enterprise resources, claims to those: resources. ~nd ch:! ngc ~ ·o ,:·1e171
C P t0 \' 1dc infor m.:nion on th e liyuidation value of an enterprise .
D P1oq c.Je mfonn auon rhat is useful in assessing cash flow prospects.

,\ r, rual :i ccow1rin g is used because


A. 1.. ash f1ows are cons idered less important.
B u P"' \·1dcs a better mdicatJ ott of ability to genera~e cash flows than ilic ca sh b:i rn .
C i t rcu,g-nizcs ren:nucs ,.vhen cash 1s received and expenses when cash is p:ud.

D 1L ;, b , cos tl y to apply

\X;ha 1 1s me~1rll by comparability when discussing financial accounting informat.ion;


:\ l nforrna oo n has predictive or feedback value.
H. !11fo rma tion is reasonably free from error.
C lnfo rm ac.ion that 1s me asured and reported in a similar fashion across co mra n!es .
D lnformauon is timely

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

Wha c I> the purpo5e o[ reporting comprehensiv,:, income)


.A. To report <.:ha nges in ec1uit-y due to transactions with mrne rs
B. To [tport a measure of overall enterprise perfonnance
C 1 o rephcc net income with a better measure
D. To comb ine income from continuing operations and extraordin:irv item s

!'. 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•_.
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