MULTIPLE CHOICE

1.
2.
3.
4.
5.

C
B
D
A
C

6.
7.
8.
9.
10.

11.

P20,000,000 x (3,000,000/15,000,000) =

12.

Contract price
Less Total estimated cost:
Cost incurred to date
Est. cost to complete
Total estimated income
% of completion (3150/9450)
Income to be recognized in 2007

B
D
D
D
C
P4,000,000

P10,500,000
P3,150,000
6,300,000

9,450,000
P 1,050,000
33 1/3%
P 350,000

13.

Contract price
Total estimated cost
Total estimated income
Percentage-of-completion (27/81)
Income recognized last year

P9,000,000
8,100,000
P 900,000
33 1/3%
P 300,000

14.

Contract price
Total estimated cost (P4,650,000 + P10,850,000)
Total estimated loss to be recognized in full

P15,000,000
15,500,000
P 500,000

15

Contract price
Total estimated cost (P4M + P4M + P2M)
Total estimated gross profit
Percentage-of-completion (8M/10M)

P14,000,000
10,000,000
P 4,000,000
80%

Gross profit to date

Less Gross profit recognized in 2006
(P14M P8M = P6M x 4/8)
Gross profit to be recognized in 2007

P 3,200,000

3,000,000
200,000

16

Contract price
Total estimated cost
Total estimated gross profit
Percentage-of-completion (600/1,800)
Gross profit to be recognized in 2007

P3,000,000
1,800,000
P1,200,000
33 1/3%
P 400,000

17.

Contract price
Total cost incurred
Gross profit
Gross profit percentage (1,200/12,000)

P12,000,000
10,800,000
P 1,200,000
10%

18

A
Contract price
Total estimated cost
Total est. gross profit

Cubao
P16,200,000
14,400,000
P 1,800,000

Marikina
P25,200,000
23,100,000
P 2,100,000

Percentage-of-completion
Gross profit to date
Less GP recognized in 2007
GP to be recognized In 2008

83 1/3%
P 1,500,000
750,000
P 750,000

100%
P 2,100,000
1,872,000
P 228,000

Total GP = P750,000 + P228,000

19.

20,000,000/24,000,000

20

Contract price
Total estimated cost
Total estimated gross profit
Percentage-of-completion
GP to date
GP recognized in prior years
(P30M - P22M = P8M x 50%)
GP to be recognized in 2008

21.

Total amount billed

Less Balance of accounts receivable
Total collections
Amount deposited
Cash collected not yet deposited

22
23

P150,000 937,500/9,000,000
C
Mobilization fee (P1.2B x 1%)
Collections on billings (1.2B x 10% x 90%)
Total fee received by NNO

24

25.
26
27
28
29

B
A
B
C

30

P 978,000
83.33%
P30,000,000
24,000,000
P 6,000,000
83.33%
P 5,000,000
4,000,000
P 1,000,000
P843,750
300,000
P543,750
500,000
P 43,750
P1,440,000
P 1.2M
10.8M
P12.0M

Contract price
Gross profit rate
Total estimated gross profit
Percentage-of-completion
Realized gross profit

P100.00M
25%
P25.00M
50%
P12.50M

Downpayment
First installment payment
Addl fee (P1,000,000 x 3%)
Earned Franchise Fees

P 50,000
50,000
30,000
P130,000

31
32

C
A

P 100,000 x 1/5 = P 20,000 + 1% of P500,000 =

P 1,000,000 + 5% of P8,000,000 =

33

Downpayment
PV of installment payment
Additional fee ( P 9,000,000 x 5% )
Earned franchise fee

P 25,000
P1,400,000
P 100,000
199,650
450,000
P 749,650