1.

Give the correct sequence of the following accounting procedures

1. Financial Statements
2. Reversing Entries
3. Pencil-Footing
4. Journal Entries
5. Closing Entries
6. Adjustments
7. Post-Closing Trial Balance
8. Adjusted Trial Balance
9. Unadjusted Trial Balance

A. 4,3,9,6,8,1,5,7,2
B. 4,3,9,6,8,2,7,5,1
C. 4,3,9,6,7,1,8,5,2
D. 4,3,9,6,8,5,1,2,7

2. In which section of the statement of financial position should cash that is

restricted for the settlement of a liability due 18 months after the reporting
period be presented?
A. Currents assets
B. Equity
C. Noncurrent liabilities
D. Noncurrent assets

3. What is the objective of financial statements?

A. To provide information about the financial position, financial
performance and changes in financial position of an entity that is useful
to a wide range of users in making economic decisions.
B. To prepare and present a statement of financial position, statement of
comprehensive income statement of cash flows and statement of
changes in equity.
C. To prepare and present relevant, reliable, comparable and
understandable information to investors and creditors
D. To prepare and present financial statements in accordance with all
applicable PFRS and interpretations
 4. A complete set of financial statements includes the following components,
except
A. Statement of financial position, statement of comprehensive income,
and statement of cash flows.
B. Statement of changes in equity
C. Notes, comprising a summary of significant accounting policies and
other explanatory information
D. Reports and statements such as environmental reports and value
added statements

5. Pabebe Company revealed the following information for 2016:

Accounts receivable on January 1 P 550,000
Credit sales 4,650 000
Sales returns 100 000
Collection from customers 2 150 000
Accounts written off 50 000
Estimated future sales return at year e 68 000
nd
Estimated uncollectible accounts recei 112 000
vable at year end per aging

On December 31, 2016, what is the balance of accounts receivable before

allowance for doubtful accounts and allowance for sales returns?
______________
6. Marc and Pingris started a partnership. Marc contributed a building that he
purchased 10 years ago for P100,000. The accumulated depreciation on the
building on the date of formation of the partnership is P25,000 and the fair value
is P110,000. For what amount will Marc’s capital account be credited on the
books of the partnership?

a. P100,000
b. P110,000
c. P75,000
d. P25,000

7.On August 31, 2018, Berna paid P114 000 for one year rental covering the
period September 1, 2018 to August 31 2018. The payment was originally
recorded as an expense account. After the adjustment, how much is the prepaid
rent on December 31, 2018? ____________

8.Nancy invested P600,000 for a 30% interest in a partnership in which the other
partners have capital totaling P1,000,000 before admitting Nancy. After
distribution of the bonus, what is Nancy’s capital balance?
a. P480,000 c. P720,000
b. P600,000 d. P300,000

9.Under the financial capital maintenance concept, a profit is earned when I.

The financial amount of the net assets at the end of the period exceeds the
financial amount of the net asset at the beginning of the period, after excluding
any distributions to and contributions from owners during the period. II. The
physical productive capacity of the entity (funds needed to achieve that capacity)
at the end of the period exceeds the physical productive capacity at the beginning
of the period, after excluding any distributions to and contributions from owners
during the period.

a. Both I and II c. I only

b. Neither I nor II d. II only

10.The trial balance of Zambales Company reflected the following liability
account balances on December 31, 2016:

Accounts payable 5,000,000

Bonds payable, due December 30, 2017 10,000,000

Premium on bonds payable 500,000

Deferred tax liability 2,500,000

Dividends payable 4,500,000

Income tax payable 1,500,000

Note payable – bank 4,000,000

The bank note payable matures on June 30, 2017.

On March 1, 2017, the entire balance of the bank payable was refinanced
on a long-term basis. Zambales’s financial statements were issued on March 31,
2017.

In its December 31, 2016 statement of financial position, Zambales

Company should report current liabilities at

a. 21,500,000

b. 24,000,000

c. 25,500,000

d. 28,000,000