Question 1 

(1 point)
 
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1. Presented below are the balance sheet accounts of Maasin Company:
                                       
                                                                                          2020             2019_
Assets
Cash                                                                             6,000,000     4,500,000
Trading securities                                                             2,500,000     3,000,000
Accounts receivable                                                       4,800,000     3,200,000
Allowance for doubtful accounts                                        ( 800,000)     ( 200,000)
Inventories                                                                     5,200,000     6,000,000
Property , plant and equipment                                       13,000,000     8,000,000
Accumulated depreciation                                                (3,700,000)  (3,200,000)
Patent, net                                                                      1,000,000     1,700,000
Total assets                                                                   28,000,000   23,000,000
 
Liabilities and Equity
Accounts payable                                                            4,800,000     4,500,000
Note payable - bank                                                       2,000,000     3,500,000
Deferred tax liability                                                           700,000        500,000
Bonds payable                                                               3,000,000             -
Common stock, P10 par value                                       12,000,000   10,000,000
Additional paid in capital                                                  1,500,000     1,000,000
Treasury stock, at cost                                                   (  500,000)            -
Retained earnings                                                           4,500,000     3,500,000
Total liabilities and equity                                               28,000,000   23,000,000
 
Additional information
 
 The net income for 2020 is P6,000,000. Maasin paid a cash dividend of
P5,000,000 on October 1, 2020.
 During 2020, there were no transactions affecting trading securities except the
change in market value.
 On January 2, 2020, Maasin sold equipment costing P1,000,000, with a
carrying amount   of P600,000, for P500,000.
 On July 1, 2020, Maasin purchased equipment for P3,000,000 cash.
 On December 31, 2020, Maasin purchased land by issuing bonds payable at
face value of P3,000,000.

Net cash provided by operating activities was

 

Question 1 options:

6,000,000

8,000,000

7,500,000

8,500,000

Question 2 (1 point)

 
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Presented below are the balance sheet accounts of Maasin Company:
                                       
                                                                                          2020             2019_
Assets
Cash                                                                             6,000,000     4,500,000
Trading securities                                                             2,500,000     3,000,000
Accounts receivable                                                       4,800,000     3,200,000
Allowance for doubtful accounts                                        ( 800,000)     ( 200,000)
Inventories                                                                     5,200,000     6,000,000
Property , plant and equipment                                       13,000,000     8,000,000
Accumulated depreciation                                                (3,700,000)  (3,200,000)
Patent, net                                                                      1,000,000     1,700,000
Total assets                                                                   28,000,000   23,000,000
 
Liabilities and Equity
Accounts payable                                                            4,800,000     4,500,000
Note payable - bank                                                       2,000,000     3,500,000
Deferred tax liability                                                           700,000        500,000
Bonds payable                                                               3,000,000             -
Common stock, P10 par value                                       12,000,000   10,000,000
Additional paid in capital                                                  1,500,000     1,000,000
Treasury stock, at cost                                                   (  500,000)            -
Retained earnings                                                           4,500,000     3,500,000
Total liabilities and equity                                               28,000,000   23,000,000
 
 Additional information
 
 The net income for 2020 is P6,000,000. Maasin paid a cash dividend of
P5,000,000 on October 1, 2020.
 During 2020, there were no transactions affecting trading securities except the
change in market value.
 On January 2, 2020, Maasin sold equipment costing P1,000,000, with a
carrying amount   of P600,000, for P500,000.
 On July 1, 2020, Maasin purchased equipment for P3,000,000 cash.
 On December 31, 2020, Maasin purchased land by issuing bonds payable at
face value of P3,000,000.
 
 
Net cash used in investing activities was

Question 2 options:

2,500,000

4,000,000

3,500,000

3,000,000

Question 3 (1 point)

 
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Presented below are the balance sheet accounts of Maasin Company:
                                       
                                                                                          2020             2019_
Assets
Cash                                                                             6,000,000     4,500,000
Trading securities                                                             2,500,000     3,000,000
Accounts receivable                                                       4,800,000     3,200,000
Allowance for doubtful accounts                                        ( 800,000)     ( 200,000)
Inventories                                                                     5,200,000     6,000,000
Property , plant and equipment                                       13,000,000     8,000,000
Accumulated depreciation                                                (3,700,000)  (3,200,000)
Patent, net                                                                      1,000,000     1,700,000
 Total assets                                                                   28,000,000   23,000,000
 
Liabilities and Equity
Accounts payable                                                            4,800,000     4,500,000
Note payable - bank                                                       2,000,000     3,500,000
Deferred tax liability                                                           700,000        500,000
Bonds payable                                                               3,000,000             -
Common stock, P10 par value                                       12,000,000   10,000,000
Additional paid in capital                                                  1,500,000     1,000,000
Treasury stock, at cost                                                   (  500,000)            -
Retained earnings                                                           4,500,000     3,500,000
Total liabilities and equity                                               28,000,000   23,000,000
 
Additional information
 
 The net income for 2020 is P6,000,000. Maasin paid a cash dividend of
P5,000,000 on October 1, 2020.
 During 2020, there were no transactions affecting trading securities except the
change in market value.
 On January 2, 2020, Maasin sold equipment costing P1,000,000, with a
carrying amount   of P600,000, for P500,000.
 On July 1, 2020, Maasin purchased equipment for P3,000,000 cash.
 On December 31, 2020, Maasin purchased land by issuing bonds payable at
face value of P3,000,000.
 
Net cash used in financing activities was

Question 3 options:

7,000,000

6,500,000

4,000,000

4,500,000

Question 4 (1 point)

 
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Tubungan Company provides the following information for 2020:
 
 Cash received from customers                                                          8,000,000
Rent received                                                                                       500,000
Interest received                                                                                   300,000
Cash paid to suppliers and employees                                               3,000,000
Taxes paid                                                                                            400,000
Interest paid on long term debt                                                              600,000
Cash dividend paid                                                                             1,000,000
 

Under the direct method, cash provided by operating activities was

Question 4 options:

5,400,000

5,100,000

4,800,000

3,800,000

Question 5 (1 point)

 
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1. The following was taken from the statements of Badiangan Company for the
year 2020:
 
Accounts receivable – January 1                                              
                   500,000
Accounts receivable – December 31                                         
                1,000,000
Sales on account and cash sales                                                            
8,000,000
Uncollectible accounts                                                                                
100,000
 
No accounts receivable were written off or recovered during 2005. If the direct
method is used in the 2020 cash flow statement, Badiangan should report cash
collected from customers at

Question 5 options:

8,500,000
 7,500,000

7,400,000

8,400,000

Question 6 (1 point)

 
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1. Bingawan Company reported net income of P10,000,000 for 2020. Changes
occurred in several balance sheet accounts during 2020 as follows:
 
Investment in stock, carried at equity                                          2,500,000
increase
Premium on bonds payable                                                           500,000
decrease
Accumulated depreciation, caused by major  repair
        to equipment                                                                          1,000,000
decrease
Deferred tax liability                                                                       400,000
increase
 
     In the 2020 cash flow statement, the cash provided by operating activities should
be

Question 6 options:

6,400,000

7,400,000

7,000,000

9,400,000

Question 7 (1 point)

 
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 1. During 2020, Sapa-Sapa has the following activities related to its financial
operations:
 

Payment for the early retirement of long-term bonds payable  

(carrying amount of bonds payable P5,000,000) 5,500,000
Distribution in 2020 of cash dividend declared in 2019 3,000,000
Carrying amount of convertible preferred stock converted into 2,000,000
common shares
Proceeds from sale of treasury stock (cost, P2,000,000)
 
2,500,000
 
In the 2020 cash flow statement, net cash used in financing activities should be

Question 7 options:

8,500,000

6,500,000

6,000,000

3,000,000

Question 8 (1 point)

 
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1. The transactions of Lambunao Company for the year 2020 included the
following:
 

Cash borrowed from bank for purchase of land 6,000,000

Purchase of land for cash 6,000,000
Sale of securities for cash 1,000,000
Dividend declared (of which P2,000,000 was paid during the year) 3,000,000
Issuance of common stock for cash 7,000,000
Payment of bank loan including interest of P500,000 3,500,000
Increase in customers’ deposits    500,000
 
The 2020 cash flow statement should report net cash provided by financing
activities at

Question 8 options:

7,500,000
 8,500,000

8,000,000

7,000,000

Question 9 (1 point)

 
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1. Loboc Company had the following activities during 2020:
 
* Acquired common stock of Marbel Company for P3,000,000.
* Sold an investment in Raya Company for P4,500,000 when the carrying
amount was P3,800,000.
* Acquired a P5,000,000 one-year certificate of deposit from a bank. During the
year, interest of P400,000 was received from the bank.
* Collected dividends of P800,000 on stock investments.
 
In the 2020 cash flow statement, net cash used in investing activities should be

Question 9 options:

4,700,000

4,300,000

3,900,000

3,500,000

Question 10 (1 point)

 
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In 2020, a tsunami completely destroyed a building belonging to Parian
Company. The cost of the building was P8,000,000 and had
accumulated depreciation of P5,000,000 at the time of loss. Parian
received a cash settlement from an insurance company and reported a
casualty loss of P500,000. In its 2020 cash flow statement, the net
change reported in the cash flows from investing activities should be

Question 10 options:

500,000 used in

2,500,000 from

3,000,000  used in

3,500,000 from

Question 11 (1 point)

 
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1. Kiangan Company has provided the following 2020 current account
balances:
 

  January 1 December 31
Accounts receivable 1,500,000 2,800,000
Allowance for doubtful accounts    200,000    400,000
Prepaid insurance    600,000    450,000
Accounts payable    900,000 1,200,000
 
Kiangan’s net income for 2020 was P8,000,000. Net cash provided by operating
activities should be

Question 11 options:

7,350,000

9,500,000

7,150,000

8,650,000
 Question 12 (1 point)
 
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Jostine Company show the following amounts in its cash flow statement for the year ended
December 31, 2020:
 
Net cash used in operating activities 1,000,000
Net cash used in investing activities 4,000,000
Net cash provided by financing activities 3,500,000
Cash and cash equivalents, January 1 6,000,000
 
What would be the balance of cash and cash equivalents at December 31, 2020?

Question 12 options:

7,500,000

4,500,000

5,500,000

6,500,000

Question 13 (1 point)

 
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The following information pertains to Jostine Company during 2020.
 
Dividend received 500,000
Dividend paid 1,000,000
Cash received from customers 9,000,000
Proceeds from issuing common stock 1,500,000
Interest received 200,000
Proceeds from sale of long term investments 2,000,000
Cash paid to suppliers and employees 6,000,000
Interest paid on long term debt 400,000
Income taxes paid 300,000
Cash balance January 1 1,800,000
 
What is the net cash provided by operating activities for the year ended December 31, 2020
using the direct method?
 Question 13 options:

3,300,000

2,700,000

2,000,000

3,000,000

Question 14 (1 point)

 
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The The net income for the year ended December 31 for Kaila Corporation was P3,520,000.
Additional data are as follows:
Purchase of plant assets 2,800,000
Depreciation of plant assets 1,480,000
Dividends declared 970,000
Net decrease in noncash current assets 290,000
Loss on sale of equipment 130,000
 
What should be the cash provided by operating activities in Kaila’s cash flow statement for
the year ended December 31 using the indirect method?

Question 14 options:

5,130,000

7,250,000

5,420,000

5,290,000

Question 15 (1 point)

 
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The following selected information is provided by Cathy Company.  All sales are credit sales and all
receivables are trade receivables.
Accounts receivable, January 1, net of allowance P100,000  
1,200,000
Accounts receivable, December 31, net of allowance of  
P300,000 1,600,000
Sales of the year 8,000,000
Uncollectible accounts written off during the year 50,000
Bad debts expense for the year 250,000
Cash expenses for the year 5,250,000
Net income for the year 2,500,000
 
What is the net cash flow from operations that Cathy Company would report in its cash flow
statement?

Question 15 options:

2,350,000

2,100,000

2,900,000

2,150,000

Question 16 (1 point)

 
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          Cathy Company entered into the following transactions during the year:
 
Purchases of trading securities 2,500,000
Sale of trading securities 1,100,000
Purchases of FVOCI securities 4,500,000
Sale of FVOCI securities 2,300,000
 
Cathy had no investment securities at the beginning of the year.  The cost of the trading
securities sold was P1,500,000.  The cost of the FVOCI securities sold was P1,700,000.  The
market value of the remaining trading securities on December 31 was P1,800,000 and the
remaining FVOCI, P3,000,000.  The net income for the year was P5,000,000.  The net
income does not include any noncash items except for those related to investment
securities.  Cathy Company shall report net cash flow from operating activities at

Question 16 options:
 4,400,000

2,400,000

4,900,000

4,000,000

Question 17 (1 point)

 
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Kris Company had the following activities during 2020:
   Acquired 2,000 shares of stock in Maybel Company for P2,600,000.
   Sold an investment in Rate Motors for P3,500,000 when the carrying value
was P3,300,00.
   Acquired a P5,000,000, 4 – year certificate of deposit from a bank. (During
the year, interest of P375,000 was paid to Kris).
   Collected dividends of P120,000 on stock investments.
In the 2020 cash flow statement, net cash used in investing activities should be

Question 17 options:

3,980,000

3,725,000

3,605,000

4,100,000

Question 18 (1 point)

 
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During 2020 Sarah Company had the following activities related to its financial operations:
Payment for the early retirement of long-term bonds payable  
(carrying value P7,400,000) 7,500,000
Distribution in 2020 cash dividend declared in 2019 to preferred  
shareholders 620,000
 Carrying  value of convertible preferred stock converted into  
common shares 1,200,000
Proceeds from sale of treasury stock (carrying value at, P860,000)  
950.000
In the 2020 cash flow statement, net cash used in financing activities should be

Question 18 options:

7,170,000

5,970,000

5,350,000

7,160,000

Question 19 (1 point)

 
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Joshtine Corporation provides the following date:
  2020 2019
Cash 300,000 200,000
Accounts receivable, net 840,000 580,000
Merchandise inventory 660,000 420,000
Prepaid expenses 100,000 50,000
Long term investment 80,000 -
Property, plant and equipment 1,130,000 600,000
Accumulated depreciation 110,000 50,000
Accounts payable 530,000 440,000
Accrued expenses 140,000 130,000
Dividends payable 70,000 -
Note payable – long term debt 500,000 -
Commons stock 1,200,000 900,000
Retained earnings 560,000 330,000
Net credit sales 6,400,000 4,000,000
Cost of goods sold 5,000,000 3,200,000
Expenses 1,000,000 520,000
Net income 400,000 280,000
 
All accounts receivable and accounts payable relate to trade merchandise.   Accounts
payable are recorded net and always paid to take all of the discounts allowed.   The
allowance for doubtful accounts at the end of 2020 was the same s at the end of 2019.   No
receivables were charged against the allowance during 2020.  The proceeds from the note
 payable were used to finance a new store building.  Common stock was sold to provide
additional working capital.
 
Cash collections in 2020 from customers amounted to

Question 19 options:

6,140,000

5,560,000

6,400,000

5,850,000

Question 20 (1 point)

 
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Joshtine Corporation provides the following date:
  2020 2019
Cash 300,000 200,000
Accounts receivable, net 840,000 580,000
Merchandise inventory 660,000 420,000
Prepaid expenses 100,000 50,000
Long term investment 80,000 -
Property, plant and equipment 1,130,000 600,000
Accumulated depreciation 110,000 50,000
Accounts payable 530,000 440,000
Accrued expenses 140,000 130,000
Dividends payable 70,000 -
Note payable – long term debt 500,000 -
Commons stock 1,200,000 900,000
Retained earnings 560,000 330,000
Net credit sales 6,400,000 4,000,000
Cost of goods sold 5,000,000 3,200,000
Expenses 1,000,000 520,000
Net income 400,000 280,000
 
All accounts receivable and accounts payable relate to trade merchandise.   Accounts
payable are recorded net and always paid to take all of the discounts allowed.   The
allowance for doubtful accounts at the end of 2020 was the same s at the end of 2019.   No
receivables were charged against the allowance during 2020.  The proceeds from the note
payable were used to finance a new store building.  Common stock was sold to provide
additional working capital.
  
Cash payments to merchandise creditors in 2020 amounted to?

Question 20 options:

5,150,000

4,910,000

4,670,000

5,000,000

Question 21 (1 point)

 
Saved
Joshtine Corporation provides the following date:
  2020 2019
Cash 300,000 200,000
Accounts receivable, net 840,000 580,000
Merchandise inventory 660,000 420,000
Prepaid expenses 100,000 50,000
Long term investment 80,000 -
Property, plant and equipment 1,130,000 600,000
Accumulated depreciation 110,000 50,000
Accounts payable 530,000 440,000
Accrued expenses 140,000 130,000
Dividends payable 70,000 -
Note payable – long term debt 500,000 -
Commons stock 1,200,000 900,000
Retained earnings 560,000 330,000
Net credit sales 6,400,000 4,000,000
Cost of goods sold 5,000,000 3,200,000
Expenses 1,000,000 520,000
Net income 400,000 280,000
 
All accounts receivable and accounts payable relate to trade merchandise.   Accounts
payable are recorded net and always paid to take all of the discounts allowed.   The
allowance for doubtful accounts at the end of 2020 was the same s at the end of 2019.   No
receivables were charged against the allowance during 2020.  The proceeds from the note
payable were used to finance a new store building.  Common stock was sold to provide
additional working capital.
 
Net cash used in investing activities during the year was
 Question 21 options:

530,000

80,000

660,000

110,000

Question 22 (1 point)

 
Saved
Joshtine Corporation provides the following date:
  2020 2019
Cash 300,000 200,000
Accounts receivable, net 840,000 580,000
Merchandise inventory 660,000 420,000
Prepaid expenses 100,000 50,000
Long term investment 80,000 -
Property, plant and equipment 1,130,000 600,000
Accumulated depreciation 110,000 50,000
Accounts payable 530,000 440,000
Accrued expenses 140,000 130,000
Dividends payable 70,000 -
Note payable – long term debt 500,000 -
Commons stock 1,200,000 900,000
Retained earnings 560,000 330,000
Net credit sales 6,400,000 4,000,000
Cost of goods sold 5,000,000 3,200,000
Expenses 1,000,000 520,000
Net income 400,000 280,000
 
All accounts receivable and accounts payable relate to trade merchandise.   Accounts
payable are recorded net and always paid to take all of the discounts allowed.   The
allowance for doubtful accounts at the end of 2020 was the same s at the end of 2019.   No
receivables were charged against the allowance during 2020.  The proceeds from the note
payable were used to finance a new store building.  Common stock was sold to provide
additional working capital.
 
Cash from financing activity amounted to

Question 22 options:
 300,000

730,000

230,000

800,000

Question 23 (1 point)

 
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Which of the following items would be presented in a cash flow statement?

Question 23 options:

acquisition of an investment in a subsidiary for consideration consisting of an exchange of non-current

assets and liabilities;

payment of dividends through a share investment scheme;

refinancing of long-term debt.

proceeds from the issue of debentures

Question 24 (1 point)

 
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The following item would not appear in a cash flow statement:

Question 24 options:

payment of creditors

receipts of cash from customers

conversion of preference shares to ordinary shares

 proceeds on disposal of non-current assets

Question 25 (1 point)

 
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IAS 7  Cash Flow Statements, requires that investing and financing transactions that do not
require the use of cash or cash equivalents should be:

Question 25 options:

included in a cash flow statement before operating, investing and financing activities

presented in the cash flow statement after operating activities and before investing and financing activities

excluded from a cash flow statement;

presented in a cash flow statement after the operating, investing and financing activities have been
presented