1.

Which of the following statements concerning the formation of partnership business is

correct?
ANS- THE CAPITAL TO BE CREDITED….
2. the statement of financial position for the partnership of AAA, BBB, and CCC who share
profits 2:1:1, respectively shows the following balances just before the liquidation….
ANS- 40,050
3. Under the IFRS 15an entity may satisfy a PO…
ANS- FALSE
4. A partner is admitted in an existing partnership through purchase of existing interest…
ANS- the total capitalization of the partnership will not change.
5. 5. An entity recognizes revenue at a point in time if the entity’s performance does not
create an asset…
ANS- False
6. During corporate liquidation which of the following types of creditors receive full
settlement of his claims?
ANS- Fully secured creditors
7. In case of joint ventures, a JV should account for its interest by
ANS- equity method
8. AAA is trying to decide whether to accept a salary of 40,000 or a salary of 25,000 plus a
bonus of 10%...
ANS- 265, 000
9. The objective of IFRS 15 is to establish the principles…
ANS- False
10. Which of the following must exist to create the potential for a retiring partner to have a
bonus recognized at the date of withdrawal?
ANS- All of the above are necessary for a bonus to be recognized
11. the asset contributions of the partners to the partnership and any liabilities assumed by
the partnership ate recorded in the partnership books at
ANS- Fair value
12. On January 1, 2017, AAA, BBB and CCC formed ABC and Co., a GPP
ANS- 2,000,000
13. in the absence of profit or loss agreement in the articles of co-partnership which of the
following is incorrect?
ANS- if only the share of the capitalist partner in the LOSSES has been agreed
upon…
14.On January 1, 2013, AAA, BBB and CCC (the Operators) – 9.5M
15. On October 1, 2005, C, P and A entered into a joint venture – 16,000
16. At the time of the retirement, a retiring partner – asset revaluation is recognized
17. On January 1, 2013, AAA, BBB and CCC formed a partnership – 2,860,000
18. Which of the following is not a component – interest on notes payable
19. On December 31, 2020, SOFP of Del Partnership – 3,200,000
20. On January 1, 2021, AAA, BBB and CCC formed a partnership – 2,300,000
21. The capital balances of partners X and Y before admission of Z – 30,000
22. IFRS 15 provides that an entity transfer control – The customer has significant risk
23. If an entity does not satisfy its performance obligation - TRUE
24. AAA, BBB and CCC are partners in trading business. – 103,200 and 15,600
25. The AAA company has the following data in connection to its bankruptcy – 308,000
26. The following are the transactions of a joint operation – 48 and 322
Q26. The following are the transactions of a joint operation formed by A, B and
C during a year
Profit/Loss:

A’s Cash settlement:

Q27. The following selected balances were taken from the balance sheet

Answer:
A. 580,000
B. 600,000

Q28. Free assets are

Answer: assets not pledged as security
Q29. The following were taken from NOWAYOUT company
Answer: 12,400
Q30. On January 1, 2030 AAA Inc. a small and medium enterprise

Answer: 500,000
Q31. IFRS 15 revenue from contract with customer
Answer: True

Q32. What is the underlying purpose of the interest

Answer: compensate partners who contribute
Q33. The accounting for partnerships differs from the accounting
Answer: equity

Q34. The A and B partnership was organized

Answer: 298,400 and 450,000

Q35. Under pfrs 15, which of the following

Answer: when the entity’s performance does not create an asset with
alternative use

Q36. The partnership agreement of AAA and BBB

Answer: 15,375
Q37. AAA Co. and BBB Co. are joint operators

Answer: 1,200,000
Q38. In case of liquidation

Answer: the claims of the partner’s share

39. in the liquidation of limited partnership
Answer: those owing to partners for their capital contribution
40. Statement 1: A partnership is dissolved…

• False, True
41. In the liquidation of a limited…

• Those owing to general partners for their share in profits (NOT REALLY SURE)
42. Your cat and my dog are partners…

• 10

43. The transaction price is the amount…

• True
44. Under IFRS 15, revenue from contracts…

• The customer obtains absolute, legal right and possession of the promised asset at a
specific date.
45. AAA Co. and BBB Co. are national…

• None of these
46. An entity recognizes revenue over time…

• True (PERO TUNGOD SA WORD NGA ALL MA FALSE KAY WALA SA STATEMENT SO
NAGLIBOG KO)
47. On January 1, 2020, ABC Inc., a small…

48. A new partner is admitted in an…

• The capital balance of old partners will always increase

49. On October 1, 2005, C, P, and A…

• 8000, 4800, 3200

50. The following information was gathered…

51. Which of the following circumstances will result to partnership dissolution?

• Withdrawal of a partner
52. A good or service is distinct…

• True

Question 53
How shall the net profit or net loss of the partnership be divided among the partners, whether capitalist
or industrial.

Response: in accordance with a partnership agreement

Question 54
On January 1, 2014 BBB Inc. purchased a risky investment for 100000 for 100, it was decided to use the
cost-recovery method of revenue recognition. Cash collections on accounts receivable related to the asset
were as follows:

2014 70

2015 40

2016 30

Response:

Compute the amount of realized gross profit for the year 2014

Compute the amount of realized gross profit for the year 2015
Compute the amount of realized gross profit for the year 2016

Question 55
Which of the following is not a liability that has a priority in corporate liquidation

Response: advertising expense incurred before the company became insolvent.

Question 56
The recoverable amount of an investment is equal to the

Response: the higher between fair value less cost to sell and value in use.

Question 57
The essential elements of a joint arrangement include

Response: I and II
Question 58
A, B and C each engaged in the extraction of oil, agreed and jointly operate an oil pipeline. Each party will
use the pipeline to transport its own product in return for which it bears an agreed proportion of the
expenses of operating the pipeline. A, B and C agreed to share equally on the cost of acquiring the pipeline
and the expenses of operating it. Which of the following statements is correct?

Response: The joint arrangement is classified as a joint venture because the joint arrangement confers
to the parties rights to the assets and obligations of liabilities of the joint arrangement.

Question 59
If the valued of the pledged property is lesser than the obligations, what is the treatment of the liability?

Response: partially secured

Question 60
On January 1, 2030, AAA Inc. a small and medium enterprise invested 500000 cash in a joint venture for
50% interest. For the year ended December 31, 2030, the joint venture reported net income of 200000
and distributes cash dividend in the amount of 60,000. As of December 31, 2016, the fair value of the
investment in joint venture is 600000 and the estimated cost of disposal is 10% of fair value. The value in
use of the investment is estimated at 550,000.

Under IFRS for SMEs, what is the book value of investment in Joint Venture to be reported b AAA Inc. as
of December 31, 2030 if the SME elects fair value method?

Response: 600,000
Question 61
When a contract has multiple performance obligations, an entry will allocate the transaction price to the
performance obligations in the contract by reference to their relative fair values.
Response: True
Question 62
AAA, BBB and CCC have decided to liquidate their partnership. Account balance on January 1, 2014 are
as follows:

Cash 120,000 Accounts Payable 40,000 Other Assets 120,000 AAA Capital (30%) 85000 BBB Capital (30)
25000 CCC Capital (40) 90,0000

Response: 40,000
Question 63
If a partner with a debit balance during liquidation is solvent, the

Response: Partner must invest additional asset to the partnership

Question 64
On January 1, 2030, AAA Inc. a small and medium enterprise invested 500000 cash in a joint venture for
50% interest. For the year ended December 31, 2030, the joint venture reported net income of 200000
and distributes cash dividend in the amount of 60,000. As of December 31, 2016, the fair value of the
investment in joint venture is 600000 and the estimated cost of disposal is 10% of fair value. The value in
use of the investment is estimated at 550,000.

Under IFRS for SMEs, what is the book value of investment in Joint Venture to be reported b AAA Inc. as
of December 31, 2030 if the SME elects cost method?

Response: 500,000