QII

Name:_____________________________________________
1. If the balance shown on an entity’s bank statement is less than correct cash balance and neither the entity nor the
bank has made any errors, there must be
a. Deposits credited by the bank but not c. Deposits in transit
yet recorded by the entity d. Bank charges not yet recorded by the
b. Outstanding checks entity
2. Which of the following statements in relation to bank reconciliation is true?
a. Bank service charge will cause the cash balance per ledger to the higher than that reported by the
bank all other things being equal
b. Credit memos will cause the cash balance per ledger to be higher than that reported by the bank, all other
things being equal
c. Outstanding checks will cause the cash balance per ledger to be greater than the balance reported by the
bank, all other things being equal
d. The cash amount reported in the statement of financial position must be the balance reported in the bank
statement
3. A proof of cash would be useful for
a. Discovering cash receipts that have not been recorded in the journal
b. Discovering time lag in making deposits
c. Discovering cash receipts that have been recorded but not have been deposited
d. Discovering an inadequate separation of incompatible duties
4. Which of the following is not a characteristic of a system of cash control
a. Use of a voucher system
b. Combined responsibility for handling and reconsidering cash
c. Daily deposit of all cash received
d. Internal audits at irregular intervals
5. SEAN GREGORY’s check register shows the following entries for the month of December:

6. D 7. 8. CHECKS 9. DEPOSITS 10. BALANCE

A
T
E
11. D 12. Beginning Balance 13. 14. 15. 89,300
E
C

1
16. D 17. Deposit 18. 19. 65,000 20. 154,300
E
C

5
21. D 22. Check #14344 23. 32,500 24. 25. 120,800
E
C

7
26. D 27. Check #14345 28. 14,000 29. 30. 106,800
E
C

1
1
31. D 32. Deposit 33. 34. 49,000 35. 155,800
E
C

2
6
36. D 37. Check #14346 38. 8,600 39. 40. 147,200
E
C

2
 9
41. SEAN GREGORY’s bank reconciliation for November revealed one outstanding check (No. 14343) for P12,000
(written on November 28), and one deposit in transit for P5,550 (made on November 29)
42. The following is from Sean Gregory’s bank statement for December 2014

43. D 44. 45. CHECKS 46. DEPOSITS 47. BALANCE

A
T
E
48. D 49. Beginning Balance 50. 51. 52. 95,750
E
C

1
53. D 54. Deposit 55. 56. 5,550 57. 101,300
E
C

1
58. D 59. Check No. 14344 60. 32,500 61. 62. 68,800
E
C

4
63. D 64. Deposit 65. 66. 56,000 67. 124,800
E
C

5
68. D 69. Check No. 14345 70. 14,000 71. 72. 110,800
E
C

1
4
73. D 74. Loan proceeds 75. 76. 500,000 77. 610,800
E
C

1
5
78. D 79. NSF check 80. 7,600 81. 82. 603,200
E
C

2
0
83. D 84. Service charge 85. 1,000 86. 87. 602,200
E
C

2
9
88. D 89. Interest 90. 91. 3,600 92. 605,800
E
C

3
1
93. Assume that all errors were committed by Sean Gregory, not the bank.
94. [Item 5-9] Based on the preceding information, determine the following:
95. Adjusted cash balance on November 30
a. 89,300 c. 102,200
b. 95,750 d. 101,300
 96. Outstanding checks on December 31
a. 46,500 c. 8,600
b. 45,500 d. 20,600
97. Deposit in transit
a. 52,600 c. 5,550
b. 49,000 d. 43,450
98. Total bank receipts in December
a. 114,000 c. 565,150
b. 119,550 d. 61,550
99. Adjusted cash balance on December 31
a. 663,800 c. 748,200
b. 634,200 d. 597,200
e. The accountant of DENISE COMPANY is in the process of preparing the company’s financial statements
for the year ended December 31, 2018. He is trying to determine the correct balance of cash and cash
equivalents to be reported as a current asset on the statement of financial position. The following items
are being considered:
 Balances in the company’s accounts at the Metropolitan Bank:
o Current account 81,000
o Savings account 132,600
 Undeposited customer checks of 22,000 (including a customer check dated January 2, 2019 for 3,000)
 Currency and coins on hand of 3,480
 Savings account at the Harley Bank with a balance of 2,400,000. This account is being used to accumulated cash
for future plant expansion (in 2015).
 Petty cash of 4,000 (currency of 1,200 and unreplenished vouchers for 2,800)
 120,000 in a current account at the Harley Bank. This represents a 20% compensating balance for 600,000 loan
with a bank. Denise Company is legally restricted to withdraw the funds until the loan is due in 2021.
 Treasury bills:
f. Two- month maturity bills 90,000
g. Seven-month bills 120,000
 Time deposit 100,000
100. What is the correct balance of cash and cash equivalents to be reported in the current assets section of the
statement of financial position?
a. 547,480 c. 430,280
b. 427,680 d. 327,480
e. In connection with your audit of the financial statements of BRIAN COMPANY for the year ended
December 31, 2018, you gathered the following information.
I. The company maintains its current account with Ary Bank. The bank statement on December 31, 2018 showed a
balance of P638,340
f. Your audit of the company’s account with Ary Bank disclosed the following:
 A check of 22,500 received from a customer whose account is current had been deposited and then returned by
the bank on December 28, 2018. No entry was made for the return of this check. The customer replaced the check
on January 15, 2019.
 A check for 5,720 was cleared by the bank as 7,520. The bank made the correction on January 2, 2019.
 A check for 3,500 representing payment of an employee advance was received and deposited on December 27,
2018, but was not recorded until January 3, 2019
 Postdated checks totalling 67,300 were included in the deposits in transit. These represent collections of current
accounts receivable from customers. The checks were actually deposited on January 5, 2019.
 Various debit memos for drafts purchased for payment of importation of equipment totalling P230,000 were not
yet recorded. These purchases were previously set up as accounts payable. Said equipment arrived in December
2018.
 Interest earned on the bank balance for the 4th quarter of 2018, amounting to 1,950 was not recorded.
 Bank service charges totalling 1,260 were not recorded
 Deposit in transit and outstanding checks at December 31, 2018 totaled 136,250 and 276,380, respectively
II. Various expenses from the company’s imprest petty cash fund dated December 2018 totaled 16,250, while those
dated January 2019 amounted to 5,903. Another disbursement form the fund dated December 2015 was a cash
 advance to an employee amounting to 3,500. A replenishment of the petty cash fund was made on January 8,
2019.
III. The company’s trial balance on December 31, 2018 includes the following accounts:

g. Cash in bank- Ary Bank h.

74

i. Cash in bank- Arnold Bank (restricted account for plant j.

expansion, expected to be disbursed in 2019) 70

k. Petty cash fund l.

30

m. Time deposit, placed December 20, 2018 and due March 20, n.
2019 1,

o. Money market placement- Dexter Bank p.

4,

101. What is the adjusted petty cash fund balance on December 31, 2018?
a. 4,347 c. 30,000
b. 10,250 d. 24,097
102. The petty cash shortage on December 31, 2018 is
a. 0 c. 3,500
b. 5,903 d. 4,347
103. What is the adjusted Cash in Bank- Ary Bank balance on December 31, 2018?
a. 500,000 c. 432,710
b. 748,320 d. 429,110
104. The entry to adjust the Cash in bank- Ary Bank account should include a debit to
a. Accounts receivable for 89,800 c. Accounts payable for 228,200
b. Accounts receivable for 86,300 d. Interest expense for 1,950
105. The December 31, 2015 statement of financial position should show “Cash and cash equivalents” at
a. 6,142,960 c. 4,442,960
b. 5,439,360 d. 5,442,960
106. A firm of independent auditors must establish and follow quality control policies and procedures because
these standards
a. Are necessary to meet increasing requirements of auditors liability as insurers
b. Are required by the SEC for auditors of all firms
c. Include formal filing of records of such policies and procedures to a regulatory agency
d. Give reasonably assurance that the firm as a whole will comply with professional standards
107. A quality control policy that requires personnel in the firm to adhere to independence, integrity,
objectivity, confidentiality and professional behaviour, relates to
a. Ethical requirements c. Assignment
b. Human resources d. Consultation
108. Which of the following quality control policies and procedures does not relate to human resources and
assignment?
a. Emphasize independence of mental attitude in training programs and in supervision and review of
the audits
b. Monitor the effectiveness of recruiting programs
c. Identify criteria which will be considered in evaluating individual performance and expected-proficiency
d. Identify on a timely basis the staffing requirements of specific audits
109. In pursuing a CPA firm’s quality control objectives, a CPA firm may maintain records indicating which
partners or employees of the CPA firm were previously employed by the CPA firm’s clients. Which quality control
element would this be most likely to satisfy?
a. Monitoring c. Independence
b. Assignment d. Skills and competence
110. A procedure in which a quality control partner periodically tests the application of quality control
procedures is most directly related to which quality control element?
 a. Engagement performance c. Monitoring
b. Independence, integrity, and objectivity d. Personnel management
111. In connection with the element of engagement performance, a CPA firm’s system of quality control
should ordinarily provide that all personnel
a. Have knowledge required to enable them to fulfil responsibilities assigned
b. Review and test compliance with the firm’s quality control policies and procedures
c. Seek assistance form persons having appropriate levels of knowledge, judgment and authority
d. Appropriately maintain independence when providing assurance services
112. Maintaining or providing access to adequate reference libraries and other authoritative sources is a
procedure that is most likely performed to comply with the policy of
a. Monitoring c. Consultation
b. Skills and competence d. Assignment
113. Which of the following quality control procedures relates to engagement performance?
a. Hiring c. Professional d. Advancement
b. Direction development
114. Within the context of quality control, the primary purpose of continuing professional education and
training activities is to enable a CPA firm to provide its personnel with:
a. Technical training that assures proficiency as a valuation expert
b. Professional education that is required in order to perform with due professional care
c. Knowledge required to fulfil assigned responsibilities
d. Knowledge required to perform a peer review
115. In compliance with the element of human resources, the firm should address issues relating to
a. Engagement performance c. Consultation
b. Assignment of engagement teams d. Differences of opinions
116. In pursuing the firm’s quality control objectives with respect to assigning personnel to engagements, the
auditors may use policies and procedures such as
a. Designating qualified senior personnel to provide advice on accounting or auditing questions throughout
the engagement
b. Requiring timely identification of the staffing requirements of specific engagements so that enough
qualified personnel can be made available
c. Establishing at entry levels a policy for recruiting that incudes minimum standards of academic
preparation and accomplishments
d. Evaluate clients upon occurrence of specified events to determine whether the relationships ought to be
continued.
117. In connection with the element of assignment, a CPA firm’s system of quality control should ordinarily
establish procedures that
a. Provide adequate supervision at all levels, considering the training, ability, and experience of the
personnel assigned
b. Encourage personnel to use authoritative sources on complex or unusual matter
c. Require preparation of time budgets for audits to determine manpower requirements and to
schedule the audit work
d. Establish qualifications deemed necessary for various levels responsibility within the firm.
118. The Board of Accountancy may reinstate the validity of a revoked Certificate of Registration after the
expiration of many years from the date of revocation
a. 1 c. 3
b. 2 d. 5
119. The death or disability of an individual CPA and/or the dissolution and liquidation of a firm or partnership
of CPAs shall be reported to the BOA not later than _____ days from the date of such death, dissolution or
liquidation.
a. 15 c. 60
b. 30 d. 90
120. A candidate who obtains the rating of seventy-five percent and above in at least a majority of the subjects
shall receive a conditional credit for the subjects passed. He/she shall take an examination in the remaining
subjects within how many years from the preceding examination?
a. 1 c. 3
b. 2 d. 5
121. Any candidate who fails in two complete CPA board examinations shall be disqualified from taking
a. set
another 4 of examinations unless he/she has completed at least how c. 16units of subjects given in the licensure
many
b. 8 d. 24
examination?
122. The board of accountancy shall submit to the PRC the ratings obtained by each candidate within how
many calendar days after the examination?
a. 1 c. 5
b. 2 d. 10
123. The following documents shall be submitted by applicants for the CPA licensure examination, except
a. Certificate of Live Birth in NSO security paper
b. Marriage contract in NSO security paper for married male applicants
c. NBI clearance
d. Transcript of records with indication therein of date of graduation and Special Order number unless it is
not required
124. The internal auditor of a universal or commercial bank
I. Should be a CPA
II. Must have at least five years experience in the regular audit of a universal or commercial bank as
auditor-in-charge, senior auditor, or audit manager.
a. I only c. Neither I nor II
b. II only d. Both I and II
125. The National Internal Revenue Code is also known as:
a. RA 9337 c. PD 1158
b. RA 8424 d. EO 464
126. All are similarities of taxation, police power, and power of eminent domain, EXCEPT
a. All are necessary attributes of the Constitution
b. All exist independently of the Constitution
c. All contemplate an equivalent benefit
d. All are superior to the non-impairment clause of the Constitution
127. It is the official action of an administrative officer in determining the amount of tax due from a taxpayer,
or it may be a notice to the effect that the amount stated therein is due from the taxpayer with a demand for
payment of the tax or deficiency stated therein
a. Tax investigation c. Tax assessment
b. Tax audit d. Tax mapping
128. A suit questioning the validity of a tax statute or law is
a. Taxpayer’s suit c. Class suit
b. Derivative suit d. Representative suit
129. The Local Government Code took effect on January 1, 1992. PLDT’s legislative franchise was granted
sometime before 1992. Its franchise provides that PLDT will only pay 3% franchise tax in lieu of all taxes. The
legislative franchise of Smart and Globe Telecoms were granted in 1998. Their legislative franchise state that they
will only pay 5% franchise tax in lieu of all taxes. The province of Zamboanga del Norte passed an ordinance in
1997 that imposes a local franchise tax on all telecommunication companies operating within the province. The
tax is 50% of 1% of the gross annual receipts, or receipts realized, within its territorial jurisdiction. Is the
ordinance valid?
a. No, the ordinance in effect resulted into double taxation
b. No, the Local Government Code prevails over ordinances
c. Yes, the local government units are empowered by the Constitution to raise its own revenues.
d. Yes, autonomy of Zamboanga del Norte
130. The commissioner of Internal Revenue is granted certain powers under the Tax Code. Which of the
following is not a power granted to the Commissioner under the Code?
a. Interpret tax laws and decide tax cases d. Make assessment and prescribe
b. Issue summons and subpoena additional requirements
c. Enact tax laws and make amendments
131. Statement 1: Inherent limitations are the natural restrictions to safeguard and ensure that the power of
taxation shall be exercised by the government only for the betterment of the people whose interest should be
served, enhanced and protected
132. Statement 2: Constitutional limitations are provisions of the fundamental law of the land that restrict the
supreme, plenary, unlimited, and comprehensive exercised by the State of its inherent power to tax
a. Only statement 1 is correct c. Both statements are correct
b. Only statement 2 is correct d. Both statements are incorrect
133. When the refund of a tax supposedly due to the taxpayer has already been barred by prescription, and the
said taxpayer is assessed with a tax at present, the two taxes may be set-off with each other. This doctrine is called
a. Set-off doctrine c. Tax sparing doctrine
b. Doctrine of reciprocity d. Equitable recoupment
134. As an incentive for investors, a law was passed giving newly established companies in certain economic
zone exemption from all taxes, duties, fees, imposts and other changes or a period of three years. ABC
Corporation was organized and was granted such incentive. In the house of business, ABC purchased mechanical
equioment from XYZ Incorporated. The latter, in its ordinary business dealings, is subject to VAT. XYZ Inc.
claims, however, that since it sold the equipment to ABC Corp. which is tax exempt, it should not be liable to pay
the VAT. Is this claim tenable?
a. No. Exemption from taxes is personal in nature and covers only taxes for which the taxpayer-
grantee is directly liable. Vat is a tax in the seller who is not exempt from taxes. Since XYZ Inc. is
directly liable for the VAT and no tax exemption privilege is ever given to him, its claim that the sale
is tax exempt is not tenable.
b. Yes, exemption from tax should not be discriminatory in nature. A seller of goods or service to tax
exempt individuals or entities shall be accorded the same exemption provided by law to a buyer
c. Yes, applying uniformity rule
d. None of the above
135. A tax must be imposed for a public purpose. Which of the following is not a public purpose?
a. National defense c. Improvement of sugar industry
b. Public education d. None of the choices
136. Issuances signed by the Secretary of Finance upon recommendation of the Commissioner of Internal
Revenue (CIR) that specify, prescribe, or define rules and regulations for the effective enforcement of the
provisions of the National Internal Revenue Code and related statutes.
a. Revenue Regulations c. Revenue Memorandum Rulings
b. Revenue Memorandum Orders d. Revenue Memorandum Circular
137. Issuances that publish pertinent and applicable portions as well as amplications of laws, rules, reulations,
and precedents issued by the BIR and other agencies
a. Revenue Regulations c. Revenue Memorandum Rulings
b. Revenue Memorandum Orders d. Revenue Memorandum Circulars
138. Rulings, opinions, and interpretations of the CIR with respect to the provisions of the Tax Code and other
tax laws as applied to a specific set of facts, with or without established precedents, and which the CIR may issue
from time to time for the purpose of providing taxpayers guidance on the tax consequences in specific situations.
a. Revenue Regulations c. Revenue Memorandum Rulings
b. Revenue Memorandum Orders d. Revenue Memorandum Circulars
139. Issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations,
activities, workflows, methods, and procedures necessary in the implementation of stated policies, goals,
objectives, plans, and programs of the Bureau in all areas of operations except auditing.
a. Revenue Regulations c. Revenue Memorandum Orders
b. Revenue Bulletins d. BIR Rulings
140. Refer to periodic issuances, notices, and official announcements of the Commissioner of Internal Revenue
that consolidate the Bureau of Internal Revenue’s position on certain specific issues of law, and other issuances
for the guidance of the public.
a. Revenue Regulations c. Revenue Memorandum Orders
b. Revenue Bulletins d. BIR Rulings
141. Official positions of the Bureau to queries raised by taxpayers and other stakeholders relative to
clarification and interpretation of tax laws.
a. Revenue Regulations c. Revenue Memorandum Orders
b. Revenue Bulletins d. BIR Rulings
142. On March 1, 2018, Jose and Kiko decide to combine their businesses to form a partnership. Statement of
financial position on March 1 before the formation, showed the following:

a. b. Jose c. Kiko
d. Cash e. 9,000 f. 3,750
g. Accounts Receivable h. 18,500 i. 13,500
 j. Inventories k. 30,000 l. 19,500
m. Furniture and Fixture n. 30,000 o. 9,000
(net)
p. Office equipment q. 11,500 r. 2,750
s. Prepaid Expenses t. 6,375 u. 3,000
v. Total w. 105,375 x. 51,500
y. Accounts payable z. 45,750 aa. 18,000
ab. Capital ac. 59,625 ad. 33,750
ae. Total af. 105,375 ag. 51,500
ah. They agreed to following adjustments before the formation:
I. Provide 2% allowance for doubtful accounts
II. Jose’s furniture should be valued at P31,000, while Kiko’s office equipment is underdepreciated by P250.
III. Rent expense incurred previously by Jose was not yet recorded amounting to P1,000 while salary expense
incurred by Kiko was not also recorded amounting to P800
IV. The fair value of inventories amounted to P29,500 for Jose and P21,000 for Kiko.
ai. The net (debit) credit adjustment to partner’s capital accounts are:
aj. ak. Jose al. Kiko
am. an. (2,870) ao. (2,820)
ap. aq. 1,870 ar. 2,820
as. at. 870 au. (180)
av. aw. (870) ax. 180
143. On September 1, 2018, the business assets and liabilities of Austria and Balisi were as follows:

a. b. AUSTRIA c. BALISI
d. CASH e. 28,000 f. 62,000
g. ACCOUNTS h. 200,000 i. 600,000
RECEIVABLE
j. INVENTORIES k. 120,000 l. 200,000
m. LAND n. 600,000 o. -
p. BUILDIN q. - r. 500,000
s. FURNITURE t. 50,000 u. 35,000
AND FIXTURES
v. OTHER ASSETS w. 2,000 x. 3,000
y. ACCOUNTS z. 180,000 aa. 250,000
PAYABLE
ab. NOTES PAYABLE ac. 200,000 ad. 350,000
ae. Austria and Balisi agreed to form a partnership contributing their respective assets and liabilities subject
to the following agreements:
I. Accounts receivable of P20,000 in Austria’s books and P40,000 in Balisi’s books are uncollectible
II. Inventories of P6,000 and P7,000 are obsolete in Austria’s and Balisi’s respective books
III. Other assets of P2,000 and P3,000 in Austria’s and Balisi’s respective books are to be written off
IV. Accrued expenses of P2,000 and P5,000 in Austria’s and Balisi’s books are to be recognized
V. Goodwill is to be recognized to equalize their capital accounts after the above adjustments
af. The amount of goodwill to be recognize is:
a. 155,000 c. 151,000
b. 158,000 d. 159,000
144. The audited income statement of Earl Casibang shows a net income of 175,000 for the year ended
December 31, 2018. Adjustments were made for the following following errors:
i. December 31, 2017, inventory overstated by 22,500
ii. December 31, 2018, inventory understated by 37,500
iii. A 10,000 customer’s deposit received in December 2018, was credited to sales in 2018. The
goods were actually shipped in January 2019.
145. What is the unadjusted net income of Earl Casibang for the year ended December 31, 2018?
a. 234,000 c. 170,000
b. 125,000 d. 200,000
e. The December 31 year end financial statements of SHAIRA COMPANY contained the following errors:

f. g. DEC 31, 2017 h. DEC 31, 2018

i. Ending Inventory j. 48,000 understated k. 40,500 overstated
l. Depreciation Expense m. 11,500 understated n.
o. An insurance premium of 330,000 was prepaid in 2017 covering the years 2017, 2018, and 2019. The
entire amount was charged to expense in 2017. In addition, on December 31, 2018, a fully depreciated machinery
was sold for 75,000 cash, but the sale was not recorded until 2019. There were no other errors during 2017 and
2018, and no corrections have been made for any of the errors. Ignore income tax effects.
146. What is the total effect of the errors on SHAIRA’s 2018 net income?
a. 123,500 overstatement c. 192,500 understatement
b. 27,500 overstatement d. 177,500 understatement
147. What is the total effect of the errors on the amount of SHAIRA’s working capital at December 31, 2018?
a. 75,500 overstatement c. 225,500 understatement
b. 40,500 overstatement d. 144,500 understatement
148. What is the total effect of the errors on the balance of SHAIRA’s retained earnings at December 31, 2018?
a. 156,000 understatement b. 87,000 overstatement
c.
d. 133,000 understatement e. 85,000 understatement
f. You have been engaged to review the records and prepare corrected financial statements for the Eager
Eagle Company. The books of accounts are in arrangement with the following Statement of Financial
Position.
g. EAGER EAGLE Company
h. Statement of Financial Position
i. December 31, 2018
j. (In thousands)
k. ASSETS
l. Cash m. 15,000
n. Accounts Receivable o. 30,000
p. Notes Receivable q. 9,000
r. Inventory s. 75,000
t. u. 129,000
v. LIABILITIES AND SHE
w. Accounts Payable x. 6,000
y. Notes Payable z. 12,000
aa. Share Capital ab. 30,000
ac. Retained Earnings ad. 81,000
ae. af. 129,000
ag. A review of the books of the company indicates that the following errors and omissions had not been
corrected during the applicable years:
ah. ai. DECEMBER 31
aj. ak. al. am. an.
20 20 20 20

ao. Inventory- ap. aq. ar. as.

overvalued 21, 24,

at. Inventory- au. av. aw. ax.

undervalued 18, 27,

ay. Prepaid az. ba. bb. bc.

Expense 2,7 2,1 1,5 1,8

bd. Prepaid be. bf. bg. bh.

Income 1,2 90

bi. Accrued bj. bk. bl. bm.

Expense 60 22 30 15

bn. Accrued bo. bp. bq. br.

Income 37 45

bs. The profits per the books are: 2016, P22,500; 2017, P19,500; 2018, P16,500. No dividends were declared
during these years, and no adjustments were made to retained earnings.
bt.
bu. Ignore possible income tax effects
bv.
149. What is the adjusted net loss for the year ended December 31, 2016?
a. 18,750 b. 21,750
 c. 17,550 d. 22,950
150. What is the adjusted net income for the year ended December 31, 2017?
a. 21,450 c. 17,250
b. 20,850 d. 16,650
151. What is the adjusted net income for the year ended December 31, 2018?
a. 70,500 c. 67,725
b. 67,500 d. 66,600
152. What is the adjusted inventory balance on December 31, 2018?
a. 75,000 c. 102,000
b. 72,000 d. 99,000
153. What is Eager Eagle’s total assets as of December 31, 2018?
a. 158,250 c. 158,700
b. 159,150 d. 139,200
154. These statements are presented to you:
I. Several prestations are due but all must be performed to extinguish the obligations
II. If there are void prestations, the other prestations may still be valid; hence the obligations remains
155. In your evaluation of the foregoing statements
a. Both statements refer to an alternation obligation
b. Neither statement refers to an alternative obligation
c. Only Statement I refers to an alternative obligation
d. Only statement II refers to an alternative obligation
156. D obtained a loan of 50,000 from C. The same is payable after 60 days. On due date, D, not having
sufficient cash, offered to give either his ring or his bracelet to C. C accepted the offer. Based on the foregoing
facts, which of the following statements is incorrect?
a. The original obligation of D is an obligation with a period
b. The original obligation of D is extinguished by novation
c. The right to choose the item to be given belongs to C
d. The new obligation is an alternative obligation
157. D is obliged to pay C P10,000 on or before June 30. C is obliged to pay D 10,000 on June 15. Who may
claim compensation on June 15?
a. D only c. Either D or C
b. C only d. Neither D nor C
158. D is obliged to pay C 10,000 on or before June 15. C is obliged to pay D 10,000 on June 30. Who may
claim compensation on June 15?
a. D only c. Either D or C
b. C only d. Neither D nor C
159. A, 17 years old; B, 25; C, 30; jointly borrowed 6,000 from X. How much may X collect from B?
a. 6,000 d. Nothing, because A was a minor at the
b. 4,000 time the obligation was constituted
c. 2,000
160. Refer to no. 55. Assume the facts except that the debtors are bound solidarily. How much may X collect
from B?
a. 6,000 d. Nothing because A was a minor at the
b. 4,000 time the obligation was constituted
c. 2,000
161. A, B, and C jointly borrowed 3,000 from X. On due date, A was insolvent. How much may X collect from
B?
a. 3,000 c. 1,500
b. 2,000 d. 1,000
162. Refer to no. 57. Assume the same facts except that the debtors are solidary bound. How much may X
collect from B?
a. 3,000 c. 1,500
b. 2,000 d. 1,000
163. A, B, and C are jointly liable to X in the amount of 12,000. On due date, X demanded payment from A
but A refused to pay. How much may X collect from B?
a. 12,000 plus damages for delay b. 8,000 plus damages for delay
c. 4,000 plus damages for delay d. 4,000 without any damages
164. Favorite Classmate:_________________________
165. Favorite Teacher: Harley Bernieson D. Cortes
a. END OF EXAMINATION
b.
c. Prepared by:
d. Harley Bernieson D. Cortes

e.