Leni For President 2022

10/7/21, 9:27 PM Assessment #4 (Long quiz): INTERMEDIATE ACCOUNTING 3
Assessment #4 (Long quiz)

Due
Oct 7 at 11:59pm
Points
50
Questions
50
Available
Oct 7 at 12am - Oct 7 at 11:59pm
1 day
Time Limit
180 Minutes
Instructions
This assessment is intended to assess your knowledge of the topics we have covered, from conceptual framework up to statement of
cash flows.
Read each question carefully. For multiple choice questions, choose the best answer for each of the following items.For straight
problems, compute for the correct answers and enter only your final answers.
Attempt History
Attempt Time Score
LATEST Attempt 1
179 minutes 48 out of 50

Correct answers will be available on Oct 10 at 12am.
Score for this quiz:

48 out of 50
Submitted Oct 7 at 9:24pm
This attempt took 179 minutes.
Question 1 1
/ 1 pts
The conceptual framework includes a cost-benefit constraint. Which of the following best
describes the cost-benefit constraint?

A. The benefits of the information must be greater than the cost of providing it.

B. Financial information should be free from cost to users of the information.

C. Cost of providing financial information are not always evident or measurable, but must be
considered.

D. All of the choices are correct.
Question 2 1
/ 1 pts
The general features of financial statement presentation as prescribed under PAS 1 –

Presentation of Financial Statements includes
https://feuph.instructure.com/courses/437/quizzes/19677 1/35
I. Fair presentation and compliance with PFRS V. Offsetting
II. Going concern VI. Frequency of reporting
III. Accrual basis of accounting VII. Comparative information
IV. Materiality and aggregation VIII. Consistency of presentation

A. I, II, III, IV

B. I, II, III, IV, V

C. I, II, III, IV, V, VII

D. All of these
Incorrect
Question 3 0
/ 1 pts
Which is not added to net income under the indirect method of preparing the statement of cash
flows?

A. Increase in an accrued liability

B. Amortization of discount on bond payable

C. Loss on sale of patent

D. Increase in deferred tax asset
Question 4 1
/ 1 pts
Which of the following should be classified as current asset?

A. Investment property

B. Property, plant and equipment

C. Financial asset held for trading

D. Cash surrender value
Question 5 1
/ 1 pts
Revenue may result from

A. A decrease in an asset form primary operation

B. An increase in an asset from incidental transaction

C. An increase in a liability from incidental transaction

D. A decrease in a liability from primary operation
Question 6 1
/ 1 pts
What qualitative characteristic is met if information influences the economic decisions of users by
helping them evaluate past, present or future events of confirming or correcting their past
evaluations?

A. Relevance

B. Reliability

C. Understandability

D. Comparability
Question 7 1
/ 1 pts
Which of the following measurement attributes is not currently used in practice?

A. Present value

B. Net realizable value

C. Current replacement cost

D. Inflation-adjusted cost
Question 8 1
/ 1 pts
Under the accrual basis, revenue are recognized when they are

A. Collected

B. Earned

C. Earned and collected

D. Earned and become measurable
Question 9 1
/ 1 pts
Which of the following is correct regarding the classification of certain items in the statement of
cash flows by a non-financial institution?
Option 1 Option 2
I. Interest received Operating activities Investment activities
II. Interest paid Operating activities Financial activities
III. Dividends received Operating activities Investing activities
IV. Dividends paid Financing activities Operating activities

A. I only

B. I, II and III

C. II, III, and IV

D. All of these
Question 10 1
/ 1 pts
Which of the following is a non-current liability on December 31, 2021 statement of financial
position?

A. Bonds payable maturing on March 2022 which were refinanced in 2022 before issuance of the 2021
financial statements.

B. Mortgage note payable due March 15, 2022, which was rolled over in 2022 after the issuance of the
2021 financial statements.

C. Mortgage note payable due March 15, 2022, which was converted into shares of the company’s
ordinary share capital in 2022 before the issuance of 2021 financial statements.

D. Mortgage note payable due March 15, 2022, in which the entity has the intention and discretion to
roll over for a period of at least 24 months from the original maturity date.
Question 11 1
/ 1 pts
Cheesecake Manufacturing Co. purchased a 3-month Treasury bill. In preparing Cheesecake’s

statement of cash flows, this purchase would

A. Have no effect

B. Be treated as an outflow from financing activities

C. Be treated as an outflow from lending activities

D. Be treated as an outflow from investing activities
Question 12 1
/ 1 pts
Which of the following would be classified as a non-current asset?

A. Goods which are in process of production for sale in the ordinary course of business.

B. Debt and equity securities acquired principally for the purpose of generating a profit from short-term
fluctuations in price or dealer’s margin.

C. Cash funds that are set aside for payment of equipment to be delivered a month after the reporting
period.

D. Amounts due from customers within a period of 12 to 18 months, extended within the usual credit
term of the enterprise.
Question 13 1
/ 1 pts
Omissions or misstatements of items are material if they could individually or collectively;

influence the economic decisions of users taken on the basis of the financial statements.
Materiality depends on

A. The peso amount of financial consequence of the omission or misstatement judged in the
surrounding circumstances.

B. The size and peso amount of the omission or misstatement judged in the surrounding
circumstances.

C. The peso amount and nature of the omission but not the misstatement judged in the surrounding
circumstances.

D. The size and nature of the omission or misstatement judged in the surrounding circumstances.
Question 14 1
/ 1 pts
The amortization of bond premium on long-term debt should be presented in a statement of cash
flows (using indirect approach for operating activities) as a(n)

A. Addition to net income

B. Deduction from net income

C. Investing activity

D. Financing activity
Question 15 1
/ 1 pts
In a statement of cash flows, interest payments to lenders and other creditors should be classified
as cash outflows for

A. Financing activities

B. Lending activities

C. Borrowing activities

D. Operating activities
Question 16 1
/ 1 pts
The following statements correctly refer to the accounting process.
Measuring is the accounting process of analyzing business activities as to whether or not

I
they will be recognized in the books
Recognition refers to the process of including the effects of an event in the totals of the
II statement of financial position or the statement of profit or loss and other
comprehensive income through memo entries.
Disclosure of events in the notes to financial statement without including in the totals of
III the statement of financial position or statement of profit or loss and other comprehensive
income is not an application of the recognition principle.
An accountable events is an event that has an effect on the assets, liabilities or equity of
IV
an entity and its effect can be measured reliably.
V Sociological and psychological matters are within the scope of accounting.

A. I, II, III, IV, V

B. I, II, III, IV

C. IV

D. III, IV
Question 17 1
/ 1 pts
Financial statements are a structured representation of the financial position and financial
performance of an entity. The objective of general purpose financial statements is to provide
information about an entity’s (choose the incorrect statement)

A. Financial position

B. Cash flows

C. Valuation

D. Financial performance
Question 18 1
/ 1 pts
This refers to financial statements that are intended to meet the needs of users who are not in a
position to require an entity to prepare reports tailored to their particular information needs.

A. All-purpose financial statements

B. General purpose financial statements

C. Managerial reports

D. Unisex financial statements
Question 19 1
/ 1 pts
In which account are postdated checks received classified?

A. Cash

B. Receivables

C. Cash equivalents

D. Prepaid expenses
Question 20 1
/ 1 pts
Under the cash basis, expenses are recognized when

A. They are paid by the entity

B. The costs expire or as assets are used

C. The revenue are recognized that the expenses helped to produce

D. Cash is received from revenues that the expenses helped to produce
Question 21 1
/ 1 pts
Pearl Company provided the following trial balance on December 31, 2023:
Debit Credit
Cash overdraft 100,000
Accounts receivable, net 350,000
Inventory 580,000
Prepaid expenses 120,000
Land classified as held for sale 1,000,000
Property, plant and equipment 950,000
Accounts payable and accrued expenses 320,000
Ordinary share capital 250,000

Share premium 1,500,000
Retained earnings -- 830,000
3,000,000 3,000,000
Checks amounting to P300,000 were written to vendors and recorded on December 29, 2023,
resulting in a cash overdraft of P100,000. The checks were mailed on January 15, 2024. Land
classified as held for sale was sold for cash on January 31, 2024. The entity issued the financial
statements on March 31, 2024. On December 31, 2023, what total amount should be reported as
current assets?
2,250,000
Debit Credit
Cash overdraft 100,000
Accounts receivable, net 350,000 CA
Inventory 580,000 CA
Prepaid expenses 120,000 CA
Land classified as held for sale 1,000,000 CA
Property, plant and equipment 950,000 NCA
Accounts payable and accrued expenses 320,000 CL
Ordinary share capital 250,000 SHE
Share premium 1,500,000 SHE
Retained earnings -- 830,000 SHE
3,000,000 3,000,000
CASH 200,000 CA
UNRELEASED CHECK (300,000) CL
OVERDRAFT (100,000)
Question 22 1
/ 1 pts
The ledger of Wagg Company as of December 31, 2021 includes the following:
Liabilities
Bank overdraft 5,000
Trade accounts payable (net of P5,000 debit balance in accounts) 20,000
Note payable (due in 20 semi-annual payments of P2,000) 40,000
Interest payable 15,000
Bonds payable (due on March 31, 2022) 35,000
Discount on bonds payable (15,000)
Dividends payable 5,000
Share dividends payable 6,000
Deferred tax liability (expected to reverse in 2022) 18,000
Income tax payable 22,000
Contingent liability 50,000
Reserve for contingencies 14,000
Total 860,000
How much is the total current liabilities?
96,000
Liabilities
Bank overdraft 5,000 CL
Trade accounts payable (net of P5,000 debit balance in accounts) 20,000 +5000 CL
Note payable (due in 20 semi-annual payments of P2,000) 40,000 4000 CL
Interest payable 15,000 CL
Bonds payable (due on March 31, 2022) 35,000 CL
Discount on bonds payable (15,000) CL
Dividends payable 5,000 CL
Share dividends payable 6,000 SHE
Deferred tax liability (expected to reverse in 2022) 18,000 NCL
Income tax payable 22,000 CL
Contingent liability 50,000 DISCLOSE
Reserve for contingencies 14,000 SHE
Total 860,000
Question 23 1
/ 1 pts
Prophet Company’s trial balance reflected the following account balances on December 31, 2019:
Accounts receivable 2,400,000
Financial asset at FVTOCI 600,000
Accumulated depreciation on equipment and furniture 1,500,000
Cash 1,100,000
Inventory 3,000,000
Equipment 2,500,000
Patent 400,000
Prepaid expenses 200,000
Land held for future business site 1,800,000
The inventory included goods held on consignment amounting to P500,000. The patent was
classified as held for sale on December 31, 2019. What amount of total current assets should be
reported on December 31, 2019?
6,600,000
Accounts receivable 2,400,000 CA
Financial asset at FVTOCI 600,000 NCA
Accumulated depreciation on equipment and furniture 1,500,000 -NCA
Cash 1,100,000 CA
Inventory 3,000,000 -500,000 CA
Equipment 2,500,000 NCA
Patent 400,000 CA
Prepaid expenses 200,000 CA
Land held for future business site 1,800,000 NCA
Question 24 1
/ 1 pts
Belgian Company’s trial balance reflected the following account balances on December 31, 2021:
Cash 400,000
Trade receivable 1,500,000
Inventory, including inventory expected in the ordinary course of operations to be sold

beyond 12 months amounting to P800,000 1,200,000
Prepaid insurance 240,000
Financial assets at fair value through profit or loss 300,000
Financial assets at fair value through OCI 600,000
Financial assets at amortized cost 1,000,000
Deferred tax asset 150,000
Bank overdraft 250,000
Machinery 800,000
Accumulated depreciation 200,000
Noncurrent asset held for sale – building 650,000
Land used as a plant site 920,000
How much is the total noncurrent assets for the year ended December 31, 2021?
3,270,000
Cash 400,000 CA
Trade receivable 1,500,000 CA
Inventory, including inventory expected in the ordinary course of operations to be sold

CA
beyond 12 months amounting to P800,000 1,200,000
Prepaid insurance 240,000 CA
Financial assets at fair value through profit or loss 300,000 CA
Financial assets at fair value through OCI 600,000 NCA
Financial assets at amortized cost 1,000,000 NCA
Deferred tax asset 150,000 NCA
Bank overdraft 250,000 CL
Machinery 800,000 NCA
Accumulated depreciation 200,000 -NCA
Noncurrent asset held for sale – building 650,000 CA
Land used as a plant site 920,000 NCA
Use the following information for the next four (4) questions:
Waitz Company provided the following account balances on December 31, 2022:
Share capital 5,000,000
Share premium 500,000
Retained earnings 880,000
Serial bonds payable (P500,000 due every July 1 of each year 2,500,000
Employees income tax payable 20,000
Note payable 100,000
Accrued expense 30,000
Accrued interest on note payable 10,000
Income tax payable 60,000
Allowance for doubtful accounts 50,000
Advances from customers 100,000
Accounts receivable 500,000
Accumulated depreciation – building 1,600,000
Accumulated depreciation – machinery 1,300,000
Financial assets at amortized cost 1,500,000
Land 1,500,000
Machinery 2,000,000
Factory supplies 50,000
Notes receivable 150,000
Building 4,000,000
Cash 420,000
Claim receivable 20,000
Finished goods 400,000
Franchise 200,000
Goods in process 600,000
Prepaid insurance 20,000
Raw materials 200,000
Financial assets at fair value through profit or loss 250,000
Tools 40,000
Goodwill 100,000
Plant expansion fund 500,000
Accounts payable 300,000
Question 25 1
/ 1 pts
On December 31, 2022, what total amount should be reported as current assets?
2,560,000
Question 26 1
/ 1 pts
On December 31, 2022, what total amount should be reported as non-current assets?
6,940,000
Incorrect
Question 27 0
/ 1 pts
On December 31, 2022, what total amount should be reported as current liabilities?
1,200,000
Question 28 1
/ 1 pts
On December 31, 2022, what total amount should be reported as non-current liabilities?
2,000,000
Share capital 5,000,000 SHE
Share premium 500,000 SHE
Retained earnings 880,000 SHE
500,000
CL
Serial bonds payable (P500,000 due every July 1 of each year 2,500,000
2,000,000
NCL
Employees income tax payable 20,000 CL
Note payable 100,000 CL
Accrued expense 30,000 CL
Accrued interest on note payable 10,000 CL
Income tax payable 60,000 CL
Allowance for doubtful accounts 50,000 -CA
Advances from customers 100,000 CL
Accounts receivable 500,000 CA
Accumulated depreciation – building 1,600,000 -NCA
Accumulated depreciation – machinery 1,300,000 -NCA
Financial assets at amortized cost 1,500,000 NCA
Land 1,500,000 NCA
Machinery 2,000,000 NCA
Factory supplies 50,000 CA
Notes receivable 150,000 CA
Building 4,000,000 NCA
Cash 420,000 CA
,
Claim receivable 20,000 CA
Finished goods 400,000 CA
Franchise 200,000 NCA
Goods in process 600,000 CA
Prepaid insurance 20,000 CA
Raw materials 200,000 CA
Financial assets at fair value through profit or loss 250,000 CA
Tools 40,000 NCA
Goodwill 100,000 NCA
Plant expansion fund 500,000 NCA
Accounts payable 300,000 CL
Use the following information for the next three (3) questions:
Tigreal Company paid or collected during 2026 the following items:
Interest revenue 75,500
Insurance expense 9,600
Salaries expense 65,000
The following balances were from Tigreal Company’s balance sheets:
December 31, 2026 December 31, 2025
Interest receivable 7,500 9,100
Salaries payable 4,200 8,900
Prepaid insurance 1,500 1,100
Question 29 1
/ 1 pts
The cash received for interest during 2026 was
77,100
Interest revenue 75,500
Interest receivable, beg 9,100
Interest receivable, end (7,500)
Cash received 77,100
Question 30 1
/ 1 pts
The cash paid for salaries during 2026 was
69,700
Salaries expense 65,000
Salaries payable, beg 8,900
Salaries payable, end (4,200)
Cash paid for salaries 69,700
Question 31 1
/ 1 pts
The cash paid for insurance premiums during 2026 was
10,000
Prepaid Insurance, beg (1,100)
Prepaid Insurance, end 1,500
Cash paid for Insurance 10,000
Question 32 1
/ 1 pts
Riptide Corporation reports operating expenses in two categories: (1) selling, (2) general and
administrative. The adjusted trial balance included the following expense and loss accounts:
Accounting and legal fees 120,000
Advertising 150,000
Freight-out 80,000
Interest 70,000
Loss on sale of long-term investment 30,000
Officers’ salaries 225,000
Rent for office space 220,000
Sales salaries and commissions 140,000
On half of the rented premises is occupied by the sales department. Riptide’s total selling
expenses are
480,000
Advertising 150,000
Freight-out 80,000
Sales salaries and commissions 140,000
Total selling 480,000
Question 33 1
/ 1 pts
Bluetick Company’s trial balance reflected the following account balances on December 31, 2021:
Auditing and Accounting fees 300,000
Advertising 500,000
Delivery expense 300,000
Interest 125,000
Officer’s salaries 625,000
Insurance 200,000
Sales commissions 1,075,000
Loss on sale of equipment 75,000
Depreciation on factory machine 12,500
Depreciation on office equipment 15,000
Depreciation on delivery truck 14,000
One-half of the rented premises is occupied by the sales department.
What amount should be reported as general and administrative expenses?
1,390,000
Insurance 200,000
General and administrative expenses 1,390,000
Question 34 1
/ 1 pts
The following information for 2017 is provided by Parallax Company:
Sales 20,000,000
Cost of goods sold 12,000,000
Selling expenses 1,200,000
Interest expense 1,500,000
Gain on early extinguishment of long-term debt 500,000
Correction of inventory error, net of income tax –

800,000
credit
Investment income – equity method 600,000
Gain on sale of investment 2,000,000
Income tax expense 2,100,000
Dividends declared 2,500,000
What was the 2017 income from continuing operations?
4,500,000
Sales 20,000,000
Cost of goods sold (12,000,000)
Gross profit 8,000,000
Gain on early extinguishment of long-term debt (500,000)
Investment income – equity method (600,000)
Gain on sale of investment (2,000,000)
Total income 11,100,000
Selling expenses 1,200,000
Interest expense 1,500,000 (4,500,000)
Operating profit before tax 6,600,000
Income tax (2,100,000)
Operating income after tax 4,500,000
Question 35 1
/ 1 pts
The following are among the expenses incurred by Boykin Company during the year.
Interest expense 48,000
Cost of inventories sold 1,200,000
Advertising expense 40,000
Freight-out 20,000
Freight-in 8,000
Legal and other professional fees 24,000
Rent expense (one-half occupied by sales department) 16,000
Sales commission expense 28,000
Doubtful accounts expense 32,000
How much are the distribution costs or selling expenses?
96,000
Advertising expense 40,000
Freight-out 20,000
Rent expense 8,000
Sales commission expense 28,000
Total selling expense 96,000
Question 36 1
/ 1 pts
Oogie Company owns an office building and leases the office under a one-year rental agreement.
Not all tenants make timely payments of their rent. Oogie Company’s balance sheet contained the
following data:
2025 2026
Rental receivable 9,600 12,400
Unearned rentals 32,000 24,000
In 2026, Oogie Company received P80,000 from tenants. Rent revenue for 2026 is
90,800
Rent Received 80,000
Unearned rentals, beg 32,000
Rental receivable, end 12,400
Unearned rentals, end (24,000)
Rental receivable, beg (9,600)
Rent revenue 90,800
Question 37 1
/ 1 pts
Flint Beastwood Company’s accounting records for the current year included the following
information:
Work in process inventory increase 100,000
Finished goods inventory increase 70,000
Raw materials purchased 860,000
Raw materials inventory decrease 30,000
Freight-out 90,000
Direct labor 400,000
Manufacturing overhead 600,000
Cost of goods sold is
1,720,000
Raw materials purchased 860,000
Raw materials inventory decrease 30,000
Raw materials used 890,000
Direct labor 400,000
Manufacturing overhead 600,000
Manufacturing cost 1,890,000
Work in process inventory increase (100,000)
Goods manufactured 1,790,000
Finished goods inventory increase (70,000)
CGS 1,720,000
Question 38 1
/ 1 pts
Bluetick Company’s trial balance reflected the following account balances on December 31, 2021:
Advertising 500,000
Interest 125,000
Insurance 200,000
Depreciation on factory machine 12,500

One-half of the rented premises is occupied by the sales department.
What amount should be reported as total distribution costs?
2,139,000
Advertising 500,000
Total distribution costs 2,139,000
Question 39 1
/ 1 pts
Gayagoy Company reported sales from customers of P6,000,000 and purchases of P4,000,000
for the year ended December 31, 2024. Additional information follows:
January 1 December 31
Accounts receivable 2,000,000 3,000,000
Allowance for uncollectible accounts (150,000) (200,000)
Accounts payable 1,500,000 2,400,000
Inventory 2,300,000 2,600,000
Gayagoy wrote off uncollectible accounts totaling P500,000 during 2024. Under cash basis, what
is the gross profit?
1,700,000
Sales 6,000,000
AR, beg 2,000,000
AR, end (3,000,000)
Write-off (500,000)
Cash Collection 4,500,000

Purchases 4,000,000
AP, beg 1,500,000
AP, end (2,400,000)
Inventory, beg 2,300,000
Inventory, end (2,600,000)
COGS 2,800,000
1,700,000
Question 40 1
/ 1 pts
Under the accrual basis, rental income of Goten Company for the calendar year 2021 is
P1,200,000. The company had a balance of P100,000 in its Unearned Rental Income at the
beginning of the year and P150,000 at the end of the year. It also had a balance of P60,000 in its
Accrued Rental Income at the beginning of the year and P80,000 at the end. What is the rental
income under the cash basis of accounting?
1,230,000
Rent Received squeeze 1,230,000
Unearned rentals, beg 100,000
Rental receivable, end 80,000
Unearned rentals, end (150,000)
Rental receivable, beg (60,000)
Rent revenue 1,200,000
Question 41 1
/ 1 pts
The following information is available for Glacuis Company for 2017:
Disbursements for purchases 1,050,000
Increase in trade accounts payable 75,000
Decrease in merchandise inventory 30,000
Cost of goods sold for 2017 under accrual basis is
1,155,000
Disbursements for purchases 1,050,000
Increase in trade accounts payable 75,000
Decrease in merchandise inventory 30,000
Cost of goods sold 1,155,000
Use the following information for the next three (3) questions:
MARIKINA Company had the following cash transactions:
Cash collected from customers 12,500
Cash received from a loan 8,000
Cash paid for wages payable (5,750)
Cash paid for the purchase of a building (15,000)
Cash received for the issuance of new shares of stock 2,600
Cash received from sale of land 6,400
Cash paid for rent (2,500)
Cash paid for dividends (1,500)
Question 42 1
/ 1 pts
Given the above information, compute cash flow from operating activities.

A. 4,250

B. 20,750

C. 15,750

D. 9,250
Operating activities: $12,500 - $5,750 - $2,500 = $4,250
Question 43 1
/ 1 pts
Given the above information, compute cash flow from investing activities.

A. 4,250

B. (4,250)

C. (8,600)

D. 8,600
Investing activities: ($15,000) + $6,400 = ($8,600)
Question 44 1
/ 1 pts
Given the above information, compute cash flow from financing activities.

A. 6,900

B. 3,900

C. 12,100

D. 9,100
Financing activities: $8,000 + $2,600 - $1,500 = $9,100
Question 45 1
/ 1 pts
Napier Company provided the following information on selected transactions during 2020:
Purchase of land by issuing bonds 250,000
Proceeds from issuing bonds 500,000
Purchases of inventory 950,000
Purchases of treasury shares 150,000
Loans made to affiliated corporations 350,000
Dividends paid to preference shareholders 400,000
Proceeds from sale of equipment 50,000
The net cash provided (used) by investing activities during 2020 is

A. 50,000 provided

B. 300,000 used

C. 550,000 used

D. 1,250,000 used
Question 46 1
/ 1 pts
The following information on selected cash transactions for 2020 has been provided by Mancuso
Company:
Proceeds from sale of land 160,000
Proceeds from long-term borrowings 400,000
Purchases of plant assets 144,000
Purchases of inventories 680,000
Proceeds from sale of Mancuso ordinary shares 240,000
What is the cash provided or used by investing activities for the year ended December 31, 2020
as a result of the above information?

A. 16,000

B. 256,000

C. 160,000

D. 800,000
Question 47 1
/ 1 pts
Selected information from Dinkel Company’s 2020 accounting records is as follows:
Proceeds from issuance of ordinary shares 400,000
Proceeds from issuance of bonds 1,200,000
Cash dividends on ordinary shares paid 160,000
Cash dividends on preference shares paid 60,000
Purchase of treasury shares 120,000
Sale of ordinary shares to officers and employees not included

100,000
above
Dinkel’s statement of cash flows for the year ended December 31, 2020, would show net cash
provided (used) by financing activities of

A. 60,000 provided

B. 220,000 used

C. 160,000 provided

D. 1,360,000 provided
Question 48 1
/ 1 pts
Smiley Corporation’s transactions for the year ended December 31, 2020 included the following:
Purchased real estate for P550,000 cash which was borrowed from a bank.
Sold FVOCI investments for P500,000.
Paid dividends of P600,000.
Issued 500 ordinary shares for P250,000.
Purchased machinery and equipment for P125,000 cash.
Paid P450,000 toward a bank loan.
Reduced accounts receivable by P100,000.
Increased accounts payable by P200,000.
Smiley’s net cash used in investing activities for 2020 was

A. 675,000

B. 375,000

C. 175,000

D. 50,000
Use the following information for the next two (2) questions:
Piccolo Company provided the following information for the year ended December 31, 2025:
Increase in long-term debt 600,000
Purchase of treasury shares 500,000
Depreciation and amortization 1,900,000
Gain on sale of equipment 100,000
Proceeds from issuance of ordinary shares 2,000,000
Purchase of equipment for cash 4,000,000
Proceeds from sale of equipment 400,000
Payment of dividends 700,000
Net income 4,500,000
Increase (decrease) in working capital accounts:
Accounts receivable 1,500,000
Inventory (800,000)
Trade notes payable 1,000,000
Accounts payable 1,200,000
Income tax payable (300,000)
Cash balance, January 1, 2025 1,500,000
Question 49 1
/ 1 pts
What is the net cash provided by operating activities?

A. 7,700,000

B. 7,600,000

C. 7,500,000

D. 6,800,000
Question 50 1
/ 1 pts
What is the net cash used by investing activities?

A. 4,300,000

B. 4,000,000

C. 3,600,000

D. 400,000
Quiz Score:
48 out of 50

Leni For President 2022

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10/7/21, 9:27 PM Assessment #4 (Long quiz): INTERMEDIATE ACCOUNTING 3

Assessment #4 (Long quiz)

Score for this quiz:

The general features of financial statement presentation as prescribed under PAS 1 –

I. Fair presentation and compliance with PFRS V. Offsetting

II. Going concern VI. Frequency of reporting

III. Accrual basis of accounting VII. Comparative information

IV. Materiality and aggregation VIII. Consistency of presentation

Which of the following should be classified as current asset?

Revenue may result from

Which of the following measurement attributes is not currently used in practice?

I. Interest received Operating activities Investment activities

II. Interest paid Operating activities Financial activities

III. Dividends received Operating activities Investing activities

IV. Dividends paid Financing activities Operating activities

Cheesecake Manufacturing Co. purchased a 3-month Treasury bill. In preparing Cheesecake’s

Which of the following would be classified as a non-current asset?

Omissions or misstatements of items are material if they could individually or collectively;

The following statements correctly refer to the accounting process.

Measuring is the accounting process of analyzing business activities as to whether or not

V Sociological and psychological matters are within the scope of accounting.

In which account are postdated checks received classified?

Under the cash basis, expenses are recognized when

Cash overdraft 100,000

Accounts receivable, net 350,000

Prepaid expenses 120,000

Land classified as held for sale 1,000,000

Property, plant and equipment 950,000

Accounts payable and accrued expenses 320,000

Ordinary share capital 250,000

Share premium 1,500,000

Retained earnings -- 830,000

Cash overdraft 100,000

Accounts receivable, net 350,000 CA

Prepaid expenses 120,000 CA

Land classified as held for sale 1,000,000 CA

Property, plant and equipment 950,000 NCA

Accounts payable and accrued expenses 320,000 CL

Ordinary share capital 250,000 SHE

Share premium 1,500,000 SHE

Retained earnings -- 830,000 SHE

UNRELEASED CHECK (300,000) CL

Bank overdraft 5,000

Trade accounts payable (net of P5,000 debit balance in accounts) 20,000

Note payable (due in 20 semi-annual payments of P2,000) 40,000

Interest payable 15,000

Bonds payable (due on March 31, 2022) 35,000

Discount on bonds payable (15,000)

Dividends payable 5,000

Share dividends payable 6,000

Deferred tax liability (expected to reverse in 2022) 18,000

Income tax payable 22,000

Contingent liability 50,000

Reserve for contingencies 14,000

How much is the total current liabilities?

Bank overdraft 5,000 CL

Note payable (due in 20 semi-annual payments of P2,000) 40,000 4000 CL

Interest payable 15,000 CL

Bonds payable (due on March 31, 2022) 35,000 CL

Discount on bonds payable (15,000) CL

Dividends payable 5,000 CL

Share dividends payable 6,000 SHE