Quiz 2 - SFP and SCI Quiz Instructions

10/6/21, 8:58 PM Quiz: Quiz 2 - SFP and SCI
Quiz 2 - SFP and SCI

Started:
Oct 6 at 8:58pm
Quiz Instructions
TOS
Theories - 10 items, 4 points each (MCQ)
5 items - SFP
5 items - SCI
Problems - 10 items, 6 points each (Provide the answer)
5 items - SFP
5 items - SCI
Question 1 4 pts
An shall present an analysis of expenses using a classification based on
The nature of expenses
Either the nature of expenses or the function of expenses, whichever the entity would prefer
to present
Either the nature of expenses or the function of expenses, whichever provides information
that is reliable and more relevant
The function of expenses
Question 2 4 pts
The income statement would help in which of the following?
https://feuph.instructure.com/courses/443/quizzes/19125/take 1/11
Estimate future financial flexibility
Estimate amount, timing, and uncertainty of future cash flows
Evaluate liquidity
Evaluate solvency
Question 3 4 pts
In presenting a statement of financial position, an entity
Must choose either the current and noncurrent or the liquidity presentation, meaning free
choice of presentation
Must make the current and noncurrent presentation, except when a presentation based on
liquidity provides information that is reliable and more relevant.
Must make the current and noncurrent presentation
Must present assets and liabilities
Question 4 4 pts
The statement of financial position is useful for all of the following, except:
Assess future cash flows
Evaluate capital structure
Analyze cash inflows and outflows for the period
Compute rate of return
Question 5 4 pts
All of the following components of OCI should be reclassified to profit or loss, except:
Gain or loss on remeasuring equity investment at FVOCI.
Gain or loss from remeasuring debt investment at FVOCI
Gain or loss from translating the financial statements of a foreign corporation
The effective portion of gain or loss on hedging instruments in a cash flow hedge.
Question 6 4 pts
HEP HEP.....
HOORAY!!
Question 7 4 pts
What is the purpose of reporting comprehensive income?
To report a measure of overall entity performance
To combine income from continuing operations with income from discontinued operations
To replace net income with a better measure
To report transaction with owners
Question 8 4 pts
The two-statement approach of presenting comprehensive income is preparing
A combined income statement and a statement of changes in equity
A separate income statement and a separate statement of comprehensive income
A comparative statement of comprehensive income
A combined statement of comprehensive income and retained earnings
Question 9 4 pts
A financial liability due within twelve months after the reporting period shall be
classified as noncurrent
When it is refinanced on a long-term basis before the issue of financial statements
When it is refinanced on a long-term basis after the end of the reporting period.
When it is refinanced on a long-term basis on or before the end of reporting period.
When the entity has no discretion to refinance for at least twelve months.
Question 10 4 pts
An entity shall classify an asset as current under all of the following conditions,
except:
The entity holds the asset for the purpose of trading.
The asset is cash or a cash equivalent that is restricted to settle a liability for more than
twelve months after the reporting period.
The entity expects to realize the asset or intends to sell or consume it within the entity’s
normal operating cycle.
The entity expects to realize the asset within twelve months after the reporting period.
Question 11 4 pts
The statement of financial position
Uses fair value for most assets and liabilities
Makes very limited use of judgement and estimate
Omits many items that are of financial value
All choices are correct
Question 12 6 pts
Problem 1
The following were the accounts obtained from ABC company’s unadjusted trial
balance as of December 31, 2021:
Cash in bank, restricted for payroll P 750,000
Cash in bank, restricted for the
purchase of land expected
to be disbursed in February 2022 1,000,000
Cash in bank, PNB 400,000
Accounts receivable, net of credit balance of P10,000 1,800,000
Subscriptions receivable 150,000
Petty cash fund, net of P10,000 check
pertaining to PCF custodian 70,000

Prepaid insurance, net of P50,000 cash surrender value 220,000
Investment in stocks, at cost 420,000
Property, plant and equipment, net 2,500,000
Investment property, net 800,000
Accounts payable 120,000
Notes payable, payable in June 2022 370,000
Bonds payable 3,000,000
Loans payable 2,100,000
Share dividends payable 180,000
Deferred tax asset, net of
deferred tax liability of P120,000 80,000
Suppliers debit balance 50,000
Premium on bonds payable 15,000
Other information:
PNB is in the process of liquidation as of December 31, 2021

The property, plant and equipment include the following:
The warehouse with carrying value of P200,000 is classified as held for sale.
Land held for undetermined future use amounted to P400,000. The fair value
of the land is P435,000.
The investment in stocks is composed of the following:
12% investment in SM held for trading P220,000, fair value at 12/31 is
P250,000.
19% investment in Ayala not held for trading, irrevocably designated at OCI
P150,000, fair value at 12/31 is P120,000.
20% investment in PLDT not held for trading P80,000, fair value at 12/31 is
P100,000.
The notes payable due in June 2022 was refinanced on October 1, 2021 for 14
months from date of refinancing.
The loans payable is payable in 3 equal annual installments starting on
September 5, 2022.
The investment property as per trial balance is properly measured using the fair
value method.
How much is the noncurrent asset of the company as of December 31, 2021?
Question 13 6 pts
Problem 1
The total property, plant and equipment as of December 31, 2021 amounted to?
Question 14 6 pts
Problem 1
The current liabilities as of December 31, 2021 amounted to?
Question 15 6 pts
Problem 1
The total non-current liabilities as of December 31, 2021 amounted to?
Question 16 6 pts
Problem 1
The total current assets as of December 31, 2021 amounted to?
Question 17 6 pts
Problem 2
The following were taken from the records of Junathan Corporation:
Gain on sale of equipment P

150,000
Sales revenue
2,800,000
Cost of goods sold

1,250,000
Purchase discount lost

50,000
Sales discount forfeited

15,000
Interest expense
120,000
Amortization of premium
30,000
Amortization of patent
70,000
Income tax expense

150,000
Increase in deferred tax asset

45,000
Loss on sale of patent

25,000
Freight-out
12,000
Rental of head office

78,000
Depreciation of delivery trucks

192,000
Utilities used in the head office

42,000
Salaries of the admin staff

58,000
Depreciation of PPE - Head office

145,000
Increase in fair value of financial assets held for trading

75,000
Decrease in fair value of derivatives designated at fair value hedge

68,000
Increase in fair value of investment property measured at fair value

34,000
Decrease in revalued amount of PPE

180,000
Decrease in the measurement of the defined benefit obligation 27,000
Actual interest is less than interest income of the defined benefit asset 5,000
How much is operating income of the entity?
Question 18 6 pts
Problem 2
Total finance costs amounted to?

Question 19 6 pts
Problem 2
The selling costs of the company amounted to?
Question 20 6 pts
Problem 2
The other comprehensive income that will be subsequently recycled to profit or loss
amounted to?
Question 21 6 pts
Problem 2
The total comprehensive income for the year is?
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10/6/21, 8:58 PM Quiz: Quiz 2 - SFP and SCI

Quiz 2 - SFP and SCI

Theories - 10 items, 4 points each (MCQ)

Problems - 10 items, 6 points each (Provide the answer)

An shall present an analysis of expenses using a classification based on

The nature of expenses

The function of expenses

The income statement would help in which of the following?

Estimate future financial flexibility

Estimate amount, timing, and uncertainty of future cash flows

In presenting a statement of financial position, an entity

Must make the current and noncurrent presentation

Must present assets and liabilities

Assess future cash flows

Evaluate capital structure

Analyze cash inflows and outflows for the period

Compute rate of return

Gain or loss on remeasuring equity investment at FVOCI.

Gain or loss from remeasuring debt investment at FVOCI

Gain or loss from translating the financial statements of a foreign corporation

What is the purpose of reporting comprehensive income?

To report a measure of overall entity performance

To replace net income with a better measure

To report transaction with owners

The two-statement approach of presenting comprehensive income is preparing

A combined income statement and a statement of changes in equity

A separate income statement and a separate statement of comprehensive income

A comparative statement of comprehensive income

A combined statement of comprehensive income and retained earnings

When it is refinanced on a long-term basis before the issue of financial statements

When it is refinanced on a long-term basis on or before the end of reporting period.

The entity holds the asset for the purpose of trading.

The statement of financial position

Uses fair value for most assets and liabilities

Makes very limited use of judgement and estimate

Omits many items that are of financial value

All choices are correct

Cash in bank, restricted for payroll P 750,000

Cash in bank, restricted for the

purchase of land expected

to be disbursed in February 2022 1,000,000

Cash in bank, PNB 400,000

Accounts receivable, net of credit balance of P10,000 1,800,000

Subscriptions receivable 150,000

Petty cash fund, net of P10,000 check

pertaining to PCF custodian 70,000

Investment in stocks, at cost 420,000

Property, plant and equipment, net 2,500,000

Investment property, net 800,000

Accounts payable 120,000

Notes payable, payable in June 2022 370,000

Bonds payable 3,000,000

Loans payable 2,100,000

Share dividends payable 180,000

Deferred tax asset, net of

deferred tax liability of P120,000 80,000

Suppliers debit balance 50,000

Premium on bonds payable 15,000

PNB is in the process of liquidation as of December 31, 2021

The current liabilities as of December 31, 2021 amounted to?

The total non-current liabilities as of December 31, 2021 amounted to?

The total current assets as of December 31, 2021 amounted to?