1.

The following information pertains to the receivable ledger of Candor

Company for the year ended December 31, 2018: *
1 point

Also during the year, Candor factored some of its unassigned receivables receiving a net
proceeds of P720,000 and recognized in its profit or loss a loss of P130,000 as a result of the
transfer. Also at the close of the business year, December 31, 2018 recognized a provision
for uncollectible, future returns and discounts on all outstanding receivables for a total
amount of P250,000. What is the amortized cost of the receivables as of December 31,
2018?
6,055,000
4,660,000
5,835,000
6,935,000

2.
Recording the payment of a cash dividend whose declaration was already
recorded will: *
1 point

increase the current ratio but have no effect on working capital

have no effect on the current ratio and working capital
increase both the current ratio and working capital
decrease both the current ratio and working capital

3.
On December 31, 2019, Hope Company received two P2,000,000 notes
receivable from customers. On both notes, interest is calculated on the
outstanding principal balance at the annual rate of 3% and payable at
maturity. The first note, made under customary trade terms, is due in nine
months and the second note is due in five years. The market interest rate
for similar notes on December 31, 2019 was 8%. The PV of 1 at 8% due in
nine months is 0.944, and the PV of 1 at 8% due in 5 years is 0.68. On
December 31, 2019, what total carrying amount should be reported for the
two notes receivable? *
1 point

3,360,000
3,494,400
3,564,000
3,248,000

4.

On July 1, 2018, Olive Corporation sold an equipment to Popeye Co for

P250,000. Olive accepted a 10% note receivable of the entire sales price.
This note is payable in two equal installments of P125,000 plus accrued
interest on December 31,2018, and December 31, 2019. On July 1, 2019,
Olive discounted the note at a bank at an interest rate of 12%. How much
was Olive’s proceeds from the discounted note? *
1 point

123,375
125,875
129,250
121,000

5.

Banana Corporation sold selected merchandise on a consignment basis

during 2020. Banana’s 2020 accounting records show the following
information: *
1 point
 What amount should Banana report as cost of goods sold in its 2020 income statement?
1,024,000
1,094,000
1,014,000
1,354,000

6.

Abnormal spoilage in a manufacturing process should be charged to *

1 point

Manufacturing overhead control

Manufacturing overhead applied
Accumulated profit or loss
Profit or loss

7.

The following data concerning the retail inventory method are taken from
the financial records of Valor Corporation: *
1 point
 If the ending inventory is to be valued at approximately the lower of cost or net realizable
value, the calculation of the cost to retail ratio should be based on goods available for sale
as (1) cost and (2) retail, respectively of:
279,000 and 390,000
273,000 and 390,000
279,000 and 396,000
279,000 and 410,000

8.

Guess Company purchased 50,000 shares (5% ownership) of Fortune

Company on January 2, 2020 at P34 per share. Guess received a stock
dividend of 15% on March 31, 2020 when the market price of the share is
P40. On November 30, Guess paid P20 per share special assessment on the
shares. On December 15, 2020. Fortune paid a cash dividend of P8 per
share. On December 31, the prevailing market price of the trading security
is at P49 per share. What amount should be reported as dividend income on
the December 31, 2020 income statement? *
1 point

150,000
400,000
60,000
460,000

9.
S1: Direct origination costs received from borrower are recognized as
unearned interest income and amortized over the life of the loan. S2:
Impairment loss is the difference between the carrying amount of the loan
and the present value of estimated net future cash flows discounted at the
original nominal rate of the loan. *
1 point

Both statements are not true

Both statements are true
S1 is true
S2 is true

10.

An examination of the petty cash fund of IAN Inc. immediately after the
close of business, July 31, 2020, the end of the company’s natural business
year shows the following: Currency – P1,650; Petty cash vouchers for
postage – P420; office supplies expense – P900; Transportation expense –
P340; Computer repairs – P800; Advances to Office staff – P1,500; a check
drawn by IAN Inc. payable to the petty cash custodian – P7,200; Postage
stamps – P300; an employee’s check, returned by bank, marked NSF –
P1,000; and an envelope containing currency of P1,890 for a gift for a
retiring employee. The general ledger shows an imprest petty cash fund
balance of P16,000. What is the adjusted balance of the petty cash fund at
July 31, 2020? *
1 point

8,850
3,540
10,740
16,000
7,200

11.

Philippine Bank granted a loan to a borrower on January 1, 2019. The

interest of the loan is 8% payable annually starting December 31, 2019.
The loan matures in three years on December 31, 2021. Data related to the
loan are: Principal amount – P3,000,000; Origination fees charged against
the borrower – P100,000; Direct origination cost incurred – P 260,300;
Indirect origination costs – P50,000. After considering the origination fees
charged to the borrower and the direct origination costs incurred, the
effective rate on the loan is 6%. What is the carrying amount of the loan
receivable on December 31, 2020? *
1 point

3,056,513
3,109,918
3,000,000
3,160,300

12.
The balance in Stem Corporation’s accounts payable account at December
31,2019 was P1,350,000 before any necessary year-end adjustments
relating to the following:• Goods were in transit to Stem from a vendor on
December 31, 2019. The invoice cost was P75,000. The goods were shipped
FOB shipping point on December 29, 2019 and were received on January 2,
2020.• Goods shipped FOB destination on December 21, 2019, from a
vendor to Stem, were received on January 6, 2020. The invoice cost was
P37,500. On December 27, 2019, Stem wrote and recorded checks totaling
P60,000 were mailed on January 10, 2020. In Stem’s December 31, 2019
statement of financial position, how much should be the accounts
payable? *
1 point

1,425,000
1,410,000
1,485,000
1,462,500

13.
Highly liquid investments that are readily convertible into cash can be
shown as cash equivalents if the investments have a maturity of 90 days or
less *
1 point

From the date of issue of financial statements

From the end of the reporting period
From the date the investments are acquired or from the end of the reporting period
From the date the investments are acquired

14.
Orange Company acquired a building on January 1, 2019 for P9,000,000. At
that date the building had a useful life of 30 years. On December 31, 2019,
the fair value of the building was P9,600,000 and on December 31, 2020,
the fair value is P9,800,000. The building was classified as an investment
property and accounted for under the cost model. What amount should be
carried in the statement of financial position for the calendar year ended
2020? *
1 point

8,400,000
9,000,000
8,700,000
9,800,000

15.
On September 14, 2020, a typhoon damaged a warehouse of Goodness
Corporation. The entire company and many accounting records stored in
the warehouse were completely destroyed. Although the inventory was not
insured, a portion could be sold for scrap. Through the use of microfilmed
records, the following data were gathered: *
1 point

How much is the value of inventory loss?

161,200
171,200
181,200
151,200

16.
On December 31, 2019, Apple Bank has a 5-year loan receivable with a face
value of P6,000,000 dated January 1, 2017 due on December 31, 2022.
Interest is payable annually every December 31 at 9%. The borrower made
the required interest payment on December 31, 2018 but informed the
bank that interest accrued for 2019 will be paid together with the principal
at maturity. There is a high probability that remaining interest payments will
not be paid. The prevailing market rate is 10%. What is the loan impairment
loss for 2019? (Round PV factors to 2 decimals) *
1 point

1,635,000
1,111,800
1,504,200
1,046,400

17.
Harry Corporation’s checkbook balance on December 31, 2019 was
P160,000. On the same date, Harry held the following items in its safe:• A
P5,000 check payable to Harry, dated January 2, 2020 was included in the
December 31 checkbook balance.• A P3,500 check payable to Harry which
was deposited December 19 and included in the December 31 checkbook
balance, was returned by the bank on December 30 marked NSF. The check
was re-deposited on January 2, 2020 and cleared on the same day. A
P25,000 check payable to a supplier and drawn on Harry’s account, was
dated December 31, 2019 but was not mailed until January 19, 2020. The
check voucher has not reached the accounting department. In its December
31, 2019 statement of financial position, how much should Harry report as
cash? *
1 point

151,500
181,500
176,500
161,500

18.
Agricultural produce is: *
1 point

Valued at each reporting period at fair value less cost of disposal.

All of the choices are correct regarding agricultural produce.
Valued at the time of harvest at cost to produce
Harvested from biological assets

19.
On January 1, 2019, Isabel Company purchased 12% bonds with face
amount of P5,000,000 for P5,500,000 which included a transaction cost of
P100,000. The bonds provide an effective yield of 10%. The bonds are
dated January 1, 2019, mature on January 1, 2024 and pay interest annually
on December 31 of each year. The bonds are quoted at 115 on December
31, 2019. The entity irrevocably elected to use the fair value option. What
amount of gain from change in fair value should be reported for 2019? *
1 point

250,000
750,000
0
350,000

20.
IFRS requires all of the following when classifying receivables, except *
1 point

Disclose all significant concentrations of credit risk arising from receivables.

Indicate the receivables as current and noncurrent in the statement of financial
position.
Disclose any receivables pledged as collateral.
All of these are required by IFRS when classifying receivables.

21.
A major advantage of the retail inventory method is that it: *
1 point

Provides a method for inventory control and facilitates determination of the periodic
inventory for certain type of entities
Gives a more accurate statement of inventory costs than other methods.
Provides reliable results in cases where the distributions of items in the inventory is
different from the items sold during the period.
Hides costs from competitors and customers.

22.
Any write-down of inventory to net realizable value and all losses of
inventory shall be *
1 point

Deferred until the related inventory is sold.

Recognized as other expense in the period the write-down or loss occurs
Recognized as component of cost of goods sold in the period the write-down or loss
occurs.
Recognized as operating expense in the period of write-down or loss occurs.

23.
Digital Company, a computer store, specialized in the sale of IBM
compatible and software packages uses the net method of recording
purchases and returns, had the following transactions with one of its
suppliers: *
1 point
 Purchases were made throughout the year on terms 3/10, n/60. All returns and allowances
took place within 5 days of purchase and prior to payment of account. How much amount of
discount did the company actually avail?
6,300
6,000
11,300
12,000

24.
On January 1, 2019, Isabel Company purchased 12% bonds with face
amount of P5,000,000 for P5,500,000 which included a transaction cost of
P100,000. The bonds provide an effective yield of 10%. The bonds are
dated January 1, 2019, mature on January 1, 2024 and pay interest annually
on December 31 of each year. The bonds are quoted at 115 on December
31, 2019. The entity irrevocably elected to use the fair value option. What
amount of interest income should be reported for 2019? *
1 point

550,000
540,000
660,00
600,000

25.
Fearless Company had total deposits of P6,500,000 and charges for
disbursement of P9,000,000 for July per bank statement. All reconciliation
items on June 30 cleared the bank on July 31. Checks outstanding
amounted to P1,000,000 on July 31. Below is the prepared bank
reconciliation of the company on June 30: *
1 point
 What is the amount of cash disbursements per book in July?
7,600,000
9,400,000
8,400,000
8,600,000

26.
On July 1, 2019, Yellow Corporation acquired an investment at amortised
cost in Green Company's 10-year, 12% bonds, with face value of
P5,000,000 for P5,386,300. Interest is payable semi-annually on January 1
and July 1. The bonds mature on July 1, 2024. Bonds effective rate is 10%.
On December 31, 2020, Yellow sold its debt instrument at 110. What
amount of gain should Yellow Corporation recognise as a result of the
disposal? *
1 point

176,604
144,385
210,434
245,956

27.
On October 1, 2019, White Corporation purchased a debt security having a
face value of P3,000,000 with an interest rate of 10% for P3,200,000
inclusive of the accrued interest to be held as financial assets at amortized
cost. A total of P50,000 was incurred and paid by White in relation to the
acquisition of the debt instrument. The bonds mature on January 1, 2024,
and pay interest semi-annually on January 1 and July 1. On December 31,
2019, the bonds had a market value of P3,400,000. What amount should
White report the investment in debt securities upon acquisition? *
1 point

3,200,000
3,175,000
3,250,000
3,125,000
 28.
Princess Company is in the business of deer farming. A herd of 50 3-year
old deer with a total fair value less point of sale costs of P400,000 were held
as of January 1, 2020. On January 2, 2020, 50 one-year old deer were
purchased at a price of P2,000 each. On July 1, 2020, 50 one-year and 6-
month old deer were purchased at a price of P2,200 each.The relevant data
are as follows at December 31, 2020: *
1 point

How much of the increase in the fair value of the biological assets during 2020 is due to
physical change?
430,000
450,000
160,000
220,000

29.
From inception of operations, Queen Company carried no allowance for
doubtful accounts. Uncollectible accounts were expensed as written off and
recoveries were credited to income as collected.During 2018, management
recognized that the accounting policy with respect to doubtful accounts was
not correct and determined that an allowance for doubtful accounts was
necessary. A policy was established to maintain an allowance for doubtful
accounts based on historical bad debt loss percentage applied to year-end
accounts receivable.The historical bad debt loss percentage is to be
recomputed each year based on all available past years up to a maximum
of five years. *
1 point
 What is the doubtful accounts expense for 2018?
97,000
83,000
78,000
92,000

30.
The following data concerning the retail inventory method are taken from
the financial records of Valor Corporation: *
1 point

If the foregoing figures are verified and a count of the ending inventory reveals that
merchandise actually on hand amounts to P54,000 at retail, the business has
realized a windfall gain
no gain or loss as there is close coincidence of the inventories
sustained a loss
none of these choices are correct

31.
Survivor Company factored its receivables without recourse with BDO. The
firm received cash as a result of this transaction which is best described as
a*
1 point
sale of Survivor’s accounts receivable to BDO, with the risk of uncollectible accounts
retained by Survivor
loan from BDO to be repaid by the proceeds from Survivor’s accounts receivables
loan from BDO collateralized by Survivor’s accounts receivables
sale of Survivor’s accounts receivable to BDO, with the risk of uncollectible accounts
transferred to BDO

32.

From inception of operations, Queen Company carried no allowance for

doubtful accounts. Uncollectible accounts were expensed as written off and
recoveries were credited to income as collected.During 2018, management
recognized that the accounting policy with respect to doubtful accounts was
not correct and determined that an allowance for doubtful accounts was
necessary. A policy was established to maintain an allowance for doubtful
accounts based on historical bad debt loss percentage applied to year-end
accounts receivable.The historical bad debt loss percentage is to be
recomputed each year based on all available past years up to a maximum
of five years. *
1 point

The entity reported accounts receivable of P1,250,000 on December 31, 2017and

P2,000,000 on December 31, 2018. What is the allowance for doubtful accounts on
December 31, 2017?
25,000
20,000
21,250
22,500

33.

On January 1, 2019, Blue Company purchased 4,000 of P1,000 face value,

10% bonds of Pink Company for P4,270,600. The company has a business
model of holding the financial asset to collect contractual cash flows and to
sell the financial asset. The bonds will mature on January 1, 2023 and pay
interest semi-annually on January 1 and July1. Bonds effective interest rate
is 8%. In its December 31, 2019 income statement, how much should Blue
report as interest income on the bonds? *
1 point

160,000
340,481
169,657
170,824

34.

Melon Company used the imprest system in accounting for petty cash fund.
The fund had an imprest balance of P20,000 at year-end which consisted of
currency and coins P1,000, employees’ advances P3,000, currency in
envelope marked “collections for Christmas Party” P2,000, check drawn by
Melon Company payable to petty cashier representing salary of P14,000.
What is included in the entry to adjust the petty cash fund at year-end? *
1 point

Debit to petty cash fund P15,000

Credit advances to employees P3,000
Debit to cash short or over P2,000
Credit cash short or over P2,000

35.

A confectioner, a chain of candy stores, purchases its candy in bulk from its
suppliers. For a recent shipment, the company paid P4,000 and received
10,500 pieces of candy that are allocated among three groups. Group 1
consists of 2,500 pieces that are expected to sell for P0.40 each. Group 2
consists of 6,000 pieces that are expected to sell for P0.60 each. Group 3
consists of 2,000 pieces that are expected to sell for P0.70 each. Using the
relative sales price method, what is the cost per item in Group 2? *
1 point

P0.466
P0.600
P0.400
P0.266
 36.
Babe Company prepares monthly income statements. A physical inventory
is taken only at year-end; hence, month-end inventories must be estimated.
All sales are made on account. The rate of markup on cost is 50%. The
following information relates to the month of June: Accounts receivable,
June 1 – P102,000; Accounts receivable, June 30 – P153,000; Collection of
accounts receivable during June – P255,000; Inventory, June 1 – P183,600;
Purchases of inventory during June – P163,200. How much is the estimated
cost of June 30 inventory? *
1 point

122,400
142,800
193,800
224,400

37.
Potter Company’s standing sugar cane fair value as of January 1, 2020 was
P2,700,000 and as of December 31, 2020 was P2,800,000. The biological
asset has a life span of less than one year and has no dual purpose. The
selling price of the agricultural produce harvested during the period was
P2,100,000 on the respective dates of harvest. The estimated cost to sell is
P100,000. What net amount of gain or loss should Potter Company report in
its December 31, 2020 profit or loss related to the biological asset and
agricultural produce? *
1 point

2,000,000
2,100,000
2,200,000
100,000

38.
On May 1, 2019, Red Company purchased a short-term P2,000,000 face
value, 9% debt instruments for P1,860,000 including accrued interest and
classified it as a trading security. The debt instruments mature on January
1, 2022 and pay interest semi-annually on January 1 and July 1. On
December 31, the fair market value of the instruments is 98. On March 2,
2020, Red Sold the trading securities for P1,980,000. How much should Red
report the investment on December 31, 2019? *
1 point

1,960,000
1,800,000
1,980,000
1,860,000

39.
In 2015, Jubilant Corporation purchased a P5,000,000 life insurance policy
on its vice president, of which Jubilant is the beneficiary. Information
regarding the policy for the year ended December 31,2020 follows: Cash
surrender value, 1/1/20 – P435,000; cash surrender value, 12/31/20 –
P540,000; Annual advance premium paid 1/1/20 – P200,000. During 2020,
dividends of P30,000 were applied to increase the cash surrender value of
the policy. How much should Jubilant report as life insurance expense for
2020? *
1 point

95,000
105,000
65,000
200,000

40.

Under PFRS9, reclassification of investment in equity securities: *

1 point

Is allowed, as long as the reclassification is made within the year the investment was
acquired
Is allowed, as long as it is based on a change in the entity’s business model
Is not allowed
Is allowed, since the entity always has the option to carry the investment as either
FVPL or FVOCI

41.

An examination of the petty cash fund of IAN Inc. immediately after the
close of business, July 31, 2020, the end of the company’s natural business
year shows the following: Currency – P1,650; Petty cash vouchers for
postage – P420; office supplies expense – P900; Transportation expense –
P340; Computer repairs – P800; Advances to Office staff – P1,500; a check
drawn by IAN Inc. payable to the petty cash custodian – P7,200; Postage
stamps – P300; an employee’s check, returned by bank, marked NSF –
P1,000; and an envelope containing currency of P1,890 for a gift for a
retiring employee. The general ledger shows an imprest petty cash fund
balance of P16,000. How much is the petty cash shortage or overage? *
1 point

1,890 overage
1,890 shortage
2,190 shortage
2,190 overage

42.
From inception of operations, Queen Company carried no allowance for
doubtful accounts. Uncollectible accounts were expensed as written off and
recoveries were credited to income as collected.During 2018, management
recognized that the accounting policy with respect to doubtful accounts was
not correct and determined that an allowance for doubtful accounts was
necessary. A policy was established to maintain an allowance for doubtful
accounts based on historical bad debt loss percentage applied to year-end
accounts receivable.The historical bad debt loss percentage is to be
recomputed each year based on all available past years up to a maximum
of five years. *
1 point

What is the allowance for doubtful accounts on December 31, 2018?

34,000
40,000
32,000
36,000

43.
The term “outstanding checks” refers to: *
1 point

Customer checks which have been returned by the bank because the customer’s
bank would not honor them.
Depositor checks which have been processed by the bank but have not yet been
recorded by the depositor.
Depositor checks which have not yet cleared in the banking system.
Checks that have been lost in the mail or for some other reason have been
misplaced.

44.
At the beginning of the current year, Lemon Company purchased 40% of
the outstanding ordinary shares of an investee paying P2,560, 000 when
the carrying amount of the net assets of the investee equaled P5,000,000.
The difference was attributed to building which had a carrying amount of
P1,000,000 and a fair market value of P1,600,000, and to machinery with a
carrying amount of P1,200,000 and fair market value of P2,000,000. The
remaining useful life of the machinery and building was 4 years and 12
years, respectively. During the current year, the investee reported net loss
of P1,600,000 and paid dividends of P1,000,000. What is the carrying
amount of the investment in associate at year end? *
1 point

P 2,700,000
P 1,420,000
P 1,270,000
P 2, 550,000

45.
Total receivables will remain unchanged for which of the following? *
1 point

Collection of trade account receivable

Note discounting without recourse
Assignment of receivables
Factoring of receivables

46.
The following information was included in the bank reconciliation for Prince
Co. for July 2019:Checks and charges recorded by bank in July, including a
July service charge of P2,800, P932,600; Service charge made by bank in
June and recorded in books in July, P1,200; Customer’s NSF check returned
as a bank charge in July (no entry made in books), P6,000; Customer’s NSF
check returned in June, recorded by the company in July, P15,000;
Outstanding checks in July 31, P300,000; Outstanding checks for June,
P255,000; Checks issued in July for P20,000 recorded by the company as
P2,000; Erroneous bank charge in July, P20,000; Erroneous bank credit in
June corrected in July, P30,000; and Erroneous book receipt in June
corrected in July, P5,000. What is the unadjusted disbursement per book on
July 31, 2019? *
1 point

922,000
927,600
918,800
909,400

47.
Under PFRS9, investment in equity securities not held for trading are
classified as: *
1 point

FVOCI
Either FVPL or FVOCI, depending on the entity’s business model
FVOCI, if the entity opted to carry as FVOCI, otherwise, carried as FVPL
FVPL

48.
Purchase commitments *
1 point

require disclosures when considered common and significant

All of the above
Are obligations of the company to acquire certain goods at a fixed price and fixed
quantity sometime in the future
Giving rise to a purchase price falling below the agreed price is accounted for as debit
to loss on purchase commitments and credited to an estimated liability

49.
Brave Corporation has supplied the following list of its bank accounts and
cash at December 31, 2019: Checking account (compensating balance of
P15,000 with no restriction) – P48,000; Savings account, 2% - P30,000;
Certificate of deposit, 6 months, 10%, due April 30, 2020 – P60,000; Money
market (30-day certificate), current rate, 9.75% - P40,000; Payroll account –
P20,000; Certificate of deposit, 3 months, 10% due February 15, 2020 –
P75,000; Petty cash – P1,500. What should be the balance to be reported as
“Cash and cash equivalents” in the December 31, 2019 statement of
financial position? *
1 point

139,500
214,500
274,500
199,500

50.
On October 31, 2019, Bundle Company engaged in the following
transactions: [1] Obtained a P500,000, six-month loan from City Bank,
discounted at 12%. The company pledged P500,000 of accounts receivable
as security for the loan. [2] Factored P1,000,000 of accounts receivable
without recourse with Help Company. Help charged a factoring fee of 2% of
the amount of receivables factored and withheld 10% of the amount
factored. What is the total cash received from the financing of
receivables? *
1 point

1,350,000
1,380,000
1,470,000
1,320,000

51.
On July 1, 2020, X Company acquired 20% of the outstanding ordinary
shares of another entity for P5,000,000. The carrying amount of the
acquired shares was P4,000,000. The excess of cost over the carrying
amount was attributable to an identifiable intangible asset which was
undervalued on the investee’s statement of financial position and which
had a remaining useful life of 5 years. The investee reported net income of
P6,000,000 for 2020 and paid cash dividends of P1,000,000 on ordinary
shares and issued 10% stock dividend on December 31, 2020. What amount
of investment income should be reported by X for 2020? *
1 point

500,000
1,000,000
800,000
300,000

52.
When the allowance method of recognizing bad debts is used, the entry to
record collection of accounts previously written off would increase *
1 point

Working capital
Allowance for bad debts
Net income
Accounts receivable

53.
Berries Co. factored P3,000,000 of accounts receivable without recourse.
The factor required an assessment fee of 10% of the accounts factored and
a holdback of 15% of the accounts factored for possible sales returns and
allowances. The accounts factored had a related allowance for doubtful
accounts of P200,000. What amount of loss on factoring should be
recognized? *
1 point

650,000
750,000
100,000
300,000

54.
Which of the following would increase the value of an investment in
associate? *
1 point

Dividend received -
Share in the other comprehensive loss
Share in the other comprehensive income
Share in the net loss

55.
Baguio Company is a dealer in equipment. On December 31, 2019, Baguio
Company sold an equipment in exchange for a non-interest bearing note
requiring five annual payments of P500,0000. The first payment is to be
made on December 31, 2020. The market interest for similar notes was 8%.
The relevant present value factors are: PV of 1 at 8% for 5 periods - .68; PV
of an ordinary annuity of 1 at 8% for 5 periods – 3.99. In its December 31,
2019 statement of financial position, what should Baguio report as notes
receivable? *
1 point

1,700,000
1,495,000
2,500,000
1995,000

56.
All of the following are examples of credit memos in a bank statement,
except: *
1 point

Electronic bank transfer made to a supplier’s account as advance payment for raw
materials
Interest received on bank deposit
Electronic bank transfer made by a customer to the depositor’s account
Approved bank loan placed in the depositor’s account

57.
When stock dividends of different class are received: *
1 point

A new investment account is debited and dividend income is credited

No formal entry is made only memo entry
Cash is debited and dividend income is credited
A new investment account is debited and the original investment account is credited

58.
BM Co did not amortize the discount on its short-term bond investment.
What effect would this have of the carrying value of the investment and on
net income, respectively? *
1 point

understated, overstated
no effect, no effect
understated, understated
overstated, overstated

59.
Guess Company purchased 50,000 shares (5% ownership) of Fortune
Company on January 2, 2020 at P34 per share. Guess received a stock
dividend of 15% on March 31, 2020 when the market price of the share is
P40. On November 30, Guess paid P20 per share special assessment on the
shares. On December 15, 2020. Fortune paid a cash dividend of P8 per
share. On December 31, the prevailing market price of the trading security
is at P49 per share. How much is the unrealized gain(loss) that should be
presented in the statement of comprehensive income? *
1 point

32,500 loss
117,500 gain
750,000 gain
250,000 loss

60.
The use of gross profit method assumes *
1 point

The amount of gross profit is the same as in prior years.

Sales and cost of sales have not changed from previous year.
The inventory values have not increased from previous years.
The relationship between sales price and cost of goods sold is similar in prior years.