QUIZ

1. Wowowee Corporation 2nd year in business posted a net income of 70,000,000 for the
year ended December 31, 2022. The following data are extracted from the books of
accounts

Depreciation 32,000,000
Decrease in accounts payable 3,400,000
Increase in prepaid expenses 1,500,000
Forex Loss 22,400,000
Dividends paid 25,500,000

The Company should report as cash provided by operations in its cash flow statement for the
year ended December 31, 2022 at
A. 100,100,000 B. 119,500,000 C. 100,400,000 D.126,300,000

Use the following information for the next three (3) questions:

High School Kids Corporation’s transactions for the year ended December 31, 2024
included the following:

(a)Sold long-term investment securities with a carrying value of P100,000 for P130,000
cash.
(b)Cash dividends of P500,000 were declared but P340,000 were only paid during the
period.
(c)Issued 10,000 ordinary shares for cash amounting to P220,000.
(d)Purchased machinery and equipment for P1,300,000. Included in the total purchase
was machinery costing P100,000 acquired through issuance of long-term note.
(e)Paid long-term bonds payable on maturity date amounting to P600,000.
(f)Purchased of treasury shares for cash costing P80,000.
(g)Increased of accounts receivable by P100,000.
(h)Decreased of inventories by P150,000.
(i)Increased of accounts payable by P200,000
(j)Obtained short term bank loan of P500,000.
(k)Depreciation expense for the year was P210,000.
(l)Building costing P600,000 with accumulated depreciation of P350,000 was sold for
P230,000.
(m)Gain on conversion of preference shares to ordinary shares of P95,000.
(n)Net income for the year was P800,000

2.How much is the net cash provided by operating activities?

A.1,050,000 B. 1,260,000 C. 1,280,000 D.1,250,000

3How much is the net cash used in investing activities?

A. 840,000 B. 970,000 C. 940,000 D.1,070,000
4.How much is the net cash provided by financing activities?
A. 460,000 B. 120,000 C. 395,000 D. 300,000

Use the following information for the next two (2) questions:
In preparing the statement of cash flows for the current year, Anti Company collected the
following:

Early extinguishment of long-term note with carrying amount of P5,000,000 5,500,000

Sale of ordinary shares 17,500,000
Retirement of ordinary shares 12,000,000
Loss on sale of equipment 200,000
Proceeds from sale of equipment 800,000
Issuance of short-term note payable for cash 1,000,000
Acquisition of building for cash 7,000,000
Purchase of marketable securities not a cash equivalent 500,000
Purchase of marketable securities considered a cash equivalent 100,000
Cash payment for 3-year insurance policy 300,000
Collection of note receivable (principal amount, P1,100,000) 1,300,000
Declaration of cash dividend in current year 4,000,000
Payment of cash dividend in current year and declared in prior year 3,000,000

5. What amount should be reported as net cash used in investing activities?

A. 5,600,000 B. 5,800,000 C. 5,500,000 D.6,700,000

6. What amount should be reported as net cash used in financial activities?

A. 2,000,000 B. 6,000,000 C. 1,000,000 D.5,000,000

7. Give It To Me Company provided the following information for the preparation of the
statement of cash flows for the current year:

Net income 5,000,000

Amortization of patent 45,000
Depreciation of property, plant and equipment 1,650,000
Long-term debt:
Bond premium amortization 65,000
Interest paid 900,000
Unrealized loss on financial asset held for trading 100,000
Unrealized loss on financial asset at fair value through other comprehensive income 400,000
What is the net cash provided by operating activities for the current year?
A. 6,760,000 B. 6,630,000 C. 6,730,000 D.6,860,000

Use the following information for the next two (2) questions:
The statement of financial position data of Davao Company at the end of 2020 and 2019
follow:

2020 2019 Increase (Decrease)

Cash P 125,000 P 175,000 (P50,000)
Accounts receivable (net) 300,000 225,000 75,000
Inventory 350,000 225,000 125,000
Prepaid expenses 50,000 125,000 ( 75,000)
Buildings and equipment 450,000 375,000 75,000
Accumulated depreciation—buildings and equipment (90,000) (40,000) 50,000
Land 450,000 200,000 250,000
P1,635,000 P1,285,000 P350,000

Accounts payable P 340,000 P 275,000 P65,000

Accrued expenses 60,000 90,000 ( 30,000)
Notes payable—bank, long-term 200,000 (200,000)
Mortgage payable 150,000 150,000
Share capital, P10 par 1,045,000 795,000 250,000
Retained earnings (deficit) 40,000 (75,000) 115,000
P1,635,000 P1,285,000 P350,000

Land was acquired for P250,000 in exchange for ordinary shares, par P250,000, during the
year; all equipment purchased was for cash. Equipment costing P25,000 was sold for
P10,000; book value of the equipment was P20,000 and the loss was reported as an
ordinary item in net income. Cash dividends of P50,000 were charged to retained earnings
and paid during the year; the transfer of net income to retained earnings was the only other
entry in the Retained Earnings account.

Based of the foregoing information, compute for the following.

8. Net cash provided by operating activities.

A. 120,000 B. 130,000 C. 140,000 D. 165,000

9.Net cash provided by (used in) financing activities.

A.150,000 provided B. 350,000 provided C.100,000 used D.250,000 used
 10.BCAA Company prepares its statement of cash flows using the direct method for
operating activities. For the year ended December 31, 2020, BCAA Company reports the
following activities:

Sales on account 1,300,000

Cash sales 740,000
Decrease in accounts receivable 610,000
Increase in accounts payable 72,000
Increase in inventory 48,000
Cost of goods sold 975,000

What is the amount of cash collections from customers reported by BCAA for the year
ended December 31, 2020?
A. 2,040,000 B. 1,910,000 C. 2,650,000 D.1,430,000

11.Mia Company provided the following information related to operating segments:

Segment Sales to customers Intersegment sales Total revenue

One 5,000,000 3,000,000 8,000,000
Two 8,000,000 4,000,000 12,000,000
Three 4,000,000 -- 4,000,000
Four 43,000,000 16,000,000 59,000,000
Combined 60,000,000 23,000,000 83,000,000
Elimination -- (23,000,000) (23,000,000)
Consolidated 60,000,000 -- 60,000,000

What is the total revenue that should be disclosed for the reportable segments?
A.71,000,000
B.51,000,000
C.79,000,000
D.56,000,000

12.Starboy Corporation and its divisions are engaged solely in manufacturing. The
following data pertain to the industries in which operations were conducted for the current
year:
Operating profit or loss
Segment A 10,000,000 Profit
Segment B 2,000,000 Profit
Segment C 11,000,000 Loss
Segment D 3,000,000 Profit
Segment E 12,000,000 Loss

In its segment information for the current year, which is (are) not a reportable segment(s)?
A.Segment A, B, D
B.Segments B, D
C.Segment B
D.None of them
 13.Dart Company and its divisions are engaged solely in manufacturing operations. The
following data pertains to the industries in which operations were conducted for the year
ended December 31, 2017.
Segments Total revenue Operating profit Identifiable assets
A 13,000,000 4,000,000 25,000,000
B 9,000,000 2,000,000 20,000,000
C 7,700,000 1,500,000 15,000,000
D 3,000,000 1,000,000 7,000,000
E 3,800,000 800,000 8,000,000
F 3,500,000 700,000 5,000,000
40,000,000 10,000,000 80,000,000

In its segment information for 2017, how many reportable operating segments does Dart
have?
A.Three
B.Four
C.Five
D.Six

14.Master Roshi Company provided the following information pertaining to operating

segments for the year ended December 31, 2015:

Total revenue P 80,000,000

Sales to external customers included in total revenue 30,000,000

External revenue reported by reportable operating segments must be at least what amount?
A.60,000,000
B.37,500,000
C.30,000,000
D.22,500,000

15. Warrior Nun has no intersegment sales and has the following operating segments with
their corresponding revenue:

Segment Revenue Percentage

AA 2,400,000 30%
BB 1,600,000 20%
CC 1,200,000 15%
DD 720,000 9%
EE 640,000 8%
FF 560,000 7%
GG 480,000 6%
HH 400,000 5%
8,000,000 100%

Assume that Segments GG and HH have similar products, similar production process,
similar marking methods and are not operating under regulated environment
 Which of the above segments are considered reportable segments?
A.Segments AA, BB, CC, DD, EE, FF, GG, HH
B.Segments AA, BB, CC, GG, HH
C.Segments AA, BB, CC
D.Segments DD, EE, FF

16. Essence Company and its divisions are engaged solely in manufacturing. The following
data pertain to the industries in which operations were conducted for the current year:
Segment Intersegment sales External revenue
A 1,000,000 5,000,000
B 1,500,000 3,000,000
C 4,000,000 8,000,000
D 500,000 1,300,000
E 2,000,000 2,800,000
F 200,000 900,000

What is the minimum amount of revenue to be considered a major customer?

A.3,020,000
B.2,100,000
C.1,180,000
D. 920,000

17.Mademoiselle Co. has provided the following 2009 current account balances for the
preparation of the annual statement of cash flows:

ACCOUNTS .................. January 1 ........ December 31

Accounts receivable ...... P11,500 .......... P14,500
Allowance for U/A .......... 400 ...........… 500
Prepaid rent expense .… 6,200 .......… 4,100
Accounts payable ........… 9,700 .......... 11,200

Mademoiselle’s 2009 net income is P75,000. Net cash provided by operating activities in
the statement of cash flows should be

A. 75,700 B. 72,700 C. 74,300 D. 75,500

18. Matatag Corp.’s transactions for the year ended December 31, 2009, included the
following:
Paid P450,000 toward a bank loan.
Issued 500 shares of common stock for P250,000.
Purchased machinery and equipment for P125,000 cash.
Purchased real estate for P425,000 cash which was borrowed from a majority stockholder.
Sold available-for-sale investment securities for P325,000.
Paid dividends of P300,000.

Matatag’s net cash used in financing activities for 2009 was

A. 500,000 B. 1,350,000 C. 75,000 D. 750,000
 19. Marikitka Corporation accounting records show the following numbers below at the end
of each year:
2012 2011
Borrowings 3,000,000 800,000
Share capital 4,000,000 2,000,000
Retained earnings 1,000,000 800,000

Old debts of 500,000 were repaid during 2012 and new borrowings include 300,000 vendor
financing arising on the acquisition of a property. The movement in share capital arose
from issuance of share capital for cash during the year. There was no dividend declared at
the beginning and end of the current year. Net change in retained earnings comprises
profit for 2012 of 900,000, net of dividend of 700,000.

How much is the financing net cash inflows that should be reported in the 2012 Cash Flow
statement?
A. 3,900,000 B. 3,200,000 C. 3,400,000 D. 4,100,000

20. The following information relates to the activities of I Miss You Company. Income tax
may be ignored.

Net cash flows form operating activities 720,000

Decrease in trade payables 23,000
Decrease in inventory 11,500
Increase in trade receivables 24,600
Cash proceeds from sale of plant (book value of P25,000) 14,000
Increase in allowance for doubtful debts 1,000

What is the profit for the period?

A. 698,100 B. 730,100 C. 744,100 D. 767,100