ADVANCED FINANCIAL ACCOUNTING - THEORY PORTION

IAS AND IFRS

IAS 21 – EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES

1. For reporting purposes, currencies are defined as

A. International and functional
B. Foreign, functional and presentation
C. Domestic and international
D. Operating, international and presentation

2. The functional currency is

A. The currency in which the entity reports earnings.
B. The currency in which the entity primarily conducts banking activities.
C. The currency in which the entity primarily operates.
D. The currency in which the entity presents the financial statement

3. Which consideration would not be relevant in determining the entity’s functional currency?
A. The currency that influences the costs of the entity.
B. The currency in which finance or fund is generated.
C. The currency in which receipts from operating activities are retained.
D. The currency that is the most internationally acceptable for trading.

4. If a foreign currency exchange gain results from the effects of a change in exchange rates on an
account receivable, where will the exchange gain be reported in the financial statements?
A. As other comprehensive income.
B. As an extraordinary gain.
C. As an item of income from continuing operations.
D. As a deferred gain.

5. A U.S. company contracted to purchase foreign goods. Payment in foreign currency was due one
month after the goods were received at the company’s warehouse. Between the receipt of goods
and the time of payment, the exchange rates changed in the company’s favor. The resulting gain
should be included in Fogg's financial statements as:
A. Component of income from continuing operations.
B. Extraordinary item.
C. Deferred credit.
D. Component of comprehensive income.

6. A sale of goods, denominated in a currency other than the entity's functional currency, resulted in
a receivable that was fixed in terms of the amount of foreign currency that would be received.
Exchange rates between the functional currency and the currency in which the transaction was
denominated changed. The resulting gain should be included as
A. Translation gain reported as a component of comprehensive income.
B. Translation gain reported as a component of income from continuing operations.
C. Transaction gain reported as a component of comprehensive income.
D. Transaction gain reported as a component of income from continuing operations.

IAS 29 – FINANCIAL REPORTING IN HYPERINFLATIONARY ECONOMY

7. An entity has several subsidiaries that operate in a hyperinflationary economy which uses the zloty
as its local currency. Management wishes to show the financial statements in US dollars. Many of
the operations are within countries that are not hyperinflationary and these subsidiaries use the euro
as their functional currency. What currency should the entity use to present its consolidated
financial statements?
A. The US dollar
B. The zloty
C. The euro
D. The entity may use any currency
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8. Which of the following should be considered nonmonetary?

A. Trade receivables.
B. Deferred tax liabilities
C. Accrued expense and other payables
D. Taxes payable

IFRS 3 - BUSINESS COMBINATION

9. Which is incorrect regarding the acquisition method of accounting for a business combination
requires all, except
A. Identifying the acquirer.
B. Determining the acquisition date.
C. Recognizing and measuring the identifiable assets acquired, the liabilities assumed and the
noncontrolling interest in the acquiree at carrying amount.
D. Recognizing goodwill or gain from bargain purchase

10. Which of the following is not one of the steps in accounting for an acquisition?
A. Prepare proforma financial statements prior to acquisition.
B. Determine the acquisition date.
C. Identify the acquirer
D. Expense the costs and general expenses of the acquisition in the period of acquisition.

11. What is meant by “full goodwill” method?

A. The recognition of goodwill which relates to the parent company interest.
B. The recognition of goodwill which relates to the noncontrolling interest and the controlling
interest
C. The recognition of goodwill which relates to the noncontrolling interest
D. A bargain purchase

12. Which statement is true in relation to business combination achieved in stages?

A. The pre-existing equity interest shall be remeasured at fair value with any resulting gain or loss
included in profit or loss.
B. The pre-existing equity interest shall be remeasured at fair value with any resulting gain or loss
included in other comprehensive income.
C. The pre-existing interest shall not be remeasured.
D. The pre-existing interest shall be remeasured at fair value with any resulting gain or loss
recognized in retained earning

13. How should an entity account for the incomplete information in preparing the financial statements
immediately after the acquisition?
A. Do not record the uncertain items until complete information is available.
B. Record a contra account to the investment account for the amounts involved.
C. Record the uncertain items at the carrying amount of the acquiree.
D. Record the uncertain items at a provisional amount measured at the date of acquisition.

14. The requirements of Business Combinations apply to all of the following business combinations
except for which one?
A. Combination between financial institutions
B. The acquisition of a foreign entity by a Philippine entity
C. Combination between not-for-profit organizations
D. The acquisition of a group of assets that constitutes a business.

15. Which method is acceptable to account for a business combination?

A. Purchase method, acquisition method and pooling o interest method
B. Purchase method and acquisition method
C. Purchase method and pooling of interest method
D. Acquisition method
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16. An acquirer. incurred of acquisition costs related to the purchase of the net assets of an acquiree
The acquisition costs should be
A. Allocated on a pro rata basis to the nonmonetary assets acquired.
B. Capitalized as part of goodwill and tested annually for impairment.
C. Capitalized as other asset and amortized over five years.
D. Expensed as incurred in the current period.

17. Which of the following statements, if any, concerning a noncontrolling interest in an acquiree is
correct?
I. The value assigned to a noncontrolling interest in an acquiree must be based on the
proportional share of that interest in the net assets of the acquiree.
II. The fair value per share of the noncontrolling interest in an acquiree must be the same as the
fair value per share of the controlling (acquirer) interest.
A. Both I and II.
B. I only.
C. Il only
D. Neither I nor Il.

18. In a business combination accounted for as an acquisition, the fair value of the identifiable net
assets acquired exceeds the fair value of the consideration paid by the acquirer and the fair value
of the noncontrolling interest in the acquiree. The excess fair value of net assets over investment
value should be reported as
A. Gain.
B. Reduction of the values assigned to current assets and a deferred credit for any unallocated
portion.
C. Reduction of the values assigned to nonfinancial assets and a gain for any unallocated
portion.
D. Prorata reduction of the values assigned to current and noncurrent assets.

19. Which one of the following assets recognized in a business combination will require that the
amount recognized be amortized over future periods?
A. An asset arising from a contingency
B. A reacquired right asset
C. An indemnification asset
D. A contingent consideration asset

20. How should the acquirer recognize a bargain purchase in a business acquisition?
A. As negative goodwill in the statement of financial position
B. As goodwill in the statement of financial position
C. As a gain in earnings at the acquisition date
D. As a deferred gain that is amortized into earnings over the estimated future periods benefited

21. When a bargain purchase recurs in a business combination which of the following types of
information must be disclosed in the period of combination?
I. The amount of gain recognized
II. The income statement line item that includes the gain
III. A description of the basis of the bargain purchase amount
A. I only
B. I and II only
C. I and III only
D. I, II and III
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22. Aye Company acquired all of the assets and liabilities of Bee Company for cash in a legal merger.
Which one of the following would not be recognized by Aye Company on its books in recording
the business combination?
A. Accounts receivable
B. Investment in Bee Company
C. Intangible asset-Patent
D. Accounts payable

23. Planet Company acquired controlling interest in Earth Company in a legal acquisition. Which one
of the following could not be part of the entry to record the acquisition?
A. Debit Investment in Earth Company
B. Debit Goodwill
C. Credit Cash
D. Credit Ordinary shares capital

IFRS 10 – CONSOLIDATED FINANCIAL STATEMENTS

24. Consolidated financial statements are typically prepared when one entity has a controlling financial
interest in another unless
A. The subsidiary is a finance entity.
B. The fiscal year-ends of two entities are more than three months apart.
C. Such control is likely to be temporary.
D. The two entities are in unrelated industries, such as manufacturing and real estate.

25. A parent is exempted from preparing consolidated financial statements if all of the following
conditions exist, except
A. The parent is wholly or partially owned and the owners do not object to the nonconsolidation.
B. The parent does not have any debt or equity instruments publicly traded.
C. The parent reports one class of share capital in the statement of financial position
D. The ultimate parent prepares consolidated financial statements that comply with IFRS.

26. Which of the following conditions is required to exclude a subsidiary from consolidation?
A. The other owners object to the nonconsolidation.
B. The parent makes an election not to consolidate.
C. The other owners do not object to the nonconsolidation and the subsidiary does not have any
publicly traded debt or equity instruments.
D. The parent must own 100% of the subsidiary.

27. The noncontrolling interest should be recorded at what amount?

A. The fair value of the shares held by the acquirer
B. The fair value of the shares not held by the acquirer or the proportionate share of the fair value
of net identifiable assets of the acquiree
C. The proportionate share of the carrying amount of net identifiable assets of the acquiree
D. The fair value of the shares held by the noncontrolling interest plus goodwill

28. For the purpose of consolidating financial interests, a majority voting interest is deemed to be
A. 50% of the directly or indirectly owned outstanding voting shares of another entity.
B. 50% of the directly or indirectly owned outstanding voting shares and at least 50% of the
directly owned outstanding nonvoting shares of another entity.
C. Greater than 50% of the directly or indirectly owned outstanding voting shares of another.
D. Greater than 50% of the directly or indirectly owned outstanding voting shares and at least 50%
of the directly or indirectly owned outstanding nonvoting shares of another entity.
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29. Following a business combination accomplished through a legal acquisition, transactions between
affiliated entities can originate with:
A. Parent Company
B. Subsidiary Company
C. Both Parent Company and Subsidiary Company
D. Neither parent Company nor Subsidiary Company

30. A subsidiary, acquired for cash in a business combination, owned inventories with a market value
different from the book value as of the date of combination. A consolidated statement of financial
position prepared immediately after the acquisition would include this difference as part of
A. Deferred Credits
B. Goodwill
C. Inventories
D. Retained Earnings

31. Which one of the following would be of concern in preparing consolidated financial statements at
the end of the operating period following a business combination that would not be a concern in
preparing financial statements immediately following a combination?
A. Whether or not there are intercompany accounts receivable and accounts payable.
B. Whether or not goodwill resulted from the business combination.
C. Whether the parent carries its investment in the subsidiary using the cost method or the equity
method.
D. Whether or not there is a noncontrolling interest in the subsidiary.

32. Under which of the following methods of carrying a subsidiary on its books, if any, will the
carrying amount of the investment normally change following a combination?
A. Both cost method and equity method
B. Cost method
C. Equity method
D. Neither cost method nor equity method

33. When a parent company uses the cost method on its books to carry its investment in a subsidiary,
which one of the following will be recorded by the parent on its books?
A. Parent's share of subsidiary's net income or net loss.
B. Parent's amortization of goodwill resulting from excess investment cost over fair value of
subsidiary's net assets.
C. Parent's share of subsidiary's cash dividends declared.
D. Parent's depreciation of excess investment cost over book values of subsidiary's net assets.

34. A 70%-owned subsidiary company declares and pays a cash dividend. What effect does the
dividend have on the retained earnings and noncontrolling interest equity reported on the
consolidated statement of financial position?
A. No effect on either retained earnings or noncontrolling interest.
B. No effect on retained earnings and a decrease in noncontrolling interest.
C. Decrease in both retained earnings and noncontrolling interest.
D. A decrease in retained earnings and no effect on noncontrolling interest.

INTERCOMPANY TRANSACTIONS

35. Which one of the following will occur on consolidated financial statements if an intercompany
transaction is not eliminated.
A. An understatement eliminated.
B. An overstatement of sales
C. An understatement of purchases
D. An overstatement of accounts receivable
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36. A parent sells goods to its subsidiary, which in turn sells the goods to an unaffiliated firm. Which
of these transactions, if any, should be eliminated in the consolidating process?
A. Parent to subsidiary and subsidiary to an unaffiliated firm
B. Parent to subsidiary
C. Subsidiary to unaffiliated firm
D. Neither transactions

37. An intercompany depreciable fixed asset transaction resulted in an intercompany gain. Which one
of the following is least likely to be reflected in the consolidated financial statements prepared at
the end of the period in which the intercompany transaction occurred?
A. Consolidated income will be less than the sum of the incomes of the separate companies being
combined.
B. Consolidated assets will be less than the sum of the assets of the separate companies being
combined.
C. Consolidated depreciation expense will be more than the sum depreciation expense of the
separate companies being combined.
D. Consolidated accumulated depreciation will be more than the sum of accumulated depreciation
of the separate companies being combined.

38. Which of the following is not a characteristic of intercompany bonds?

A. Intercompany bonds may occur on the date a business combination or subsequent to a business
combination.
B. When bonds become intercompany, it is as though the bonds have been retired for consolidated
purposes.
C. Intercompany bonds can result in the recognition of gain or a loss for consolidating purposes.
D. When bonds become intercompany, they are written off of the books of the issuing affiliate and
the investing affiliate.

IFRS 11 – JOINT ARRANGEMENT

39. Which is a characteristic of a joint arrangement?

A. The parties are bound by a contractual arrangement.
B. The contractual arrangement gives two or more parties joint control over the arrangement.
C. The parties are bound by a contractual arrangement which gives two or more parties absolute
control over the arrangement.
D. The parties are bound by a contractual arrangement which gives two or more parties joint
control over the arrangement.

40. Two entities established a business. The contractual agreement provided that the relevant activities
of the business will require unanimous consent of the two parties. The business is not incorporated
before SEC. The two parties equally own interest in the said business. How should the two parties
account for their investment?
A. Proportionate consolidation
B. Joint operation
C. Joint venture
D. Business combination

41. Two entities established a joint arrangement in an incorporated entity. The assets and liabilities of
the entity will be in the name of the incorporated entity. The activities of the arrangement will be
decided by its own board of directors. The rights of the two parties are limited only to the net assets
of incorporated entity. How should the two parties account for their investment?
A. Proportionate consolidation
B. Joint venture
C. Joint operation
D. Investment in trading securities
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IFRS 15 – REVENUE FROM CONTRACTS WITH CUSTOMERS

42. When shall an entity recognize revenue from contracts with customers?
A. When it is probable that future economic benefits will flow to the entity and the revenue can be
measured reliably.
B. When or as the entity satisfies the performance obligation.
C. When the entity collected the cash from the customers.
D. When the entity and the customers sign the contracts.

43. What is the accounting treatment of the transaction price when a contract with a customer has
multiple performance obligations?
A. The transaction price shall be recognized as revenue of the most important performance
obligation.
B. The transaction price shall be allocated equally to the different performance obligations.
C. The transaction price shall be allocated to the different performance obligations by reference to
their relative standalone selling prices.
D. The transaction price shall be recognized as revenue only at the end of completion of all
performance obligations.

FRANCHISE ACCOUNTING - FRANCHISOR

44. Franchise fee revenue shall be recognized when all material services or conditions have been
substantially performed or satisfied by the franchisor. Substantial performance means
A. Franchisor has no remaining obligation or intent to refund money or forgive unpaid debt.
B. Substantially all initial services have been performed.
C. No other material conditions or obligations exist.
D. All of these define substantial performance by the franchisor.

45. Continuing franchise fees should be recorded by the franchisor

A. As revenue when earned and receivable from the franchisee.
B. As revenue when received.
C. In accordance with the accounting procedures specified in the franchise agreement.
D. As revenue only after the balance of the initial franchise fee has been collected.

CONSTRUCTION CONTRACT

46. Contract revenue in construction contract comprises

A. The initial amount of revenue agreed in the contract
B. Variation in contract work, claim and incentive payment
C. The initial amount of revenue agreed in the contract, variation in contract work, claim and
incentive payment.
D. The initial amount of revenue agreed in the contract and progress billings.

47. Contract costs of a construction contract comprise all of the following, except
A. Costs that directly relate to the specific contract.
B. Costs that are attributable to contract activity in general and can be allocated to the contract.
C. Such other costs that are specifically chargeable to the customer under the terms of the
contract.
D. General administration costs for which reimbursement is not specified in the contract.

48. The percentage of completion of a construction is based on all of the following, except
A. The proportion that contract costs incurred for work performed to date bear to the estimated
total contract costs.
B. Survey of work performed
C. Completion of physical proportion of the contract work
D. Progress payments and advances received from customers
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49. When it is probable that total contract costs on a fixed price contract will exceed total contract
revenue, the expected loss should be
A. Set off against profit on other contracts
B. Recognized as expense immediately unless revenue to date exceeds costs to date
C. Apportioned to the years of the contract according to the stage of completion
D. Recognized as expense immediately

COST ACCOUNTING
50. In a job order cost system, the use of direct materials previously purchased usually is recorded
as an increase in
A. Work in process control
B. Factory overhead applied
C. Factory overhead control
D. Stores control

51. In a job order cost system, the use of indirect materials previously purchased is recorded usually
as an increase in
A. Stores control
B. Work in process control
C. Factory overhead control
D. Factory overhead applied

52. In a job order system, direct labor costs usually are recorded initially as an increase in
A. Factory overhead applied
B. Factory overhead control
C. Finished goods control
D. Work in process control

53. In a job order cost system, the application of factory overhead would usually be reflected in
A. Factory overhead control
B. Finished goods control
C. Work in process control
D. Cost of goods sold

54. Overapplied overhead will always result when predetermined overhead rate is employed and
A. Production is greater than defined capacity
B. Actual overhead cost is less than expected
C. Defined capacity is less than normal capacity
D. Overhead incurred is less than overhead applied

NONPROFIT ORGANIZATION

55. Which categories are used in the statement of financial position of a nonprofit organization?
A. Net assets, income and expenses
B. Income, expenses and unrestricted net assets
C. Assets, liabilities and net assets
D. Changes in unrestricted, temporarily restricted and permanently restricted net assets

56. Which classification is required for reporting of expenses by all nonprofit organizations?
A. Natural classification in the statement of activities or notes to financial statements
B. Functional classification in the statement activities or notes to financial statements
C. Functional classification in the statement of activities and natural classification in a matrix
format in a separate statement
D. Functional classification in the statement of activities and natural classification in the notes to
financial statements
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57. How should a nonprofit organization report depreciation in the statement of activities?
A. It should not be included.
B. It should be included as a decrease in unrestricted net assets.
C. It should be included as an increase in temporarily restricted net assets.
D. It should be reclassified from unrestricted net assets to temporarily restricted net assets,
depending on donor-imposed restrictions on the assets.

58. The assets in a quasi-endowment fund should be included in which of the following
classifications?
A. Temporarily restricted net assets
B. Unrestricted net assets
C. Permanently restricted net assets
D. Either temporarily or permanently restricted net assets depending upon the term of the quasi-
endowment

59. In the nonprofit university’s statement of cash flows for the current year, all of the following cash
inflows shall be reported as operating activities, except
A. From tuition fees
B. From a donor who stipulated that the money be invested indefinitely
C. From a donor who stipulated that the money be spent in accordance with the wishes of the
university’s governing board.
D. From unrestricted cash contribution

GOVERNMENT ACCOUNTING

60. What is the legal basis of the COA in prescribing the Government Accounting Manual?
A. Presidential Decree
B. Legislative Act
C. Constitution of the Republic of the Philippines
D. Recommendation of the International Monetary Fund

61. The financial reporting for the National Government is under the Statutory responsibility of all
the following, except
A. Bureau of Treasury
B. Department of Budget and Management
C. Commission on Audit
D. Congress of the Republic of the Philippines

62. What is the paramount objective of financial reporting by national and local government?
A. Reliability
B. Consistency
C. Transparency
D. Accountability

63. It is the authorization issued by the Department of Budget and Management to National
Government Agency to incur obligations for specified amounts contained as a legislative
appropriation in the form of budget release documents.
A. Appropriation
B. Allotment
C. Obligation
D. Expenditure

64. It is the authority issued by the DBM to an agency to pay operating expenses, purchases of
materials and supplies and other authorized disbursement to through the use of Modified
Disbursement System checks.
A. Notice of Cash Allocation
B. Noncash Availment Authority
C. Notice of Transfer Allocation
D. Modified Disbursement System
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HEDGING
65. Hedge accounting is permitted for all of the following, except
A. Trading investment
B. Unrecognized firm commitment
C. Forecasted transaction
D. Net investment in foreign operation

66. A cash flow hedge and a hedge of a net investment are accounted for by
A. Not recognizing gains and losses
B. Recognizing gains and losses in other comprehensive income
C. Recognizing gains and losses in profit and loss
D. Recognizing gains and losses when the hedge is closed out

67. Unrealized holding gain or loss arising from changes in fair value of derivatives designated as
cash flow hedge pertaining to effective portion shall be recognized in
A. Other comprehensive income with reclassification adjustment
B. Other comprehensive income without reclassification adjustment
C. Retained earnings
D. Profit or loss

68. Which one of the following is a characteristic of a forecasted transaction?

A. Is evidenced by a contractual right or obligation.
B. Can be a hedged item in a cash flow hedge.
C. Is the same as a firm commitment.
D. Is evidenced by a recorded asset or liability

69. In a cash flow hedge, the item being hedged is measured using
A. The nominal value of expected cash inflows.
B. The present value of expected cash inflows.
C. The nominal value of expected cash inflows or outflows.
D. The present value of expected cash inflows or outflows.

70. Which one of the following is not a characteristic of a foreign currency hedge?
A. Hedges the risk due to change in foreign currency exchange rates.
B. Can hedge net investment in a foreign entity.
C. Are all treated as fair value hedges.
D. Can be used to hedge forecasted intercompany transactions.

71. When used for speculative purposes, which of the following contracts is likely to result in a
foreign currency loss to the contract holder who initiated the contract?
A. Both foreign currency forward exchange contract and foreign currency option contract
B. Foreign currency forward exchange contract
C. Foreign currency option contract
D. Neither

72. A hedge to offset the risk of exchange rate changes on converting the financial statements of a
foreign subsidiary to the domestic (functional) currency would be the hedge of:
A. A forecasted transaction.
B. A recognized asset.
C. A net investment in a foreign operation.
D. Nontrading equity investment.
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73. If a firm commitment denominated in a foreign currency is hedged with a forward exchange
contract, which of the following statements is/are correct?
I. Even though the firm commitment is hedged, a net gain or loss can be reported.
II. As a result of hedging the firm commitment, an otherwise unrecognized asset or liability may
have to be recognized.
A. I only
B. II only
C. Both I and II
D. Neither I nor II

IFRIC 12 SERVICE CONCESSION – BUILD, OPERATE AND TRANSFER

74. On the part of the private operator, the infrastructure asset in a service concession shall be
recognized as
A. Property, plant and equipment
B. Financial asset
C. Intangible asset
D. Either financial asset or intangible asset

75. The private operator in a service concession shall recognize the infrastructure asset as financial
asset
A. When the private operator has an unconditional contractual right to receive a specified
amount of cash over the life of the arrangement.
B. When the private operator has received a right to charge users for the public service.
C. When the revenue receivable is not agreed upon in advance but is dependent on the use of the
asset.
D. Under all circumstances

CONVERSION OF FOREIGN FINANCIAL STANDARDS

76. A transaction denominated in a foreign currency is converted to the functional currency using
A. Historic exchange rate.
B. Spor rate.
C. Average exchange rate.
D. Forward exchange rate.

77. Which one of the following best describes the currency in which the final consolidated financial
statements are presented?
A. The local currency.
B. The reporting currency.
C. The functional currency.
D. The temporal currency.

78. A subsidiary’s functional currency is the local currency which has not experienced significant
inflation. The appropriate exchange rate for translating the depreciation on plant assets in the
income statement of the foreign subsidiary is
A. Exit exchange rate
B. Historical exchange rate
C. Weighted average exchange rate over the economic life of each plan asset.
D. Weighted average exchange rate for the current year.
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79. A U.S. entity has a subsidiary, the parent located in a foreign country. The subsidiary is essentially
a sales unit for the parent. After remeasuring the subsidiary’s financial statements from the foreign
currency to in parent’s reporting currency, the parent determined that it had a loss on the
remeasurement. How should the parent report the loss in its consolidated financial statements?
A. As an extraordinary loss.
B. As income from continuing operations.
C. As an item of other comprehensive income.
D. As a deferred item until the subsidiary is sold.

80. Which of the following sets shows the correct reporting of an adjustment (gain or loss) that results
from translation and one that results from remeasurement of financial statements from a foreign
currency to a reporting currency?
Translation Adjustment Remeasurement Adjustment
A. Net income Net Income
B. Net income Other comprehensive income
C. Other comprehensive income Net income
D. Other comprehensive income Other comprehensive income

PARTNERSHIP
81. How should the net profit or net loss of the partnership be divided among the partners, whether
capitalist or industrial?
A. In accordance with their capital contribution ratio
B. In accordance with just and equitable sharing taking into account the circumstances of the
partnership
C. Equally
D. In accordance with the partnership agreement

82. In the absence of partnership profit agreement to the contrary, how shall industrial partner
share in partnership profit?
A. Equal to the share of the least capitalist partner
B. Equal to the share of the highest capitalist partner
C. Just and equitable share
D. Equal to the average share capitalist partners

83. In the absence of partnership profit agreement to the contrary, how shall the remaining
partnership profit be distributed to the capitalist partners after distributing the share of industrial
partner?
A. Based on capital contribution ratio
B. Based on loss agreement ratio
C. Equally
D. Equal to share of industrial partner

CORPORATE LIQUIDATION
84. At the time of corporate liquidation, which of the following unsecured claims with priority shall
be settled first?
A. Liability for taxes
B. Liability for corporate crime
C. Liability for employee benefits
D. Liability for corporate torn

85. In corporate liquidation of a closed bank, which of the following unsecured credits is classified as
without priority?
A. Claims of bank depositors
B. Claims of bank employees
C. Claims of local government for local taxes
D. Claims for violation of Anti-Money Laundering Law

END
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ANSWER

1. B 21. D 41. B 61. D 81. D

2. C 22. B 42. B 62. D 82. C
3. D 23. B 43. C 63. B 83. A
4. C 24. C 44. D 64. A 84. C
5. A 25. C 45. A 65. A 85. A
6. D 26. C 46. C 66. B
7. D 27. B 47. D 67. A
8. B 28. C 48. D 68. B
9. C 29. C 49. D 69. D
10. A 30. C 50. A 70. C
11. B 31. C 51. C 71. B
12. A 32. C 52. D 72. C
13. D 33. C 53. C 73. C
14. C 34. B 54. D 74. D
15. D 35. B 55. C 75. A
16. D 36. B 56. B 76. B
17. D 37. C 57. B 77. B
18. A 38. D 58. B 78. D
19. B 39. D 59. B 79. B
20. C 40. B 60. C 80. C