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    Hshshahauuh

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    Download as pdf
    177 views12 pages

    1pb - Afar

    Uploaded by

    Paula Villarubia
    Hshshahauuh

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    Download as pdf
    of 12
    ‘Advanced Financial Accounting and Reporting SETA Erasures will render your examination answer sheet INVALID, Use PENCIL NO. 2 only. GOODLUCKI@ . 1. State the proper order of partnership liquidation. I. Outside creditors TI. Owners’ interests IIL. Insice creditors a. I, Mand Il c¢. I, land ur b. Il, land It a d. 1,1, 1 2. When the old partners receive a bonus upon admission of a new partner into a partnership, the bonus is allocated to: 1, all the partners in their profit and loss sharing ratio. Il, the existing partners in their profit and loss sharing ratio. 2. Lonly c. Either 1 or II b. Monly 4. Neither I nor 11 3. A partner's maximum loss absorption is calculated by 2. aividing the partner's capital balance by his or her profit- and loss-sharing percentage. b. multiplying the partner's capital balance by his or her profit-and-loss-sharing percentage. © multiplying distributable assets by the partner's profit- sharing percentage & dividing the partner's capital balance by ‘his or her percentage interest in capit 4. The interest of the withdrawing, retiring, or deceased partner shall be adjusted for which of the following? 1 nis share of any profit or loss up to the date of his withdrawal, retirement or death, if he withdraws, retires or dies during the year fis share of any revaluation gains or losses as at the date of his withdrawal, retirement, or death a. Tonly ¢. Tori b. Ionly d. Land I som pa Aran, openFreio 19 wero Advanced Financial Accounting and Reporting SETA In a statement of affairs, assets pledged for parti creditors are securea Included with assets pledged for fully secured creditors Offset against partially secured creditors Included with free assets Disregarded eogse On a statement of financial affairs, a company's assets should be valued at net realizable value, if lower than historical cost. net realizable value, if higher than historical cost. net realizable value, whether higher or lower than historical cost. aose In a statement of financial affairs, assets are classified 8. accarding to whether they ere pledged with particular creditors. b. as current or noncurrent. as monetary or nonmonetary 6. a8 operating or nonoperating, Determine the true statement under PFRS 11 & Joint arrengement is either joint venture or joint operation. : b. Joint operation is either joint arrangement or joint venture ¢. Jomt venture is either joint arrangement or jo operation. d. Joint arrangement, joint venture and yornt operation are one’and the same Aayanced Ferancial Accounting and Reporting 9. 10. uN SETA Ik ss the joint arrangement that involves the establishment of 2 corporation in which each party has an equity interest in the net assets of the corporation. a. Jount venture b. Joint operation | < Either joint venture or joint operation 4. Neither joint venture nor joint operation Which of the following statements is(are) true regarding sales agency and branch? 1A branch is not a self-contained business but rather acts only on behalf of the home office. Il. A sales agency is a self-contained business which acts independently, but within the bounds of the company policy and subject to the control af the home office. @ Toniy c. Land 0 b. Ionly d. Neither I nor 11 For external reporting, the individual financial statements of the home office and the branch are combined 2. by using complex consolidation procedures B. by recognizing the home office's own assets, mcome and expenses plus its share in the assets, liabilities, income and expenses by adding together similar items of assets, e and expenses \g together similar items of assets, nd expenses and eliminating reciprocal accounts. cP 2 partner retires and receives cash less than his capital ne difference be treated? the partners in balance, how should Gifference sh wid be credited to OF 1968 ratio vld be debited to a oF loss ratio the partners in anne Anenkbn10 19 ‘Advanced Financial Accounting and Reporting can ¢. The difference should be credited We the remaining Partners in their remaining profit or loss ratio d. The difference should be debited to the rema partners in their remaining profit or loss ratio ing 13. In the cash distribution plan, which partner gets the first cash distribution? a. The partner with the largest loan balance b. The partner with the largest loss absorption potential c. The partner with the largest capital balance d. The partner with the largest profit or loss ratio, 14, When as asset is transferred to a branch from its head office, which of the following occurs? a. Only a memo entry is made b. A credit to Home Office account cc. A debit to Home Office account d. A credit to Investment in Branch account 15, On a statement of financial affairs, a company's assets should be vatued at a. historical cost b. able value, if lower than historical cost. c izable value, it higher than historical cost. whether higher or lower than d. net realizable value, historical cost Trial balances for the Home Office and the branch of FIELD ENTFRPRISES show the following accounts, before adjustments, ‘on December 31, 2019, Part of the branch’s merchandise come from the Home Office, billed at 125% of acquisition cost. Advanced Francia Accounting and Reporting SETA Home Office Branch Allowance for overvaluation of Office branch inventory P 14,000 shipments to Branch 480,000 Purenases (from other suppliers) a Shipments from Home Office on Merchandise Inventory, Jan. 1 Biaeoe the branch inventory on~December 31, 2019 of 100,000 includes purchases from outsiders of P20,000. " 16. Calculate the total goods available for sale in the branch from the standpoint of the Home Office. 2. 848,000 c. P656,000 b. P646,667 d. P806,000 17 What is the balance of the allowance for overvaluation account, after eliminations, on the books of the Home Office on December 31, 2019? 2 P 16,667 cc, P104,000 b. P 112,667 d. P 28,000 LLS CORPORATION issues 390,000 shares of its own P10 par ordinary shares for the net assets of BROS COMPANY in a merger cesummated on August 30, 2019. On this cate, the HILLS stock < quoted at P12 per share. Balance sheets far the combining es at August 30, 3019 just befcre combination, are 3s HILLS. BROS Cousrent assets: p14,400,000 P 1,200,000 Plant and Property 17,600,000 5,200,000 32,000,000 P 6,400, 000 7 P 6,600,000 P 1,600,000 ary shares, 16,000,000 2,400,000 2,400,000 800,000 2,000,000 1,600,000 P32,000,000 P 6,400,000 wee sccom un agan, OpentPBIOI9 ‘Advanced Financial Accounting and Reporing 4 ETA HILLS also paid finder’s fees of PSK 3 sasssces of 30,000, The east of reysterng and sun ec stocks is P150,000 issuing the 48. The amount of Retained Earnings on the balance sheet to be presented by HILLS CORPORATION at August 30, 2019 will be a. P5,600,000 ¢. P4,950,000 b. P5,070,000 d, P4,040,000 Claudia, Petra, Mona, and Hilda are partners who share profits ad losses at 40%, 30%, 20%, and 10%, respectively. Since two of them have given intention to withdraw, they have decided to iquidate the partnership instead, At this point, the capital balances of the partners are as Follows: Claudia 48,000 Petra 21,600 Mona 34,400 Hilda 16,000 19. Which of the following statements is true? a. The first available P1,600 will go to Hilda. b. Claudia will be the last partner to receive any available cash. c. The first available P2,400 wil go to Mona, d. Claudia will collect @ portion of any 2v Hilda receives anything ible cash before GREEN BERET, INC. 1S very financially distressed and tne and. Exchange Commission ordered its prompt Securities Iquidation. The company has the following assets at this pOwt Fair Value Current assets 28,000 Lane 72,000 Buildings. 56,000 (61,600 Equipment 24,00 26,400 ee “pram DpenFPB10 19 Rgeroe ne como ‘Advanced Financial Accounting and Reporting SETA The company’s liabiliti ies at pele the same date are as follows: Notes payable, secured by | cae Accounts payable tone son Salanes payable een Bonds payable pee Administrative expenses for liquidation 6-000 20. Calculate the estimar of non-priority claims 2. P 88,800 cP 86, : 400 b.. P 100,000 d. P108,600 ed net amount available for the payment 21. Calculate the amount of estimated payment to holders of note payable in the event of liquidation. 2. P 88,800

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