Direction: Read each item carefully and choose the best answer.

Write only the letter of your choice.

1. Statement 1- When a portion of the accumulated profits (retained earnings) is being appropriated,
the total Shareholders’ Equity is affected as a result of the debit to Retained Earnings.
Statement 2- The Retained Earnings account, in total, is reduced when there is an appropriation for a
specific purpose.
a. Both statements are true c. Both statements are false
b. Only statement 1 is true d. Only statement 2 is true

2. Statement 1- Subscription receivable is presented as a current asset when collectible within one year
Statement 2- Subscription receivable is debited at par value even when the subscription is at more
than par value
a. Both statements are true c. Both statements are false
b. Only statement 1 is true d. Only statement 2 is true

3. In which phase would the use of memorandum method and journal entry method in accounting for
capital stock transaction differ?
a. Authorization and issuance c. Authorization and subscription
b. Subscription and issuance d. Authorization only

4. The reporting entity has made a general purpose financial report. Said report, however, did not have
a bearing on the economic decision to be made by the users. Given this scenario, which of the
qualitative characteristics has not been met?
a. Faithful representation c. Understandability
b. Relevance d. Timeliness

5. For cash and cash equivalents, the factor that separates them from assets of similar kind (like bond
sinking fund) is the fact that:
a. They are unrestricted in terms of usage c. They are financial in nature
b. They are subjected to certain restrictions d. They are generally susceptible to theft

6. In the preparation of bank reconciliation, checks that have been stamped “certified” are to be:
a. Added as part of outstanding checks
b. Deducted from outstanding checks, if included therein
c. Added to deposit in transit
d. Deducted from deposit in transit

7. An entity borrows funds (short term) and signed a 12 % formal compensating balance agreement with
the bank. Using this information, which of the statements below appropriately describes the
compensating balance?
a. The proceeds of the borrowing would be reduced by 12% and the compensating balance is
classified as a non-current asset because there was a formal agreement.
b. The proceeds of the borrowing would be reduced by 12% and the compensating balance is part of
“cash and cash equivalents” in the Balance Sheet.
 c. The amount to be received from the borrowing is reduced by 12% and the compensating balance
is classified separately under current assets.
d. The amount to be received from the borrowing is reduced by 12% and the compensating balance
is part of “cash and cash equivalents” but classified as non-current asset.

8. What would be the effect of an undelivered check whose entry upon its drawing is not reversed at
the end of the accounting period?
a. Cash in bank is overstated and the related liability is understated
b. Cash in bank is not affected since the actual cash has not yet flowed out of the entity
c. Cash in bank account is understated
d. Liability is not affected

9. Which of the following statements about receivables is consistent with the asset classification in
accordance with PAS 1?
a. Trade receivables are classified as current irrespective of the length of the operating cycle.
b. Non-trade receivables are classified as non-current when expected to be realized within the
normal operating cycle which is shorter than one year.
c. Non-trade receivables are classified as current when expected to be realized within one year
irrespective of the length of the operating cycle.
d. Receivables are treated as current assets only when they arise from trading transactions.

10. When the company’s records were checked, you saw that there was a credit balance on customers’
accounts. As an accountant assigned to prepare the Statement of Financial Position of the entity,
which of the following is appropriate?
a. The credit balance should be treated as a reduction from those that are of debit balances with
little or no emphasis on materiality.
b. The credit balance is separately treated as a non-current liability.
c. The credit balance is classified as current liability or may be offset with other debit balances when
immaterial.
d. The credit balance is treated as a loss on the entity’s financial report.

11. Determine which of the following combinations is true regarding investments in time deposit, money
market instruments and treasury bills:

3 months or less More than 3 months but More than 1 year

within 1 year
a. Cash equivalent long term investment short-term investment
b. Short-term investment Cash equivalent long term investment
c. Long term investment Cash equivalent short-term investment
d. Cash equivalent short-term investment long term investment

12. Which of these would add value to financial information?

a. Periodicity c. Volume of information
b. Verifiability d. Being costly
13. The distinguishing factor between the Allowance method and the Direct Write-off method of
accounting for bad debts is:
a. Their conformity with GAAP (matching principle) and usability for income tax purposes
b. The amount that will reduce the accounts receivable in the Balance Sheet, assuming other things
being constant
c. The treatment of the debit entry in the journal when the accounts are only doubtful or proven
worthless
d. The level of skills required of an accountant for their application
14. Which of these will show a commonality of the Allowance and Direct Write-off method?
a. The recording of accounts that are doubtful of collection
b. The treatment of the recovered accounts previously written off where such recovery took place
subsequent to the year of write-off
c. The credit entry upon the recovery of accounts previously written off where such recovery took
place during the year of write-off
d. The account credited upon write-off

15. Assuming that the entity is in its 1st year of operations, what happens when the accounts receivable
(before deducting allowance for doubtful accounts) is overstated and that doubtful accounts expense
is computed using the percentage of accounts receivable method given the same level of liabilities?
a. The effect of the overstatement of the receivable balance will just be offset in the asset section
of the Balance Sheet by the corresponding rise in the amount of Allowance for Doubtful Accounts.
b. Asset section will be understated.
c. The equity section will be overstated by an amount equal to the excess amount shown in the asset
section of the Balance Sheet.
d. Only the asset section is affected by such overstatement.

16. As it is true that all notes implicitly contain interest, the interest on a non-interest bearing note is
actually:
a. The difference between the face value and the present value with present value being higher.
b. The excess of the face value over the realizable value with face value being higher
c. The difference between the face value and the discounted value with face value being higher.
d. The excess of the face value over the realizable value irrespective of which is larger in amount.

17. For financial information to be most useful in the context of comparability, which of the following
must be met?
a. The information must be compared with dissimilar information of prior periods.
b. The information has to be compared with unlike information produced by other entities.
c. The information must be compared with similar and periodic information found only from within
the company.
d. The information must be compared with similar information of prior periods within the entity or
with information coming from other entities.

18. Which of the following does not result in an income?

a. Inflow of assets except for those contributed by equity participants
b. Decrease in liability that increases equity
c. Rendering of service for a fee
d. Asset contribution by equity participants

19. Determine the statement that describes the reason why costs are allocated systematically in
identifying the portion to be expensed.
a. The costs incurred can still benefit future periods and there is no clear-cut association of the
expense with particular revenue.
b. The costs incurred could still benefit future periods and it is easier for an accountant to allocate
the costs rather than charging the full cost to expense
c. It would be advantageous for the company in terms of inviting more investors upon seeing a
higher income since the full cost is not charged to expense immediately
d. It would be advantageous for the company when it comes to income taxation

20. What distinguishes mere Pledging of accounts receivable from Assignment of accounts receivable?
 a. The manner of recording payment of related debt
b. The extent of the receivables being made as collateral
c. The recording of the transfer of rights over the receivable made by the pledgor
d. The manner by which loan is obtained

21. Statement 1- Assets, when held for sale, shall automatically become part of the entity’s inventories.
Statement 2- Supplies to be consumed in production are considered as inventories.
a. Both statements are true c. Both statements are false
b. Only statement 1 is true d. Only statement 2 is true

22. When merchandise inventories are shipped FOB Destination and Freight Prepaid, which of the
following is true?
a. The buyer actually pays the freight since ownership of merchandise is transferred immediately to
him.
b. Actual payment of freight is made by the seller but the ownership of merchandise is transferred
to the buyer immediately even before it is received.
c. A liability on the part of the buyer towards the seller arises for the freight shouldered and
ownership of the goods is determined upon arrival of the goods.
d. There is no liability on the part of the buyer towards the seller for the freight shouldered and
ownership of the goods is determined upon their arrival.

23. In such a case where inventories are shipped FOB Shipping Point and Freight Prepaid, which of the
following is true?
a. The ownership of merchandise is transferred to the buyer immediately thus making him the party
who actually pays for the freight.
b. The ownership of merchandise is transferred to the buyer immediately even before it is received
but actual payment of freight is made by the seller.
c. A liability on the part of the buyer towards the seller arises for the freight shouldered and
ownership of the goods is determined upon arrival of the goods.
d. There is no liability on the part of the buyer towards the seller for the freight shouldered and
ownership of the goods is determined upon their arrival.

24. The following are characteristics of Periodic Inventory System, except:

a. It calls for physical counting of goods at the end of accounting period
b. Quantities are multiplied with their corresponding costs to determine the value
c. Inventory volume fluctuations are carried in stock cards
d. Cost of goods sold is computed at the end of the accounting period

25. In determining whether a certain asset is an inventory, consideration must be based on:

Nature of Company Business Purpose (for Sale or use in Production)

a. Yes Yes
b. Yes No
c. No No
d. No Yes

26. The records of the company shows a merchandise purchase debited using the “Merchandise
Inventory“ account. With this, there is a certainty that:
 a. The company uses Periodic Inventory System
b. The company would maintain stock cards for its inventories
c. The entity would be able to determine its cost of goods sold at the end of the accounting period
d. Inventory values would be computed using the physical count multiplied by cost/unit

27. Statement 1- In the absence of beginning inventory, Average Cost and FIFO approach of inventory
estimation would yield the same figure.
Statement 2- When there is markup cancellation, sales price is reduced at an amount lower than the
original price.
a. Both statements are true c. Both statements are false
b. Only statement 1 is true d. Only statement 2 is true

28. The definition of a financial instrument does not include:

a. An existing contract of at least two parties
b. A financial liability
c. An equity instrument
d. A constructive right or obligation

29. The basic difference between financial asset at fair value through profit or loss and financial asset at
fair value through other comprehensive income is the fact that:
a. The former treats transaction costs which are directly attributable to the acquisition as part of the
company’s loss
b. The latter treats transaction costs that are directly attributable to the acquisition as outright
expense
c. The latter capitalizes the transaction costs which are directly attributable to the acquisition as
part of the financial asset
d. The former considers transaction costs that are directly attributable to the acquisition as part of
the financial asset

30. Statement 1- Unrealized gains on financial assets carried at fair value arise when the fair value is
higher than the carrying amount
Statement 2- The gains that are carried in the income statement for Trading Securities are only those
arising from the actual sale of the securities
a. Both statements are true c. Both statements are false
b. Only statement 1 is true d. Only statement 2 is true

31. When an investor has significant influence over an investee, which of the statements below would
not be considered in determining the investment balance?
a. Share in net income or loss c. Acquisition cost
b. Share in the dividend d. Control
32. Statement 1- An investor who has increased its interest over the investee (up to 20% or more), thereby
giving significant influence, shall account its investment using the equity method.
Statement 2- An investor who has lost significant influence must cease to use the equity method of
accounting for investment.
a. Both statements are true c. Both statements are false
b. Only statement 1 is true d. Only statement 2 is true

33. An entity which uses the cost model disposed its depreciable asset for cash. At what amount should
the asset account be credited upon disposal?
a. At an amount equal to its carrying value as of the date it is disposed
b. At an amount equal to its cost by the time the said asset was acquired
c. At an amount equal to the cash received upon sale
 d. At the asset’s revalued amount

34. Which of the following is true about gains or losses on disposal of depreciable assets that have been
used for quite a while?
a. The amount of loss on disposal would not exceed the asset’s carrying value.
b. The gain on disposal is computed as the excess of cost over the consideration received upon
disposal.
c. The gain on disposal should only be up to the extent of the asset’s original cost regardless of the
consideration received at the time of disposal.
d. The resulting gain or loss is amortized over the periods benefited.

35. Statement 1- The date of record serves as the cut-off date at which only those shareholders enlisted
as of this date are entitled to dividends.
Statement 2- No journal entry is required as of the date of record concerning the dividends declared.
a. Both statements are true c. Both statements are false
b. Only statement 1 is true d. Only statement 2 is true

36. When shares of another entity are declared as dividends, how should the investor who uses the cost
method account for this dividend?
a. It shall be treated as a reduction of the amount of investment
b. It is considered as income at par value
c. It is treated as an addition to the amount of investment
d. It is considered as income at fair value

37. Determine which statement is true when property, plant and equipment is acquired on credit and a
discount is involved.
a. The discount is treated as income regardless of whether it is taken or not.
b. The discount is accounted for as a reduction of cost only when taken.
c. The discount, when taken, will increase retained earnings.
d. The discount reduces the amount capitalized as cost of asset whether taken or not.

38. Which of the following happens upon the reissuance of treasury shares?
a. Treasury shares account is debited at its reissue price
b. Treasury shares account is credited at par value of the related share
c. Treasury shares account is debited at par value of the related share
d. Treasury shares account is credited at cost

39. Gain or loss on exchange of items of PPE is recognized except when:

a. The transaction has commercial substance
b. Fair value is appropriately used to record the asset received
c. The cash flows of the asset received does not differ from the cash flow of those transferred
d. The carrying value of the asset given is greater than or less than the cost of the asset received in
a transaction where cash flows from the asset received and transferred differ.

40. The company purchased some needed spare parts. However, such spare parts cannot be used on their
own and depend on the company’s existing PPE item for their usage. How should these spare parts
be carried on the books of the company?
a. They will be expensed outright after their acquisition since they can’t be readily used.
b. They will be part of the property, plant and equipment account
c. They will be treated as spare parts inventory and expensed when consumed.
 d. They will be carried as company supplies.

41. Which of the following is not true at the end of the estimated useful life of an item of property, plant
and equipment?
a. The carrying value is also the amount of its residual value, if any.
b. The asset is fully depreciated.
c. The asset shall no longer be used in any manner even if it is still usable.
d. Further depreciation will no longer be computed.

42. For purposes of providing immediate assistance, an entity has been entitled to a government grant
without further related costs. How is this grant considered?
a. It will be recognized as income for the period in which it becomes receivable.
b. It will become an income over the period of related expense.
c. The grant will form part of income only after it is received.
d. The grant will be allocated as income over the periods that will be benefited after it is being
received.

43. Statement 1- Only borrowing costs directly related to the construction, acquisition or production of a
qualifying asset is capitalized as asset.
Statement 2- Capitalization of borrowing cost is mandatory for qualifying asset.
a. Both statements are true c. Both statements are false
b. Only statement 1 is true d. Only statement 2 is true

44. The accountant of FACIL Co. has appropriately deducted the investment income from the total actual
borrowing cost to determine the amount to be capitalized. This is an indication that:
a. The qualifying asset is financed by general borrowing.
b. The qualifying asset is financed by specific borrowing.
c. The qualifying asset is financed by a combination of general and specific borrowing.
d. The qualifying asset is financed neither by general borrowing nor specific borrowing.

45. Which of the following is correct regarding the subsequent measurement of inventories?
a. Carried at cost or NRV whichever is higher
b. Inventories are carried at cost or NRV, whichever is lower
c. Inventories are measured subsequently at their selling price
d. Inventories are measured at the lower between their selling price and their cost

46. A large company had a new building constructed. During construction, temporary safety fences were
built around the construction site. After the completion of the said building, permanent fences were
also built around it. Which is the appropriate treatment for the two fences?

Temporary fences Permanent fences

a. Part of the cost of building Part of the cost of building

b. Land improvement Part of the cost of building
c. Land improvement Land improvement
d. Part of the cost of building Land improvement

47. When shares are sold ex-dividends, which of the following is true?
a. The right to receive dividends is also sold.
b. The shares are sold after date of record but before date of payment.
c. Shares are sold after date of declaration but before date of record.
 d. The seller of the shares will no longer be entitled to receive the dividends at the date of
payment.

48. Which is true about expenditures for pavements, driveways and parking lots?
a. Considered as part of the cost of the building when part of the blueprint
b. Treated as land improvements when part of the blueprint
c. Considered as an expense immediately since its benefit is only short term
d. Treated as cost of the land before construction of the building

49. A recently acquired machine has been delivered to the company by the supplier but is yet to be
installed. On matters of depreciation, which of the following is correct?
a. The asset is to be depreciated at once because it has already been received
b. Depreciation should start after its receipt since it is already subjected to wear and tear.
c. The asset should not yet be depreciated since it is not yet available for use.
d. The asset should not to be depreciated yet because it hasn’t been used.

50. Sandy Corporation accounts for its investment in the common stock of Renz Company under the
equity method. Sandy Corporation should ordinarily record a cash dividend received from Renz as
a. A reduction in the carrying value of the investment
b. An addition to the carrying value of the investment
c. Additional paid-in capital
d. Dividend income

51. In which of these situations will share premium be increased?

a. Issuance of shares below par
b. Issuance of shares above par
c. Reissuance of treasury shares at cost
d. Retirement of treasury shares at which the cost is greater than the par value

52. Resorting to inventory estimation instead of physically counting inventories at interim periods would
show a tradeoff between:
a. Verifiability and Comparability c. Timeliness and Verifiability
b. Timeliness and Comparability d. Neutrality and Consistency

53. To qualify as an asset, one of the things that has to be met is that:
a. An item have to be owned by the entity, notwithstanding having control over it
b. An item have to be both owned and controlled by the company
c. The entity, at the least, has control over the item
d. The entity must not own the item but only control it

54. Which of the following will increase the outstanding shares?

a. Reacquisition of shares that have been issued
b. Retirement of treasury shares
c. Additional subscription of shares
d. Payment of stock issuance costs

55. Which is false about revaluation surplus?

a. The Equity section of the Balance Sheet is reduced when revaluation surplus is realized since the
account is being debited.
 b. The revaluation surplus, in its entirety, may be realized on the retirement or asset disposal
c. Revaluation surplus is credited when the carrying amount of an asset is increased due to
revaluation.
d. Piecemeal realization of revaluation surplus is tantamount to the depreciation applicable to net
appreciation.

56. Which of the following is not embodied in the definition of a current liability?
a. It is expected to be settled in the entity’s normal operating cycle
b. It is held primarily for the purpose of being traded
c. It is due to be settled within twelve months after balance sheet date
d. The entity can defer its settlement unconditionally for at least twelve months after the balance
sheet date.

57. The difference between an intangible asset having a finite life from an intangible asset having
indefinite life lies in the fact that:
a. Amortization is computed periodic ally for an intangible asset with indefinite life
b. An intangible asset with finite life is tested for impairment
c. Amortization is computed for intangibles with finite life
d. The impairment loss for intangibles with indefinite life would always be higher compared to the
amortization for those with finite life.

58. For purposes of extending the life of the existing patent, the company has acquired a related patent.
In this scenario, how would the amortization be computed?
a. The amortization for both patents shall be based on the original life of the acquired patent
b. The amortization for the unamortized cost of the old patent and for the new one shall be
computed using the remaining life of the old patent since it is the one that is protected.
c. Amortization of both the unamortized cost of the old and related patent should be based on the
extended life, if the life has indeed been extended.
d. Amortization of both the old and related patent should be computed in the same manner as
they were computed before notwithstanding the extension of life.

59. A change in estimate is accounted for:

a. Currently and retrospectively c. Currently and prospectively
b. Currently only d. Retroactively

60. Statement 1- Periodic franchise fees paid by the franchisee to the franchisor is treated as an outright
expense on the part of the franchisee.
Statement 2- When a franchise right is granted for a definite period, franchise cost shall be
amortized over the useful life or the definite period whichever is longer.
a. Both statements are true c. Both statements are false
b. Only statement 1 is true d. Only statement 2 is true

61. How would the cost of successfully defending or prosecuting a trademark be treated?
a. It is a capitalizable cost since it is incurred for the protection of an intangible asset.
b. It is expensed outright because it only maintains the economic benefit from the asset.
c. It is considered as a gain because the endeavor is successful or has given a favorable effect on
the company.
d. It is included as part of the asset (trademark) but not amortized in the same way as the original
cost.
62. The timing at which a contingent liability ceases to be “contingent” and becomes a provision would
be possible when:
a. The present obligation becomes probable irrespective of measurability
b. The present obligation becomes measurable irrespective of probability
c. The present obligation becomes both probable and measurable
d. The present obligation is extinguished

63. Statement 1- When a bond’s effective rate is higher than its nominal rate, the bond is issued at a
discount
Statement 2- Bonds are said to be issued at a premium when its nominal rate is higher than its
effective rate.
a. Both statements are true c. Both statements are false
b. Only statement 1 is true d. Only statement 2 is true

64. Which of these is correct concerning bond issue costs?

a. These are costs that are expensed outright since they are not directly related to bond issuance
b. These costs are amortized but in a different manner with that of a bond discount.
c. Bond issue costs are costs of lending
d. Bond issue costs would increase interest expense when amortized

65. How is the difference between the cost and par or stated value of the treasury shares being treated,
if treasury shares are retired instead of being reissued? Choose the incorrect one.
a. The excess of par or stated value over the cost of treasury share is a gain & credited to APIC or
share premium
b. The excess of cost of treasury shares over par or stated value is a loss on retirement
c. The loss on retirement of treasury shares is first debited to APIC or share premium from original
issuance.
d. The gain on retirement is debited to APIC or share premium from treasury shares

67. Which one of the following items is not a liability?

a. Dividends payable in shares c. Advances from customers on contracts
b. Accrued estimated warranty cost d. Maturing portion of long-term debt

68. The entity acquires items for purposes of giving premiums to its customers. During the year, some of
the premium items were given already to customers but there still outstanding premiums at year end.
In recording the outstanding premiums at the end of the accounting period, what would be the effect
on the basic element/s of financial statement?
a. There would be an increase in the equity side
b. Asset would decrease due to the decrease in equity brought about by the recognition of expense.
c. Only the asset and liability would be affected with decreases on both sides
d. No effect on assets with increase in liability and decrease in equity

69. A company accepted a deposit form its customers for returnable containers. The container’s cost is
lower than the deposit required. If the customer fails to return the container when due and the
liability is cancelled, which of the following is true after closing the nominal accounts?
a. The equity section of the balance sheet is unaffected
b. Retained earnings would increase
c. The equity section would decrease due to the loss that is recognized related to the containers
 d. The company’s equity section would decrease due to the expense recognized in relation to the
containers.

70. Which is true regarding interest expense computed in conjunction with a non-interest bearing and
an interest bearing note given the same face amount and rate to be used?
a. Interest expense under non-interest bearing note would be higher
b. Interest expense under interest-bearing note would be higher
c. The interest expense under the two notes would be the same
d. Only the interest-bearing note will have an interest expense

71. Balance sheet date is December 31, 2008. Which of the following is not a cash equivalent?
a. 12-month BSP treasury note due February 15, 2009 (date of purchase: November 31, 2008)
b. 6-month BSP treasury note due January 15, 2009 (date of purchase: October 1, 2008)
c. 3-month BSP treasury bill due March 15, 2009 (date of purchase: December 15, 2008)
d. 1-month money market placement

72. The company’s bookkeeper has employed window dressing in recording the payment of liabilities.
What would be the effect of this act on the ending balance of liabilities (during the time window
dressing was made) as well as on the beginning balances of liabilities (on the next accounting period)
on the company’s books?
a. The ending balance of liabilities would be overstated while its beginning balance would be
understated.
b. The ending and beginning balance of liabilities would be unaffected.
c. The ending balance would be understated and so would be the beginning balance.
d. The ending balance of liabilities would be understated while its beginning balance would be
overstated.

73. This is normally deducted from the bank statement in preparing bank reconciliation
a. Certified check c. Outstanding check
b. Deposit in transit d. Reduction of loan charged to the depositor

74. If disbursements during the next accounting period have been recorded as of the end of the current
reporting period, which of these is correct?
a. The actual cash balance and the cash balance per books at the end of the current period would
not be in balance.
b. If liabilities were the ones which were paid, there would be no problem on the books since they
have already been settled.
c. Disbursements during the current period would be expressed at the appropriate amount.
d. The beginning balance of the retained earnings on the next accounting period would be
overstated if what has been recorded is payment of an expense.

75. The company authorizes a bank to accept payments from its customers. After the entity has recorded
the payment, the company’s books correctly showed an adjusting entry debiting Accounts Receivable
and crediting Cash in relation to the payment made by the customer to the bank. What event could
have led to this adjusting entry?
a. The customer has made excessive payment to the bank which necessitates the reduction of the
balance of cash per record.
 b. The customer has made only a partial payment which was appropriately entered into the books
of the company.
c. The company has received notification from the bank that the customer’s check was marked NSF.
d. The company has understated the amount it has recorded in its books when the customer has
paid the full amount to the bank.

76. Which of the following effects on the company’s investment is correct upon recognition and exercise
of stock rights?
Stock Rights are recognized Stock Rights are exercised
e. Derease Decrease
f. Increase Increase
g. Decrease Increase
h. Increase Decrease

77. The Notes to Financial Statements of the HAGUPIT Co. showed disclosure of a contingent liability in
relation to a Notes Receivable. Determine which transaction has led to the disclosure of such
contingent liability.
a. Discounting of Notes Receivable with recourse
b. Discounting of Notes Receivable without recourse
c. Assignment of Notes Receivable on a non-notification basis
d. Assignment of Notes Receivable on a notification basis

78. What is the amount of legal capital for par value stock issued by a private corporation?
a. Aggregate par value of all shares issued & subscribed
b. Aggregate par value of all shares issued & subscribed plus any excess over par value
c. Aggregate stated value of shares issued & subscribed
d. Aggregate stated value of shares issued & subscribed plus any excess over stated value

79. When accounts receivable is sold on a without recourse notification basis, which of the following is
true?
a. The receivable is retained in the balance sheet along with its related allowance
b. The receivable is retained in the balance sheet except for its related allowance
c. The receivable is removed in the balance sheet except for its related allowance
d. The receivable is removed in the balance sheet along with its related allowance