Instruction: 1. Email Address

27/05/2020 Instruction
Instruction
Fill up the information needed and select the correct answer. YOU CAN ONLY ANSWER THIS
FORM ONCE, so observe precaution.
* Required
1. Email address *
2. Section? *
Mark only one oval.
BAAC 2A
BAAC 2B
BAAC 2C
3. 1. Partnership is defined as * 2 points
Mark only one oval.
Any association of two or more persons or entities
An association of two or more persons to carry on as co-owners a business for profit
A separate legal entity for most legal purposes
An entity created by following statutory requirements
https://docs.google.com/forms/d/1AIURgLmxxWgGU6KTXbwfmnsb3wvtxxNtvXv-OJqBL20/edit 1/26
4. 2. When a partner retires and withdraws assets in excess of his book value, 2 points
the remaining partners absorb the excess *
Mark only one oval.
equally.
in their profit-sharing ratio.
based on their average capital balances.
based on their ending capital balances.
5. 3. In a partnership, interest on capital investment is accounted for as a(n) * 2 points
Mark only one oval.
return on investment.
expense.
allocation of net income.
reduction of capital.
6. 4. Kiko and Maching form a partnership and agree to share profits in a 2 to 1 2 points
ratio. During the first year of operation, the partnership incurs a P30,000
loss. The partners should share the losses *
Mark only one oval.
based on their average capital balances.
in a 2 to 1 ratio.
equally.
based on their ending capital balances.
7. 5. When the goodwill method is used and the book value acquired is less than 2 points
the value of the assets invested, total implied capital is computed by *
Mark only one oval.
multiplying the new partner’s capital interest by the capital balances of existing
partners.
dividing the total capital balances of existing partners by their collective capital
interest.
dividing the new partner’s investment by his (her) capital interest.
dividing the new partner’s investment by the existing partners’ collective capital
interest.
8. 6. Four individuals who were previously sole proprietors form a partnership. 2 points
Each partnercontributes inventory and equipment for use by the partnership.
What basis should thepartnership use to record the contributed assets? *
Mark only one oval.
Inventory at the lower of FIFO cost or market.
Inventory at the lower of weighted-average cost or market.
Equipment at each proprietor’s carrying amount.
Equipment at fair value.
9. 7. Partnership capital and drawing accounts are similar to the corporate * 2 points
Mark only one oval.
Paid-in capital, retained earnings, and dividend accounts.
Retained earnings account.
Paid-in capital and retained earnings accounts.
Preferred and common stock accounts.
10. 8. Prior to partnership liquidation, a schedule of possible losses is frequently 2 points

prepared to determine the amount of cash that may be safely distributed to
the partners. The schedule of possible losses *
Mark only one oval.
Consists of each partner’s capital account plus loan balance, divided by that partner’s
profit-and-loss sharing ratio.
Shows the successive losses necessary to eliminate the capital accounts of partners
(assuming no contribution of personal assets by partners).
Indicates the distribution of successive amounts of available cash to each partner.
Assumes contribution of personal assets by partners unless there is a substantial

presumption of personal insolvency by the partners.
11. 9. The final cash distribution to the partners in a partnership in liquidation 2 points
should be made inaccordance with *
Mark only one oval.
Balances of the partners’ capital accounts.
Partners’ profit and loss sharing ratio.
Ratio of capital contributions made by the partners.
Ratio of capital contributions less withdrawals made by the partners.
12. 10. In a partnership liquidation, the final cash distribution to the partners 2 points
should be made inaccordance with the *
Mark only one oval.
Partners’ profit and loss sharing ratio.
Balances of the partners’ capital accounts.
Ratio of capital contributions made by the partners.
Ratio of capital contributions less withdrawals made by the partners.
13. 11. A corporation where vacancies in the Board of Directors, are filled only by 2 points
the remaining members of the Board, is: *
Mark only one oval.
Open corporation
Corporation sole
Eleemosynary corporation
Close corporation
14. 12. The following, except one, are qualifications of corporate directors: * 2 points
Mark only one oval.
Must continuously own at least one share during their term as directors
Must own at least one share of stock
Ownership of shares must be recorded in the books of the corporation
Majority are citizens of the Philippines
15. 13. The right of a corporation to exist as a juridical person during its term as 2 points
stated in its Articles of Incorporation despite the death of any of its

stockholders is: *
Mark only one oval.
Right of Existence
Right of Redemption
Right of Succession
Pre-emptive Right
16. 14. Which of the following is not a characteristic of a corporation? * 2 points
Mark only one oval.
Perpetual life
Transferability of ownership interests
Unlimited liability on the part of the stockholders
Ability to attract large amount of capital
17. 15. The company is concerned with establishing that dividends are recorded 2 points
properly to the corporate books as of the *
Mark only one oval.
Issue date
Declaration date
Record date
Payment date
18. 16. Which of the following transactions will not appear as debit retained 2 points
earnings? *
Mark only one oval.
A 4-for 1 stock split
"Loss" resulting from disposition of treasury shares
A 1-for 10 stock dividend
Correction of error affecting prior year's earnings
19. 17. Which of the following transactions will not affect the shareholder's 2 points
equity? *
Mark only one oval.
Declaration of Stock Dividends
Acquisition of Treasury Shares
Prior-period adjustments
Conversion of ordinary to preference shares with the same par
20. 18. When a client company does not maintain its own stock records, the 2 points
auditor shouldobtain written confirmation from the transfer agent and
registrar concerning *
Mark only one oval.
Restrictions on the payment of dividends
The number of shares issued and outstanding
Guarantees of preferred stock liquidation value
The number of shares subject to agreement to repurchase
21. 19. To call a meeting for the purpose of removing a director of a corporation 2 points
the required votes of the stockholders is: *
Mark only one oval.
majority of the stockholders present
¾ of the outstanding capital stock
2/3 of the outstanding capital stock
majority of the outstanding capital stock
22. 20. Which of the following is a proper way of accounting for corporation? * 2 points
Mark only one oval.
Based on accounting standards
Based on Securities regulation
Based on Revised Coporation Code
None of the above
Based on the above and the result of your audit, determine the adjusted balances of
the following as of December 31, 2005.
23. 21. Capital stock * 3 points
Mark only one oval.
5,995,000
5,545,000
5,000,000
5,475,000
24. 22. APIC * 3 points
Mark only one oval.
1,012,500
1,000,000
1,155,000
965,000
25. 23. Total Retained Earnings * 3 points
Mark only one oval.
3,525,000
3,572,500
3,382,500
3,512,500
26. 24. Treasury Stock * 3 points
Mark only one oval.
250,000
550,000
275,000
27. 25. Total Stockholder's Equity * 3 points
Mark only one oval.
10,012,500
9,215,000
9,737,500
9,262,500
28. 26. * 3 points
Mark only one oval.
P1,080,000
P1360,000
P1,176,000
P952,000
29. 27. * 3 points
Mark only one oval.
P427,500
P240,000
P300,000
P342,000
30. 28. * 3 points
Mark only one oval.
Abel, P315,000; Ball, P495,000; Dent, P450,000.
31. 29. * 3 points
Mark only one oval.
P126,000; P78,000; P36,000
P156,000; P99,000; P45,000
P178,000; P111,000; P51,000
P208,000; P132,000; P60,000
32. 30. * 3 points
Mark only one oval.
P25,000
P20,000
P45,000
P100,000
33. 31. * 3 points
Mark only one oval.
P180,000
P142,000
P150,000
P190,000
34. 32. Preferred stock * 3 points
Mark only one oval.
P777,600
P600,000
P720,000
P729,600
35. 33. Common stock * 3 points
Mark only one oval.
P615,000
P966,500
P735,500
P696,100
36. 34. Additional paid in capital * 3 points
Mark only one oval.
P38,000
P93,600
P57,600
P95,600
37. 35. Total stockholders’ equity * 3 points
Mark only one oval.
P2,498,150
P2,388,150
P1,892,100
P2,376,630
38. 36, * 3 points
Mark only one oval.
P96,000; P48,000; P16,000
P58,000; P64,000; P38,000
P60,000; P60,000; P40,000
P66,000; P68,000; P46,000
39. 37. How much would Dana receive if cash is distributed to the partners just 3 points
before the start of actual liquidation? *
Mark only one oval.
P5,000
P18,000
P30,000
40. 38. How much cash would Janis receive upon final liquidation, assuming no 3 points
prior cash distribution had been made to the partners. *
Mark only one oval.
P135,000
P145,000
P100,000
41. 39. * 3 points
Mark only one oval.
PP, P 9,825; CC, P 20,175
PP, P 15,000; CC, P 15,000
PP, P 10,000; CC, P 20,000
PP, P 9,300; CC, P 20,700
42. * 3 points
Mark only one oval.
592,000; 750,000
600,000; 700,000
592,000; 756,300
600,000; 750,000
43. 41. JJ and KK are partners who share profits and losses in the ratio of 60% 3 points
and 40% respectively. JJ’s salary is P60,000 and P30,000 for KK, the
partners are also paid interest on their average capital balances. In 2012, JJ
received P30,000 of interest and KK, P12,000. The profit and loss allocation
is determined after deductions for the salary and interest payments. If KK’s
share in the residual income (income after deducting salaries and interest)
was P60,000 in 2012, what was the total partnership income? *
Mark only one oval.
P192,000
P345,000
P282,000
P387,000
44. 42. Maxwell is trying to decide whether to accept a salary of P60,000 or a 3 points
salary of P25,000 plus a bonus of 20% of net income after the bonus as a
means of allocating profit among the partners. What amount of income
would be necessary so that Maxwell would consider the choices to be
equal? *
Mark only one oval.
P35,000
P135,000
P150,000
P180,000
45. * 3 points
Mark only one oval.
P480,000
P72,000
P84,000
46. 44. MM, NN, OO are partners with capital balances on December 31, 2015 of 3 points
P 300,000, P 300,000 and P 200,000, respectively. Profits are shared
equally. OO wishes to withdraw and it is agreed that OO is to take certain
equipment with second-hand value of P 50,000 and a note for the balance
of OO’s interest. The equipment are carried on the books at P65,000. Brand
new equipment may cost P 80,000. Compute for: (1) OO’s acquisition of the
second-hand equipment that will result to reduction in capital; (2) the value
of the note that will OO getfrom the partnership’s liquidation. *
Mark only one oval.
(1) P15,000 each for MM and NN, (2) P150,000
(1) P5,000 each for MM, NN and OO, (2) P145,000
(1) 5,000 each for MM, NN and OO, (2) P195,000
(1) P7,500 each for MM and NN, (2) P145,000
47. 45. As of Dec 31, the books of AME Partnership showed capital balances of 3 points
A - 40,000; M 25,000; E-5,000. The partners’ profit or loss ratio is 3:2:1,
respectively. The partners decided to dissolve and liquidate. They sold all
the non-cash assets for 37,000 cash. After settlement of all liabilities
amounting to 12,000, they still have 28,000 cash left for distribution. The
loss on realization for distribution is *
Mark only one oval.
14,000
42,000
44,000
45,000
48. 46. Scott, Joe, and Ed are liquidating their partnership. At the date the 3 points
liquidation begins Scott, Joe, and Ed have capital account balances of
P162,000, P192,500, and P215,000, respectively and the partners share
profits and losses 40%, 35%, and 25%, respectively. In addition, the
partnership has a P36,000 Notes Payable to Scott and a P20,000 Notes
Receivable from Ed. When the liquidation begins, what is the loss absorption
power with respect to Joe? *
Mark only one oval.
P192,500
P67,375
P550,000
P770,000
49. * 3 points
Mark only one oval.
P136,000
P156,000
P159,000
P195,000
50. 48. * 3 points
Mark only one oval.
P20,000
P40,000
P70,000
P110,000
51. * 3 points
Mark only one oval.
P146,000
P147,000
P153,000
P156,000
52. 50. Partners Dalton, Edwards, and Finley have capital balances of P40,000, 3 points
P90,000 and P30,000, respectively, immediately prior to liquidation. Total

remaining assets have a book value of P160,000, the liabilities having been
paid. Among these remaining assets is a machine with a fair value of
P35,000. The partners split profits and losses equally. Edwards covets the
machine and is willing to accept it for P35,000 in lieu of cash. The other
partners have no designs on specific assets, only cash in liquidation. How
much cash, in addition to the machine, would be first distributed to
Edwards, before any of the other partners received anything? *
Mark only one oval.
P15,000
P50,000
P166,667
P300,000
This content is neither created nor endorsed by Google.
Forms

Instruction: 1. Email Address

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Instruction: 1. Email Address

Uploaded by

Copyright:

Available Formats

27/05/2020 Instruction

Mark only one oval.

3. 1. Partnership is defined as * 2 points

Mark only one oval.

Any association of two or more persons or entities

An association of two or more persons to carry on as co-owners a business for profit

A separate legal entity for most legal purposes

An entity created by following statutory requirements

Mark only one oval.

in their profit-sharing ratio.

based on their average capital balances.

based on their ending capital balances.

5. 3. In a partnership, interest on capital investment is accounted for as a(n) * 2 points

Mark only one oval.

allocation of net income.

Mark only one oval.

based on their average capital balances.

based on their ending capital balances.

Mark only one oval.

dividing the new partner’s investment by his (her) capital interest.

Mark only one oval.

Inventory at the lower of FIFO cost or market.

Inventory at the lower of weighted-average cost or market.

Equipment at each proprietor’s carrying amount.

Equipment at fair value.

Mark only one oval.

Paid-in capital, retained earnings, and dividend accounts.

Retained earnings account.

Paid-in capital and retained earnings accounts.

Preferred and common stock accounts.

10. 8. Prior to partnership liquidation, a schedule of possible losses is frequently 2 points

Mark only one oval.

Indicates the distribution of successive amounts of available cash to each partner.

Assumes contribution of personal assets by partners unless there is a substantial

should be made inaccordance with *

Mark only one oval.

Balances of the partners’ capital accounts.

Partners’ profit and loss sharing ratio.

Ratio of capital contributions made by the partners.

Ratio of capital contributions less withdrawals made by the partners.

should be made inaccordance with the *

Mark only one oval.

Partners’ profit and loss sharing ratio.

Balances of the partners’ capital accounts.

Ratio of capital contributions made by the partners.

Ratio of capital contributions less withdrawals made by the partners.

Mark only one oval.

Mark only one oval.

Must own at least one share of stock

Ownership of shares must be recorded in the books of the corporation

Majority are citizens of the Philippines

stated in its Articles of Incorporation despite the death of any of its

Mark only one oval.

16. 14. Which of the following is not a characteristic of a corporation? * 2 points

Mark only one oval.

Transferability of ownership interests

Unlimited liability on the part of the stockholders

Ability to attract large amount of capital

properly to the corporate books as of the *

Mark only one oval.

Mark only one oval.

A 4-for 1 stock split