1. How much is the balance of the warranty obligation as of December 31, 20x1?

a. 1,560,000 b. 2,000,000 c. 3,560,000 d. 2,800,000

2. It is a type of retirement plan where the employer assures a definite amount of benefit to be
received by the employee. The risk that funds needed to pay the agreed benefits may be
insufficient is retained by the employer.
a. Defined contribution plan
b. Defined benefit plan
c. Leche plan
d. Plan vs. zombies

3. Entity A’s employees are entitled to six days paid sick leaves per year. Any unused sick leave is
converted to cash when the employee resigns or retires. The sick leave benefits are considered
a. vesting . c. non-accumulating.
b. non-vesting. d. monetizing.

4. Compensated absences that can be carried forward and used in future periods if not fully used
in the current period of entitlement are referred to as
a. contributory. c. accumulating.
b. non-contributory. d. vesting.

5. Under a profit-sharing plan, Entity A agrees to pay its employees 5% of its annual profit. The
bonus shall be divided among the employees currently employed as at year-end. Relevant
information follows:

Profit for the year ₱8,000,000

Employees at the beginning of the year 8
Average employees during the year 7
Employees at the end of the year 6

If you are one of the employees of Entity A, how much bonus do you expect to receive?
a. 66,667 c. 50,000
b. 57,143 d. 0