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Review - SFP To Interim Reporting
Review - SFP To Interim Reporting
Review - SFP To Interim Reporting
2. What total amount should be reported as current liabilities on December 31, 2021?
a. 2,100,000
b. 2,300,000
c. 1,900,000
d. 2,200,000
• The P3,000,000, 10% note was issued March 1, 2021, payable on demand. Interest is payable every
six months.
• The one-year P5,000,000, 11% note was issued January 15, 2021. On December 31, 2021, the entity
negotiated a written agreement with the bank to replace the note with a 2-year, P5,000,000, 10% note
to be issued on January 15, 2022.
• The 10% mortgage note was issued on October 1, 2018 with a term of 10 years. Terms of the note
give the holder the right to demand immediate payment if the entity fails to make a monthly interest
payment within 10 days from the date the payment is due. On December 31, 2021, the entity is three
months behind in making the required interest payment.
• The bonds payable are ten-year, 8% bonds, issued June 30, 2012. Interest is payable semiannually on
June 30 and December 31.
a. 15,650,000 c. 20,650,000
b. 11,650,000 d. 13,650,000
3. An entity reported the following data for the current year:
The office space is equally used by the sales and accounting department. What amount should be classified
as general and administrative expense?
a. 5,250,000
b. 6,450,000
c. 5,600,000
d. 6,250,000
4. An investment entity provided the following income and expense for the current year:
1. What amount should be reported as net income for the current year?
a. 5,900,000
b. 3,700,000
c. 4,200,000
d. 5,500,000
2. What amount should be reported as comprehensive income for the current year?
a. 4,200,000
b. 4,600,000
c. 3,800,000
d. 9,200,000
5. An entity is completing the preparation of the financial statements for 2021. The financial statements are
authorized for issue on March 31, 2022. On March 15, 2022, a dividend of P3,000,000 was declared and
a contractual profit share payment of P1,000,000 was made based on the net income for 2021. On February
1, 2022, a customer went into liquidation having owed the entity P500,000. No allowance had been made
against this account. On March 20, 2022, a manufacturing plant was destroyed by fire resulting in a
financial loss of P2,500,000. What amount should be recognized in profit and loss for 2021 to reflect
adjusting events after the end of reporting period?
a. 4,000,000
b. 3,000,000
c. 2,500,000
d. 1,500,000
6. An entity purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years and no
residual value. On December 31, 2022, the entity classified the equipment as held for sale. The fair value
of the equipment on December 31, 2022 was P3,300,000 and the cost of disposal, P100,000. On December
31, 2023, the fair value of the equipment was P3,800,000 and the cost of disposal, P200,000. The value in
use was determined to be P3,300,000. On December 31, 2023, the entity believed that the criteria for
classification as held for sale can no longer be met. Accordingly, the entity decided not to sell the asset
but to continue using it.
1. What is the measurement of the equipment that ceases as held for sale on December 31, 2023?
a. 3,200,000
b. 4,000,000
c. 3,500,000
d. 3,600,000
a. 800,000
b. 300,000
c. 400,000
d. 0
7. An entity reports operating results from its North America division to the chief operating decision maker.
The entity revealed the following segment information for the current year:
Revenue 3,800,000
Profit 1,200,000
Assets 1,800,000
Number of employees 2,500
Revenue 40,000,000
Profit 10,000,000
Assets 20,000,000
Number of employees 25,000
Which piece of information determines that the North American division is a reportable segment?
a. Revenue
b. Profit
c. Assets
d. Number of employees
8. An entity is preparing interim financial statements for the first quarter ended March 31. Expenses in the
first quarter totaled P4,000,000 of which 25% was variable. The fixed expenses included television
advertising expense of P1,600,000 representing air time to be incurred evenly during the current year and
depreciation expense of P600,000 for an equipment that was available for use on January 1. What amount
should be reported as total expenses for the first quarter ended March 31?
a. 4,000,000
b. 2,800,000
c. 4,150,000
d. 2,350,000
END