ACC 142-First Periodical Exam

Problem Solving:*
2 points

P116,950
P93,560
P161,560
P161,950
How much is the ForEx gain or (loss) on December 31, 2020?*
2 points

(4,000)
(3,000)
4,000
3,000
For a Philippine entity, which of the following quotations for exchange rates is correct?
(Direct quotation; Indirect quotation)*
1 point
₱45:$65; ₱65:$45
₱45:$1; ¥.002:₱40
₱1:$0.022; ₱45:$1
₱40:$1; ₱1:$0.025
Problem Solving:*
2 points

P65,505
P46,750
P24,255
P71,995
In a hyperinflationary economy monetary items*
1 point
Are not restated because they do not represent money held and items to be received or paid in
money
Are restated using the general price index
Are restated using the specific price index
Are not restated because they are already expressed in terms of the measuring unit at the
balance sheet date
The FS of an entity that reports in the currency of a hyperinflationary economy are
stated in terms of*
1 point
Measuring unit current at the balance sheet date
Lower of cost or market value
Current cost
Historical cost
When a foreign currency transaction occurred in one period and settled in another
period,*
1 point
a. the exchange differences between the transaction date and the date of settlement is
recognized in the period of settlement.
c. exchange differences between the end of the previous reporting period and the date of
settlement is recognized in the period of settlement.
b. exchange differences between the transaction date and the end of reporting period is
recognized in the period of transaction.
b and c
When a foreign currency transaction occurred and settled in the same period,*
1 point
all the exchange difference is recognized in that period.
all the exchange difference is recognized in the previous period.
none of these
all the exchange difference is recognized in the next period.
Problem Solving:*
2 points

200,000
175,000
195,000
370,000
Problem Solving:*
2 points
(1) P121,400; (2) P18,000
(1) P 97,120; (2) P18,550
(1) P102,850; (2) P18,250
(1) P102,850; (2) P18,550
B Corporation's shipments to and from its Cebu City branch are billed at 125% of cost.
On December 31, Cebu branch reported the following data, at billed prices: inventory,
January 1, of P33,600; shipments received from home office of P840,000; shipments
returned of P48,000; and inventory, December 31, of P36,000. What is the balance of
the allowance for over -valuation of branch inventory on December 31 before
adjustments?*
2 points
P145,600
P137,600
P5,600
P165,120
Problem Solving:*
2 points
P180,000
P165,000
P175,000
P195,000
When several exchange rates are available, the rate used is*
1 point
that at which the future cash flows represented by the transaction or balance could have been
settled if those cash flows had occurred at the measurement date.
either the selling rate or the buying rate as a matter of accounting policy choice
the buying rate
the selling rate
The prior-year comparatives are:*
1 point
Not adjusted by an index.
Adjusted by an index to the levels prevailing at the closing date of each period.
Adjusted by an index to the levels at the end of the latest reporting period.
The gain or loss on the net monetary position in a hyperinflationary economy shall be
charged to*
1 point
Other comprehensive income
Experience
Retained earnings
Profit or loss
These are money held and items to be received or paid in fixed or determinable amount
of money.*
1 point
Money matters
Monetary assets
Monetary items
Financial assets
M home office transfers inventory to its P branch at 140% of cost. During 2021, the
reciprocal account in the statement of comprehensive income of the home office
amounts to P328,125. On December 31, 2021, the home office adjusted the branch
income summary by debiting the Allowance for Overvaluation of Branch Inventory
account in the amount of P81,250. The branch's statement of financial position at the
beginning of the year shows P105,000 of inventory acquired from the home office. How
much is the Cost of sales ?*
2 points
161,250
284,375
80,000
280,000
How much is the Net ForEx gain or (loss)?*
2 points

(2,000)
1,000
(1,000)
2,000
The G Co. has a branch in Dipolog City. During 2021, the home office shipped to the
branch merchandise billed at P150,000 including a markup of 20% on cost. The branch
reports opening and closing inventories of P90,000 and P120,000, respectively, while
the home office has a closing inventories of P210,000 which includes merchandise
which are held on consignment valued at P10,000. Both location use the periodic
inventory system. What closing inventory would be reported in the combined statement
of income for the year 2021?*
2 points
P300,000
P296,000
P330,000
P320,000
As prices rise, the value of money (the general purchasing power):*
1 point
Falls.
Rises.
Problem Solving:*
2 points

950,000
950,500
470,500
705,500
Under PAS 29 which is NOT listed as among the indicators of hyperinflation?*
1 point
The cumulative inflation rate over three years exceeds or is approaching 100%
People prefer to keep their wealthy in monetary assets
People prefer to keep their wealth in relatively stable foreign currency
Credit sales and purchases take place at prices that compensate for the expected loss of
purchasing power dag the credit period even if credit period short
How much is the ForEx gain  or loss on February 1, 2021*
2 points
(1,000)
(2,000)
1,000
2,000
How much is the foreign currency receivable as of December 31, 2020?*
2 points

804,000
808,000
807,000
805,000
Problem Solving:*
2 points
540,000
460,000
650,000
560,000
How much is the peso payable balance as of December 31, 2020?*
2 points

807,000
804,000
805,000
808,000
The branch records a debit memo received from the home as*
1 point
Debit to allocated expense.
Debit to home office account.
Debit to investment account.
Credit to home office account.
On September 1, S Company opened a branch in Dagupan City, shipping to it
merchandise billed at P60,000. During the month, additional shipments were made at a
billed price of P24,000. Returns by the branch of bad-order goods were credited for
P1,680. At the end of the month, the branch reported its inventory of P33,600 and its
net loss for the month at P5,200. Shipments to and from the branch were consistently
billed at 120% of cost. On September 30, the branch inventory at cost and the branch
net income (loss) as far as the Home Office is concerned are:*
2 points
P33,600 and P5,200, respectively
P28,000 and P2,920, respectively
P28,000 and (P5,200), respectively
P33,600 and P2,920, respectively
The home office in M shipped merchandise costing P55,500 to P branch, prepaid the
freight amounting to P4,200. The home office transfers inventory to the branch at a 20%
markup above cost. P branch was subsequently instructed by the home office to
transfer the merchandise to A branch wherein the latter paid freight of P2,800. If the
shipment was made directly from M to A, the freight cost would have been
P6,200.Which of the following is true as a result of the interbranch transfer of
merchandise?*
2 points
A branch credits the Home Office for P70,000
The home office debits A Branch Current for P73,600
The home office will debit P Branch Current for P70,800
P branch credits freight in for P6,200
The freight on shipments to the branch paid by the home office is recorded by the home
office as*
1 point
Credit to cash.
Credit to investment account.
Credit to freight-in.
Debit to freight-in
The Russian Rouble is currently hyperinflationary and IAS 29 applies:*
1 point
No
Yes
Problem Solving:*
2 points
P36,000
36,700
P37,500
P37,100

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