Quiz: 

1. ABC Company reported the following assets in the statement of financial position: 
Cash in bank 10,000,000.00 

Accounts receivables 5,000,000.00 

Inventory 4,000,000.00 

Financial assets at fair value 2,000,000.00 

Copyright 1,500,000.00 

Software 2,300,000.00 

Prepaid Expense 200,000.00 

Advances to employees 100,000.00 

In preparing financial statements in a hyperinflationary economy, what total amount should

be  classified as monetary assets? 

Cash in Bank                     10,000,000

Accounts Receivable        5,000,000
Advances to Employees   100,000
Total monetary assets     15,100,000

2. ABC ompany reported the following liabilities in the statement of financial position: 
Accounts payable 30,000,000.00 

Bonds payable 4,000,000.00 

Unearned revenue 1,500,000.00 

Finance lease liability 2,000,000.00 

Advances from customers 2,300,000.00 

Deferred tax liability 500,000.00 

Accrued expenses 5,000,000.00 

Notes receivables 2,000,000.00 

In preparing financial statements in a hyperinflationary economy, what total amount should

be  classified as monetary liabilities?
Accounts payable 30,000,000
 Accrued expenses 5,000,000
Bonds payable 4,000,000
Finance lease liability 2,000,000
Total monetary liabilities 41,000,000

3. ABC Company reported the following for 2021: 

Historical Cost Units 

Cost of Goods Sold 2,060,000 70,000 

The current cost per unit of inventory was P58 on January 1, 2021 and P72 on December 31, 2021. In
the  income statement for 2021 restated to current cost, what amount should be reported as cost of
goods  sold?

COGS=[(58+72)/2]x70,000

COGS=65x70,000

COGS=4,550,000