Kwisbi

These are debts that must be paid within a year or less.

a. Current liabilities b. noncurrent liabilities c. deferred liabilities d. bonded liabilities

These are debt securities that are issued by companies or governments to raise capital with more than 1 year maturity. a. Bonds b. Notes c.

Contingencies d. Mortgage

Most corporate bonds are: a. mortgage b. debenture c. secured d. collateral

To evaluate the risk and quality of individual bond issue, investors heavily rely on

b. Newspaper articles c. audit report

c. Bond ratings provided by investment houses d. bond interest payments

When bonds are retired prior to maturity date

d. GAAP has been violated

e. The issuer probably will report on ordinary gain or loss

f. The issuer probably will report an extraordinary gain or loss

This is the new term for common stock.

g. Treasury shares b. Share capital c. Ordinary share d. Share premium

In this stage of a partnership, partners divide their share of the results of operations among themselves.

h. Formation b. Operation c. Dissolution d. Liquidation

This can be used as a basis for computation of share of profits by partners, except:

i. Salaries b. Bonus c. Interest on capital balance d. None of the choices

When standard quantity used exceeds actual quantity used, there is

j. Favorable quantity variance b. Favorable price variance c. Neither (a) nor (b) d. n/a

It is considered as the cost per activity.

k. Overhead cost b. activity cost pool c. overhead cost d. activity rate
Total overhead cost per unit is computed by dividing the total overhead cost by
l. No. of activities b. No. of quantity produced c. activity rate d. n/a
This type of liability is never classified as current
m. Accrued expenses b. Notes c. Deferred tax d. Warranty
This involves the process of distributing cash to partners, when partnership ceases to exist.
n. Formation b. Operation c. Dissolution d. Liquidation
This is added to the bonds payable amount to reflect the carrying amount.
o. Discount on bonds b. Premium on Bonds c. Interest on bonds d. N/A
Share dividends payable shall be part of
p. Current liability b. Noncurrent liability c. Equity d. Assets
An unexplained cash overage of a government entity is recorded as a credit to
a. Payable account b. Prepaid account c. Miscellaneous account d.
Expense account

Entity A, a government entity purchases inventory to be held for sale in the ordinary course of
activities. The journal entry to record this transaction would most likely include a debit to
a. Accounts payable b. purchases c. merchandise inventory d. sales

The payment of a liability using the NCAA (noncash authority) will include a credit to
a. Cash-MDS b. Accounts payable c. Subsidy from NG d. Cash-

Liquidation of expenses in a government entity would most likely include a debit to

a. Expense b. Cash c. Advances to employees d. No debit to (a),(b)
nor (c)

Cash discounts should be recorded when: a. Ignored b. Taken c. Expired d. n/a

The entry to record the excess of market value of share from its par value would be credited to:
a. Retained earnings b. Share capital c. Share premium d. Treasury shares

The following are examples of possible causes for unfavorable material quantity variance,
EXCEPT
a. The raw materials used were low quality
b. The standard price of raw materials exceeded actual price
c. Workers were trained poorly by the management
d. The warehouse of the company burned

An unfavorable price variance happens when

a. AP > SP b. AQ > SQ c. AP < SP d. AQ < SQ

Issuance of ordinary shares for cash will include a debit to

a. cash b. ordinary shares c. preference shares d. orprenary shares

The accumulated surplus(deficit) account in government entities, function like

a. Share premium b. Retained earnings c. Ordinary share d. Treasury shares
When an asset is fully depreciated, its carrying amount shall equal its
a. Original cost only b. Residual value c. Depreciated value d. Market value

Items counted in the bodega was P4,000,000 which included P500,0000 consigned items to the
company. The correct amount of inventory should be: a. P4M b. P3.5M c. P4.5M
d. None of the choices

Adjustment of inventory using the periodic system would most probably include a debit to:

a. Income summary b. Merchandise inventory c. Cash d. Cost of Sales

Return of merchandise sold from customer using perpetual system would include a credit to

b. Merchandise inventory b. Cash c. Income Summary d. Cost of Sales

List price is P1,000,000. Trade discount is 10%. Cash discount is 2%. How much is the invoice price?

c. P882,000 b. P900,000 c. P1,000,000 d. P980,000

Inventory beginning is P500,000. Cost of Sales is P1,000,000. Ending inventory is P200,000. How much is the purchases? a. 700,000 b. 1,300,000 c. Cannot be

determined

Cost of sales is P555,000. Cost percentage is 30%. How much is the gross profit?

d. 1,850,000 b. 166,500 c. 1,295,000 d. 455,000

If the total number of sewing activity is 10,000 with a total cost of Php150,000, how much is the activity rate?

e. P15 b. P20 c. P12 d. None of the choices

Tricky company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Tricky company recognizes the unearned revenue as

realized.

Information for the current year:

Unearned revenue, January 1 650,000

Gift certificates sold 2,250,000

Gift certificates redeemed 1,950,000

Gift certificates unredeemed for a long time 100,000

Cost of goods sold 60%

What amount should be reported as unearned revenue at year end?

a. 850,000 b. 750,000 c. 700,000 d. 900,000

 Unearned rent income of Php500,000 was recorded at year end. The portion which has been earned totaled P200,000 at year end. How much was the ending

balance of the unearned rent income at year end?

f. P700,000 b. P300,000 c. P200,000 d. None of the choices

A wasting asset entity has acquired the right to use a property to explore natural resource. The acquisition cost is P3,000,000, the related exploration costs
amount to P2,000,000 and development costs incurred in erecting wells and drilling the deposit are P5,000,000. Total costs of the wasting asset therefore amount
to P10,000,000. It is estimated that the resource deposit are P5,000,000. If 300,000 units are extracted in the first year of operations, what is the depletion
expense for that year?
a. 2,500,000 b. 2,000,000 c. 3,000,000 d. 3,500,000

ABC Corporation has the following items on its balance sheet as of December 31, 2022:
Total assets: $1,500,000
Total liabilities: $850,000
Common stock: $250,000
Retained earnings: $400,000
What is the total shareholder's equity for ABC Corporation as of December 31, 2022?
a. $250,000 b. $650,000 c. $400,000 d. $450,000

The newly hired accountant determined that the company’s land with a book value of
P10,000,000 has an estimated life of 10 years. How much is the depreciation expense for the
year?