Escal, Queen Mhaiel M.

BSA 2.1 A

Test I.

1. A
2. B
3. C
4. D
5. B
6. D
7. C
8. A
9. A
10. A

Test II.

1. What is the importance of investments in business operations?

Businesses can purchase real estate, tools, and equipment necessary for their daily operations through
investments. Businesses may easily accomplish their objective of growing in the market and making
more profit with investments. With this cash flow, the company can expand by acquiring new capital
assets, which can improve operational efficiency and fuel the company's ongoing growth.

2. Give and explain at least one (1) required disclosures for investments.

One of the investment classifications that need disclosures is financial assets measured at amortized.
Depreciation or amortization has been used to charge expenses for an accumulated portion of a fixed
asset's recorded cost. Stated differently, this is an approach to accounting that requires the reporting of
financial assets on the balance sheet at their amortized cost.

Test III.

ANSWER:

Net income for 2019 P 2,000,000

Unrealized Profit or Loss in ending inventory (100,000)

Adjusted Income P 1,900, 000

Share in net income ( P 1,900,000 x 20 %) P 380, 000