Quiz Comprehensive Examination t3 Ay2023 2024

COMPREHENSIVE EXAMINATION T3 AY2023-2024
6/18/24, 10:27 AM Quiz: COMPREHENSIVE EXAMINATION T3 AY2023-2024
Started: Jun 18 at 7:34am
Quiz Instructions
PARTS
I. True or False (30 items, 1 point each = 30 points)
II. Multiple Choice Theories (20 items, 1 point each = 22 points)
III. Problem Solving (27 items, 2 points each = 54 points)
INSTRUCTIONS
The quiz (examination) is good for 3 hours (180 minutes).
For problem solving, final amount should be:
without peso sign.

with or without comma.
for questions asking overage or shortage, put a "-" negative sign to indicate shortage
for computations with present value, do not round off present value factors while computing.
round off final answers to nearest peso, e.g. 53,450.75 will be 53,451
REMINDERS
1. This is a CLOSED-NOTES quiz. ONE ATTEMPT ONLY.
2. Other than your main Canvas quiz page, you are NOT allowed to open any tabs nor open any
applications during the quiz time. Activity log in Canvas will strictly be monitored during the examination.
3. Use your calculator for calculations. You are not allowed to use Microsoft Excel, Numbers, Google
Sheets, and other similar spreadsheet applications.
4. Be reminded of the provisions of Section 5.3.1.1 of the SH that states that “Cheating in any
form during an examination, test, or written reports including reaction papers, case analysis,
experiments or assignments required is a MAJOR OFFENSE”.
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Question 1 1 pts
Equity security holdings between 20 and 50 percent indicates that the investor has a controlling interest
over the investee.
True
False
https://dlsu.instructure.com/courses/169133/quizzes/439741/take 1/25
Question 2 1 pts
All dividends received by an investor from the investee decrease the investment’s carrying value under
the equity method.
True
False
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Question 3 1 pts
The PAS 28 requires that companies classify investment in equity securities into two measurement
categories – amortized cost and fair value.
True
False
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Question 4 1 pts
The Unrealized Gain or Loss–Income account is reported in the other income and expense section of
the income statement.
True
False
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Question 5 1 pts
An entity shall classify financial assets as subsequently measured at amortised cost, fair value through
other comprehensive income or fair value through profit or loss on the basis of both: (a) the entity’s
business model for managing the financial assets and the contractual cash flow characteristics of the
financial asset.
True
False
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Question 6 1 pts
Which of the following is not correct in regard to FVPL investments?
Transaction cost is recorded as expense.
All of these are correct.
They are held with the intention of selling them in a short period of time.
Unrealized holding gains and losses are reported as part of net income.
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Question 7 1 pts
IFRS requires companies to measure their financial assets based on all of the following except
Whether the financial asset is a debt or equity investment.
All of the choices are IFRS requirements.
The contractual cash flow characteristics of the financial asset.
The company’s business model for managing its financial assets.
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Question 8 1 pts
Santo Corporation declares and distributes a cash dividend that is a result of current earnings. How will
the receipt of those dividends affect the investment account of the investor under each of the following
accounting methods?
Fair Value Method – Decrease; Equity Method - No Effect
Fair Value Method – Increase; Equity Method – Decrease
Fair Value Method - No Effect; Equity Method - No Effect
Fair Value Method - No Effect; Equity Method – Decrease
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Question 9 1 pts
Held-for-trading investments are reported at
acquisition cost.
amortized cost.
maturity value.
fair value.
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Question 10 1 pts
Koehn Corporation accounts for its investment in the ordinary shares of Sells Company under the equity
method. Koehn Corporation should ordinarily record a cash dividend received from Sells as
dividend income.
an addition to the carrying value of the investment.
share premium.
a reduction of the carrying value of the investment.
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Question 11 1 pts
The cost-benefit constraint included in the International Accounting Standards Board’s conceptual
framework states that financial information should be free from cost to users of the information.
True
False
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Question 12 1 pts
Information is material if omitting, misstating or obscuring it could reasonably be expected to influence
decisions that the primary users of general-purpose financial statements make on the basis of those
financial statements, which provide financial information about a specific reporting entity.
True
False
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Question 13 1 pts
Decision usefulness is the underlying theme of the conceptual framework.
True
False
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Question 14 1 pts
The idea of consistency does not mean that companies cannot switch from one accounting method to
another.
True
False
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Question 15 1 pts
The primary function of financial accounting is to provide relevant financial information to parties external
to business enterprises.
True
False
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Question 16 1 pts
The International Accounting Standards Board (IASB) follows specific steps in developing International
Financial Reporting Standards (IFRS); the first step in the process is holding a public hearing.
True
False
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Question 17 1 pts
Financial statements provide comparative information for at least one preceding reporting period.
True
False
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Question 18 1 pts
The process of establishing GAAP is a political process which incorporates political actions of various
interested user groups as well as professional judgment, logic and research.
True
False
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Question 19 1 pts
The accounting standards are designed to apply to general purpose financial statements and other
financial reporting of all not-for-profit-oriented entities.
True
False
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Question 20 1 pts
Prudence is the exercise of caution when making judgements under conditions of uncertainty. The
exercise of prudence means that assets and income are not understated and liabilities and expenses are
not overstated.
True
False
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Question 21 1 pts
The amount reported as “Cash” on a company’s statement of financial position normally should exclude
Petty cash
Postdated checks that are payable to the company
Undelivered checks written and signed by the company
Cash in payroll account
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Question 22 1 pts
A bank may return a check to the maker for all of the following reasons, except
The signature is missing
The amount of the check is too small
The maker’s account has been closed
The check has been altered
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Question 23 1 pts
Which of statements relating to a bank statement is true?
A positive amount in the account will be shown as a debit balance
A deposit is listed in the debit column
It constitutes a source document for the firm for direct debits and credits such as bank charges
The customer is viewed as a debtor
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Question 24 1 pts
If a firm deposits all its receipts in the bank and pays all its bills by cheque, then the monthly bank
statement balance should automatically agree with the firm's ledger bank account balance, unless errors
have been made.
True
False
Question 25 1 pts
Which of the following is not considered as cash for financial reporting purposes?
Petty cash funds and cash in the cash register drawers
Coin, currency, and available funds
Money orders, bank checks and personal checks
Postdated checks and IOU’s
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Question 26 1 pts
Generally accepted accounting principles are
theories that are based on physical laws of the universe.
policy regulations of the Securities and Exchange Commissions.
principles that have been proven correct by academic researchers.
standards that indicate how to report economic events.
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Question 27 1 pts
Which of the following statements is false?
Ethical considerations are more likely to arise in the exercise of professional judgement in implementing IFRS because
they are principles-based.
Challenges of competition and emphasis on short-term results may give rise to ethical conflicts and pressure.
Professional ethics codes are enforced by professional accounting bodies on their members but do not apply to
managers who are not members.
Ethical considerations only arise for accountants who are engaged as auditors.
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Question 28 1 pts
The following published documents are part of the "due process" system used by the IASB in the
evolution of a typical IASB Standard
1. Exposure Draft
2. IASB Standard
3. Discussion Paper
The chronological order in which these items are released is as follows:
3, 1, 2
1, 2, 3
2, 3, 1
1, 3, 2
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Question 29 1 pts
The role of the Standards Advisory Council is to
advise the IASB on priorities for its work and implications of proposed standards.
advise the IASB on priorities for its work and approve standards.
advise the IASB on priorities for its work.
advise the IASB on priorities for its work and implications of proposed standards, and approve standards.
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Question 30 1 pts
The cost principle requires that when assets are acquired, they be recorded at
selling price.
list price.
appraisal value.
exchange price paid.
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Question 31 1 pts
Which statement concerning the bank statement is true?
Both of the statements are true.
A deposit received by the bank is debited to the customers account.
Neither of the statements is true.
The payment of a cheque by the bank is credited to the customers account.
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Question 32 1 pts
All of these involve a direct debit to the firm’s bank account, except
a dishonoured cheque.
the charge for issuing cheques.
a bank service charge.
interest earned by the business.
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Question 33 1 pts
Which of the following is not true?
The imprest petty cash system in effect adheres to the rule of disbursement by check.
All of these are not true.
The Petty Cash account is debited when the fund is replenished.
Entries are made to the Petty Cash account only to increase or decrease the size of the fund or to adjust the balance if
not replenished at year-end.
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Question 34 1 pts
Which of these would not be reported on the statement of financial position as cash or cash equivalents?
Money market funds
Thirty-day certificate of deposit
All the items would not be reported as cash equivalents.
Six-month Treasury bill
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Question 35 1 pts
For an interest-bearing note the amount due at maturity is the face value of the note plus interest for the
length of time specified.
True
False
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Question 36 1 pts
The percentage of receivables basis of estimating expected uncollectible accounts emphasises income
statement relationships.
True
False
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Question 37 1 pts
The three primary accounting problems associated with accounts receivable are: (1) recognising the
receivable (2) valuing the receivable and (3) disposing of the receivable.
True
False
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Question 38 1 pts
Notes receivable are valued at amortised cost using the effective interest rate method.
True
False
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Question 39 1 pts
A note receivable represents a claim for which a formal instrument of credit is issued as evidence of
debt.
True
False
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Question 40 1 pts
Receivables might be sold
so the seller does not have to put time and cost into collecting debts.
to generate cash quickly.
all of the these.
because the seller is unable to borrow money.
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Question 41 1 pts
When the allowance method of recognizing bad debt expense is used, the entries at the time of
collection of a small account previously written off would
decrease net income.
increase net income.
increase the allowance for doubtful accounts.
decrease the allowance for doubtful accounts.
Question 42 1 pts
Which of the following is true when accounts receivable are factored without recourse?
The factor assumes the risk of collectibility and absorbs any credit losses in collecting the receivables.
The financing cost (interest expense) should be recognized ratably over the collection period of the receivables.
The receivables are used as collateral for a promissory note issued to the factor by the owner of the receivables.
The transaction may be accounted for either as a secured borrowing or as a sale, depending upon the substance of the
transaction.
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Question 43 1 pts
The recovery of an account that has been previously written off under the allowance method of
accounting for bad debts
will increase profit in the period it is recovered.
will decrease profit in the period it is recovered.
requires a debit to the Allowance for Impairment account.
does not affect profit in the period it is recovered.
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Question 44 1 pts
When a retail company deposits credit card receipts for bank credit cards, such as VISA and Master
Card, the company would typically debit
Accounts Receivable and Credit Card Service Charge
Cash and Credit Card Service Charge
Accounts Receivable only
Accounts Receivable and Cash
Question 45 1 pts
The cash surrender value is the amount which the insured can borrow from the insurance firm.
True
False
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Question 46 1 pts
The appropriation of retained earnings, for the amount equivalent to the sinking fund, is automatic.
True
False
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Question 47 1 pts
If the beneficiary of the life insurance policy is the company, payment of premium is charged to
insurance expense and dividend earned on this policy is recognized as income.
True
False
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Question 48 1 pts
Investments in sinking fund shall be carried at the amount of cash plus cost of securities adjusted for any
discount or premium amortization and other assets in the fund.
True
False
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Question 49 1 pts
When sinking fund is administered by the company, the company debits the Sinking Fund Cash account
to set-up sinking fund.
True
False
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Question 50 1 pts
Cash surrender value arises if the following requisites are present, except
The policy is surrendered at the end of the third year or anytime thereafter.
The policy is a life policy.
Premiums for three full years must have been paid.
The insured dies.
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Question 51 1 pts
Which is NOT a requirement of cash surrender value?
Premiums for three full years have been paid
There is untimely death of important members of management
The policy is a life policy
The policy is surrendered at the end of the third year or anytime thereafter
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Question 52 1 pts
When the company pays insurance premium on a life insurance policy of an officer and the officer or his
heirs are the designated beneficiary, any cash surrender value is
shown as part of noncurrent assets on the statement of financial position
recorded as an income
credited to life insurance expense
ignored
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Question 53 2 pts
ANIMO
6/18/24, 10:27Corp.
which is engaged solely in processing
AM travel and
Quiz: COMPREHENSIVE employment
EXAMINATION papers to Canada and
T3 AY2023-2024
Australia, maintains the following items with PS Bank:
General checking account no. 466822 875,210

Overdraft in checking account no. 466828 36,180
Savings account (to be used for the purchase of equipment) 300,000
Certificate of deposit dated 11/15/22 maturing 2/13/23 2,000,000
Certificate of deposit dated 3/15/22 maturing 3/15/23 3,000,000
3-year treasury notes purchased 12/30/22 maturing 3/30/23 1,000,000
5 -year Premium fund maturing in 1/11/23 2,000,000
35-day money market placement due 1/07/23 500,000
ANIMO Corp. also has the following items on hand at December 31, 2022, the end of its accounting
period:
Currency and coins in a petty cash fund (imprest fund per ledger is
2,680
P10,000)
Preference shares acquired 12/16/22, with redemption date of 3/14/23 400,000
Unrecorded customer check dated 1/10/22 21,120
how much should be reported as short-term investments?
400,000
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Question 54 2 pts
The August 31 bank statement of ANIMO Inc. showed a balance of P113,000. Deducted in arriving at
this amount was a customer's NSF check for P2,400 that had been returned. ANIMO had received no
prior notice concerning this check. In addition to the bank statement, other records showed there were
deposits in transit totaling P17,200 and that outstanding checks totaled P10,800.
What is the cash balance per books at August 31 (prior to adjustments)?
121,800
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Question 55 2 pts
ANIMO News Agency developed the following reconciling information in preparing its September bank
reconciliation:
Bank statement balance 30 September P150,000
Note receivable collected by bank 60,000
Unpresented cheques 0,000
Outstanding deposits 40,000
Bank service charge 750
Dishonoured cheque 12,000
What is the cash balance in the ledger (before adjustments) for ANIMO?
142,750
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Question 56 2 pts
ANIMO Corporation had the following transactions in its first year of operations:
Sales (85 percent collected in the first year) P1,250,000
Disbursements for costs and expenses 600,000
Purchases of equipment for cash 200,000
Proceeds from issuance of ordinary shares 250,000
Payments on short-term borrowings 25,000
Proceeds from short-term borrowings 50,000

Depreciation on equipment 40,000
Disbursements for income taxes 45,000
Bad debt write-offs 30,000
What is the cash balance at December 31 of the first year?
242,500
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Question 57 2 pts
ANIMO News Agency developed the following reconciling information in preparing its September bank
reconciliation:
Bank statement balance 30 September, P120,000
Note receivable collected by ban, 60,000
Unpresented cheques, 90,000
Outstanding deposits, 45,000
Bank service charge, 750
Dishonoured cheque, 12,000
What is the adjusted cash balance per bank?
75,000
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Question 58 2 pts
The Notes Receivable account of ANIMO, Inc. consisted of a 60-day note of P200,000 dated May 15
with a 9% interest rate, discounted at the bank on June 8 at 12%. How much is the proceeds from
discounting of the 60-day note?
200,564
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Question 59 2 pts
The following accounts were taken from the record of ANIMO Corp.:
Accounts receivable, December 31 - P10,000,000
Allowance for doubtful accounts, January 1 - P600,000
An analysis of the company’s receivables is as follows:
Category Amount % uncollectible

Current P6,000,000 2
1-60 days past due 2,300,000 5
61-120 days past due 1,000,000 10
121-360 days past due 500,000 40
More than 360 days past due 200,000 100
On April 1 of the current year, ANIMO wrote off an account worth P100,000. The company categorizes
its outstanding accounts by age to determine their collectability.
Determine the required balance of ANIMO’s Allowance for Doubtful Accounts on December 31.
535,000
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Question 60 2 pts
On January
6/18/24, 1, 2022, ANIMO Corp. received
10:27 AM Quiz:aCOMPREHENSIVE
10-year, 10%,EXAMINATION
P10,000,000 note from a customer. The
T3 AY2023-2024
note pays interest every June 30 and December 31. The effective interest rate on the date of the receipt
of the note was 12%.
Compute for the total interest revenue recognized by ANIMO in 2023.
1,072,171
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Question 61 2 pts
As of October 1, 2022, the gross amount of ANIMO Co.’s accounts receivable was P1,200,000, and the
related allowance for doubtful accounts was P100,000. Total sales during October was P4,800,000,
P800,000 of which were cash sales. ANIMO’s credit terms are 4/10, 2/20, n/30.
During October, the total face value of the accounts receivable collected was P4,500,000, 40% of which
were collected within 10 days after sale, 50% were given the 2% discount, and the remainder were
collected beyond the discount period. An account worth P80,000 was deemed uncollectable, and an
account worth P90,000 which was previously written off was recovered and then collected. Such
recoveries of previously written off accounts were recognized by ANIMO as miscellaneous revenue.
Interim provision on uncollectible accounts is 1% of gross credit sales for the month.
Compute for the total cash receipts in October.
5,193,000
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Question 62 2 pts
The following accounts were taken from the record of ANIMO Corp.:
Accounts receivable, December 31 - P10,000,000
Allowance for doubtful accounts, January 1 - P600,000
An analysis of the company’s receivables is as follows:
Category Amount % uncollectible

Current P6,000,000 2
1-60 days past due 2,300,000 5
61-120 days past due 1,000,000 10
121-360 days past due 500,000 40
More than 360 days past due 200,000 100
On April 1 of the current year, ANIMO wrote off an account worth P100,000. The company categorizes
its outstanding accounts by age to determine their collectability.
Compute for the Doubtful Accounts Expense to be recognized for the period ending December 31
of the current year.
35,000
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Question 63 2 pts
For the month of December, the records of ANIMO Corporation show the following information:
Cash received on accounts receivable P 70,000

Cash sales 60,000
Accounts Receivable, December 1 160,000
Accounts Receivable, December 31 148,000
Accounts Receivable written off as uncollectible 2,000
The corporation uses the direct write-off method in accounting for uncollectible accounts receivable.
What are the gross sales for the month of December?
118,000
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Question 64 2 pts
ANIMO Theatre’s balances at December 31 for Accounts Receivable and Allowance for Bad Debts were
P1,400,000 and P70,000 (Cr.), respectively. An aging of accounts receivable indicated that P128,000 is
expected to become uncollectible. The amount of the adjusting entry for bad debts at December 31
is P__________.
58,000
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Question 65 2 pts
On January 1, 2023, ANIMO Company sold equipment that originally cost P4,000,000 to Lasalle
Company. As payment, Lasalle gave ANIMO a P6,000,000 note. The note bears an interest rate of 4%
and is to be repaid in three annual installments plus interest on the outstanding balance. The first
payment is due on December 31, 2023. The market price of the land is not readily determinable. The
prevailing rate of interest for notes of this type is 8%.
What amount of interest income, if any, should be included in ANIMO’s 2023 income statement?
446,168
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Question 66 2 pts
In March of 2021, ANIMO Corp. bought 45,000 shares of DLSU Corp.’s listed stock for P450,000 and
classified the shares as financial assets at fair value through other comprehensive income. The market
value of these shares was P300,000 and P420,000 on December 31, 2021 and December 31, 2022,
respectively. ANIMO sold the shares in June of 2023 when its market value was P445,000.
How much should ANIMO include as a gain on sale of securities in its determination of its profit
or loss for 2023?
25,000
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Question 67 2 pts
At the beginning of the year, ANIMO company has acquired 100,000 ordinary shares for P10 per share
of DLSU company representing 20% of DLSU company’s outstanding ordinary shares. A company did
not acquire significant influence from this acquisition.
At the end of the year, DLSU company shares had a fair value of P15 per share.
If the share is classified as FVPL, how much is the unrealized gain or loss to be directly
recognized in equity?
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Question 68 2 pts
During 2019, ANIMO Company purchased equity securities as FA at FVOCI. The cost and market value
at December 31, 2020 were:
Securities Shares Cost Fair Value

CHA 10,000 1,340,000 1,460,000
KA 10,000 1,950,000 1,980,000
KHAN 20,000 2,400,000 2,500,000
ANIMO sold 10,000 shares of Company KA shares on January 31, 2021, for net proceeds of
P2,100,000.
How much should ANIMO report as total increase in Retained Earnings in 2021 for this
investment?
900,000
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Question 69 2 pts
ANIMO Industries purchased a 30% interest in DLSU, Inc. for P600,000. DLSU, Inc. has 100,000 P10
par value ordinary shares outstanding. This investment enables ANIMO to exert significant influence
over DLSU. During the year, DLSU earned net income of P360,000 and paid dividends of P120,000;
ANIMO earned net income of P48,000 and paid dividends of P160,000. At the end of the year, the
shares of DLSU were trading on an organized exchange for P22 per share.
On ANIMO’s year-end statement of financial position, its investment in DLSU, Inc. will be valued
at
672,000
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Question 70 2 pts
ANIMO Corporation purchased 8,000 ordinary shares of DLSU Industries as a financial asset at fair
value through profit or loss for P148,800. During the year, DLSU Industries paid a cash dividend of
P3.20 per share. At year-end, DLSU’s shares were selling for P17.40 per share. On the income
statement for the year ended December 31, what is the total amount of unrealized gain/loss and
dividend revenue reported by ANIMO Corporation?
16,000

Question 71 2 pts
In January 2022, ANIMO Corporation acquired 20 percent of the outstanding ordinary share of DLSU
Company for P1,120,000. This investment gave ANIMO the ability to exercise significant influence over
DLSU. The book value of the acquired shares was P840,000. The excess of cost over book value was
attributed to an identifiable intangible asset that was undervalued on DLSU’ statement of financial
position and that had a remaining useful life of ten years. For the year ended December 31, 2022,
DLSU reported net income of P252,000 and paid cash dividends of P56,000 on its ordinary share.
How much should be reported as Investment Income in 2022 profit or loss statement?
22,400
Question 72 2 pts
On January 1, 2019, ANIMO Company insured the life of its president for P2,000,000. The annual
premium is P24,200, payable on January 1 of each year, and the cash surrender values for the policies
increase by 4% of the annual premiums paid. The beneficiaries indicated in the insurance policy are the
spouse (husband or wife) and the children of the insured. Premium payments were made on the
scheduled date by ANIMO Company through 2021. On February 1, 2021, the president died and the
beneficiary collected the face value of his policy plus eleven months’ premium.
How much should ANIMO report in its income statement as life insurance expense for the year
ended December 31, 2021?
2,017
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Question 73 2 pts
ANIMO Company has life insurance policies on its officers’ lives. Annual premiums amount to P50,000.
At the end of 2021, cash surrender value of the policies totaled P182,000. Dividends received by ANIMO
from the insurance company amounted to P5,000 in 2021. The insurance expense recognized by
ANIMO in 2021 was P35,000.
What was the amount of cash surrender value of these policies on January 1, 2021?
172,000
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Question 74 2 pts
ANIMO Company got 2 life insurance policies on the life of its president. Details of the two policies for
year 2023 are as follows:
Increase in
Annual Dividends Amount of the
Policy Beneficiary Cash Surrender
Premium Received Policy
Value
A ANIMO Company P90,000 P10,000 P29,000 P2,000,000
B Wife of the president 33,000 3,500 9,000 600,000
Both policies coincide with the calendar period. What is the amount of life insurance expense that
should be reported by ANIMO Company on its statement of comprehensive income for the year
ending December 31, 2023?
84,000
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Question 75 2 pts
ANIMO Company took out a P3,000,000 insurance policy on the life of its chief executive officer on
January 2, 2018. The company’s accounting period is the calendar year. The annual premium on the
policy is P60,000. Data regarding dividends and cash surrender value are given below:
2019 2020 2021

Dividends received on Dec. 31 P 3,200 P 3,800 P 2,500
Cash surrender value 42,000 53,000
At what amount should ANIMO Company show life insurance expense on its income statement
for the year ending December 31, 2020?
42,200

Question 76 2 pts
ANIMO Inc. borrowed P7,500,000, with a plan to repay the whole amount in 12 years. The loan bears an
interest of 12% payable every June 30 and December 31. ANIMO’s loan will be repaid by making
deposits every June 30 and December 31 that earns 10% compounded semiannually.
How much is the total semiannual payment to be made by ANIMO Inc.?
522,593

Question 77 2 pts
ANIMO Company established a sinking fund on January 1, 2022 for the retirement of a bond issue. The
following transactions occurred pertaining to the sinking fund:
2022
Jan. 1 Established a sinking fund with P2,700,000 cash
Jan. 18 Purchased equity securities for P2,500,000 using sinking fund cash
Jul. 5 Paid fund expenses of P100,000
Sept. 9 Sold equity securities having an original cost of P600,000 for P530,000
Dec. 20 Received dividends of P150,000 on equity securities
2023
Dec. 31 Received dividends for P270,000 on equity securities
Dec. 31 Sold all securities in the fund for P2,250,000 and retired an outstanding bond issue of
P3,000,000 plus P240,000 interest. The remaining fund balance was transferred back to the general
cash account
How much was the remaining fund balance, on December 31, 2023, that was returned to the to
the general cash account?
60,000

Question 78 2 pts
On January 1, 2016, ANIMO Corporation created a special fund with an independent trustee. The
purpose of the fund is to provide resources to pay long-term bonds payable during the latter part of
2020. The company anticipates a total amount due of P500,000 and settlement by January 1, 2021.
The company plans to make equal annual deposits each December 31, 2016 through 2020, to
accumulate the amount needed to pay the anticipated construction cost. The independent trustee will
increase the fund each December 31 at an interest rate of 10 percent. The accounting periods of the
company and the fund end on December 31.
Compute the amount of the equal annual deposits that will be needed by ANIMO Corporation.
81,899

Question 79 2 pts
On January 1, 2023, ANIMO Inc. adopted a plan to accumulate P50,000,000 by December 31, 2032. A
certain fund earns annual interest of 10%.
How much is the one-time payment to be made by ANIMO Inc?
21,204,881
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Quiz Comprehensive Examination t3 Ay2023 2024

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COMPREHENSIVE EXAMINATION T3 AY2023-2024

6/18/24, 10:27 AM Quiz: COMPREHENSIVE EXAMINATION T3 AY2023-2024

Started: Jun 18 at 7:34am

II. Multiple Choice Theories (20 items, 1 point each = 22 points)

III. Problem Solving (27 items, 2 points each = 54 points)

For problem solving, final amount should be:

without peso sign.

Which of the following is not correct in regard to FVPL investments?

All of these are correct.

Whether the financial asset is a debt or equity investment.

All of the choices are IFRS requirements.

The contractual cash flow characteristics of the financial asset.

The company’s business model for managing its financial assets.

Fair Value Method – Decrease; Equity Method - No Effect

Fair Value Method – Increase; Equity Method – Decrease

Fair Value Method - No Effect; Equity Method - No Effect

Fair Value Method - No Effect; Equity Method – Decrease

Held-for-trading investments are reported at

an addition to the carrying value of the investment.

a reduction of the carrying value of the investment.

Postdated checks that are payable to the company

Cash in payroll account

The signature is missing

The amount of the check is too small

The maker’s account has been closed

The check has been altered

A positive amount in the account will be shown as a debit balance

A deposit is listed in the debit column

The customer is viewed as a debtor

Petty cash funds and cash in the cash register drawers

Coin, currency, and available funds

Money orders, bank checks and personal checks

Postdated checks and IOU’s

theories that are based on physical laws of the universe.

policy regulations of the Securities and Exchange Commissions.

principles that have been proven correct by academic researchers.

standards that indicate how to report economic events.

advise the IASB on priorities for its work.

exchange price paid.

Both of the statements are true.

A deposit received by the bank is debited to the customers account.

Neither of the statements is true.

The payment of a cheque by the bank is credited to the customers account.

the charge for issuing cheques.

a bank service charge.

interest earned by the business.

All of these are not true.

The Petty Cash account is debited when the fund is replenished.

Money market funds

Thirty-day certificate of deposit

All the items would not be reported as cash equivalents.

Six-month Treasury bill

to generate cash quickly.

all of the these.

because the seller is unable to borrow money.

decrease net income.

increase net income.

increase the allowance for doubtful accounts.

decrease the allowance for doubtful accounts.

will increase profit in the period it is recovered.

will decrease profit in the period it is recovered.

requires a debit to the Allowance for Impairment account.

does not affect profit in the period it is recovered.

Accounts Receivable and Credit Card Service Charge