EASY

ROUND
Which of the A. “Pay to the order of A or B the
sum of ₱100,000.” Sgd. C and D
following B. “I promise to pay to the order of
A or B the sum of ₱100,000.” Sgd.
instruments C and D
C. “Pay to B or order the sum of
is ₱100,000 30 days after sight.”
Sgd. D
negotiable? D. “We promise to pay A and B the
sum of ₱100,000.” Sgd. C and D
CORRECT ANSWER:
It is the estimated resale value of an asset at
the end of its useful life. It is subtracted
from the cost of a fixed asset to determine
the amount of the asset cost that will be
depreciated.
A.Cost
B.Salvage Value
C.Estimated Useful Life
D.Marginal Value
CORRECT ANSWER:
 This refers to the amount of cash that
could be withdrawn from a firm without
harming its ability to operate and to
produce future cash flows.

A. Net Income
B. Free Cash Flow
C. Discounted Cash Flow
D. Gross Income
CORRECT ANSWER:
 Which of the following is not
considered as cash for financial
reporting purposes?
A.Petty Cash Funds and Change Funds
B.Money Orders, Certified Checks, and Personal
Checks
C.Coin, Currency, and Available Funds
D.Postdated Checks and IOUs
CORRECT ANSWER:
DJIA stands for ?
A. Dane Jones industrial Average
B. Down Jones Industrial Average
C. Dow Jowns Industrial Average
D. Dow Jones Industrial Average
CORRECT ANSWER:
 This is the return for the
time during which you own
an investment
A. Return on Equity
B. Profit Margin
C. Holding Period Return
D. Return on Investment
CORRECT ANSWER:
It is a depreciation method whereby an asset loses
book value at a faster rate than the traditional
straight-line method. Generally this method allows
greater deductions in the earlier years of an asset
and is used to minimize taxable income.
A. Double Declining Balance Depreciation
B. Accelerated Depreciation
C. Sum of the Years Digits Depreciation
D. Straight - Line Depreciation
CORRECT ANSWER:
 It is the tax rate you pay when you
add all sources of taxable income
and divide that number
into the amount of taxes you owe
A. Marginal Tax Rates
B. Average Tax Rates
C. Progressive Tax Rates
D. Tax Rate
CORRECT ANSWER:
Ellie Company had the following cash balances
on Dec. 31, 2018.
Undeposited Coin and Currency ₱100,000
Unrestricted Demand Deposit 2,500,000
Company checks written and deducted
A. ₱2,900,000
from the demand deposit amount but not B. ₱2,700,000
scheduled to be mailed until January 15,
2019 300,000 C. ₱4,400,000
Time deposits restricted for use in 2018 1,000,000
D. ₱3,900,000
Commercial Papers 1,500,000

In exchange for a guaranteed line of credit, the

entity has agreed to maintain a minimum
balance of ₱ 200,000 in its unrestricted demand
deposit account. What amount should be
reported as “Cash” on December 31, 2018?
CORRECT ANSWER:
MODERATE
ROUND
 Primrose, a minor, owns a house worth
₱1,000,000. Her guardian, Katniss, sold
the same to Peeta for ₱800,000. What is
the condition of the contract?
A.Valid Contract
B.Void Contract
C.Rescissible Contract
D.Voidable Contract
CORRECT ANSWER:
Suppose during the month of May, Company A made a
total of $ 500,000 in credit sales and has $ 350,000 in
accounts receivable. There are 31 days in May, so
Company A's Days Sales Outstanding for May is?

A.21 days
B.22 days
C.23 days
D.24 days
CORRECT ANSWER:
A chartered analyst purchased a treasury bill
for $960 and then sold it for $995 three
months later. Calculate the holding period
return.
A. 3.75%
B. 3.65%
C. 3.60%
D. 3.64%
CORRECT ANSWER:
An entity had a plantation forest that is likely to be
harvested and sold in 30 years. The income should
be accounted for in which of the following way?

A. No income should be reported annually until first harvest and sale

in 30 years.
B. Income should be measured annually and reported using a fair
value approach that recognizes and measures biological growth.
C. The eventual sale proceeds should be estimated and matched to
the profit and loss over the 30-year period.
D. The plantation forest should be valued every 5 years and the
increase in value should be shown in the statement of
comprehensive income as component of other comprehensive
income.
CORRECT ANSWER:
Lets assume XYZ Company intends to pay a
$ 1 dividends per share next year and you
expect this to increase by 5% per year A. $ 20
thereafter. Lets further assume your
required rate of return on XYZ Company
B. $ 30
stock is 10%. C. $ 40
Currently, XYZ Company stock is trading at
D. $ 50
$ 10 per share. Using the stable model
formula,we can calculate that the instrinsic
value of one share of XYZ company stock
is?
CORRECT ANSWER:
 How much would I have to deposit in an
account today that pays 12% interest,
compounded quarterly, so that I have a
balance of $20,000 in the account at the end
of 10 years?
A. 6,131.14
B. 6,331.14
C. 6, 331.15
D. 6, 131.15
CORRECT ANSWER:
 How much are fortnightly
repayments for a $10,000 loan over 3
years at 7.6% flat rate?
A. $ 157.44
B. $ 158.44
C. $ 159.44
D. $ 160.44
CORRECT ANSWER:
You are told that if you invest $11,100 per year for
19 years (all payments made at the beginning of
each year) you will have accumulated $375,000 at
the end of the period. What annual rate of return
is the investment offering?
A. 3%
B. 4%
C. 5%
D. 6%
CORRECT ANSWER:
On December 31, 2018, BYD Company purchased equity
securities as trading securities. Pertinent data are as follows:

A.₱ 3,000 gain

B.₱27,000 loss
On December 31, 2019, BYD transferred its C.₱30,000 loss
investment in equity security C from
trading to Available-For-Sale because BYD
D.₱45,000 loss
intends to retain security C as a long-term
investment. What total amount of gain or
loss on its securities should be included in
BYD’s income statement for the year
ended December 31, 2019?
CORRECT ANSWER:
DIFFICULT
ROUND
Marbles Warbles has
an ROA of 10 percent, A. 5%
a 2 percent profit B. 7.5%
margin, and a return C. 10%
on equity equal to 15 D.2.5%
percent. What is the
company’s total asset
turn over?
CORRECT ANSWER:
To expand your business selling
collectibles on the Internet, you
need a loan of $ 5000. Your A. 0
annual banker loans you B. 1,683.29
the money at a 12% annual C. 1,225.04
interest rate, which you agree D. 1,973.11
to pay back in 3 equal monthly
installment of $ 1700.12. How
much its ending capital on the
3rd month
CORRECT ANSWER:
An eight-year capital lease
specifies equal minimum annual A.The same as in
lease payments. Part of this the third year
payment represents interest and B.Less than in the
part represents a reduction in third year
the net lease liability. The C.Less than in the
portion of the minimum leas fifth year
payment in the fourth year D.More than in
applicable to the reduction of the fifth year
the net lease liability should be
CORRECT ANSWER:
Bisa Co. Ltd. has two assets in
their portfolio, asset A and asset A. Greater than 30%.
B. Asset A has a standard B. Less than 30%.
C. Equal to 30%.
deviation of 40% and asset B has
D. Not enough
a standard deviation of 20%. information to
50% of the portfolio is invested determine.
in asset A and 50% is invested in
asset B. The correlation for asset
A and asset B is 0.90. What is
the standard deviation of the
portfolio?
CORRECT ANSWER:
On January 1, 2015, Rao Corporation
issued a ₱3,000,000 6% convertible bonds
at par. The bonds are redeemable at a A.₱175,518
premium of 10% on December 31, 2019 or B.₱380,418
it may be converted into ordinary shares
on the basis of 50 shares for each ₱1,000 C.₱ 73,068
bond at the option of the holder. The D.₱ -0-
interest rate of the equivalent bond
without the conversion rights would have
been 10%. The issuance of the convertible
bonds on January 1, 2015 increased the
entity’s equity by? (round off present
value factors to four decimal places)
CORRECT ANSWER:
A house cost $ 100, 000
in 1994. In 1998, it was A. 14.50%
worth $ 181,000. Find B. 15.73%
C. 15.99%
the average annual rate
D. 13.23%
of appreciation
as a percentage.
CORRECT ANSWER:
 A machine's value
decreased from $ 500 A. 24 days
to $ 102. If it B. 25 days
C. 26 days
depreciated at an
D. 27 days
annual rate of 6.5%,
how long will it take?
CORRECT ANSWER:
MarJo Shoes manufactures shoes. All direct
What is the cost of
materials are included at the inception of the
direct materials
production process. For March, there were
assigned to
1,400 units in the beginning inventory with a
completed good
direct material cost of ₱700.
units when spoilage
units are
Direct materials totaled ₱15,000 for the
recognized?
month. Work-in-process records revealed
that 35,000 units were started in March and A.₱15,700
that 30,000 were finished. Normal spoilage
of 2% of units finished was incurred. Ending B.₱29,400
work-in-process units are complete in C.₱12,671
respect to direct materials costs. Spoilage is
not detected until the process is complete. D.₱12,907
MarJo uses the weighted-average method.
CORRECT ANSWER:
An investor wants to know whether a
certain portfolio is risky compared to
the industry benchmark, below is the
data for the said portfolio. A. 10.18%
State Probability Return B. 11.14%
Stock A
1 16% -3% C. 12.18%
2 40% -11%
3 14% 23% D.12.74%
4 30% -14%
What is the Standard Deviation of
the returns of the Stock?
CORRECT ANSWER: