ACTG01A REVIEWER

1. 2. 3. 4. 5. Element related to the performance are __________________. Arises in the course of ordinary and regular activity. Ex. Fees, sales, interest, dividend etc. _____________ Financial Statement must be prepared ________________. Equity is _______________. Expense classify according to function (cost of sales, selling expense, administrative & other operating activities.) a. Cost of Sales Method c. Account form b. Nature of Expense d. Report form Physical capital maintenance concept requires adoption of this measurement a. Historical cost c. Present Value b. Current cost d. Realized value Change in measurement basis is ______________. a. Change in accounting estimate c. prior period error b. Change in accounting policy d. not an accounting change Change in reporting entity actually a change in __________. a. Accounting policy c. Accounting concept b. Accounting estimate d. Accounting method Distinguish component of an entity engaged in providing product & services. a. Business segment c. product line b. Segment d. geographical segment Segment asset do not include ____________ a. Current asset used in operating expense c. Intangible asset less Amortization b. PPE less Accumulated Depreciation d. Deferred Tax Asset Cash equivalent are _______________. a. Short term highly liquid investment that is readily convertible into cash. b. Short term highly liquid investment that is readily convertible into cash with remaining maturity of 3 months. c. Short term highly liquid investment that is readily convertible into cash & acquired 3 months before maturity. This means that the check had merely drawn & recorded but not given to the payee. a. Undelivered Check c. stale check b. Postdated check d. outstanding check Which of the following must be deducted in bank statement to have an adjusted balance? a. Deposit in transit c. reduction of loan charge b. Outstanding check d. certified check Adjusting entry of NSF a. Debit cash & credit A/R c. No adjustment b. Debit service charge credit cash d. Debit A/R & credit cash Receivable consisting of open accounts in costumer. a. Trade receivable c. Note receivable b. Non-trade receivable d. Account Receivable Non-trade receivable usually classified as to non-current asset. a. Advance supplier c. Advances to employees b. Advance to affiliates d. Dividend receivable Account receivable shall be measured initially at _______________. a. Face value c. Maturity value b. Discounted Value d. Net realizable value Valuation allowance on proper deduction from trade account receivable in arriving estimated realized value a. Allowance for depreciation c. Allowance for sales return b. Allowance for sales discount d. Allowance for doubtful accounts

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19. Inventory shall be measured at ___________. a. Cost c. Lower off cost and net realized value b. Net realizable value d. Lower cost or market 20. Cost of inventory should comprise the ff. cost except ___________. a. Cost of purchase c. other cost incurred b. Cost of conversion d. selling cost 21. Income is ____________. 1. Increase in economic benefit during the accounting period in the form of inflow or increase in asset or decrease in liability that result in increase in equity, other than contribution from equity participant. 2. Decrease, outflow, decrease, increase, decrease. a. 1 only c. both 1 & 2 b. 2 only d. either 1 & 2 22. Elements related to financial position are ___________. a. Asset, Liability & equity c. Income & expense b. Asset & liability d. Income, expense & equity 23. Current cost is the _______________. a. Amount of cash of the consideration given at the time of acquisition b. Amount of cash that would have to be paid if the same or equivalent asset was acquired currently. c. Amount of cash that have currently obtained by the selling of an asset. d. ____ value of future net cash flow that the item is extended. 24. Expense is recognize immediately in income statement 1. When the expenditure produce no future economic benefit. 2. When the cost incurred cease to qualify for recognition of an asset in balance sheet. a. 1 only c. both 1 & 2 b. 2 only d. either 1 or 2 25. When economic benefits are expected to arise over several accounting periods and the association with income can only be broadly or indirect determined, expense are recognized in the income statement on the basis of ____. a. Cost & effect c. immediate recognition b. Systematic & rational (allocation) d. profit maximization 26 - 33 Cash on hand Rent revenue Accrued interest on N/R Purchase discount Freight-in Purchases Allowance for D/A Share premium Sales discount Interest revenue Plant expansion fund Investment in bonds 40,000 100,000 10,000 250,000 300,000 6,000,000 20,000 2,000,000 200,000 180,000 2,000,000 3,000,000 Notes Receivable Cash in bank Dividend revenue Sales Advances of employees Sales R&A Inventory beg, Jan.1 Inventory end, Dec.31 Gain from expropriation Purchase R&a Petty cash Accounts receivable 100,000 300,000 120,000 9,300,000 30,000 100,000 1,500,000 2,000,000 500,000 150,000 10,000 580,000

26. What amount should be report as net purchase? a. 6,700,000 c. 5,900,000 b. 6,000,000 d. 5,700,000 27. What amount should be report as cash & cash equivalent? a. 500,000 c. 340,000 b. 350,000 d. 50,000

28. What amount should be report as reserved? a. 2M c. 3M b. 500K d. None 29. What amount should be report as increase in inventory? a. 1.5M c. 500K b. 2M d. 3.5M 30. What amount should be report as net sales revenue? a. 9M c. 9.6M b. 9.3M d. 9.4M 31. What amount should be report as other income? a. 400K c. 500k b. 900k d. none 32. What amount should be report as long term investment? a. 2M c. 3M b. 5M d. 1M 33. What amount should be report as trade & other receivable? a. 670K c. 680K b. 650K d. 700K 34. FOREVER MIRANDA Company had A/R of 800,000 with credit terms 3/10, n/30, had factor immediately after shipment of the goods to the costumer. The factor charge had 8% commission & in addition, the factors withhold 25% of the amount of the receivable factored to cover sales return & allowances. What should be the amount of cash receipt from factoring? a. 520,000 c. 524,000 b. 512,000 d. 500,000 35. Merchandise purchased 5,000,000 Freight-in 300,000 Freight-out 100,000 Purchase Return 50,000 The inventorable cost was___________. a. 5,250,000 c. 5,150,000 b. 5,300,000 d. 5,350,000 36. Units Cost January 15,000 190,500 February 20,000 240,000 March 12,500 165,000 The physical count on March 31 show 22,500 units on hand, what is the March 31 inventory using FIFO? a. 225,000 c. 280,500 b. 120,000 d. 285,000