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    CPA Review School of The Philippines Manila

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    Sophia Perez
    This document contains a final preboard examination for a financial accounting and reporting course. It consists of 48 multiple choice questions testing concepts such as leases, investments, pensions, income taxes, and financial statement analysis. The questions cover the preparation and analysis of financial statements, accounting for various transactions, and calculation of key financial ratios.

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    CPA Review School of The Philippines Manila

    Uploaded by

    Sophia Perez
    285 views4 pages
    This document contains a final preboard examination for a financial accounting and reporting course. It consists of 48 multiple choice questions testing concepts such as leases, investments, pensions, income taxes, and financial statement analysis. The questions cover the preparation and analysis of financial statements, accounting for various transactions, and calculation of key financial ratios.

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    This document contains a final preboard examination for a financial accounting and reporting course. It consists of 48 multiple choice questions testing concepts such as leases, investments, pensions, income taxes, and financial statement analysis. The questions cover the preparation and analysis of financial statements, accounting for various transactions, and calculation of key financial ratios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    285 views4 pages

    CPA Review School of The Philippines Manila

    Uploaded by

    Sophia Perez
    This document contains a final preboard examination for a financial accounting and reporting course. It consists of 48 multiple choice questions testing concepts such as leases, investments, pensions, income taxes, and financial statement analysis. The questions cover the preparation and analysis of financial statements, accounting for various transactions, and calculation of key financial ratios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    CPA Review School of the Philippines

    Manila

    Financial Accounting and Reporting VALIX/SIY/VALIX/ESCALA/SANTOS/DELA CRUZ


    Final Preboard Examination

    1. PV of lease payments 2,759,000


    PV of guaranteed residual value (200,000 x 0.47) ( 94,000)
    PV of rentals 2,665,000

    Periodic rental (2,665,000 / 5.33) 500,000 C

    2. 2,759,000 – 2,500,000 259,000 B

    3. Carrying amount of note (4,000,000 + 480,000) 4,480,000


    Carrying amount of note receivable (3,000,000)
    Carrying amount of equipment ( 700,000)
    Gain on extinguishment 780,000 C

    4. 800,000 – 700,000 100,000 gain A

    5. 2,500,000 – 2,000,000 500,000 C

    6. Cumulative compensation – 2021 (9,000,000 x 94% x 2/2) 8,460,000


    Cumulative compensation – 2020 (9,000,000 x 96% x ½) (4,320,000)
    Expense for the year 2021 4,140,000 D

    7. Share options outstanding 8,460,000


    Share premium – unexercised share options 8,460,000 C

    8. 502,500 / 10,050,000 5% B

    9. PBO – December 31, 2020 10,500,000


    Current service cost and interest expense (1,350,000 + 502,500) 1,852,500
    Actuarial gain (SQUEEZE) ( 852,500) C
    Benefits paid ( 250,000)
    PBO – December 31, 2021 11,250,000

    10. FVPA – 12/31/2020 10,050,000


    Contribution to the plan (SQUEEZE) 647,500 A
    Actual return 502,500
    Benefits paid ( 250,000)
    FVPA – 12/31/2021 10,950,000

    11. 7,000,000 – 6,000,000 1,000,000 B

    12. 16,660,000 D

    13. Total SHE 16,660,000


    Preference SHE
    Par 500,000
    Liquidation premium (5 x 5,000) 25,000
    Preference dividend (500,000 x 8%) 40,000 (565,000)
    Ordinary SHE 16,095,000

    Book value per ordinary share (16,095,000 / 131,000) 122.86 A

    Preference Ordinary Total


    Fixed Pref. Div. 72,000 72,000
    Allocation to Ord. 96,000 96,000
    Balance 48,000 192,000 240,000
    Total 120,000 288,000 408,000

    14. C
    Page 2

    15. Future taxable amount (270,000 / 30%) 900,000


    Accounting depreciation 4,500,000
    Tax depreciation 5,400,000 C

    16. Current tax expense (3,375,000 – 270,000) 3,105,000


    Taxable income (3,105,000 / 30%) 10,350,000 D

    Year Cumulative Expense


    2020 (30,000 x 80 x 1/3) 800,000 800,000
    2021 (80,000 x 120 x 2/3) 6,400,000 5,600,000
    2022 (50,000 x 140 x 3/3) 7,000,000 600,000

    17. B

    18. D

    19. Proceeds (50,000 x 100) 5,000,000


    Share options 7,000,000
    Par value (50,000 x 80) (4,000,000)
    Share premium 8,000,000 B

    20. CA of loan (5,000,000 + 450,000) 5,450,000


    PV of expected cash flows (5,450,000 x 0.772) (4,207,400)
    Impairment loss 1,242,600 A

    21. 3,000,000 – 300,000 2,700,000 C

    22. 20,000,000 + 600,000 20,600,000 B

    23. Depreciation 937,500


    Interest expense (8,000,000 x 10%) 800,000
    Total expense 1,737,500 D

    24. 7,000,000 – 5,600,000 1,400,000 A

    25. CA of assets 6,400,000


    Recoverable amount (value in use) 3,800,000
    Impairment loss 2,600,000

    Impairment loss allocated to goodwill 1,400,000 B

    26. 5,850,000 B

    27. 1,000,000 – 300,000 – 50,000 – 53,000 597,000 A

    28. Required allowance (597,000 x 8%) 47,760


    Debit balance of allowance (write-off) 53,000
    Doubtful accounts expense 100,760 D

    29. 600,000 x 6% 36,000 C

    30. Initial factor’s holdback (600,000 x 2%) 12,000


    Required balance (600,000 -350,000 = 250,000 x 2%) ( 5,000)
    Amount to be returned to Emerald 7,000 C

    31. Purchase discount lost (3,000,000 x 20% x 2%) 12,000 A

    32. Cost of goods sold (3,000,000 x 98% x 90%) 2,646,000 B


    Page 3

    33. Merchandise available for sale 4,822,000


    Cost of goods sold (2,420,000 x 70%) (1,694,000)
    Estimated inventory 3,128,000
    Inventory owned and on hand (1,500,000 – 300,000) (1,200,000)
    Insurance claim 1,928,000 B

    34. 7,500,000 D

    35. 870,000 / 7,250,000 12% C

    36. Fair value (8,000,000 x 120%) 9,600,000


    CA per amortization schedule (7,250,000 + 230,000) (7,480,000)
    Unrealized gain – OCI 2,120,000 A

    37. 9,600,000 D

    38. 7,000,000 B

    39. March 1 (540,000 x 4/4) 540,000


    April 1 (756,000 x ¾) 567,000
    May 1 (1,350,000 x 2/4) 675,000
    June 1 (2,160,000 x ¼) 540,000
    Weighted average expenditures 2,322,000

    Specific borrowing (1,080,000 x 9% x 10/12) 81,000


    General borrowing (1,242,000 x 12% x 10/12) 124,200
    Capitalized borrowing cost 205,200 C

    40. 321,000 – 205,200 115,800 A

    41. 5,821,200 A

    42. 3,000,000 x 20% = 600,000 + 700,000 1,300,000 B

    43. Basic EPS (4,850,000 / 200,000) 24.25


    Diluted EPS (5,000,000 / 250,000) 20.00 D

    44. 3,800,000 – 150,000 3,650,000 C

    45. Cost of goods sold 2,250,000


    Decrease in inventory ( 194,000)
    Increase in AP ( 120,000)
    Cash paid to suppliers 1,936,000 A

    46. 210,000 – 19,500 + 30,000 220,500 B

    47. Net income 490,000


    Accounts receivable (150,000)
    Inventory 194,000
    Salaries payable ( 80,000)
    Accounts payable 120,000
    Income tax payable ( 30,000)
    Depreciation 167,000
    Deferred tax liability 19,500
    Net cash flow from operating activities 730,500 B
    Page 4

    48. Expense 12,000


    Cash short/over 3,000
    Cash 15,000 C

    49. 550,000 + 3,000,000 3,550,000 A

    50. Amortization of trademark (1,500,000 / 10) 150,000


    Deferred tax expense 250,000
    Loss from change in fair value 600,000
    Impairment loss on inventory 120,000
    Total expense 1,120,000 B

    51. C
    52. D
    53. A
    54. B
    55. C
    56. C
    57. B
    58. D
    59. A
    60. B
    61. C
    62. C
    63. A
    64. B
    65. D
    66. A
    67. B
    68. C
    69. A
    70. C

    --E N D--

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