Assessment #4 (Long quiz)

Due
Oct 7 at 11:59pm
Points
50
Questions
50
Available
Oct 7 at 12am - Oct 7 at 11:59pm
1 day
Time Limit
180 Minutes

Instructions
This assessment is intended to assess your knowledge of the topics we have covered, from conceptual framework up to statement of
cash flows. 

Read each question carefully. For multiple choice questions, choose the best answer for each of the following items.For straight
problems, compute for the correct answers and enter only your final answers.  

Attempt History
Attempt Time Score
LATEST Attempt 1
174 minutes 44 out of 50


Correct answers will be available on Oct 10 at 12am.

Score for this quiz:

44 out of 50
Submitted Oct 7 at 8:18pm
This attempt took 174 minutes.

Question 1 1
/ 1 pts

Which of the following would be classified as a non-current asset?

 
A. Goods which are in process of production for sale in the ordinary course of business.

 
B. Debt and equity securities acquired principally for the purpose of generating a profit from short-term
fluctuations in price or dealer’s margin.

 
C. Cash funds that are set aside for payment of equipment to be delivered a month after the reporting
period.

 
D. Amounts due from customers within a period of 12 to 18 months, extended within the usual credit
term of the enterprise.
Incorrect
Question 2 0
/ 1 pts

All of the following components of other comprehensive income are reclassified subsequently to
profit or loss, except

 
A. Unrealized gain on investment in bonds securities measured at fair value through OCI

 
B. Gain from translating financial statements of a foreign operation

 
C. Actuarial gain on projected benefit obligation

 
D. Unrealized gain on futures contract designated of cash flow hedge

Question 3 1
/ 1 pts

The following statements correctly refer to the accounting process.

Measuring is the accounting process of analyzing business activities as to whether or not

I
they will be recognized in    the books

Recognition refers to the process of including the effects of an event in the totals of the
II  statement of financial            position or the statement of profit or loss and other
comprehensive income through memo entries.

Disclosure of events in the notes to financial statement without including in the totals of
III the statement of financial position or statement of profit or loss and other comprehensive
income is not an application of the recognition principle.

An accountable events is an event that has an effect on the assets, liabilities or equity of
IV 
an entity and its effect can         be measured reliably.

V Sociological and psychological matters are within the scope of accounting.

 
A. I, II, III, IV, V

 
B. I, II, III, IV

 
C. IV

 
D. III, IV

 Question 4 1
/ 1 pts

Which of the following should be classified as current asset?

 
A. Investment property

 
B. Property, plant and equipment

 
C. Financial asset held for trading

 
D. Cash surrender value

Incorrect Question 5 0
/ 1 pts

What qualitative characteristic is met if information influences the economic decisions of users by
helping them evaluate past, present or future events of confirming or correcting their past
evaluations?

 
A. Relevance

 
B. Reliability

 
C. Understandability

 
D. Comparability

Question 6 1
/ 1 pts

Financial statements are a structured representation of the financial position and financial
performance of an entity. The objective of general purpose financial statements is to provide
information about an entity’s (choose the incorrect statement)

 
A. Financial position

 
B. Cash flows

 
C. Valuation

  
D. Financial performance

Question 7 1
/ 1 pts

The conceptual framework includes a cost-benefit constraint. Which of the following best describes
the cost-benefit constraint?

 
A. The benefits of the information must be greater than the cost of providing it.

 
B. Financial information should be free from cost to users of the information.

 
C. Cost of providing financial information are not always evident or measurable, but must be
considered.

 
D. All of the choices are correct.

Incorrect Question 8 0
/ 1 pts

Financial statements are a structured representation of the financial position and financial
performance of an entity. The main objective of financial statements is

 
A. To provide information about the financial position, financial performance and cash flows of an entity
that is useful to a wide range of users in making economic decisions.

 
B. To show the results of the management’s stewardship of the resources entrusted to it.

 
C. To provide information about the products of the entity, its achievements during the year, and its
plans for the following years.

 
D. To provide information essential in making buy or sell decisions.

Question 9 1
/ 1 pts
Under PAS 1, an entity shall present a complete set of financial statements

 
A. including comparative information at least annually.

 
B. At least annually, with or without comparative information.

 
C. On as-needed basis, with or without comparative information.

 
D. At least every three years when there are limited users.

Question 10 1
/ 1 pts

Which of the following is correct regarding the classification of certain items in the statement of
cash flows by a non-financial institution?

    Option 1 Option 2

I.                  Interest received Operating activities Investment activities

II.                Interest paid Operating activities Financial activities

III.               Dividends received Operating activities Investing activities

IV.              Dividends paid Financing activities Operating activities

 
A. I only

 
B. I, II and III

 
C. II, III, and IV

 
D. All of these

Question 11 1
/ 1 pts

The amortization of bond premium on long-term debt should be presented in a statement of cash
flows (using indirect approach for operating activities) as a(n)
  
A. Addition to net income

 
B. Deduction from net income

 
C. Investing activity

 
D. Financing activity

Question 12 1
/ 1 pts

Cheesecake Manufacturing Co. purchased a 3-month Treasury bill. In preparing Cheesecake’s

statement of cash flows, this purchase would

 
A. Have no effect

 
B. Be treated as an outflow from financing activities

 
C. Be treated as an outflow from lending activities

 
D. Be treated as an outflow from investing activities

Question 13 1
/ 1 pts

Which one of the following bases of income and expense recognition is acceptable for Financial
reporting under current GAAP?

 
A. Cash basis

 
B. Modified cash basis

 
C. Accrual basis

 
D. All of these

Question 14 1
/ 1 pts

Which of the following measurement attributes is not currently used in practice?

  
A. Present value

 
B. Net realizable value

 
C. Current replacement cost

 
D. Inflation-adjusted cost

Question 15 1
/ 1 pts

Under the cash basis revenue are recognized when they are

 
A. Collected

 
B. Earned

 
C. Earned and collected

 
D. Earned and become measurable

Question 16 1
/ 1 pts

Which statement relates to comparability?

 
A. Information is available to decision-makers in time to be capable of influencing their decisions.

 
B. Different knowledgeable and independent observers could reach consensus, although not
necessarily complete agreement, that a particular depiction is a faith representation.

 
C. Financial reports are prepared for users who have a reasonable knowledge of business and
economic activities and who review and analyze the information with diligence.

 
D. Enable users to identify and understand similarities in, and differences amount items.

 Question 17 1
/ 1 pts

Under the accrual basis, revenue are recognized when they are

 
A. Collected

 
B. Earned

 
C. Earned and collected

 
D. Earned and become measurable

Question 18 1
/ 1 pts

The general features of financial statement presentation as prescribed under PAS 1 –

Presentation of Financial Statements includes

I. Fair presentation and compliance with PFRS V. Offsetting

II. Going concern VI. Frequency of reporting

III. Accrual basis of accounting VII. Comparative information

IV. Materiality and aggregation VIII. Consistency of presentation

 
A. I, II, III, IV

 
B. I, II, III, IV, V

 
C. I, II, III, IV, V, VII

 
D. All of these

Incorrect
Question 19 0
/ 1 pts

Which of the following is a non-current liability on December 31, 2021 statement of financial
position?
  
A. Bonds payable maturing on March 2022 which were refinanced in 2022 before issuance of the 2021
financial statements.

 
B. Mortgage note payable due March 15, 2022, which was rolled over in 2022 after the issuance of the
2021 financial statements.

 
C. Mortgage note payable due March 15, 2022, which was converted into shares of the company’s
ordinary share capital in 2022 before the issuance of 2021 financial statements.

 
D. Mortgage note payable due March 15, 2022, in which the entity has the intention and discretion to
roll over for a period of at least 24 months from the original maturity date.

Question 20 1
/ 1 pts

Omissions or misstatements of items are material if they could individually or collectively; influence
the economic decisions of users taken on the basis of the financial statements. Materiality depends
on

 
A. The peso amount of financial consequence of the omission or misstatement judged in the
surrounding circumstances.

 
B. The size and peso amount of the omission or misstatement judged in the surrounding
circumstances.

 
C. The peso amount and nature of the omission but not the misstatement judged in the surrounding
circumstances.

 
D. The size and nature of the omission or misstatement judged in the surrounding circumstances.

Question 21 1
/ 1 pts
Belgian Company’s trial balance reflected the following account balances on December 31, 2021:

Cash 400,000

Trade receivable 1,500,000

Inventory, including inventory expected in the ordinary course of operations to be sold  

beyond 12 months amounting to P800,000 1,200,000

Prepaid insurance 240,000

Financial assets at fair value through profit or loss 300,000

Financial assets at fair value through OCI 600,000

Financial assets at amortized cost 1,000,000

Deferred tax asset 150,000

Bank overdraft 250,000

Machinery 800,000

Accumulated depreciation 200,000

Noncurrent asset held for sale – building 650,000

Land used as a plant site 920,000

How much is the total noncurrent assets for the year ended December 31, 2021?

3,270,000
 Cash 400,000 CA

Trade receivable 1,500,000 CA

Inventory, including inventory expected in the ordinary course of operations to be sold  

CA
beyond 12 months amounting to P800,000 1,200,000

Prepaid insurance 240,000 CA

Financial assets at fair value through profit or loss 300,000 CA

Financial assets at fair value through OCI 600,000 NCA

Financial assets at amortized cost 1,000,000 NCA

Deferred tax asset 150,000 NCA

Bank overdraft 250,000 CL

Machinery 800,000 NCA

Accumulated depreciation 200,000 -NCA

Noncurrent asset held for sale – building 650,000 CA

Land used as a plant site 920,000 NCA

Question 22 1
/ 1 pts

Belgian Company’s trial balance reflected the following account balances on December 31, 2021:

Cash 400,000

Trade receivable 1,500,000

Inventory, including inventory expected in the ordinary course of operations to be sold  

beyond 12 months amounting to P800,000 1,200,000

Prepaid insurance 240,000

Financial assets at fair value through profit or loss 300,000

Financial assets at fair value through OCI 600,000

Financial assets at amortized cost 1,000,000

Deferred tax asset 150,000

Bank overdraft 250,000

Machinery 800,000

Accumulated depreciation 200,000

Noncurrent asset held for sale – building 650,000

Land used as a plant site 920,000

How much is the total current assets for the year ended December 31, 2021?

4,290,000

Cash 400,000 CA

Trade receivable 1,500,000 CA

Inventory, including inventory expected in the ordinary course of operations to be sold  

CA
beyond 12 months amounting to P800,000 1,200,000

Prepaid insurance 240,000 CA

Financial assets at fair value through profit or loss 300,000 CA

Financial assets at fair value through OCI 600,000 NCA

Financial assets at amortized cost 1,000,000 NCA

Deferred tax asset 150,000 NCA

Bank overdraft 250,000 CL

Machinery 800,000 NCA

Accumulated depreciation 200,000 -NCA

Noncurrent asset held for sale – building 650,000 CA

Land used as a plant site 920,000 NCA

Question 23 1
/ 1 pts
The ledger of Husky Company as of December 31, 2021 includes the following:

Asset

Cash 5,000

Trade accounts receivable (net of P5,000 credit balance in accounts) 20,000

Held for trading securities 40,000

Financial assets designated at FVPL 15,000

Investment in equity securities at FVOCI 35,000

Investment in bonds measured at amortized cost (due in 3 years) 30,000

Prepaid assets 5,000

Deferred tax asset (expected to reverse in 2022) 6,000

Investment in associate 18,000

Investment property 23,000

Sinking fund 19,000

Property, plant, and equipment 50,000

Goodwill   14,000

Total 280,000

How much is the total current assets?

90,000
 Asset  

Cash 5,000 CA

Trade accounts receivable (net of P5,000 credit balance in

20,000 +5000 CA
accounts)

Held for trading securities 40,000 CA

Financial assets designated at FVPL 15,000 CA

Investment in equity securities at FVOCI 35,000 NCA

Investment in bonds measured at amortized cost (due in 3 years) 30,000 NCA

Prepaid assets 5,000 CA

Deferred tax asset (expected to reverse in 2022) 6,000 NCA

Investment in associate 18,000 NCA

Investment property 23,000 NCA

Sinking fund 19,000 NCA

Property, plant, and equipment 50,000 NCA

Goodwill   14,000 NCA

Total 280,000  

Question 24 1
/ 1 pts

Pearl Company provided the following trial balance on December 31, 2023:

  Debit Credit

Cash overdraft      100,000

Accounts receivable, net    350,000  

Inventory    580,000  

Prepaid expenses    120,000  

Land classified as held for sale 1,000,000  

Property, plant and equipment    950,000  

Accounts payable and accrued expenses      320,000

Ordinary share capital      250,000

Share premium   1,500,000

Retained earnings               --    830,000

  3,000,000 3,000,000

Checks amounting to P300,000 were written to vendors and recorded on December 29, 2023,
resulting in a cash overdraft of P100,000. The checks were mailed on January 15, 2024. Land
classified as held for sale was sold for cash on January 31, 2024. The entity issued the financial
statements on March 31, 2024. On December 31, 2023, what total amount should be reported as
current assets?

2,250,000

  Debit Credit  

Cash overdraft      100,000  

Accounts receivable, net    350,000   CA

Inventory    580,000   CA

Prepaid expenses    120,000   CA

Land classified as held for sale 1,000,000   CA

Property, plant and equipment    950,000   NCA

Accounts payable and accrued expenses      320,000 CL

Ordinary share capital      250,000 SHE

Share premium   1,500,000 SHE

Retained earnings               --    830,000 SHE

  3,000,000 3,000,000  

CASH                                  200,000  CA

UNRELEASED CHECK   (300,000) CL

OVERDRAFT                   (100,000)
Use the following information for the next four (4) questions:

Waitz Company provided the following account balances on December 31, 2022:

Share capital 5,000,000

Share premium 500,000

Retained earnings 880,000

Serial bonds payable (P500,000 due every July 1 of each year 2,500,000

Employees income tax payable 20,000

Note payable 100,000

Accrued expense 30,000

Accrued interest on note payable 10,000

Income tax payable 60,000

Allowance for doubtful accounts 50,000

Advances from customers 100,000

Accounts receivable 500,000

Accumulated depreciation – building 1,600,000

Accumulated depreciation – machinery 1,300,000

Financial assets at amortized cost 1,500,000

Land 1,500,000

Machinery 2,000,000

Factory supplies 50,000

Notes receivable 150,000

Building 4,000,000

Cash 420,000

Claim receivable 20,000

Finished goods 400,000

Franchise 200,000

Goods in process 600,000

Prepaid insurance 20,000

Raw materials 200,000

Financial assets at fair value through profit or loss 250,000

Tools 40,000

Goodwill 100,000

Plant expansion fund 500,000

Accounts payable 300,000

Question 25 1
/ 1 pts

On December 31, 2022, what total amount should be reported as current assets?

2,560,000

Question 26 1
/ 1 pts

On December 31, 2022, what total amount should be reported as non-current assets?

6,940,000

Question 27 1
/ 1 pts

On December 31, 2022, what total amount should be reported as current liabilities?
 1,120,000

Question 28 1
/ 1 pts

On December 31, 2022, what total amount should be reported as non-current liabilities?

2,000,000

Share capital 5,000,000 SHE

Share premium 500,000 SHE

Retained earnings 880,000 SHE

500,000
CL
Serial bonds payable (P500,000 due every July 1 of each year 2,500,000
2,000,000
NCL

Employees income tax payable 20,000 CL

Note payable 100,000 CL

Accrued expense 30,000 CL

Accrued interest on note payable 10,000 CL

Income tax payable 60,000 CL

Allowance for doubtful accounts 50,000 -CA

Advances from customers 100,000 CL

Accounts receivable 500,000 CA

Accumulated depreciation – building 1,600,000 -NCA

Accumulated depreciation – machinery 1,300,000 -NCA

Financial assets at amortized cost 1,500,000 NCA

Land 1,500,000 NCA

Machinery 2,000,000 NCA

Factory supplies 50,000 CA

Notes receivable 150,000 CA

Building 4,000,000 NCA

 Cash 420,000 CA

Claim receivable 20,000 CA

Finished goods 400,000 CA

Franchise 200,000 NCA

Goods in process 600,000 CA

Prepaid insurance 20,000 CA

Raw materials 200,000 CA

Financial assets at fair value through profit or loss 250,000 CA

Tools 40,000 NCA

Goodwill 100,000 NCA

Plant expansion fund 500,000 NCA

Accounts payable 300,000 CL

Use the following information for the next three (3) questions:

Tigreal Company paid or collected during 2026 the following items:

Interest revenue 75,500

Insurance expense 9,600

Salaries expense 65,000

The following balances were from Tigreal Company’s balance sheets:

  December 31, 2026 December 31, 2025

Interest receivable 7,500 9,100

Salaries payable 4,200 8,900

Prepaid insurance 1,500 1,100

 Question 29 1
/ 1 pts

The cash received for interest during 2026 was

77,100

Interest revenue 75,500

Interest receivable, beg 9,100

Interest receivable, end (7,500)

Cash received 77,100

Incorrect Question 30 0
/ 1 pts

The cash paid for salaries during 2026 was

66,700

Salaries expense 65,000

Salaries payable, beg 8,900

Salaries payable, end (4,200)

Cash paid for salaries 69,700

Question 31 1
/ 1 pts

The cash paid for insurance premiums during 2026 was

10,000
 Insurance expense 9,600

Prepaid Insurance, beg (1,100)

Prepaid Insurance, end 1,500

Cash paid for Insurance 10,000

Question 32 1
/ 1 pts

Oogie Company owns an office building and leases the office under a one-year rental agreement.
Not all tenants make timely payments of their rent. Oogie Company’s balance sheet contained the
following data:

  2025 2026

Rental receivable   9,600 12,400

Unearned rentals 32,000 24,000

In 2026, Oogie Company received P80,000 from tenants. Rent revenue for 2026 is

90,800

Rent Received 80,000

Unearned rentals, beg   32,000

Rental receivable, end 12,400

Unearned rentals, end (24,000)

Rental receivable, beg (9,600)

Rent revenue 90,800

Question 33 1
/ 1 pts
The following information is available for Glacuis Company for 2017:

Disbursements for purchases 1,050,000

Increase in trade accounts payable 75,000

Decrease in merchandise inventory 30,000

Cost of goods sold for 2017 under accrual basis is

1,155,000

Disbursements for purchases 1,050,000

Increase in trade accounts payable 75,000

Decrease in merchandise inventory 30,000

Cost of goods sold 1,155,000

Question 34 1
/ 1 pts

The December 31 balances of selected accounts of Gemini Company and pertinent information
are shown below:

Inventory – January 1 2,000,000

Purchases 7,500,000

Purchases returns and allowances 500,000

Sales returns and allowances 750,000

Inventory at December 31 2,800,000

Gross profit rate on net sales 20%

Gross sales for the current year amount to

 8,500,000

Inventory – January 1 2,000,000

Purchases 7,500,000

Purchases returns and allowances (500,000)

Inventory at December 31 (2,800,000)

Cost of sales 6,200,000

Cost of sales to sales ratio           80%

Net sales 7,750,000

Purchase return    750,000

Gross sales 8,500,000

Question 35 1
/ 1 pts

Noche Company acquires patent rights from other enterprises and pays advance royalties in some
cases, and in others, royalties are paid within 90 days after year-end. During 2021 Noche remitted
royalties of P900,000. The following data are included in Noche’s December 31, balance sheets:

  January 1 December 31

Prepaid royalties 165,000 135,000

Royalties payable 240,000 225,000

In its income statement for the year ended December 31, 2021, Noche should report royalty
expense of

915,000
 Royalties Received 900,000

Prepaid royalties, beg   165,000

Royalties payable, end 225,000

Prepaid royalties, end (135,000)

Royalties payable, beg (240,000)

Rent revenue 915,000

Question 36 1
/ 1 pts

Gayagoy Company reported sales from customers of P6,000,000 and purchases of P4,000,000 for
the year ended December 31, 2024. Additional information follows:

  January 1 December 31

Accounts receivable 2,000,000 3,000,000

Allowance for uncollectible accounts    (150,000)    (200,000)

Accounts payable 1,500,000 2,400,000

Inventory 2,300,000 2,600,000

Gayagoy wrote off uncollectible accounts totaling P500,000 during 2024. Under cash basis, what is
the gross profit?

1,700,000
 Sales 6,000,000  

AR, beg 2,000,000  

AR, end (3,000,000)  

Write-off (500,000)  

Cash Collection   4,500,000

     

Purchases 4,000,000  

AP, beg 1,500,000  

AP, end (2,400,000)  

Inventory, beg 2,300,000  

Inventory, end (2,600,000)  

COGS   2,800,000

    1,700,000

Question 37 1
/ 1 pts

The following are among the expenses incurred by Boykin Company during the year.

Interest expense 48,000

Cost of inventories sold 1,200,000

Insurance expense 200,000

Advertising expense 40,000

Freight-out 20,000

Freight-in 8,000

Loss on sale of equipment 4,000

Legal and other professional fees 24,000

Rent expense (one-half occupied by sales department) 16,000

Sales commission expense 28,000

Doubtful accounts expense 32,000

How much are the distribution costs or selling expenses?

96,000

Advertising expense 40,000

Freight-out 20,000

Rent expense  8,000

Sales commission expense 28,000

Total selling expense 96,000

Question 38 1
/ 1 pts

Bluetick Company’s trial balance reflected the following account balances on December 31, 2021:

Auditing and Accounting fees 300,000

Advertising 500,000

Delivery expense 300,000

Interest 125,000

Loss on sale of long-term investment 110,000

Officer’s salaries 625,000

Rent for office space 500,000

Insurance 200,000

Sales commissions 1,075,000

Loss on sale of equipment 75,000

Depreciation on factory machine 12,500

Depreciation on office equipment 15,000

Depreciation on delivery truck 14,000

One-half of the rented premises is occupied by the sales department.

What amount should be reported as total distribution costs?

2,139,000

Advertising 500,000

Delivery expense 300,000

Sales commissions 1,075,000

Depreciation on delivery truck 14,000

Rent for office space 250,000

Total distribution costs 2,139,000

Question 39 1
/ 1 pts

Border Company’s trial balance reflected the following account balances on December 31, 2021:

Net sales 4,000,000

Share of profit of associate 125,000

Cost of goods sold 2,500,000

Interest income 30,000

Loss on sale of equipment 50,000

Revaluation surplus during the year 300,000

Finance cost 35,000

Distribution cost 60,000

Administrative expense 120,000

Translation gain 50,000

Income tax expense 408,000

Unrealized gain on FVTOCI securities 200,000

Income from discontinued operations 100,000

How much is the comprehensive income for the year 2021?

1,632,000

Net sales 4,000,000

Share of profit of associate 125,000

Cost of goods sold (2,500,000)

Interest income 30,000

Loss on sale of equipment (50,000)

Revaluation surplus during the year 300,000

Finance cost (35,000)

Distribution cost (60,000)

Administrative expense (120,000)

Translation gain 50,000

Income tax expense (408,000)

Unrealized gain on FVTOCI securities 200,000

Income from discontinued operations 100,000

Question 40 1
/ 1 pts
Riptide Corporation reports operating expenses in two categories: (1) selling, (2) general and
administrative. The adjusted trial balance included the following expense and loss accounts:

Accounting and legal fees 120,000

Advertising 150,000

Freight-out 80,000

Interest 70,000

Loss on sale of long-term investment 30,000

Officers’ salaries 225,000

Rent for office space 220,000

Sales salaries and commissions 140,000

On half of the rented premises is occupied by the sales department. Riptide’s total selling
expenses are

480,000

Advertising 150,000

Freight-out 80,000

Sales salaries and commissions 140,000

Rent for office space 110,000

Total selling 480,000

Question 41 1
/ 1 pts

The following information for 2017 is provided by Parallax Company:

Sales 20,000,000
Cost of goods sold 12,000,000

Selling expenses 1,200,000

General and administrative expenses 1,800,000

Interest expense 1,500,000

Gain on early extinguishment of long-term debt 500,000

Correction of inventory error, net of income tax –

800,000
credit

Investment income – equity method 600,000

Gain on sale of investment 2,000,000

Income tax expense 2,100,000

Dividends declared 2,500,000

What was the 2017 income from continuing operations?

4,500,000
 Sales   20,000,000

Cost of goods sold   (12,000,000)

Gross profit   8,000,000

Gain on early extinguishment of long-term debt   (500,000)

Investment income – equity method   (600,000)

Gain on sale of investment   (2,000,000)

Total income   11,100,000

Selling expenses 1,200,000  

General and administrative expenses 1,800,000  

Interest expense 1,500,000 (4,500,000)

Operating profit before tax   6,600,000

Income tax   (2,100,000)

Operating income after tax   4,500,000

Use the following information for the next three (3) questions:

MARIKINA Company had the following cash transactions:

Cash collected from customers  12,500

Cash received from a loan 8,000

Cash paid for wages payable (5,750)

Cash paid for the purchase of a building (15,000)

Cash received for the issuance of new shares of stock 2,600

Cash received from sale of land 6,400

Cash paid for rent (2,500)

Cash paid for dividends (1,500)

Question 42 1
/ 1 pts

Given the above information, compute cash flow from operating activities.

 
A. 4,250

 
B. 20,750

 
C. 15,750

 
D. 9,250

Operating activities: $12,500 - $5,750 - $2,500 = $4,250

Question 43 1
/ 1 pts

Given the above information, compute cash flow from investing activities.

 
A. 4,250

 
B. (4,250)

 
C. (8,600)

 
D. 8,600

Investing activities: ($15,000) + $6,400 = ($8,600)

Question 44 1
/ 1 pts

Given the above information, compute cash flow from financing activities.

 
A. 6,900

 
B. 3,900

  
C. 12,100

 
D. 9,100

Financing activities: $8,000 + $2,600 - $1,500 = $9,100

Question 45 1
/ 1 pts

Selected information from Dinkel Company’s 2020 accounting records is as follows:

Proceeds from issuance of ordinary shares 400,000

Proceeds from issuance of bonds 1,200,000

Cash dividends on ordinary shares paid 160,000

Cash dividends on preference shares paid 60,000

Purchase of treasury shares 120,000

Sale of ordinary shares to officers and employees not included

100,000
above

Dinkel’s statement of cash flows for the year ended December 31, 2020, would show net cash
provided (used) by financing activities of

 
A. 60,000 provided

 
B. 220,000 used

 
C. 160,000 provided

 
D. 1,360,000 provided

Question 46 1
/ 1 pts

During 2020, Stout Inc. had the following activities related to its financial operations:
Carrying value of convertible preference shares in Stout, converted into ordinary
360,000
shares of Stout

Payment in 2020 of cash dividend declared in 2019 to preference shareholders 186,000

Payment for the early retirement of long-term bonds payable (carrying amount
2,250,000
P2,220,000)

Proceeds from the sale of treasury shares (on books at cost of P258,000) 300,000

The amount of net cash used in financing activities to appear in Stout’s statement of cash flows for
2020 should be

 
A. 1,590,000

 
B. 1,776,000

 
C. 2,136,000

 
D. 2,148,000

Question 47 1
/ 1 pts

BCAA Company prepares its statement of cash flows using the direct method for operating
activities. For the year ended December 31, 2020, BCAA Company reports the following activities:

Sales on account 1,300,000

Cash sales 740,000

Decrease in accounts receivable 610,000

Increase in accounts payable 72,000

Increase in inventory 48,000

Cost of goods sold 975,000

What is the amount of cash collections from customers reported by BCAA for the year ended
December 31, 2020?
  
A. 2,040,000

 
B. 1,910,000

 
C. 2,650,000

 
D. 1,430,000

Question 48 1
/ 1 pts

The following information on selected cash transactions for 2020 has been provided by Mancuso
Company:

Proceeds from sale of land 160,000

Proceeds from long-term borrowings 400,000

Purchases of plant assets 144,000

Purchases of inventories 680,000

Proceeds from sale of Mancuso ordinary shares 240,000

What is the cash provided or used by investing activities for the year ended December 31, 2020 as
a result of the above information?

 
A. 16,000

 
B. 256,000

 
C. 160,000

 
D. 800,000

Use the following information for the next two (2) questions:

Piccolo Company provided the following information for the year ended December 31, 2025:

Increase in long-term debt     600,000

 Purchase of treasury shares 500,000

Depreciation and amortization 1,900,000

Gain on sale of equipment 100,000

Proceeds from issuance of ordinary shares 2,000,000

Purchase of equipment for cash 4,000,000

Proceeds from sale of equipment 400,000

Payment of dividends 700,000

Net income 4,500,000

Increase (decrease) in working capital accounts:  

            Accounts receivable 1,500,000

            Inventory (800,000)

            Trade notes payable 1,000,000

            Accounts payable 1,200,000

            Income tax payable (300,000)

Cash balance, January 1, 2025 1,500,000

Incorrect
Question 49 0
/ 1 pts

What is the net cash provided by operating activities?

 
A. 7,700,000

 
B. 7,600,000

 
C. 7,500,000

 
D. 6,800,000

Question 50 1
/ 1 pts

What is the net cash used by investing activities?

 
A. 4,300,000

 
B. 4,000,000

 
C. 3,600,000

 
D. 400,000

Quiz Score:
44 out of 50