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Advacc 3 Answer Key Set A 165pcs

The document contains multiple choice questions related to accounting standards and concepts. It includes questions on IFRS, Philippine financial reporting frameworks, accounting for not-for-profits, and accounting for government entities. Sample problems are also provided related to depreciation, restatement of financial statements, revenue recognition for healthcare entities, and accounting for uncollectible accounts.

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Pearl Mae De Veas
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59 views3 pages

Advacc 3 Answer Key Set A 165pcs

The document contains multiple choice questions related to accounting standards and concepts. It includes questions on IFRS, Philippine financial reporting frameworks, accounting for not-for-profits, and accounting for government entities. Sample problems are also provided related to depreciation, restatement of financial statements, revenue recognition for healthcare entities, and accounting for uncollectible accounts.

Uploaded by

Pearl Mae De Veas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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RIZAL TECHNOLOGICAL UNIVERSITY

Junior Philippine Institute of Accountants


Boni Avenue, Brgy. Malamig, Mandaluyong City
Set A

MULTIPLE CHOICE-ANSWERS (Theory)


1. C Both I and II
An insurance contract is a "contract under which one party (the insurer) accepts significant
insurance risk from another party (the policyholder) by agreeing to compensate the
policyholder if a specified uncertain future event (the insured event) adversely affects the
policyholder." [IFRS 4.Appendix A]

2. B (Philippine Financial Reporting Framework for Cooperatives)


Statement of financial condition, statement of operations, statement of changes in equity,
statement of cash flows, notes
3. A 10% (Philippine Financial Reporting Framework for Cooperatives)
4. D D Pension plan (Dayag P2 Reviewer 2015 ed.)
5. A Unrestricted funds (AICPA)
6. C NCA (Budget ng Bayan)
7. A Basic information as a whole (Dayag P2 Reviewer 2015 ed.)
8. A To ensure that insurance companies could comply with IFRS (Dayag P2 Reviewer
2015 ed.)
9. B Other operating revenue (AICPA)
10. A Contribution revenue- unrestricted, when expended (AICPA)
11. D Budget execution documents (Budget ng Bayan)
12. D The event must be future. (PFRS 4)
13. D Cash inflow – Cash outflow = Fund (Adapted)
14. A 10% (Philippine Financial Reporting Framework for Cooperatives)
15. C A shelter for the homeless (Valix)
16. C Not false thus true (COA website)
17. D GOCCs and Korean fans club (Adapted)
18. B A revenue offset account (Adapted)
19. A Contractual adjustment (Valix)
20. B Personal Services must be Personnel (Punzalan)
21. D 3% (Philippine Financial Reporting Framework for Cooperatives)
22. B Budgetary accounting (Adapted)
23. B Expiration of donor-imposed restriction (See SFAS 117)
24. D Not included in the FS (Valix)
25. C Quasi-endowment fund (Guerrero, Peralta)
26. A General fund (Guerrero, Peralta Adapted)
27. A Finance by the BIR (Guerrero, Peralta Adapted)
28. A 7% (Philippine Financial Reporting Framework for Cooperatives)
29. A Single entry bookkeeping (Punzalan, Cardona)
30. A Single entry bookkeeping (Punzalan, Cardona)
Problem 1 (PPSAS No. 17) Punzalan, Cardona

The accounting records of Agency ABC show the following depreciable assets, with 10% fair market value at the end of
useful life***, using the straight line method:

Assets Cost Physical life* Service life**


Buildings 50,000,000 20 20
Machinery 150,000 5 5
Office Equipment 100,000 6 5
Furniture & Fixtures 75,000 10 10
Motor Vehicles 10,000,000 10 10
Books 10,000 6 5

The service life of an asset should be distinguished from physical life.


*Service life is the period of time an asset shall be used by an entity. The service life is the equivalent of useful life.
**Physical life refers to how long the asset shall last. ***Fair market value at the end of useful life is the equivalent of
salvage value.
(See Valix and PPSAS 17)

A- Correct Answer
Assets Depreciable Cost (x90%) Service life** Depreciation
Buildings 45,000,000 20 2,250,000
Machinery 135,000 5 27,000
Office Equipment 90,000 5 18,000
Furniture & Fixtures 67,500 10 6,750
Motor Vehicles 9,000,000 10 900,000
Books 9,000 5 1,800
Total 3,203,550
2. B 1,800
3. C 27,000

Problem 2 Punzalan, Cardona

Statement of Financial Performance


Particular 2016 2015
Revenue 40,000,000 30,500,000
Other Operating Revenue 10,000,000 15,000,000
Total Revenue 50,000,000 45,500,000
Expenses (45,000,000) (35,000,000)
Surplus 5,000,000 10,500,000

Statement of Changes in Equity


Particular 2016 2015
Opening accumulated surplus 80,500,000 70,000,000
Surplus for the period 5,000,000 10,500,000
Closing accumulated surplus 85,500,000 80,500,000
4. A
5. A 34,000,000=30,500,000+3,500,000
6. A 14,000,000=10,500,000+3,500,000
7. B 89,000,000
8. A 70,000,000
9. A 45,000,000

As restated 2016 2015


Revenue (5) 40,000,000 34,000,000
Other Operating Revenue 10,000,000 15,000,000
Total Revenue 50,000,000 49,000,000
Expenses (45,000,000) (35,000,000)
Surplus (6) 5,000,000 14,000,000

As restated 2016 2015


Unadjusted Opening Accumulated Surplus (8) 80,500,000 70,000,000
Correction of error 3,500,000 -
Adjusted Opening Accumulated Surplus 84,000,000 70,000,000
Surplus for the period 5,000,000 14,000,000
Closing Accumulated Surplus (7) 89,000,000 84,000,000

Problem 3&4 NCR Frontliners

10. C 11. D
Gross patient service revenue 980,000 980,000
Contractual adjustments (115,000) (100,000)
Allowance for discounts - employees (15,000) (15,000)
Net Patient Service Revenue 850,000 865,000

Problem 5
12. B 2,000,000
13. B 700 uncollected
14. D (Hoyle)
15. B (Hoyle)
Problem 6 (Hoyle)
16. A 7,000
17. C 7,000
18. B 17,000
Problem 7 (Dayag)
19. A 12,000
20. A 14,000

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