No. 125 Brgy.

San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

ADVANCED FINANCIAL ACCOUNTING & REPORTING

PREWEEK LECTURE

DISCUSSION EXERCISES

1. The home office sends merchandise to the branch at a billed price of 150%. In the separate
books of the home office, the allowance for overvaluation account had a balance of P60,000. In
the combined statement, the ending inventory of the branch was P40,000 of which P10,000 came
from outsiders. What is the overstatement of the cost of goods sold of the branch from the home
office merchandise?
A. P20,000
B. P50,000
C. P45,000
D. P5,000

2. Unrealized holding gain or loss for the effective portion of derivatives designated as a hedge
of a net investment in a foreign entity shall be recognized in
A. Profit or loss
B. Other comprehensive income with reclassification adjustment
C. Retained earnings
D. Other comprehensive income without reclassification adjustment

3. Last year, a nonprofit organization received a contribution with a donor restriction for research
purposes. In the current year, the nonprofit organization fully spent the said contribution for the
intended purpose. What is the effect of this expenditure on the current year’s change in net
assets?
A. Increase the temporarily restricted net assets.
B. No effect on the unrestricted net assets.
C. No effect on the total net assets.
D. Decrease the permanently restricted net assets.

4. Resources of a non-profit organization that have been set aside for a specific purpose by the
Board of Trustees of the organization are accounted for in
A. Term endowment fund
B. Unrestricted fund
C. Restricted current fund
D. Annuity fund

5. Soon-to-be partners, A and B will contribute the following: A will contribute cash, P750,000, and
B will contribute a Building with a carrying amount of P500,000 and an agreed value of P600,000.
The building has a mortgage in the amount of P50,000, but it will be paid personally by B. One of
the provisions, of their agreement is upon formation the capital balances of the partners will be
equal. What is the contributed capital of B?
A. P500,000
B. P550,000
C. P600,000
D. P675,000

6. Partners A and B formed a partnership on January 1, 2025, with original capital contributions
of P1,000,000 and P750,000 respectively. They agreed to distribute profits and losses with the
following provisions:

➢ 10% on their original capital contributions

➢ Monthly salaries of P7,500 and P10,000 respectively for A and B
➢ The remainder shall be shared at 60:40

At the end of the year, due to unfavorable circumstances, the partnership generated a net loss of
P150,000. What is the share of A in the net loss?
A. P49,000
B. P131,000
C. P19,000
D. P101,000

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JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

7. The following were ascertained for the given period in the statement of realization and
liquidation:

Assets to be realized P50,000

Assets realized 40,000
Assets not realized 10,000
Increase in asset 25,000
Liabilities liquidated 17,500
Liabilities not liquidated 20,000
Liabilities assumed 12,500
Liabilities to be liquidated 25,000
Supplementary credits 85,000
Supplementary debits 40,000

What is the gain or loss for the period?

A. P20,000 gain
B. P20,000 loss
C. P50,000 gain
D. P50,000 loss

8. Unrealized holding gain or loss on derivatives designated as fair value hedge shall be
recognized in
A. Profit or loss
B. Other comprehensive income with reclassification adjustment
C. Retained earnings
D. Other comprehensive income without reclassification adjustment

9. Unrealized holding gain or loss on time value (ineffective portion) of derivatives designated as
cash flow hedge shall be recognized in
A. Profit or loss
B. Other comprehensive income with reclassification adjustment
C. Retained earnings
D. Other comprehensive income without reclassification adjustment

10. It refers to the newest system adopted by the Commission on Audit for analyzing, classifying,
summarizing, and communicating all transactions that are involved in the receipt and
disbursement of all government funds and properties, and interpreting the results thereof.
A. New government accounting system
B. Government accounting manual
C. Fund accounting
D. Public fund accounting

11. Which of the following cash in bank accounts is used by national government agencies for
disbursement?
A. Cash Treasury/Agency Deposit Regular
B. Cash – Modified Disbursement System – Regular
C. Cash in Bank Land Bank of the Philippines
D. Cash in Bank Bangko Sentral ng Pilipinas

12. The receipt of notice of cash allocation by a national government agency shall be credited by
the said agency to
A. Cash – Modified Disbursement System – Regular
B. Cash Treasury/Agency Deposit Regular
C. Subsidy income from national government
D. Advances from national government

13. This phase in the national government budgetary process involves the enactment of the
General Appropriations Act by the Congress of the Philippines based on the proposed national
budget submitted by the President of the Republic of the Philippines.
A. Budget Preparation
B. Budget Legislation
C. Budget Execution
D. Budget Accountability

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JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

14. In the statement of activities, expenses of nonprofit organizations shall be recorded only as
reductions from
A. Temporarily restricted net assets
B. Unrestricted net assets
C. Permanently restricted net assets
D. Current Liability

15. Under IAS 21, when translating foreign currency-denominated transactions to functional
currency, which of the following items shall be measured in the financial statement at the
exchange rate prevailing at the end of the reporting period?
A. Sales
B. Interest payable
C. Common stocks
D. Prepaid asset

16. Partners A, B, and C have capital balances of P150,000, P100,000, and P50,000 respectively.
The following were also loan balances present in the partnership books: a loan to A in the amount
of P25,000 and a loan from C in the amount of P15,000. Partner B decided to retire from the
partnership and they agreed to pay P85,000 for his interest. They share profits and losses
[Link] respectively. Assuming there was an asset that needed to be revalued, what is the
capital balance of Partner C after retirement?
A. P50,000
B. P70,000
C. P58,572
D. P30,000

17. Partners A, B, and C have capital balances of P300,000, P200,000, and P100,000 respectively.
The total liabilities of the partnership were P150,000 and the cash balance was P250,000. They
agreed to liquidate the partnership. Non-cash assets were sold at a gain of P125,000 and
liquidation expenses were paid in the amount of P40,000. They share profits and losses [Link].
What is the amount of cash that Partner B received after liquidation?
A. P200,000
B. P234,000
C. P166,000
D. P184,000

18. Partners A, B, and C have capital balances of P300,000, P200,000, and P100,000 respectively.
The total liabilities of the partnership were P150,000 and the cash balance was P250,000. They
agreed to liquidate the partnership. Only P150,000 of the non-cash assets were sold for P50,000
and liquidation expenses were paid in the amount of P40,000. Cash withheld for future liquidation
expenses was P10,000. They share profits and losses [Link]. What is the amount of cash that
Partner C received after the 1st installment liquidation?
A. P72,000
B. P100,000
C. P28,000
D. P0

19. Use the information regarding to HONCHKROW Company:

Book value Estimated realizable value

Cash 50,000 50,000
Inventory 40,000 35,000
Building 250,000 375,000

The inventory was pledged to accounts payable in the amount of P25,000. The building was
pledged to a mortgage payable including its interest in the amount of P400,000. Salaries and
taxes had a total amount of P100,000. Other liabilities not mentioned were P75,000. What was
the amount paid to the holder of the mortgage payable?
A. P400,000
B. P250,000
C. P375,000
D. P0

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JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

Use the following information in answering the next item(s):

At the beginning of 2024, the company enters into a contract to build an establishment for a client.
The contract price (CP) for the said establishment is P4,000,000. The client has given the
company until the end of 2026 to finish the establishment. The following data were ascertained:

2024 2025 2026

Costs incurred to date P1,250,000 P2,250,000 P3,000,000
Estimated costs to complete P1,875,000 P562,500 -

20. Under IFRS 15, what is the realized gross profit/(loss) for the year ended December 31, 2024?
A. P875,000
B. P850,000
C. P350,000
D. P1,100,000

21. Under IFRS 15, what is the construction-in-progress as of December 31, 2025?
A. P4,800,000
B. P3,200,000
C. P3,550,000
D. P4,450,000

22. On January 1, 2024, a franchisor entered into a franchise agreement with a franchisee which
requires the latter to pay a non-refundable upfront fee of P400,000 at the signing of the contract
and ongoing payment of royalty equal to 5% of the sales of the franchisee. On the date of the
signing of the contract, the franchisee paid the non-refundable upfront fee. As part of the
franchise agreement, the franchisor shall render the following performance obligations which are
considered separate and distinct from one another:

➢ Training ten personnel of the franchisee with stand stand-alone selling price of P100,000.
➢ Construction of the franchisee's building and landscape with stand stand-alone selling price
of P400,000.
➢ Delivery of 1,000 units of raw materials to franchisee with stand stand-alone selling price of
P300,000.
➢ Allowing the franchisee to access the franchisor's trademark and tradename for a term of 10
years starting from January 1, 2024, with stand-alone. selling price of P200,000.

As of the end of December 31, 2024, the accounting department of the franchisor obtained the
following information:

➢ The franchisor was able to train seven out of ten personnel of the franchisee.
➢ The percentage of completion of construction of the franchisee's building and landscape was
estimated by the engineer and architect at 90% although the building was fully completed
because the landscape was not yet started.
➢ 600 units of raw materials were already delivered to the franchisee.
➢ For the year ended December 31, 2024, the franchisor reported sales revenue amounting to
P50,000 because it already started operation upon the construction of the building on October
1, 2024.

What is the revenue from franchise fees from continuing services?

A. P254,500
B. P252,000
C. P400,000
D. P2,500

23. Under IFRS for SMEs, the income of the SME-venturer for its investment in a joint venture
under the cost method consists of
A. Share in net income of joint venture
B. Dividend income
C. Gain on changes in fair value of investment
D. Both B and C

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JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

24. Under IFRS for SMEs, the income of the SME-venturer for its investment in a joint venture
under the fair value model consists of
A. Share in net income of joint venture
B. Dividend income
C. Gain on changes in fair value of investment
D. Dividend income and gain on changes in a fair value of investment

25. Partners A and B have capital balances of P250,000 and P150,000 respectively before
admitting incoming Partner C. The new partner will invest P100,000 for 25% capital interest and
20% in the profits and losses. What is the capital credit of C upon his admission?
A. P125,000
B. P100,000
C. P80,000
D. P75,000

26. Which of the following items will affect both consolidated net income attributable to parent’s
shareholders and noncontrolling interest in net income?
A. Dividend income from subsidiary
B. Realized gain on the downstream transaction
C. Realized loss on the upstream transaction
D. Gain on bargain purchase

27. Ravenol Manufacturing Company makes three products: A and B were considered main
products and C was a by-product. The joint cost was P69,150. It was the company’s policy to
allocate the joint cost using the net realizable value method and the by-product was accounted
during the point of sale. The following data were given:

Product Production (lbs) Sales price per lbs Separable Costs

A 220,000 P1.50 P80,000
B 180,000 P0.75 P47,500
C 50,000 P0.225 P1,725

What is the joint cost allocated to Product A?

A. P48,448
B. P44,167
C. P49,074
D. P51,222

28. Entity A consigned his goods costing P25,000 to Entity B. Entity A paid freight of P1,500 to
ship the goods to Entity B. At the end of the period, only 40% of the consigned goods remained in
the shop of Entity B. Total cash sale received by Entity B from the customer was P25,000. Entity
B incurred and paid a total of P750 freight to deliver the goods to the customer. Also the terms of
their contract were 10% commission based on sales and any payment made by Entity B was to
be reimbursed by Entity A. What is the net income of Entity A at the end of the period?
A. P11,150
B. P13,650
C. P8,350
D. P5,850

Use the following information in answering the next item(s):

A certain company manufactures a certain product and uses a job order costing system. There
is always spoilage during production. The following are the costs related to the current
production:

Total cost exclusive of allowance for spoilage P50,000

Allowance for spoilage P10,000
Units produced 5,000

At the end of the production, 100 units are spoiled and the total cost is P4,000. The spoiled units
can be sold for P3,000.

5|Page
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

29. Assuming the spoilage is due to internal failure, what is the cost transferred to the Finished
Goods Inventory account?
A. P46,000
B. P57,000
C. P56,000
D. P57,500

30. Assuming the spoilage is due to exacting specifications, what is the cost per good unit?
A. P11.73
B. P9.59
C. P11.64
D. P9.39

31. BPI bank has the following traceable costs and cost drivers:

Activities Traceable costs Budgeted cost driver

New accounts P250,000 1,000 accounts
Deposits P180,000 400,000 deposits
Loans P135,000 900 applications

The activities were being used by the Ayala branch and Ortigas branch:

Activities Ayala Ortigas

New accounts 200 accounts 400 accounts
Deposits 40,000 deposits 20,000 deposits
Loans 100 applications 160 applications

What amount of Deposits will be assigned to the Ortigas branch?

A. P60,000
B. P9,000
C. P120,000
D. P18,000

32. Under IAS 21, foreign exchange differences arising from translating financial statements in
functional currency to presentation currency shall be recognized in
A. Profit or loss
B. Other comprehensive income with reclassification adjustment
C. Retained earnings
D. Other comprehensive income without reclassification adjustment

Use the following information in answering the next item(s):

Andi Manufacturing Corp. uses a process costing system to account for its production and the
policy is to use the Weighted Average method. The following data are ascertained for the period:

Units
Beginning inventory (45% complete) 7,500
Started 25,000
Ending inventory (60% to complete) 4,000
Completed 26,000

The normal spoilage is 10% of the units started. All of the materials were added at the start of
production.

33. What is the EUP for Direct materials?

A. 32,500
B. 30,000
C. 25,000
D. 26,000

34. What is the EUP for Conversion?

A. 27,600
B. 28,400
C. 30,100
D. 30,900
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JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

35. The Home Office in Manila established a branch in Bacolod. At the end of the year the
reciprocal account in the books of Manila was P175,000, however, the following transactions were
not recorded by the receiving party:

a) A debit memo in the amount of P5,000 was sent by Bacolod

b) A credit memo in the amount of P10,000 was sent by Manila
c) A credit memo in the amount of P15,000 was sent by Bacolod

What is the adjusted balance of the reciprocal account at the end of the year?
A. P175,000
B. P185,000
C. P165,000
D. P195,000

36. Which of the following statements regarding the consolidation working paper is true?
A. It is used in eliminating both the pre-existing goodwill of the parent and the subsidiary.
B. It is used in amortizing the excess of the fair value differentials of the group.
C. It is used in allocating the share of the non-controlling interest in the net income of the
subsidiary
D. It is used in recognizing the intercompany dividend revenue of the acquired company from
the acquirer company.

37. Which of the following statements regarding group reporting is true?

A. The consolidated retained earnings is increased by the consolidated net income.
B. The non-controlling interest in the net assets of the subsidiary is a component of the
consolidated stockholders’ equity.
C. The consolidated cost of goods sold is affected by the excess of fair value over the book value
or book value over the fair value in the merchandise of the subsidiary.
D. The consolidated gross profit is increased upon recognizing an intercompany gain on sale of
land through sale to outsiders.

38. Which of the following statements regarding business combination is true?

A. Acquisition-related costs are debited directly to retained earnings in the books of the acquirer
company.
B. The stockholders’ equity of any acquired company is eliminated in its separate books.
C. In the statement of financial position prepared by the acquiring company immediately after
the merger, the retained earnings may be affected by the stock issuance costs and bond issue
costs.
D. Any increase or decrease in the amount of the contingent consideration classified as a
financial liability during the measurement period affects the resulting goodwill.

39. Which of the following statements regarding business combination is true?

A. The control premium is part of the price paid debited to the Investment in Subsidiary account
in the separate books of the acquirer company.
B. After the acquisition of all the outstanding voting shares of another company, the acquired
company is not required to prepare separate financial statements.
C. Non-controlling interest may be recognized at fair value or proportionate share, whichever is
higher.
D. A partial goodwill is a goodwill resulting from a partially owned subsidiary.

40. GHI Company acquired 75% of EFG Company’s outstanding voting shares for P2,550,000
cash. At that date, the acquired company reports identifiable assets with a book value of
P5,200,000 and a fair value of P6,400,000, and it has liabilities with a book value and fair value of
P3,580,000. Compute the goodwill or (gain on bargain purchase) arising on consolidation if non-
controlling interest is measured at fair value and control premium of P150,000 is excluded in the
price paid.
A. P580,000
B. P530,000
C. (P435,000)
D. P730,000

7|Page
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

41. KLM Corporation paid P18,000,000 for a 90% interest in CDE Corporation on January 1, 2024.
The excess of the aggregate amount over the book value of the identifiable net assets of the
acquired company amount to P960,000. The excess was allocated as follows: P640,000 to an
undervalued equipment with a five-year remaining useful life and the balance to goodwill. Non-
controlling interest is measured at fair market value. Net income of KLM in 2024 is P8,000,000;
Net income of CDE in 2024 is P2,000,000. Dividends declared by CDE to KLM amount to
P192,000. Compute the consolidated net income in 2024.
A. P9,872,000
B. P9,360,000
C. P9,680,000
D. P9,532,800

42. MNO owns 70% of DEF Company’s outstanding ordinary shares. DEF Company, in turn, owns
20% investment in RST Corporation. During 2024, MNO earned a net income of P32,060,000 while
DEF suffered a loss of P6,000,000 excluding its share in the earnings of associates, if any. RST
reported a net income of P4,350,000. DEF declared dividends of P2,500,000 from its accumulated
profits in previous years. Compute the consolidated net income attributable to controlling interest
for the year 2024.
A. P28,469,000
B. P26,930,000
C. P26,719,000
D. P26,110,000

43. DEF Corp. owns 70% of PQR Corp’s ordinary shares. On August 1, 2024, DEF Corp. acquired
a building from PQR Corp. for P40,600,000. The carrying amount of the building is P23,800,000
and has a remaining life of 8 years. Due to this intercompany transaction, compute the net
adjustment (increase/decrease) in the consolidated net income attributable to controlling interest
for 2024
A. P15,925,000 decrease
B. P14,700,000 increase
C. P11,147,500 decrease
D. P10,290,000 increase

44. UVW Corp. owns 80% of FGH Corp’s ordinary shares. On June 1, 2024, FGH Corp. sold
machinery to UVW Corp. for P21,000,000. The carrying amount of the machinery is P22,800,000
and has a remaining life of 5 years. Due to this intercompany transaction, compute the net
adjustment (increase/decrease) in the noncontrolling interest in net income 2024
A. P1,590,000 decrease
B. P318,000 increase
C. P288,000 decrease
D. P1,272,000 increase

45. RST Company acquired a 75% interest in JKL Company in 2022. For years ended December
31, 2023, and 2024, JKL reported net income of P22,960,000 and P26,000,000, respectively.
During 2023, JKL sold merchandise to RST for P6,080,000 at a cost of P4,160,000. Two-fifths of
the merchandise was later resold by RST to outsiders for P2,800,000 during 2024. In 2024, RST
purchased merchandise from JKL for P7,040,000 at a profit of P2,560,000. One-fourth of the
merchandise was resold by RST to outsiders for P2,160,000 during 2024. Compute the non-
controlling interest in net income in 2024
A. P6,692,000
B. P6,628,000
C. P6,308,000
D. P6,212,000

46. Condensed statements of the financial position of HIJ Corp. and LMN Corp. as of December
31, 2023, were as follows:

HIJ LMN
Current assets P 175,000 P 65,000
Noncurrent assets 725,000 425,000

Liabilities P 85,000 P 35,000

Ordinary shares, P20 par 550,000 300,000
Share premium 5,000 25,000
Retained earnings 260,000 130,000
8|Page
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

On January 1, 2024, HIJ Corp. issued 29,000 shares with a market value of P22/share for the
identifiable assets and liabilities of LMN Corp. The book value reflects the fair value of the assets
and liabilities, except that the noncurrent assets of LMN have a fair value of P630,000, and
P30,000 overstates the noncurrent assets of HIJ. Contingent consideration to the extent probable
on the date of acquisition amounts to P15,000. HIJ also paid for the share issue costs worth
P84,000 and other acquisition costs of P59,000. Compute the retained earnings in the books of
the surviving company immediately after the merger
A. P251,000
B. P201,000
C. P192,000
D. P187,000

47. ABC Co. had the following transactions with two subsidiaries, S1 and S2, during 2024: Sales
of P23,520,000 to S1, Inc., resulting in a P7,056,000 gross profit. S1 had P5,880,000 of this
inventory on hand at year-end. Purchases of raw materials totaling P94,080,000 from S2 Corp., a
wholly owned subsidiary. S2’s gross profit on the sale was P18,816,000. ABC had P21,952,000
of this inventory remaining on December 31, 2024. Before working paper entries, ABC had
combined current assets of P117,600,000. Compute the amount ABC should report in its
December 31, 2024, consolidated financial position for current assets
A. P89,768,000
B. P111,445,600
C. P117,600,000
D. P123,754,400

48. The Statement of Financial Position of ABC Company as of December 31, 2023, were as
follows:
Book Value
Cash P6,000,000
Accounts Receivable 7,500,000
Inventories 12,600,000
Plant & Equipment, net 15,000,000
Goodwill 1,500,000
Liabilities 21,000,000

On January 2, 2024, LMN Company acquired all the identifiable net assets of ABC Company for
P27,000,000 cash. A contingent consideration of P1,500,000 is to be paid to the stockholders of
the dissolved company, depending on the outcome of the specific target. Only 60% of the
consideration to be transferred is probable on the date of acquisition. The fair value of the
inventories of ABC is undervalued by 900,000, and P1,500,000 undervalues its plant & equipment.
Out-of-pocket costs of the business combination were paid in the amount of P600,000.

On the date of acquisition, the goodwill in the acquirer's books amounted to P1,200,000. On
August 1, 2024, the amount of contingent consideration was increased by P450,000 due to an
improved information regarding relevant facts and circumstances on January 2, 2024. On October
31, 2024, the amount of contingent consideration was decreased by P240,000 due to the massive
destruction brought about by the calamities that recently hit the country.

Compute the amount of goodwill shown on the statement of financial position of LMN Company
as of December 31, 2024.
A. P7,050,000
B. P5,850,000
C. P6,810,000
D. P4,350,000

49. Which of the following statements regarding derivatives is true?

A. In a firm commitment to purchase an asset, the gain on firm commitment at the reporting
date is a result of an increase in the spot rate from the transaction date to the reporting date.
B. All derivative instruments may be classified either as an asset or a liability to the holder.
C. A forward contract to buy is a liability to the holder if the current forward rate is higher than
the contracted forward rate at the reporting date.
D. A call option is an asset to the holder in an out-of-the money situation.

9|Page
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

50. Which of the following statements regarding foreign currency transactions is true?
A. Appreciation in a foreign currency result in a foreign exchange loss to an entity with liability
exposure.
B. Foreign currency transactions result in an accounting exposure.
C. The statement of financial position accounts is remeasured at year-end.
D. The strengthening of the local currency will result in a loss to an exporter.

51. On December 1, 2024, HIJ Company paid cash to purchase a 90–day “at the money” call
option for 375,000 Canadian Dollars. The option’s purpose is to protect an exposed liability of
375,000 CAD relating to an inventory purchased, received on December 1, 2024, and to be paid on
March 1, 2025.

12/1/24 12/31/24 3/1/25

Spot rate P41.22 P41.56 P41.48
Fair value of call option P74,000 P156,000 ?

Compute the gain or loss on option contract due to change in the time value on December 31,
2024
A. P28,500 loss
B. P127,500 gain
C. P83,000 gain
D. P45,500 loss

52. On October 1, 2024, QRS Company paid a premium to purchase a 120-day “at the money” put
option for 640,000 Malaysian Ringgits. The option’s purpose is to protect an exposed asset of
640,000 MYR relating to a merchandise sold, delivered on October 1, 2024, and to be collected on
January 31, 2025.

10/1/24 12/31/24 1/31/25

Spot rate P13.86 P13.77 P13.73
Fair value of put option P142,000 P182,500 ?

Compute the gain or loss on option contract due to change in the effective portion in 2025
A. P99,300 loss
B. P83,200 gain
C. P25,600 gain
D. P124,900 loss

53. On January 1, 2024, NOP Inc. paid a premium to acquire a put option from a writer. This is in
relation to a forecasted sale of merchandise worth $390,000. (option price = P54.965)

1/1/24 3/31/24 6/30/24

Spot rate P54.934 P54.908 P54.75
Fair value of option P58,800 P68,400 P83,850

Compute the gain/loss affecting other comprehensive income on the first quarter of 2024
A. P10,140
B. (P540)
C. P9,600
D. (P10,140)

Use the following information in answering the next item(s):

XYZ Corporation, a trading company located in Manila, imports merchandise from foreign
suppliers and exports its own products to other foreign customers. The unadjusted accounts
denominated in foreign currencies on December 31, 2024 were as follows:

➢ Accounts receivable from the sale of merchandise on December 10 to RST Corporation and
due on January 15, 2025. Billing is for 750,000 foreign currencies amounting to P517,500
➢ Accounts payable to JKL Corporation for merchandise received December 5 and payable on
January 20, 2025. Billing is for 1,375,000 foreign currencies amounting to P976,250
Applicable exchange rates on the above transactions were as follows:

10 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

2024 Closing rate P 0.680

January 2025 selling spot rate 0.685
January 2025 buying spot rate 0.675

54. The net exchange gain (loss) from the two transactions that will be included in the statement
of comprehensive income of XYZ Corporation for 2024
A. (P33,750)
B. P33,750
C. P41,250
D. P48,750

55. The net exchange gain (loss) from the two transactions that will be included in the statement
of comprehensive income of XYZ Corporation for 2025
A. P10,625
B. (P10,625)
C. (P3,125)
D. (P6,875)

56. TUV Company sold merchandise for €125,000 to a French company on December 1, 2024.
Collection in Euros was due on February 28, 2025. On the same date, TUV entered a 90-day
forward contract to sell €125,000 to a bank. Exchange rates for Euros on different dates are as
follows:

Spread is P0.15 12/1/24 12/31/24 2/28/25

Selling spot rate P 61.55 P 62.85 P 62.05
30-day forward selling rate 62.45 62.65 63.35
60-day forward selling rate 61.95 62.35 62.75
90-day forward selling rate 60.75 62.75 63.55

Compute the gain or loss on the forward contract on December 31, 2024.
A. P200,000 gain
B. P200,000 loss
C. P37,500 gain
D. P37,500 loss

57. On December 1, 2024, LMN Company, an exporter from the Philippines made a credit sale to
STU Company, an importer from Korea. The amount of sale was worth 200,000 Korean won. LMN
will collect the foreign currency denominated account on January 01, 2025. On December 1, the
spot rate was 25 Korean won for one Philippine peso. Also on December 1, LMN entered a
forward contract to sell 200,000 Korean won on January 01, 2025, at a forward rate of 50 Korean
won for one Philippine peso. The spot rate and forward rate for one Philippine peso on December
31, 2024, is 40 Korean won. Compute for the effect in 2024 earnings
A. P4,000 increase
B. P1,000 decrease
C. P3,000 decrease
D. P4,000 decrease

Use the following information in answering the next item(s):

On December 31, 2024, a foreign subsidiary in Hong Kong submitted the following accounts
stated in its local currency which is the functional currency of the foreign operation. The
subsidiary in Hong Kong acquired in the prior year is not integrated with the operations of the
parent in the Philippines.

Total Assets HK$ 1,470,000

Total liabilities 294,000
Ordinary Shares 735,000
Retained Earnings 441,000

Dividends declared in 2024 amount to HK$18,000. Net income in 2024 amount to HK$320,000.

The exchange rates in 2024 were: Closing rate, P8.75; Historical rate, P8.40; Weighted average
rate, P8.50. The exchange rates in 2023 were: Closing rate, P8.20; Historical rate, P8.10; Weighted
average rate, P8.00.

11 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

58. Compute the cumulative translation adjustment (Dr)/Cr on December 31, 2024
A. (P588,000)
B. P632,100
C. P655,700
D. P588,000

59. Compute the translation gain or loss in for the year ended December 31, 2023
A. P101,300
B. P33,600
C. P77,700
D. P554,400

Use the following information in answering the next item(s):

On January 15, 2024, the Department of Science and Technology received a P15,200,000
appropriation from the national government for the acquisition of laboratory equipment. On
January 30, 2024, the said Department received the obligational authority which is 75% of the
expenditure authority from the Department of Budget and Management. On February 9, 2024, the
DOST entered a commitment with the accredited supplier for the purchase of the laboratory
equipment with an agreed contract price of 90% of the amount authorized. On February 27, 2024,
the Department received the disbursement authority from the Department of Budget and
Management in the amount equal to the agreed contract price. During the month of March there
were contract adjustments and modifications resulting in total disbursements equivalent to only
80% of the original contract price.

60. Compute the amount of allotment

A. P15,200,000
B. P11,400,000
C. P10,260,000
D. P13,680,000

61. Compute the amount credited to Subsidy Income from National Government
A. P11,400,000
B. P10,260,000
C. P15,200,000
D. P13,680,000

Use the following information in answering the next item(s):

LMN College, a not-for-profit private higher educational institution had the following contributions
and activities during 2024:

a. Received P1,280,000 cash from a benefactor. Although no specific instruction was given by
the donor as to its use, the Board of Trustees voted to set aside the said fund for the
acquisition of air purifier units in the administration office.
b. Received P120,000 worth of office supplies from a publisher, designated by the board to be
used for its operations. As of the end of the year, three-fourths of the supplies were used up.
c. Received P1,600,000 cash with donor restriction intended for administrative related training
and conferences. During the year, P1,040,000 of this amount was used for several training
and conferences.
d. Received P3,200,000 cash and equity securities with a fair value of P800,000 from the alumni
association. The donor stipulated that the amount of cash be used for the acquisition of the
vending machine. The donor explicitly stated that only the investment income from the equity
securities can be used by LMN College which was internally imposed for use in current
operations.
e. Received an unconditional pledge from donors worth P720,000. Based on past experience,
5% of the pledges are considered doubtful of collection.
f. During the specific period, the equity securities from the alumni association yielded earnings
amounting to P64,000. LMN College also purchased P1,400,000 worth of a vending machine
at the end of the year.
g. Mr. CIG, a Certified Public Accountant, rendered LMN College its accounting services for free.
Mr. CIG normally charges his clients P200,000 per engagement for such service.

12 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

Compute the following in the Statement of Activities for the year ended 2024:

62. Total unrestricted contributions revenue

A. P2,320,000
B. P2,384,000
C. P3,840,000
D. P1,994,000

63. Change in the temporarily restricted net assets

A. P4,360,000
B. P6,800,000
C. P2,360,000
D. P560,000

64. Change in the unrestricted net assets

A. P4,434,000
B. P3,458,000
C. P4,634,000
D. P3,394,000

65. On April 1, 2024, SME A and SME B acquired 40% (each) of the ordinary shares that carry
voting rights at a general meeting of shareholders of Entity Z for P640,000 and transaction cost
of P20,000. SME A and SME B immediately agreed to share control over Entity Z. For the year
ended December 31, 2024, Entity Z recognized a loss of P520,000. On December 30, 2024, Entity
Z paid a dividend of P50,000 declared in the prior year. On December 31, 2024, the fair value of
each venturers’ investment in Entity Z was P509,000 and cost to sell amounted to P15,000. The
amount of value in use is P490,000. There is a published price quotation for Entity Z.

The effect in profit or loss to be reported by SME A in 2024 using the equity model
A. P146,600
B. P156,000
C. P208,000
D. P166,000

Use the following information in answering the next item(s):

On January 1, 2024, Entity A and Entity B incorporated Entity C by investing P1,500,000 and
P300,000 for a capital interest ratio of 60:40. The contractual agreement of the incorporating
entities provided that the decisions on relevant activities of Entity C will require the unanimous
consent of both entities. Entity A and Entity B will have rights to the net assets of Entity C.

In 2024, Entity C sold merchandise to Entity A resulting in a gross profit of P200,000. Only 30%
of the said inventories were sold by Entity A to third parties during the same year and the
remaining inventories were sold in 2025. On September 1, 2024, Entity C sold machinery to Entity
B resulting in a loss of P435,000. The remaining life of the machinery was 8 years

Entity C reported net income of P600,000 in 2024 and declared dividends in 2024 in the amount
of P187,500.

66. Compute the amount of investment income/(loss) to be reported by Entity B for the year ended
December 31, 2024.
A. P240,000
B. P406,750
C. P414,000
D. P392,250

67. Compute the amount of Investment in Entity C to be reported by Entity A on December 31,
2024.
A. P1,663,500
B. P1,776,000
C. P1,627,500
D. P1,711,500

13 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

68. GHI and MNO established a joint arrangement in TUV, a separate vehicle. The legal form of
the separate vehicle does not confer separation between the parties and the separate vehicle
itself. GHI and MNO have rights to the assets and obligations for the liabilities of TUV. Neither the
contractual terms nor the other facts and circumstances indicate otherwise. Accordingly, the
operators account for their rights to assets and their obligations for liabilities relating to TUV in
accordance with IFRS 11. Each of the operators own 40% of the outstanding shares of TUV.
However, the contractual terms of the joint arrangement state that GHI has the rights to all of
Warehouse X and the obligation to pay all the third-party Debt A of TUV. GHI and MNO have rights
to all other assets in TUV and obligations for all other liabilities in proportion to their equity
interests. TUV’s Statement of Financial Position is as follows:

Assets Liabilities & Equity

Cash P3,000,000 Debt A P18,000,000
Warehouse X 18,000,000 Debt B 7,500,000
Warehouse y 15,000,000 Equity 10,500,000
Total Assets P36,000,000 Total Liab. & SHE 36,000,000

Compute the amount of total assets of GHI as shown in its own Statement of Financial Position
to account for its rights and obligations in TUV.
A. P18,000,000
B. P27,000,000
C. P25,200,000
D. P21,000,000

69. Which is not a requirement of IFRS 17 Insurance Contract?

A. Nonoffsetting of reinsurance assets against related insurance liabilities
B. An annual assessment of the adequacy of recognized insurance liabilities
C. An impairment test for reinsurance assets
D. Recognition of provisions for future claims relating to a catastrophe

70. The Philippine Government granted a concession arrangement to MRT Company which shall
construct the mass train transportation. MRT Company was authorized to operate it for 50 years.
The arrangement provided that MRT Company shall receive a right or license to charge users of
the public service but there is no unconditional right to receive cash because the amounts shall
be contingent on the extent that the public uses the service. How should MRT Company account
for the infrastructure asset?
A. Property, plant, and equipment
B. Financial asset at fair value
C. Financial asset at amortized cost
D. Intangible asset

14 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

QUIZZER (DO IT YOURSELF)

Use the following information in answering the next item(s):

During the first year of operations, the books of Bacolod Branch showed the following balances:

Sales P1,200,000
Shipments from home office 1,120,000
Purchases 120,000
Ending inventory 200,000
Operating expenses 150,000

Shipments to branch were billed at 140% of cost. The ending inventory of the branch included
P26,400 from outside purchases.

1. What amount should be reported as ending inventory of the Bacolod branch at cost?
A. P200,000
B. P173,600
C. P150,400
D. P269,440

2. What amount should be reported as true net income of Bacolod branch?

A. P280,400
B. P10,000
C. P254,000
D. P270,400

Use the following information in answering the next item(s):

On October 1, 2021 the Home Office established a branch and on December 31, 2021, in the books
of the Home Office, the balance of the Investment in Branch account was P132,000. However,
there were some errors in recording the reciprocal accounts. The following were the relevant
transactions that were investigated:

a) The branch purchased for cash P30,000 machine for its use. The policy of the home office
was that the fixed asset accounts were maintained by the home office. Notification was sent
to the home office by the branch, but the home office did not record the transaction.

b) Cash of P4,000 was received by the branch from the home office, and was erroneously
recorded by the branch as P40,000.

c) Notification was sent by the home office to the branch, informing the branch of P10,000 worth
of expenses were paid on behalf of the branch. However, the branch did not receive the said
notification and the branch had not recorded the transaction.

d) Merchandise costing P16,000 was sent by the home office to the branch at a billed price of
P18,000. The merchandise is still in transit.

e) Cash of P20,000 was remitted or forwarded to the home office by the branch. However, the
home office did not record the transaction.

3. What is the adjusted balance of the reciprocal accounts?

A. P82,000
B. P182,000
C. P122,000
D. P142,000

4. What is the unadjusted balance of the home office account in the branch books?
A. P174,000
B. P82,000
C. P124,000
D. P90,000

15 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

5. The unadjusted balance in the allowance for overvaluation account at the end of the year
represents
A. The mark-up on the merchandise shipped to the branch during the year
B. The mark-up on cost of goods sold by the branch for the year
C. The mark-up on the merchandise available for sale by the branch for the year
D. The mark-up on the merchandise shipped to the branch during the year less the mark-up on
the merchandise returned by the branch during the year

6. Which of the following reconciling transactions will require a credit to the home office account
in Branch X's books?
A. Credit memo received by Branch X from the home office
B. Collection by Branch X of Branch Y's accounts receivable
C. Reshipment of goods received by Branch X to Branch Y
D. Payment of Branch X of home office's accounts payable

7. Neither Branch A nor the Home Office had any intracompany transactions for the month of
October. However, the balance of the Home Office Current account in the books of Branch A was
greater than the Investment in Branch account in the books of the Home Office. What is the most
likely reason for the discrepancy?
A. The branch reported a net income for the month of October
B. The home office reported a net loss for the month of October
C. The branch returned merchandise to the home office
D. The branch reported a net loss for the month of October

Use the following information in answering the next item(s):

Boeing Company used a job order costing system. The entity had three jobs in process: #7, #10,
and #13. The entity provided the following information:

Raw material used P130,000

Direct labor per hour P9.50
Overhead applied based on direct labor cost 125%

Direct material was requisitioned for each job respectively: 25 percent, 30 percent, and 30 percent.
The balance of the requisitions was considered indirect. Direct labor hours per job are 2,800, 3,300
and 4,000, respectively for Job #7, Job #10 and Job #13. Indirect labor is P45,000. Other actual
overhead costs totaled P50,000.

8. What amount should Boeing Company report as prime cost for Job #7?
A. P59,100
B. P59,850
C. P32,500
D. P65,750

9. What amount should Boeing Company report as overhead applied for Job #13?
A. P45,000
B. P47,500
C. P50,000
D. P62,500

Use the following information in answering the next item(s):

Bacolod Manufacturing Corp. has the following cost of production data for the month of October:

Work-in-process October 1:
Job 03 Job 04
Direct materials P2,400 P1,500
Direct labor 3,600 2,880
Applied overhead 2,340 1,872

Finished goods October 1:

Job 01 Job 02
Direct materials P18,000 P6,720
Direct labor 24,000 8,400
Applied overhead 15,600 5,460
16 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

Total manufacturing cost added during the month of October:

Job 03 Job 04 Job 05 Job 06

Direct materials P10,920 P13,200 P36,000 P4,800
Direct labor 14,400 16,800 42,000 7,200
Applied overhead 9,360 10,920 27,300 ?

During the month of October, Job 03, Job 04, Job 05, were completed. The predetermined
overhead rate was 65% of direct labor cost. Actual overhead at the end of the year was P33,000.

10. What is the cost of goods manufactured for the month of October?
A. P195,492
B. P180,900
C. P143,700
D. P180,912

11. Assuming Job 06 was also completed, what is the cost of goods manufactured of Job 06?
A. P6,252
B. P20,580
C. P40,920
D. P16,680

Use the following information in answering the next item(s):

Airbus Company produces two products from a joint process: X and Z. Joint processing costs for
this production cycle are P8,000.

Yards Sales price per Disposal cost per Further processing Final sale price
yard at split off yard at split off cost per yard per yard
X 1,000 P6.00 P4.00 P1.00 P7.00
Z 2,000 9.00 5.00 3.00 10.00

12. What amount of joint cost should be allocated to product Z if the company opted to use the
relative sales value at split off method?
A. P4,800
B. P6,400
C. P6,000
D. P5,200

13. Assuming that after further processing, Product X yielded 800 yards of Final Product X. What
is the approximated / estimated net realizable value of the Final Product X at the splitoff point?
A. P6,000
B. P4,800
C. P1,600
D. P2,000

Use the following information in answering the next item(s):

C17 Company provided the following information for June of the current year:

Beginning work in process inventory (20% complete as to conversion) 12,000 units

Started 150,000 units
Ending work in process inventory (25% done as to conversion) 35,000 units

Beginning work in process inventory costs:

Direct materials P2,500

Conversion 2,650

Costs added during the year:

Direct materials P36,000

Conversion 112,750

All materials were added at the beginning of production.

17 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

14. Under FIFO, what is the Conversion EUP?

A. 135,750
B. 126,150
C. 133,350
D. 150,850

15. Under Weighted Average, what is the Direct material EUP?

A. 150,000
B. 162,000
C. 153,250
D. 185,000

16. Which of the following formulas would calculate the net realizable value of a product?
A. Final sales value less cost of goods sold
B. Sales value multiplied by the constant gross margin
C. Sales value at the split-off point less cost to produce up to the split-off point
D. Final sales value less separable cost

17. Which of the following would guide you in distinguishing a main product from a by-product?
A. Number of units per processing period
B. Joint costs incurred up to the split-off point
C. Percentage of total sales value
D. Weight or volume of outputs per period

18. Which of the following statements regarding Partnership Accounting is FALSE?

A. A partnership loan that was made from a partner who has a capital deficiency may be offset
against the debit balance in his capital account.
B. Gains and losses incurred at liquidation are distributed to the partners using the residual profit
and loss sharing ratios when these amounts represent profits and losses from prior periods
that would have been shared using the remainder profit and loss ratios.
C. In dividing the profit or loss to the partners, all types of withdrawals made by a partner affects
the computation of the ending capital balance used as a basis in providing an allowance as
to interest.
D. When partners agree to make their capital ratio in conformity with their profit and loss ratio
using the transfer of capital method, the partner whose agreed capital is lower than his
contributed capital, may receive a payment from the partner whose agreed capital is higher
than his contributed capital.

19. Which of the following statements regarding Partnership Accounting is TRUE?

A. In installment liquidation, a safe payment is the amount of distribution that can be made to
the partners which will not have to be returned to the partnership.
B. When the result of partnership operation is net income then it is always assured that bonus
will be given to a partner(s).
C. Fixed assets contributed by a partner in the partnership shall be credited to his capital account
at original cost.
D. In a partnership liquidation, with more than one deficient partner, partner or partners with
personal liabilities higher than his personal assets are the first to be eliminated in the
distribution of cash.

20. Which of the following statements regarding Partnership Accounting is FALSE?

A. In the preparation of a schedule of safe payments to partners, cash withheld for future
liquidation expenses and unrecorded liabilities that may be discovered are treated as loss on
realization.
B. In an installment liquidation, a partner whose share in the maximum possible loss is greater
than his total interest will not receive cash for that period but may receive distributions from
the partnership by the next period.
C. Admission by investment will result in a bonus to the new partner and an asset revaluation
upward if the total contributed capital of all partners is less than the total agreed capital of
the new partnership while the agreed capital of the new partner is higher than the amount he
contributed.
D. If a partner who retired from the partnership receives settlement from the partnership less
than his capital balance before retirement which also resulted in a decrease in the capital
balance of remaining partners, an impairment loss is recognized before the retirement.

18 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

21. Which of the following statements regarding Accounting for Foreign Currency Transactions is
FALSE?
A. If a sale on account by an Australian Company is made with a foreign company, and the
Australian Company has no foreign currency risk, then the Australian Company has
denominated the transaction in its local currency.
B. A Japanese importer that acquired merchandise from a firm in Thailand would be exposed to
a net exchange gain on the unpaid balance if the yen strengthened relative to the baht and the
foreign currency was the denominated currency.
C. Accounts representing an accumulated depreciation are translated into U.K. pounds at
current rates regardless of the functional currency.
D. Accounting exposure is the exposure to changes in exchange rates as a result of a firm
making export sales to a foreign customer or import purchase from a foreign vendor.

22. Which of the following statements regarding Derivatives and Hedging is TRUE?
A. The sole purpose for entering into derivative contracts is to manage market risks such as
foreign exchange risk and interest rate risk.
B. When a firm commitment is hedged using a derivative financial instrument, fair value hedge
accounting requires explicit recognition of the statement of financial position at fair value of
both the derivative financial instrument and the firm commitment.
C. Options are frequently used to mitigate risks associated with fluctuations in the market prices
of securities or commodities. A call option is purchased to limit the price it will have to pay
for a commodity, a put option is purchased to limit potential price declines in the value of a
financial asset or commodity.
D. All derivative instruments are presented in the Statement of Financial Position at a positive
fair value.

23. J and K decided to form a Partnership and provided the following transactions:

• J invested P250,000 cash and equipment with a fair value of P150,000.

• K invested P350,000 cash, merchandise with an agreed value of P550,000, and Land with an
appraised value of P500,000 subject to a mortgage payable of P250,000 which the
partnership will assume.
• The partners also agreed to an equal interest in the partnership capital.

Compute the amount reported as total capital of the partners after formation
A. P1,800,000
B. P1,550,000
C. P1,750,000
D. P1,500,000

24. On January 1, 2021, Q and R were partners with capital balances of P1,500,000 and
P1,150,000 respectively. The profit and loss agreement of the partners included the following:

• Monthly salaries of P30,000 and P25,000 respectively for Q and R

• 6% interest based on their January 1, 2021 capital balances
• Remainder to be shared equally

At the end of 2021, the partnership generated a net income of P500,000.

Compute the share of Partner R in the net income

A. P250,000
B. P227,500
C. P209,500
D. P217,000

25. On December 31, 2021, the Statement of Financial Position of LMN Partnership provided the
following data with profit or loss ratio of [Link]

Current Assets P2,500,000 Total Liabilities P1,500,000

Noncurrent Assets 5,000,000 L, Capital 2,250,000
M, Capital 2,000,000
N, Capital 1,750,000

On January 1, 2022, O was admitted to the partnership by purchasing 40% of the capital interest
of M at a price of P1,250,000.
19 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

Compute the capital balance of M after the admission of O on January 1, 2022

A. P1,350,000
B. P1,200,000
C. P1,050,000
D. P750,000

26. O and P have capital balances of P1,400,000 and P1,540,000 respectively before admission
of N. Their profit and loss agreement was 35:65. On January 1, N was to be admitted for 40%
interest in the partnership and 20% in the profits and losses by contributing used equipment which
had a cost of P1,435,000 and a fair value of P1,260,000. After the admission of N, O and P agreed
to share profits and losses equally. At the end of the year the new partnership generated net
income of P910,000.

Assuming there is an implied undervaluation or (overvaluation) of an asset, compute the capital

balance of P at the end of the year
A. P3,269,000
B. P539,000
C. P2,586,500
D. P1,221,500

27. On December 31, 2021, the Statement of Financial Position of TUV Partnership provided the
following data with profit or loss ratio of [Link]

Current Assets P3,750,000 Total Liabilities P1,250,000

Noncurrent Assets 5,000,000 T, Capital 2,750,000
U, Capital 3,000,000
V, Capital 1,750,000

On January 1, 2022, S was admitted to the partnership by investing P1,250,000 to the partnership
for 10% capital interest. The total agreed capitalization of the new partnership is P7,500,000.

Compute the capital balance of V after the admission of S to the Partnership

A. P1,450,000
B. P2,050,000
C. P1,250,000
D. P1,950,000

28. On December 31, 2021, the Statement of Financial Position of DEF Partnership with profit or
loss ratio of [Link] of partners D, E and F respectively revealed the following data:

Current Assets P2,500,000 Total Liabilities P5,000,000

Noncurrent Assets 6,250,000 T, Capital 1,750,000
U, Capital 1,250,000
V, Capital 750,000

On January 1, 2022, the partners decided to liquidate the partnership. All partners are legally
declared to be personally insolvent. The noncash assets were sold for P4,500,000. Liquidation
expenses amounting to P750,000 were incurred and paid.

Compute the amount of cash received by Partner D after liquidation

A. P1,750,000
B. P875,000
C. P1,375,000
D. P500,000

29. On September 30, 2021, The R, S, and T Partnership had the following fiscal year-end
Statement of Financial Position.

Cash P48,000 Accounts Payable P84,000

Accounts Receivable 72,000 Loan from T 60,000
Merchandise Inventory 168,000 R, Capital (20%) 168,000
Fixed Assets, net 144,000 S, Capital (20%) 120,000
Loan to R 72,000 T, Capital (60%) 72,000
P504,000 P504,000

20 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

The partners dissolved the partnership on October 1, 2021and began the liquidation process.
During October the following events occurred:

a. Accounts receivables of P36,000 were collected

b. All the merchandise inventory was sold for P48,000.
c. Cash withheld for anticipated expenses amount to P24,000

Compute the amount of cash S would receive in the first distribution

A. P24,000
B. P4,800
C. P14,400
D. P0

Use the following information in answering the next item(s):

Cebu Company, a Philippine company acquired inventory items from a supplier in Singapore on
December 1, 2021 for 250,000 SGD due on February 28, 2022, when the selling spot rate was
P33.60. On December 31, 2021, the selling spot rate was P33.10. On the due date, on February
28, 2022, the selling spot rate was P33.20.

30. Compute the amount Cebu Company should report as forex gain or loss for the year ended
December 31, 2021
A. P125,000 gain
B. P125,000 loss
C. P100,000 gain
D. P0

31. Compute the amount Cebu Company should report as liability on December 31, 2021
A. P8,275,000
B. P8,400,000
C. P8,300,000
D. P8,250,000

32. Compute the amount Cebu Company should report as forex gain or loss for the year ended
December 31, 2022
A. P25,000 loss
B. P25,000 gain
C. P100,000 gain
D. P0

33. On January 1, 2021, ABC Inc. paid a premium to acquire a put option from a writer. This is in
relation to a forecasted sale of merchandise worth $130,000. (option price = P4.965)

1/1/2021 3/31/2021 6/20/2021

Spot rate P4.934 P4.908 P4.750
Fair value of option P19,600 P22,800 P27,950

Compute the gain/loss affecting earnings for the first quarter of 2021?
A. P3,380
B. (P3,380)
C. P3,200
D. (P180)

34. Ortigas Company sold merchandise for 105,000 pounds to a customer in London on October
01, 2021. Collection in British pounds was due on January 30, 2022. On the same date, Ortigas
entered into a 120-day forward contract to sell 105,000 pounds to a writer. Direct exchange rate
for pound on different dates are as follows:

Oct. 1 Dec. 31 Jan. 30

Spot rate 52.60 52.10 51.80
30-day forward 50.20 52.30 50.40
60-day forward 52.20 52.40 53.10
90-day forward 51.70 52.10 52.50
120-day forward 52.50 52.50 53.30

21 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

Compute the fair value of the derivative instrument on December 31, 2020?
A. P21,000 negative
B. P21,000 positive
C. P42,000 negative
D. P42,000 positive

Use the following information in answering the next item(s):

Loco Company bought the net assets of Coco Company by issuing 100,000 shares with P20 par
value. The fair value of the shares was P4,800,000. Immediately before the acquisition, the
following balances were ascertained for Coco Company:

Book Value Fair Value

Current assets P2,000,000 P2,500,000
Noncurrent assets 3,000,000 4,400,000
Liabilities 600,000 1,700,000
Ordinary Shares 4,000,000
Retained Earnings 400,000

Loco Company also incurred the following costs:

• Professional fees to arrange business combination P50,000.
• SEC registration of newly issued shares P20,000.
• Printing and issuing of stock certificates P10,000.

35. What amount should Loco Company report as result of the business combination?
A. P400,000 goodwill
B. (P400,000) gain on bargain purchase
C. P600,000 goodwill
D. (P600,000) gain on bargain purchase

36. What amount should Loco Company record as additional paid in capital after acquisition?
A. P2,780,000
B. P2,800,000
C. P2,770,000
D. P2,720,000

37. What amount should Loco Company report as net increase (decrease) in the retained earnings
after acquisition?
A. P400,000
B. P320,000
C. (P50,000)
D. P350,000

38. On January 1, 2022, Entity A acquired 80% of the outstanding shares of Entity B for a cash
consideration of P1,185,000. On this date, the book value of the shareholders' equity of Entity B
was P1,350,000. At the acquisition date, the inventory of Entity B was understated by P75,000 and
the equipment was understated by P150,000. The acquisition date fair value of the noncontrolling
interest was P300,000. What amount should Entity A report as result of the business
combination?
A. P90,000 gain on bargain purchase
B. P90,000 goodwill
C. P75,000 gain on bargain purchase
D. P75,000 goodwill

Use the following information in answering the next item(s):

On January 1, 2021, Pei Company acquired 75% of the outstanding shares of Dari Company that
resulted at a gain on acquisition in the amount of P75,000. On this date the Ordinary shares and
Retained earnings of Dari Company were P1,200,000 and P300,000 respectively.

All of the book values of the assets and liabilities of Dari Company equal their fair values except
for the equipment which was understated by P156,000. The equipment had a remaining life of 10
years.

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JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

For the year ended, December 31, 2021, Pei Company reported a net income of P600,000, while
Dari Company reported a net income of P360,000 and declared dividends of P240,000.

39. What amount should Pei Company report as consolidated net income attributable to parent
for the year ended December 31, 2021?
A. P600,000
B. P776,700
C. P678,300
D. P753,300

40. What amount should Pei Company report as noncontrolling interest net income for the year
ended December 31, 2021?
A. P360,000
B. P90,000
C. P93,900
D. P86,100

41. A parent company that uses the equity method in accounting for its investment in subsidiary
has neglected to adjust the investment balance for its share in the subsidiary’s net income or net
loss. The parent’s share in the net income of the subsidiary was P60,000 last year and P40,000
this year. If the subsidiary did not declare any dividends during the year, which of the following
statements is true?
A. The net income of the parent this year should be increased by P100,000.
B. The retained earnings of the parent should be increased by P100,000.
C. The net income of the parent this year should be increased by P40,000 and retained earnings
should be increased by P60,000.
D. Any of the choices is true, depending on the company’s accounting policy.

42. On January 1, 2020, Pint Company has acquired 100% controlling interest in Sterest Company.
The net assets of Sterest Company were all fairly value except for a note payable. The face value
of the note is P1,000,000 with a stated rate of 10%, but the effective rate in the market for a similar
type of note is only 8%. The principal of the note is payable in lumpsum after 2 years and interest
is payable annually. Which of the following is true?
A. The book value of the net assets of the subsidiary on date of acquisition is less than its fair
value.
B. Amortization of the excess will ultimately increase the consolidated retained earnings.
C. The difference in nominal and effective rate will not affect the measurement of the net assets
acquired by the acquirer.
D. All of the choices are true

43. Statement 1: On the consolidated working papers, the net income of the parent is allocated
between the controlling and non-controlling interests.
Statement 2: On the consolidated working papers, the net income of the subsidiary is allocated
between the controlling and non-controlling interests.
A. Both statements are true
B. Both statements are false
C. Statement 1 is true; statement 2 is false
D. Statement 2 is true; statement 1 is false

44. A parent company provided a P10,000 non-interest bearing loan to its wholly owned
subsidiary. With a market rate of 9%, the fair value of the loan is determined to be P7,722. Which
of the following is false?
A. In the books of the parent, the journal entry at the end of the first year will include a debit to
intercompany loan receivable for P695
B. In the books of the subsidiary, the journal entry at the end of the second year will include a
credit to interest expense for P758
C. The working paper entries at the end of the second year will include a debit to intercompany
loan payable for P758
D. The working paper entries at the end of the first year will include a credit to interest income
for P695.

45. Parent company has an investment in a subsidiary which it accounts for using the cost
method. Accordingly, the original cost of P250,000 is its carrying value. On December 1, 2021, the
parent declared its subsidiary as property dividends to its shareholders, to be distributed on
January 30, 2022. The fair value of the subsidiary shares amounted to P280,000 on December 1,

23 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

2021, and P270,000 on December 31, 2021. In the books of the parent, which of the following is
true?
A. The entry on December 1, 2021 will include a debit to asset held for distribution at P280,000.
B. The entry on December 1, 2021 will include a credit to property dividends payable for
P280,000.
C. The entry on December 31, 2021 will include a debit to property dividends payable for
P270,000
D. The entry on December 31, 2021 will include a debit to equity for P10,000.

46. Which of the following statements is true?

A. A statutory merger occurs when exactly 2 companies combine, while a statutory
consolidation occurs when more than 2 companies combine.
B. A statutory merger is recorded in the books of the acquirer while a statutory consolidation is
recorded in the books of the acquiree.
C. A statutory merger legally dissolves all the companies in a business combination except for
one, while a statutory consolidation legally dissolves all the companies in a business
combination.
D. A statutory merger is exactly the same as a statutory consolidation.

Use the following information in answering the next item(s):

Department of Health (DOH) received Notice of Cash Allocation (NCA) in the amount of P240,000
from Department of Budget and Management (DBM). DOH made a total cash disbursements in
the amount of P228,000.

47. What is the journal entry to record the receipt of NCA from the DBM?
A. Cash-Modified Disbursement System (MDS), Regular 240,000
Subsidy Income National Government 240,000
B. Cash-Modified Disbursement System (MDS), Regular 240,000
Revenue 240,000
C. Cash-Modified Disbursement System (MDS), Regular 240,000
Advances from DBM 240,000
D. Cash-Modified Disbursement System (MDS), Regular 240,000
Accounts Receivable 240,000

48. What is the journal entry to recognize reversion of unused Notice of Cash Allocation?
A. Subsidy Income National Government 12,000
Cash-Modified Disbursement System (MDS), Regular 12,000
B. Retained earnings of DOH 12,000
Cash-Modified Disbursement System (MDS), Regular 12,000
C. Expenses of DOH 12,000
Cash-Modified Disbursement System (MDS), Regular 12,000
D. Investment in DOH 12,000
Cash-Modified Disbursement System (MDS), Regular 12,000

49. Leyte Hospital, a nonprofit organization, reported the following information for the year ended
December 31, 2021:

Gross patient service revenue P3,940,000

Bad debt expense 70,000
Contractual adjustments, VAT 267,270
Allowance for discounts to hospital employees 45,000

In Leyte Hospital’s statement of activities for the year ended December 31, 2021, what amount
should be reported as net patient service revenue?
A. P3,940,000
B. P3,627,730
C. P3,597,730
D. P3,895,000

24 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

Use the following information in answering the next item(s):

SPKH Foundation, a nonprofit organization, provided the following transactions during its first
year of operations:

• The nonprofit organization received P500,000 cash from a donor who stipulated that it
shall be used based on the discretion of the Board of Trustees of the nonprofit
organization. The nonprofit organization used P100,000 for the acquisition of souvenir
items which were sold by the nonprofit organization for P150,000. The remaining
P400,000 was designated by the Board of Trustees for future fundraising projects

• The nonprofit organization received P750,000 cash from a donor who stipulated that it
shall be used for the acquisition of service car. The nonprofit organization used P400,000
of the fund for the acquisition of a service car with useful life of 4 years. The car was
acquired at the middle of the year.

• The nonprofit organization received P1,500,000 cash from a donor who stipulated that it
shall be invested indefinitely and the dividend from such investment shall be used for
research project of the organization. Dividend amounting to P225,000 was received during
the year but only P75,000 was spent for the research project.

51. What amount should SPKH Foundation report as permanently restricted net assets at the end
of the first year?
A. P1,650,000
B. P1,950,000
C. P1,800,000
D. P1,500,000

52. What amount should SPKH Foundation report as temporarily restricted net assets at the end
of the first year?
A. P1,150,000
B. P500,000
C. P750,000
D. P975,000

53. What amount should SPKH Foundation report as unrestricted net assets at the end of the first
year?
A. P900,000
B. P500,000
C. P975,000
D. P950,000

Use the following information in answering the next item(s):

ABC Company is a manufacturer that sells its product to local retailers. Retailers sell the product
to its customers and for each product purchased by the customers, a coupon of P200 discount
is given and may be used on future purchase of the same product. Retailers are reimbursed for
the discount by the manufacturer when customers redeem their coupons. During 2021, the
manufacturer sold 8,000 products to the retailers at P1,100 each product. It is expected that 75%
of the coupons will be redeemed. By December 31, 2021, the manufacturer had paid the retailers
P500,000 as reimbursement.

53. What amount should ABC record as sales revenue for 2021?
A. P7,200,000
B. P8,400,000
C. P8,800,000
D. P7,744,000

54. What amount should ABC report as rebate liability on December 31, 2021?
A. P556,000
B. P1,056,000
C. P1,200,000
D. P1,600,000

25 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

Use the following information in answering the next item(s):

XYZ Company, a high street chain, is offering a promotion whereby a customer who purchases
three boxes of chocolates at P400 per box in a single transaction shall receive a coupon for one
free box of chocolates if the customer fills out a request form and mails it before a set expiration
date. It is expected that 75% of the coupons will be redeemed. During 2021, the entity sold 30,000
boxes of chocolates at P400 per box. During 2022, the entity delivered 6,000 additional free boxes
of chocolates.

55. What amount should XYZ report as sales revenue in 2021?

A. P4,800,000
B. P9,600,000
C. P6,000,000
D. P12,000,000

56. What amount should XYZ report as sales revenue from the delivery of free products in 2022?
A. P1,440,000
B. P960,000
C. P1,200,000
D. P1,800,000

Use the following information in answering the next item(s):

On July 1, 2021, DEF Company, a manufacturer of office furniture, supplied goods to GHI
Company for P12,000,000 on condition that this amount is paid in full on July 1, 2022.

GHI Company had earlier rejected an alternative offer from DEF Company whereby it could have
bought same goods by paying cash of P10,800,000 on July 1, 2021.

57. What amount should DEF Company recognize as sales revenue on July 1, 2021?
A. P10,000,000
B. P13,400,000
C. P12,000,000
D. P10,800,000

58. What amount should DEF Company reported as interest income for 2021?
A. P1,200,000
B. P600,000
C. P1,000,000
D. P0

Use the following information in answering the next item(s):

On July 1, 2021, KDC Company handed over to a client a new computer system. The contract
price for both the supply of the system and after-sales support for 12 months was P8,000,000.

The entity estimated the cost of the after-sales support at P1,200,000 and it marked up such cost
by 50% when tendering for support contracts.

59. What amount should KDC report as revenue from the sale of computer system for 2021?
A. P8,000,000
B. P6,800,000
C. P6,200,000
D. P9,200,000

60. What amount should KDC report as contract revenue from the after-sales support system for
2021?
A. P1,800,000
B. P900,000
C. P1,200,000
D. P600,000

26 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

Use the following information in answering the next item(s):

On January 1, 2021, CD Company accepted a long-term construction project for a fixed contract
price of P4,000,000 to be completed on November 30, 2023. The entity provided the following
data concerning the direct costs related to the said project for 2021 and 2022:

2021 2022
Cost incurred to date P1,200,000 P3,000,000
Remaining estimated costs to complete at year-end 4,800,000 750,000

61. Under IFRS 15, what amount should CD Company report as gross profit or (loss) for the year
ended December 31, 2022?
A. P200,000
B. P250,000
C. P2,200,000
D. (P1,800,000)

62. Under IFRS 15, what amount should CD Company report as construction in progress balance
on December 31, 2022?
A. P3,000,000
B. P3,200,000
C. P4,400,000
D. P5,200,000

Use the following information in answering the next item(s):

On January 1, 2021, SDC Company granted a franchise to a franchisee. The franchise agreement
required the franchisee to pay a nonrefundable upfront fee in the amount of P1,600,000 and on-
going payment of royalties equivalent to 10% of the sales of the franchisee. The franchisee paid
the nonrefundable upfront fee on January 1, 2021.

In relation to the nonrefundable upfront fee, the franchise agreement required the entity to render
the following performance obligations which were separate and distinct from each other:

➢ To construct the franchisee’s stall with stand-alone selling price of P400,000.

➢ To deliver 20,000 units of raw materials to the franchisee with stand-alone selling price of
P500,000.
➢ To allow the franchisee to use the entity's tradename for a period of 5 years starting January
1, 2021. The stand-alone selling price of the use of the tradename was P100,000.

On July 31, 2021, the entity completed the construction of the franchisee’s stall. On December 31,
2021, the entity was able to deliver 15,000 units of raw materials to the franchisee. For the year
ended December 31, 2021, the franchisee reported sales revenue amounting to P1,000,000.

63. Under IFRS 15, what amount should SDC Company recognize as revenue in relation to the
delivery of the raw materials on December 31, 2021?
A. P800,000
B. P500,000
C. P600,000
D. P375,000

64. Under IFRS 15, what amount should SDC Company recognize as revenue in relation to the
construction of the franchisee's stall on December 31, 2021?
A. P640,000
B. P400,000
C. P1,600,000
D. P0

65. Under IFRS 15, what amount should SDC Company recognize as total revenue for the year
ended December 31, 2021?
A. P1,600,000
B. P1,372,000
C. P1,700,000
D. P1,276,000

27 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

66. On January 1, 2021, Entity X, a public entity, and Entity Y, a public entity, incorporated Entity Z
which has its fiscal and operational autonomy. The contractual agreement of the incorporating
entities provided that the decisions on relevant activities of Entity Z will require the unanimous
consent of both entities. Entity X and Entity Y will have rights to the net assets of Entity Z.

Entity X and Entity Y invested P4,000,000 and P6,000,000, respectively, equivalent to 40:60 capital
interest of Entity Z. The financial statements of Entity C provided the following data for its two-
year operation:

Net income (Net loss) Dividends declared

2021 P800,000 P400,000
2022 (2,000,000) -

What amount should Entity X report as Investment in Entity Z on December 31, 2021?
A. P4,000,000
B. P4,320,000
C. P4,160,000
D. P4,480,000

Use the following information in answering the next item(s):

On January 1, 2021, Entity X and Entity Y, both SMEs, incorporated Entity Z, a jointly controlled
entity by investing P10,000,000 each in exchange for 100,000 ordinary shares representing 50%
interest each of Entity Z. Entity X and Entity Y each incurred P400,000 transaction costs.

The contractual agreement of the incorporating entities provided that the decisions on relevant
activities of Entity Z will require the unanimous consent of both entities. Entity X and Entity Y will
have rights to the net assets of Entity Z.

For the year ended December 31, 2021, Entity C reported net income of P2,000,000 and declared
dividends in the amount of P600,000.

On December 31, 2021, the ordinary shares of Entity C are quoted at P112.

67. If Entity X elected fair value model to account for its investment in Entity Z, what is the net
effect on Entity X’s profit or loss for the year ended December 31, 2021?
A. P1,100,000 net income
B. P1,200,000 net income
C. P300,000 net income
D. P800,000 net income

68. If Entity Y elected equity method to account for its investment in Entity Z, what is the carrying
amount of Entity Y’s Investment in Entity C on December 31, 2021?
A. P10,400,000
B. P10,900,000
C. P10,700,000
D. P11,100,000

69. Statement 1: An entity has to remeasure its retained interest in an associate when it loses
joint control over a joint control over a joint venture.
Statement 2: If a joint venturer loses joint control but retains an interest in an associate, it could
continue to apply the equity method.
A. Statements 1 and 2 are true
B. Statement 1 is false; Statement 2 is true
C. Statement 1 is true; Statement 2 is false
D. Statements 1 and 2 are false

70. Five parties jointly bought a helicopter. By contractual agreement, each party has the right to
use the helicopter for a certain number of days each year and shares proportionately in the
maintenance cost. They share decision-making regarding the maintenance and disposal of the
helicopter, which are the relevant activities for the helicopter. These decisions require the
unanimous agreement of all of the parties.

28 | P a g e
JMUNGSOD/GCMAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@[Link]

The contractual agreement covers the expected life of the helicopter and can be changed only by
agreement of parties holding 75% of the voting rights.

Which of the following statements is true about this arrangement?

A. The agreement is not a joint arrangement
B. The multiple combinations of how the 75% can be achieved created joint control
C. The agreement is a joint arrangement
D. None of the above

ANSWERS

1. C 11. D 21. D 31. A 41. C 51. B 61. C

2. A 12. C 22. B 32. A 42. B 52. A 62. B
3. A 13. B 23. B 33. D 43. D 53. D 63. C
4. D 14. C 24. C 34. B 44. D 54. A 64. A
5. C 15. B 25. B 35. B 45. B 55. B 65. B
6. B 16. D 26. D 36. C 46. C 56. A 66. C
7. A 17. C 27. A 37. D 47. A 57. D 67. A
8. A 18. C 28. D 38. C 48. A 58. B 68. D
9. B 19. A 29. A 39. D 49. B 59. C 69. A
10. A 20. A 30. A 40. D 50. D 60. B 70. C

"All our dreams can come true, if we have the courage to pursue them."
- Walt Disney

END OF PRE-WEEK

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