Accounts payable-trade short-term borrowings bank loan

MIDTERM EXAMINATION
INTACC 3

Name: _________________________________________ Multiple Choice

D. Entity A should recognize a combined asset and liability upon signing the contract

3. Which of the following is not a financial liability
A. Accrued payables
B. Accounts payables
C. Notes payables
D. Constructive obligations

5. According to PFRS 9, financial liabilities are classified as
A. FVPL or amortized cost
B. FVPL, FVOCI or itemized cost
C. FVPL or FVOCL
D. None of these

6. Financial liabilities are initially measured at
A. Fair value plus transaction costs
B. Fair value plus transaction costs, except FVPL liabilities whose transaction costs are expensed immediately
Fair value plus transaction costs, except FVOCI liabilities whose transaction costs are C.

D. Payables for city services, not supported by formal notes

8. According to PAS 1, which of the following statements is correct regarding refinancing of llong- term obligations?

A. Such liabilities are presented as current liabilities
B. Such liabilities are presented as noncurrent if there is no indication that the lender will demand repayment within 12 months from the end of reporting period
C. Such liabilities are classified as noncurrent only if the lender provides the debtor after the end of the reporting period a 12-month grace period within which the lender will not demand repayment.

D. All of these are corrent.

11. At December 31, 20x7, Cain Inc., owed notes payable of P1,750,000, due on May 15, 20x8. Cain expects to retire this debt with proceeds from the sale of 100,000 shares of its common stocks. The stocks was sold for P15 per share on march 10, 20x8, prior to the issuance of the year-end financial statement. In Cain’s December 31, 20x7, balance sheet, what amount of the notes payable should be excluded from current liabilities?

A. 0
P250,000 B.

13. Wilk Co., reported the following liabilities at December 31, 20x1: Accounts Payable-Trade 750,000 Short-Term borrowings 400,000 Bank Loan, current portion P100,000 3,500,000 Other Bank Loan, matures June 30, 20x2 1,000,000

Regal’s experience indicate that 10% of gift certificate sold will not be redeemed. In its December 31, 20x3 balance sheet, what amount should Regal report as unearned revenue?

A. P125,000
B. P112,500
C. P100,000
D. P 50,000

16. On July 1, 20x0, Ran County issued realty tax assessments for its fiscal year ended June 30,20x1. On Spetember 1, 20x0, Day Co. purchased a warehouse in Ran County. The purchase price was reduced by a credit for accrued realty taxes. Day did not record the entire year’s real estate tax obligation, but instead records tax expenses at the end of each month by adjusting prepaid real estate taxes or real estate taxes payable, as appropriate. On November 1, 20x0, Day paid for the first of two equal installments of P12,000 for realty taxes. What amount of this payment should Day record as a debit to real estate taxes payable?

4,000 A.

18. Lyle Inc. is preparing its financial statements for the year ended December 31, 20x9. Accounts payable amounted to P360,000 before any necessary year-end adjustments related to the following:
• At December 31, 20x9, Lyle has a P50,000 debit balance in its accounts payable to Ross, a supplier, resulting from a P50,000 advance payment for goods to be manufactured to Lyle’s specifications.

• Checks in the amount of P100,000 were written to vendors and recorded on December 29, 20x9. The checks were mailed on January 5, 2010

Deposits for containers returned in 2006 form deliveries in:

What is the premium liability on December 31, 2019? a. 500,000
b. 400,000
c. 320,000
d. 80,000