lOMoARcPSD|5609269
Liabilities in the making
BS Medical Technology (University of the East Ramon Magsaysay)
StuDocu is not sponsored or endorsed by any college or university
Downloaded by tintin 23 (justinejoi17@gmail.com)
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Auditing Assurance: Concepts and Applications 2
 Dashboard / My courses / ACT143 / Audit of Liabilities / Practice Test on Liabilities, Financial Liabilities and Leases
Started on
Thursday, 27 May 2021, 4:44 AM
State Finished
Completed on
Thursday, 27 May 2021, 5:25 PM
Time taken 12 hours 40 mins
Question 1
Correct
Mark 1.00 out of 1.00
A manufacturer of a product, Esmer Co. had a lawsuit led against it by another manufacturing company XYZ Co. The suit alleges patent
rights infringement by Esmer Co. and asks for compensatory damages.
Esmer's lawyers are convinced that the likelihoood of losing the case is probable and the potential amount of the loss is estimated
to be P2,300,000. How should Esmer report this information concerning the lawsuit?
a. A. Accrue and disclose

b. Neither accrue nor disclose
c.
Disclose only
d. Accrue only
Your answer is correct.
The correct answer is:
A. Accrue and disclose
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
1/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 2
Incorrect
Mark 0.00 out of 1.00
You were engaged in the annual examination of the nancial statements of Isabela Co. As part of your audit, you are assigned with lease
and its related accounts. You noted that Isabela Co. entered as a lessee in three different leases of low value assets. The following relate to
the three leases:
Lease No. 1
On January 1, 2021, Isabela Co. leased computer equipment for 6 years at a monthly rental of ₱12,000. On that date Isabela paid the lessor
the following amounts:
Lease bonus ₱300,000
First year's rent ₱144,000
The entire amount of ₱444,000 was charged to rent expense in 2021.
Lease No. 2
On January 1, 2021, Isabela Co. signed a 5-year opera t i ng lease follow value o ce equipment at ₱480, 000 per year. The lease included a
provision for additional rent of 4% on annual company sales of ₱4, 000,000 and 5% on Sales in excess of ₱4,000,000 payable every
December 31. Isabela's sales for the year ended December 31, 2021 were ₱6, 000,0000. Upon execution (Arlie lease, Isabela paid ₱500,000
as a bonus for the lease. All payments were debited to rent expense.
Lease No. 3
On January 1, 2021, Isabela Company leased a o ce furniture from Ilagan Corporation under a 3-year operating lease. The agreement
provides that Isabela Co. will be allowed to use the o ce furniture rent free for the rst six months of the lease term but will pay ₱10,000 per
month thereafter. All payments were debited to rent expense.
Based on the above data, answer the following:
How much is the rent expense for Lease No. 1?
a. ₱194,000
b. ₱444,000

c. ₱144,000
d. ₱50,000
The correct answer is: ₱194,000
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
2/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 3
Incorrect
Mark 0.00 out of 1.00
Molleda Company entered as a lessee on the following lease:
First lease
On July 1, 2020, Molleda Company leased a computer equipment from Quezon Corporation under a 3-year operating lease. Total rent for the
term of the lease will be ₱360,000, payable as follows:
12 months at ₱ 5,000 = ₱ 60,000
12 months at ₱ 7,500 = ₱90,000
12 months at ₱17,500 = ₱210,000
All payments were made when due. The lease is for a low value asset.
Second Lease
Molleda Company leased a new machine from San Manuel Company on June 30. 2021, under a lease with the following information:
Annual rental payable at beginning of each lease year ₱400,000
Lease term 10 years
Useful life of machine 12 years
Implicit interest rate 14%
The fair value of the building on June 30, 2021 is ₱2,380,000. Molleda has the option to purchase the machine on June 30, 2026 by paying
₱500,000 which approximates the expected fair value of the machine on the option exercise date.
Based on the above and the result of your audit, determine the following (Round present value factors to two decimal places):
What is the total lease-related expenses to be reported on Molleda's income statement for the year ended June 30, 2022?
a. ₱585,200

b. ₱635,200
c. ₱595,533
d. ₱397,200
The correct answer is: ₱635,200
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
3/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 4
Correct
Mark 1.00 out of 1.00
Following are the extracts from draft statement of comprehensive income of Katrina Lando (KL) Co. for the year ended March 31, 2021:
Net Sales
Cost of sales
Selling and distribution expenses
Administrative expenses
In millions
₱ 800
(640)
(32)
(15)
Finance costs
Other operating income
(10)
Pro t before tax
116
13
The following issues need to be resolved, to nalize the accounts:
A. On April 1, 2020 the company had issued 0.5 million 12% Term Finance Certi cates (TFCs) of P100 each. The principal amount of ₱50
million is included in non-current liabilities. Interest is payable annually in arrears. On the date of issue. the prevailing interest rate for similar
debts without conversion option was 14% per annum. TFCs would mature on March 31, 2024 but are convertible into eight ordinary shares
of P10 each, at the option of the certi cate holders, at any time prior to maturity. Interest was paid on March 31. 2021 and charged to
nance cost
B. KL entered into a sale and leaseback arrangement on October 1, 2020 for one of its plants having remaining useful life of 5 years with a nil
residual value. Relevant information is as follows (In millions):
Carrying value of the plant as of October 1, 2020 - ₱43
Selling price - ₱53
Installments payable semi-annually, in advance, for a period of 5 years - ₱7
Income of ₱10 million has been recognized on disposal of the plant and is included in other operating income. Interest rate implicit in the
lease is 13.597%
C. On April 1, 2016 KL had acquired an equipment at a cost of ₱30 million. The useful life of the equipment was estimated at 15 years and it
is being depredated under the straight-line method. On October 1, 2020, the equipment suffered physical damage but is still working. A
valuation was carried out to determine the impairment loss. The following information is available from the valuer's report:
Value in use ₱16 million
Selling price, net of costs to sell ₱12 million
Estimated remaining useful life as of October 1, 2020 5 years
Depreciation for the year ended March 31, 2021 has been accounted for without considering the impact of the valuer's report.
D. On April 1, 2020 KL acquired 25% holding in SL Limited by purchasing 50,000 ordinary shares for ₱6 million. In March 2021, a dividend
of ₱20 per share was received by KL and credited to other operating income. SL's pro t and other comprehensive income for the year ended
March 31, 2021 was ₱10 million and ₱2 million respectively.
Based on the above and the result of your audit, you are to provide the answers to the following.
How much is the overstatement or understatement of pro t on sale and leaseback for the year ended March 31, 2021?
a. Nil
b. ₱10,000,000
c. ₱9,000,000

d. ₱1,000,000
The correct answer is: ₱9,000,000
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
4/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 5
Incorrect
Mark 0.00 out of 1.00
You are auditing the nancial statements of Santiago Inc. For the year ended December 31, 2021. The liability portion of the company's
balance sheet shows the following information:
Current Liabilities:
Accounts payable
₱ 900,000
Warranties liability
66,000
₱ 966,000
Noncurrent Liabilities:
Lease liability
Bonds payable
₱ 630,000
3,475,902
₱4,105,902
Upon further investigation on the liabilities account, you discovered the following information:
A. Accounts payable
The balance in Santiago Company's accounts payable account at December 31, 2021, was before any necessary year-end adjustment
relating to the following:
Goods were in transit from a vendor to Santiago on December 31, 2021. The invoice cost was ₱50,000 and the goods were shipped F.O.B.
shipping point on December 29, 2021. The goods were received on January 4, 2022.
Goods shipped F.O.B. shipping point on December 20, 2021 from a vendor to Santiago was lost in transit. The invoice cost was ₱25,000.
On January 5, 2022, Santiago led a P25,000 claim against the Common carrier.
Goods shipped F.O.B. destination on December 21, 21121 from a vendor to Santiago was received on January 6, 2022. The invoice cost
was ₱15,000.
B. Warranty Liability
During 2019, Santiago Company introduced a new line of machines that car, a 3-year warranty against manufacturer's
defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 4% in the year after
sale, and 6% in the second year after sale. Sales and actual warranty expenditures for the first 3-year period were as follows:
Actual Warranty
Sales
2019
₱ 200,000
2020
500,000
2021
700.000
₱1,400,000
Expenditures
₱ 3,000
15,000
45.000
₱63,000
The company is yet to update its warranty liabilities as of December 31, 2021.
C. Other Accruals
You also conducted a search for unrecorded liabilities by reviewing the voucher register several days before and after the
reporting date. Your review is summarized below:
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
5/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
D. Lease liability
The Santiago Company leased some plant and machinery for 10 years, its useful life, with effect from January 1, 2021. At that
date the fair value of the plant and machinery was ₱490,000. Annual rentals of ₱70,000 are payable in advance on January 1,
2021 and the interest rate implicit in the lease is 9%. The company recorded the lease liability at the total amount expected to
be paid for the 10-year period and charges the same for the annual payments made.
E. Bonds Payable
The company issued ₱4,000,000 of 10% face value bonds for ₱3,875,902. The bonds were dated and issued on January 1,
2021, are due on December 31. 2023. The bonds call for payment of interest annually every December 31. The company sold
the bonds to yield 11%. The company debited the bonds payable account when it paid the interest on December 31, 2021.
How much is the correct balance of the accounts payable account as of December 31, 2021?
a. ₱925,000
b. ₱950,000

c. ₱975,000
d. ₱940,000
The correct answer is: ₱975,000
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
6/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 6
Correct
Mark 1.00 out of 1.00
Included in Revo Company's liability balances on December 31, 2021 were the following:
Current Liabilities:
10% note payable issued on October 1, 2020, maturing October 1, 2022
12% note payable issued on March 1, 2020, maturing on March I, 2022
₱2,000,000
4,000,000
Estimated payable-contingencies
Total
₱7,100,000
1,100,000
Upon further investigation on the liabilities account, you discovered the following information:
A. NOTES PAYABLE
Revo's 2021 nancial statements were issued on March 31, 2022. On December 31, 2021, the entire ₱4,000,000 balance of the 12% note
payable was re nanced through the issuance of a long-term obligation payable lump sum. Under the loan agreement for the 10% note
payable, Revo has the discretion to re nance the obligation for at least twelve months after December 31, 2021.
B. CONTINGENT LIABILITIES
Revo Company has several contingent liabilities on December 31, 2021. A brief description of each liability is given below:
A personal injury liability suit for ₱500,000 was brought against Revo Company in March 2021. The management and legal counsel of
Revo concluded that it is not probable that Revo will be responsible for damages and that ₱150,000 is the best estimate of the damages.
In July 2021, Revo Company became involved in a tax dispute with the RIR pertaining to 2020 income tax. In December 2021, a judgment
for ₱400,000 was assessed against Revo by the tax court. Revo is appealing the amount of the judgment. The tax advisor and legal
counsel of Revo feel it is probable that they can reduce the assessment on appeal by 50%.
Revo Company signed as guarantor for ₱200,000 loan by PNB to Innova Co., a principal supplier of Revo. By reason of nancial
di culties, it is probable that Revo shall pay the ₱200,000 loan with only a 60% recovery anticipated from Innova Company.
All of the above contingent liabilities were recorded by the company as follows:
Dr. Loss on contingencies
₱1,100,000
Cr. Estimated payable-contingencies
₱1,100,000
(₱500,000+₱400,000+₱200,000)
C. LEASE LIABILITY
Revo Company leased machinery from Toyota Company on December 31, 2020, for a 10-year period (useful life of the asset is 12 years).
Equal annual payments under the lease are ₱60,000 and are due on December 31 of each year starting December 31, 2020. The implicit rate
of interest is 12%. The company made the following journal entries:
December 31, 2020
December 31, 2021
Rent expense
Cash
Rent expense
Cash
60,000
60,000
60,000
60,000
No further journal entry was made during the year. Assume that the asset is not a low value asset.
D. OPERATING LEASE
On January 1, 2021, Revo leased an o ce equipment from Montero Co. under a three-year operating lease. Total rent for the term of the
lease will be ₱720,000, payable as follows:
12 months at ₱10,000 = ₱120,000
12 months at ₱15,000 = ₱180,000
12 months at ₱35,000 = ₱420,000
Rent expense is debited when paid. All payments were made when due.
Based on the above and the result of your audit, answer the following:
What should be the liability under the nance lease to be shown as noncurrent on December 31, 2021?
a. ₱319,692
b. ₱273,822
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)

7/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
c. ₱238,055
d. ₱358,055
The correct answer is: ₱273,822
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
8/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 7
Incorrect
Mark 0.00 out of 1.00
Following are the extracts from draft statement of comprehensive income of Katrina Lando (KL) Co. for the year ended March 31, 2021:
Net Sales
Cost of sales
Selling and distribution expenses
Administrative expenses
In millions
₱ 800
(640)
(32)
(15)
Finance costs
Other operating income
(10)
Pro t before tax
116
13
The following issues need to be resolved, to nalize the accounts:
A. On April 1, 2020 the company had issued 0.5 million 12% Term Finance Certi cates (TFCs) of P100 each. The principal amount of ₱50
million is included in non-current liabilities. Interest is payable annually in arrears. On the date of issue. the prevailing interest rate for similar
debts without conversion option was 14% per annum. TFCs would mature on March 31, 2024 but are convertible into eight ordinary shares
of P10 each, at the option of the certi cate holders, at any time prior to maturity. Interest was paid on March 31. 2021 and charged to
nance cost
B. KL entered into a sale and leaseback arrangement on October 1, 2020 for one of its plants having remaining useful life of 5 years with a nil
residual value. Relevant information is as follows (In millions):
Carrying value of the plant as of October 1, 2020 - ₱43
Selling price - ₱53
Installments payable semi-annually, in advance, for a period of 5 years - ₱7
Income of ₱10 million has been recognized on disposal of the plant and is included in other operating income. Interest rate implicit in the
lease is 13.597%
C. On April 1, 2016 KL had acquired an equipment at a cost of ₱30 million. The useful life of the equipment was estimated at 15 years and it
is being depredated under the straight-line method. On October 1, 2020, the equipment suffered physical damage but is still working. A
valuation was carried out to determine the impairment loss. The following information is available from the valuer's report:
Value in use ₱16 million
Selling price, net of costs to sell ₱12 million
Estimated remaining useful life as of October 1, 2020 5 years
Depreciation for the year ended March 31, 2021 has been accounted for without considering the impact of the valuer's report.
D. On April 1, 2020 KL acquired 25% holding in SL Limited by purchasing 50,000 ordinary shares for ₱6 million. In March 2021, a dividend
of ₱20 per share was received by KL and credited to other operating income. SL's pro t and other comprehensive income for the year ended
March 31, 2021 was ₱10 million and ₱2 million respectively.
Based on the above and the result of your audit, you are to provide the answers to the following.
How much is the overstatement or understatement of depreciation expense of the equipment for the year ended March 31, 2021?
a. ₱6,591,000
b. ₱600,000
c. ₱591,000

d. Nil
The correct answer is: ₱600,000
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
9/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 8
Correct
Mark 1.00 out of 1.00
You were engaged in the annual examination of the nancial statements of Troy Co. As part of your audit, you are assigned for the lease and
its related account The following accounts appear in the ledger:
Right of use asset
Dr 1/1/2021
1,351,805
Cr 1,351,805
Bal. end, 12/31/2021
Cr 1,151,805
1/1/2021
Lease liability
Dr 12/31/2021
84,819
Bal. end, 12/31/2021 1,066,986
Dr 12/31/2021
Interest Expense
115,181
Cr. 115,181
Bal. end, 12/31/2021
Depreciation Expense
Dr. 12/31/2021
135,181
Cr. 135,181
Bal. end, 12/31/2021
Additional information:
The January 1, 2021 balance re ects the amount capitalized on December 31, 2020 when Troy Co. leased a building from Cherry Co. for a
lease term of 10 years. The building has a useful life of 20 years. There is no transfer of ownership at the end of the leased asset's useful
life and the fair value of the building on December 31, 2020 was ₱2,000,000. Troy Co's incremental borrowing rate is 10%. Lease payment
of ₱200,000 is due every December 31, starting December 31, 2020.
The beginning balance of the lease liability re ects the amount that was capitalized on December 31, 2020 less the rst payment made
on that date.
The debit entries on December 31, 2021 in the leased liability and interest expense re ected the amount paid on that date.
Depreciation expense was also recorded using straight line method. Questions: Based on the above data, answer the following:
How much is the total leased related liabilities as of December 31, 2021?
a. ₱71,301
b. ₱1,066,986

c. Nil
d. ₱1,215,685
The correct answer is: ₱1,066,986
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
10/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 9
Incorrect
Mark 0.00 out of 1.00
On January 1, 2019, Clarity Inc. signed a 4-year noncancelable lease for a new machine requiring P120,000 annual payments beginning
January 1, 2019. The annual payments include payment for insurance and property taxes amounting to P20,000. On the same date, the
company paid P20,000 incremental costs that are directly attributable to negotiating and arranging a lease.
The machine has a useful life of 10 years, with no salvage value. The rate implicit on the lease is 11%. The company guarantees a residual
value of P30,000 at the end of the lease term. The fair value of the machine at the inception of the lease amounted to 460,644.
How much is the amount to be capitalized as machinery (leased asset) on January 1, 2019
a. 483,005

b. 433,005
c. 485,121
d. 453,005
Your answer is incorrect.
The correct answer is:
453,005
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
11/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 10
Incorrect
Mark 0.00 out of 1.00
Molleda Company entered as a lessee on the following lease:
First lease
On July 1, 2020, Molleda Company leased a computer equipment from Quezon Corporation under a 3-year operating lease. Total rent for the
term of the lease will be ₱360,000, payable as follows:
12 months at ₱ 5,000 = ₱ 60,000
12 months at ₱ 7,500 = ₱90,000
12 months at ₱17,500 = ₱210,000
All payments were made when due. The lease is for a low value asset.
Second Lease
Molleda Company leased a new machine from San Manuel Company on June 30. 2021, under a lease with the following information:
Annual rental payable at beginning of each lease year ₱400,000
Lease term 10 years
Useful life of machine 12 years
Implicit interest rate 14%
The fair value of the building on June 30, 2021 is ₱2,380,000. Molleda has the option to purchase the machine on June 30, 2026 by paying
₱500,000 which approximates the expected fair value of the machine on the option exercise date.
Based on the above and the result of your audit, determine the following (Round present value factors to two decimal places):
On June 30, 2021, Molleda should record as cost of right of use asset at?
a. ₱2,245,000
b. ₱2,515,000
c. ₱1,980,000

d. ₱2,380,000
The correct answer is: ₱2,380,000
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
12/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 11
Correct
Mark 1.00 out of 1.00
On January 1, 2017, Cedarwood issued 10%, 5-year, P3,000,000 convertible bonds for the face amount of P3,000,000. The bonds are
convertible into P400 par ordinary shares at conversion price of P500 per share. The prevailing rate of interest of the bonds without the
conversion option is 12%. Interest is payable every December 31.
On December December 31, 2018, after payment of interest, 1/2 of the bonds were retired at P1,600,000 when the fair value of the securities
is P500. The prevailing interest rate of the bonds is 9%.
On January 1, 2019, to induce the holder to convert their bonds into shares, Cedarwood reduces the conversion price to P400 if the bonds
are converted before March 1, 2019 (60days). All the bondholders, accepted the offer on January 1, 2019. On the date of conversion, the fair
value of the ordinary shares is P420 per share.
The amount allocated to equity component on January 1, 2017?
a. Zero
b. 360,600
c. 227,447
d. 216,287

Your answer is correct.
The correct answer is:
216,287
Question 12
Incorrect
Mark 0.00 out of 1.00
Quezon Co. issued 15,000, P1, 10% redeemable preference shares on January 1, 2016. The shares are subject to compulsory redemption by
the company on December 31, 2018. The effective interest rate on the date of issuance is 11.489%. On December 31, 2018, the directors
resolved to redeem the preference shares at a premium of P0.05 per share. This was in accordance with the terms of original issue.
What is the carrying amount of debentures on December 30, 2019?
a. 19,728
b. 19,925

c. 19,554
d. 19,400
Your answer is incorrect.
The correct answer is:
19,554
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
13/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 13
Incorrect
Mark 0.00 out of 1.00
The nancial statements of Buko Lemon (BL) for the year ended September 30, 2021 are under nalization and the following matters are
under consideration:
A. BL's plant was commissioned and became operational on April 1, 2016 at a cost of ₱130 million. At the time of commissioning its useful
life and present value of decommissioning liability was estimated at 20 years and ₱19 million respectively BLS discount rate is 10%. Them
has been no change in the above estimates till 30 September 2021 except for the decommissioning liability whose present value as of April
1, 2021 was estimated at ₱25 million.
B. On April 1. 2021. BL shifted to a newly acquired building in the city center. The vacated building was leased as follows:
Date of commencement of lease
April 1, 2021
Lease period
3 years
Six semi-annual installments payable in advance every April 1 and October 1 (to be increased by 5% annually) ₱3 million
On April 1, 2021, the carrying value and fair value of the vacated building was ₱55 million and ₱70 million respectively. As of September 30,
2021, the fair value of the vacated building did not change. BL uses fair value model to account for investment properties.
Based on the above date, determine the following:
The total nance cost relating to decommissioning cost for the year ended September 30, 2021 is?
a. ₱2,640,895
b. ₱1,250,000

c. ₱2,781,790
d. ₱2,528,900
The correct answer is: ₱2,640,895
Question 14
Correct
Mark 1.00 out of 1.00
Eustace decided to offer a bonus to its president at 25% of net income earned by the branch during the current year. The income before tax
and bonus was P5,275000. Tax rate is 20%.
How much is the bonus based on net income after bonus and after tax?
a. None of the choices
b. 1,055,000
c. 1,318,750
d. 879,167

Your answer is correct.
The correct answer is: 879,167
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
14/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 15
Correct
Mark 1.00 out of 1.00
Caper Co. provided you with the following data in relation to your audit for the year ended December 31, 2019, its rst year of operations:
Warranty expense
85,000
Premium expense
270,000
Net income
1,935,000
The company sells two products - washing machines and ovens. The washing machines carry a 3-year warranty against manufacturer's
defects. Based on the reliable estimate, warranty costs are estimated at P150 per machine. During 2019, Caper sol 1,200 washing machines
and paid warranty costs of P85,000 which was charged to warranty expense.
Premium is offered on the oven. Customers receive a coupon for each peso spent on the oven. Customers may exchange 400 coupons and
P20 for a T-short. Caper pays P45 for each T-shirt and estimates that 60% of the coupons given to customers, will be redeemed. Total sales
for the oven amounted to P1,200,000.
A total of 6,000 T-shirts used in the premium program were purchased during the year and there were 500,000 coupons redeemed during the
current year. Premium expense of P270,000 was charged when it purchased 6,000 T-shirts.
Bonus to president based on net income after bonus of 20% and before tax of 30%.
a. 240,917
b. 344,167

c. 413,000
d. 253,596
Your answer is correct.
The correct answer is:
344,167
Question 16
Incorrect
Mark 0.00 out of 1.00
During 2019, ABC Co. led a lawsuit against Toowa, Inc. seeking legal damages for patent infringement. In ABC Co.'s December 31, 2019
nancial statements, how should this be reported if it is probable that ABC would be successful against Toowa for an estimated amount of
P1,500,000. Before the nancial statements was issued, ABC Co. was awarded P1,500,000 and received full payment thereof.
a. Accrue and disclose

b. Neither accrue nor disclose
c. Accrue only
d. Disclose only
Your answer is incorrect.
The correct answer is:
Disclose only
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
15/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 17
Incorrect
Mark 0.00 out of 1.00
In connection with your audit of San Narciso Enterprises, you noted that the company has a long-standing policy of acquiring company
equipment by leasin, At the end of 2020, the company entered into a lease for a new milling machine. The lease stipulates that annual
payments will be made for 5 years. The payment are to be made in advance on December 31 of each year. At the end of the 5-year period.
San Narciso may purchase the machine. The estimated economic life of the machine is 12 years. San Narciso uses the calendar year for
reporting purposes and straight-line depreciation for other equipment. In addition, the following information about the lease is also
available:
Annual lease payments ₱50,000
Fair market value of machine at the inception of the lease ₱213,213
Estimated fair market value at the end of 5 years ₱150,000
Implicit rate 12%
Date of rst lease payment Dec. 31, 2020
Based on the above and the result of your audit, compute for the following. (Round off present value factors to four decimal places.)
Interest expense for the year 2021?
a. ₱14,411
b. ₱19,586

c. Nil
d. ₱18,224
The correct answer is: ₱18,224
Question 18
Incorrect
Mark 0.00 out of 1.00
Cagayan Enterprises has been leasing machine to various customers. Early in 2021, the company entered into a lease for a new milling
machine to Tuguegarao Company. The lease stipulates that annual payments will he made for 6 years. The payments are to be made in
advance on January 1 of each year. The estimated economic life of the machine is 12 years. Tuguegarao uses the calendar year for
reporting purposes and straight-line depreciation for machine. In addition, the following information about the lease is also available:
Unguaranteed residual value ₱20,000
Fair market value of machine at the date of inception of the lease ₱286,420
Implicit rate known both by the lessee and lessor 12%
Date of rst lease payment Jan. 1, 2021
The lease reverts to Tuguegarao at the end of lease term.
Based on the above and the result of your audit, compute for the following: (Round off present value factors to four decimal places.)
The interest income to be recognized by the lessor in 2021 is?
a. ₱21,869
b. ₱23,231
c. ₱25,955

d. ₱27,170
The correct answer is: ₱27,170
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
16/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 19
Correct
Mark 1.00 out of 1.00
The nancial statements of Buko Lemon (BL) for the year ended September 30, 2021 are under nalization and the following matters are
under consideration:
A. BL's plant was commissioned and became operational on April 1, 2016 at a cost of ₱130 million. At the time of commissioning its useful
life and present value of decommissioning liability was estimated at 20 years and ₱19 million respectively BLS discount rate is 10%. Them
has been no change in the above estimates till 30 September 2021 except for the decommissioning liability whose present value as of April
1, 2021 was estimated at ₱25 million.
B. On April 1. 2021. BL shifted to a newly acquired building in the city center. The vacated building was leased as follows:
Date of commencement of lease
April 1, 2021
Lease period
3 years
Six semi-annual installments payable in advance every April 1 and October 1 (to be increased by 5% annually) ₱3 million
On April 1, 2021, the carrying value and fair value of the vacated building was ₱55 million and ₱70 million respectively. As of September 30,
2021, the fair value of the vacated building did not change. BL uses fair value model to account for investment properties.
Based on the above date, determine the following:
The operating lease rent receivable for the year ended September 30, 2021 is?
a. ₱3,000,000
b. ₱152,500

c. ₱305,000
d. Nil
The correct answer is: ₱152,500
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
17/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 20
Correct
Mark 1.00 out of 1.00
On January 1, 2017, Cedarwood issued 10%, 5-year, P3,000,000 convertible bonds for the face amount of P3,000,000. The bonds are
convertible into P400 par ordinary shares at conversion price of P500 per share. The prevailing rate of interest of the bonds without the
conversion option is 12%. Interest is payable every December 31.
On December December 31, 2018, after payment of interest, 1/2 of the bonds were retired at P1,600,000 when the fair value of the securities
is P500. The prevailing interest rate of the bonds is 9%.
On January 1, 2019, to induce the holder to convert their bonds into shares, Cedarwood reduces the conversion price to P400 if the bonds
are converted before March 1, 2019 (60days). All the bondholders, accepted the offer on January 1, 2019. On the date of conversion, the fair
value of the ordinary shares is P420 per share.
The net increase (or decrease) in equity as a result of the retirement of the bonds on December 31, 2018.
a. Zero
b. Decrease of 62,031

c. Decrease 110,024
d. Decrease 72,055
Your answer is correct.
The correct answer is:
Decrease of 62,031
Question 21
Correct
Mark 1.00 out of 1.00
In connection with your audit of San Narciso Enterprises, you noted that the company has a long-standing policy of acquiring company
equipment by leasin, At the end of 2020, the company entered into a lease for a new milling machine. The lease stipulates that annual
payments will be made for 5 years. The payment are to be made in advance on December 31 of each year. At the end of the 5-year period.
San Narciso may purchase the machine. The estimated economic life of the machine is 12 years. San Narciso uses the calendar year for
reporting purposes and straight-line depreciation for other equipment. In addition, the following information about the lease is also
available:
Annual lease payments ₱50,000
Fair market value of machine at the inception of the lease ₱213,213
Estimated fair market value at the end of 5 years ₱150,000
Implicit rate 12%
Date of rst lease payment Dec. 31, 2020
Based on the above and the result of your audit, compute for the following. (Round off present value factors to four decimal places.)
Lease liability as of December 31, 2021?
a. ₱132,799
b. Nil
c. ₱182,799
d. ₱120,089

The correct answer is: ₱120,089
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
18/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 22
Incorrect
Mark 0.00 out of 1.00
Included in Revo Company's liability balances on December 31, 2021 were the following:
Current Liabilities:
10% note payable issued on October 1, 2020, maturing October 1, 2022
12% note payable issued on March 1, 2020, maturing on March I, 2022
₱2,000,000
4,000,000
Estimated payable-contingencies
Total
₱7,100,000
1,100,000
Upon further investigation on the liabilities account, you discovered the following information:
A. NOTES PAYABLE
Revo's 2021 nancial statements were issued on March 31, 2022. On December 31, 2021, the entire ₱4,000,000 balance of the 12% note
payable was re nanced through the issuance of a long-term obligation payable lump sum. Under the loan agreement for the 10% note
payable, Revo has the discretion to re nance the obligation for at least twelve months after December 31, 2021.
B. CONTINGENT LIABILITIES
Revo Company has several contingent liabilities on December 31, 2021. A brief description of each liability is given below:
A personal injury liability suit for ₱500,000 was brought against Revo Company in March 2021. The management and legal counsel of
Revo concluded that it is not probable that Revo will be responsible for damages and that ₱150,000 is the best estimate of the damages.
In July 2021, Revo Company became involved in a tax dispute with the RIR pertaining to 2020 income tax. In December 2021, a judgment
for ₱400,000 was assessed against Revo by the tax court. Revo is appealing the amount of the judgment. The tax advisor and legal
counsel of Revo feel it is probable that they can reduce the assessment on appeal by 50%.
Revo Company signed as guarantor for ₱200,000 loan by PNB to Innova Co., a principal supplier of Revo. By reason of nancial
di culties, it is probable that Revo shall pay the ₱200,000 loan with only a 60% recovery anticipated from Innova Company.
All of the above contingent liabilities were recorded by the company as follows:
Dr. Loss on contingencies
₱1,100,000
Cr. Estimated payable-contingencies
₱1,100,000
(₱500,000+₱400,000+₱200,000)
C. LEASE LIABILITY
Revo Company leased machinery from Toyota Company on December 31, 2020, for a 10-year period (useful life of the asset is
12 years). Equal annual payments under the lease are ₱60,000 and are due on December 31 of each year starting December
31, 2020. The implicit rate of interest is 12%. The company made the following journal entries:
December 31, 2020
December 31, 2021
Rent expense
Cash
Rent expense
Cash
60,000
60,000
60,000
60,000
No further journal entry was made during the year. Assume that the asset is not a low value asset.
D. OPERATING LEASE
On January 1, 2021, Revo leased an office equipment from Montero Co. under a three-year operating lease. Total rent for the
term of the lease will be ₱720,000, payable as follows:
12 months at ₱10,000 = ₱120,000
12 months at ₱15,000 = ₱180,000
12 months at ₱35,000 = ₱420,000
Rent expense is debited when paid. All payments were made when due.
Based on the above and the result of your audit, answer the following:
What amount of the notes payable should be classified as current on December 31, 2021?
a. ₱6,000,000

https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
19/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
b. ₱4,000,000
c. Nil
d. ₱2,000,000
The correct answer is: Nil
Question 23
Correct
Mark 1.00 out of 1.00
On January 1, 2019, Clarity Inc. signed a 4-year noncancelable lease for a new machine requiring P120,000 annual payments beginning
January 1, 2019. The annual payments include payment for insurance and property taxes amounting to P20,000. On the same date, the
company paid P20,000 incremental costs that are directly attributable to negotiating and arranging a lease.
The machine has a useful life of 10 years, with no salvage value. The rate implicit on the lease is 11%. The company guarantees a residual
value of P30,000 at the end of the lease term. The fair value of the machine at the inception of the lease amounted to 460,644.
Answer:
105751

The correct answer is: 105751
Question 24
Incorrect
Mark 0.00 out of 1.00
On January 1, Doors sells a building to ABC Co. At the same time, Doors Co. enters into a contract with ABC for the right to use the building.
Data relating to the sale and leaseback are as follows:
Selling price
Carrying amount
Annual lease payment
1,000,000
500,000
60,000
Implicit rate
5%
Lease term
18years
Fair value
900,000
Present value of annual lease payments?
Answer:
701376

The correct answer is: 701375
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
20/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 25
Correct
Mark 1.00 out of 1.00
Wasted Time, a dealer of machinery and equipment, entered as a lessor on the following lease:
First Lease
On January 1, 2021, a machine was leased to another enterprise with the following provisions:
Annual rental payable at the end of each year ₱3,000,000
Lease term and useful life of machinery 5 years
Cost of machinery ₱8,000,000
Residual value-unguaranteed ₱1,000,000
Implicit interest rate 12%
PV of an ordinary annuity of 1 for 5 periods at 12% 3.60
PV of 1 for 5 periods at 12% 0.57
At the end of the lease term on December 31, 2025, the machinery will revert to Wasted Time. The perpetual inventory system is used.
Wasted Time incurred initial direct cost of ₱300,000 in nalizing the lease agreement. The lease is appropriately recorded as sales type
lease. Second Lease Tequila Sunrise Company leased equipment from Wasted Time Co. on July 1, 2021 for an eight-year period expiring
June 30, 2029. Equal payments under the lease are ₱1,200,000 and are due on July 1 of each year. The rst payment was made on July 1,
2021. The rate of interest contemplated by Tequila Sunrise and Wasted Time is 10%. The cash selling price of the equipment is ₱7,040,000
and the cost of the equipment on Wasted Time's accounting records is ₱5,600,000. The lease is appropriately recorded as sales type lease.
Based on the above and the result of your audit, determine the following:
The earned nancial revenue or interest income for 2021 on the rst lease?
a. ₱1,800,000
b. ₱1,364,400

c. ₱926,000
d. ₱1,296,000
The correct answer is: ₱1,364,400
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
21/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 26
Incorrect
Mark 0.00 out of 1.00
You were engaged in the annual examination of the nancial statements of Isabela Co. As part of your audit, you are assigned with lease
and its related accounts. You noted that Isabela Co. entered as a lessee in three different leases of low value assets. The following relate to
the three leases:
Lease No. 1
On January 1, 2021, Isabela Co. leased computer equipment for 6 years at a monthly rental of ₱12,000. On that date Isabela paid the lessor
the following amounts:
Lease bonus ₱300,000
First year's rent ₱144,000
The entire amount of ₱444,000 was charged to rent expense in 2021.
Lease No. 2
On January 1, 2021, Isabela Co. signed a 5-year opera t i ng lease follow value o ce equipment at ₱480, 000 per year. The lease included a
provision for additional rent of 4% on annual company sales of ₱4, 000,000 and 5% on Sales in excess of ₱4,000,000 payable every
December 31. Isabela's sales for the year ended December 31, 2021 were ₱6, 000,0000. Upon execution (Arlie lease, Isabela paid ₱500,000
as a bonus for the lease. All payments were debited to rent expense.
Lease No. 3
On January 1, 2021, Isabela Company leased a o ce furniture from Ilagan Corporation under a 3-year operating lease. The agreement
provides that Isabela Co. will be allowed to use the o ce furniture rent free for the rst six months of the lease term but will pay ₱10,000 per
month thereafter. All payments were debited to rent expense.
Based on the above data, answer the following:
What is the effect of the errors, if any, in the net income for the year 2021?
a. ₱610,000 overstated
b. ₱670,000 understated

c. ₱610,000 understated
d. ₱590,000 understated
The correct answer is: ₱610,000 understated
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
22/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 27
Correct
Mark 1.00 out of 1.00
Quezon Co. issued 15,000, P1, 10% redeemable preference shares on January 1, 2016. The shares are subject to compulsory redemption by
the company on December 31, 2018. The effective interest rate on the date of issuance is 11.489%. On December 31, 2018, the directors
resolved to redeem the preference shares at a premium of P0.05 per share. This was in accordance with the terms of original issue.
What is the interest expense in 2016?
a. 1,778
b. 1,749
c. 1,723

d. 1,500
Your answer is correct.
The correct answer is:
1,723
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
23/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 28
Incorrect
Mark 0.00 out of 1.00
You were engaged in the annual examination of the nancial statements of Troy Co. As part of your audit, you are assigned for the lease and
its related account The following accounts appear in the ledger:
Right of use asset
Dr 1/1/2021
1,351,805
Dr 12/31/2021
Cr 1,351,805
Lease liability
84,819
Cr 1,151,805
Bal. end, 12/31/2021
1/1/2021
Bal. end, 12/31/2021 1,066,986
Interest Expense
Dr 12/31/2021
115,181
Cr. 115,181
Dr. 12/31/2021
Depreciation Expense
135,181
Cr. 135,181
Bal. end, 12/31/2021
Bal. end, 12/31/2021
Additional information:
The January 1, 2021 balance re ects the amount capitalized on December 31, 2020 when Troy Co. leased a building from Cherry Co. for a
lease term of 10 years. The building has a useful life of 20 years. There is no transfer of ownership at the end of the leased asset's useful
life and the fair value of the building on December 31, 2020 was ₱2,000,000. Troy Co's incremental borrowing rate is 10%. Lease payment
of ₱200,000 is due every December 31, starting December 31, 2020.
The beginning balance of the lease liability re ects the amount that was capitalized on December 31, 2020 less the rst payment made
on that date.
The debit entries on December 31, 2021 in the leased liability and interest expense re ected the amount paid on that date.
Depreciation expense was also recorded using straight line method. Questions: Based on the above data, answer the following:
What is the effect of the error, if any, on the net income in 2021?
a. ₱252,362 understated
b. ₱50,362 understated

c. Nil
d. ₱20,000 overstated
The correct answer is: Nil
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
24/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 29
Incorrect
Mark 0.00 out of 1.00
Lavender Co. has been leasing machines to various customers. Early in 2018, the company entered into a lease for a new milling machine to
Consuelo Inc. The lease stipulates that annual payments will be made for 6 years. The payments are to be made in advance on January of
each year. The estimated economic life of the machine is 12 years. COnsuelo uses the calanedar year for reprting purposes and straight line
mthod for depreciation. The ff. info is provided:
Unguaranteed residual value
Fair market value of machine at inception
of the lease
Implicit rate known by both lessee and
lessor
Date of rst lease payment
20,000
286,420
12%
Jan 1, 2018
The lease reverts to Consuelo at the end of the lease term.
Annual lease payments is?
a. 60,000
b. 80,000

c. 57,857
d. 62,200
Your answer is incorrect.
The correct answer is:
60,000
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
25/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 30
Incorrect
Mark 0.00 out of 1.00
You are auditing the nancial statements of Santiago Inc. For the year ended December 31, 2021. The liability portion of the company's
balance sheet shows the following information:
Current Liabilities:
Accounts payable
₱ 900,000
Warranties liability
66,000
₱ 966,000
Noncurrent Liabilities:
Lease liability
Bonds payable
₱ 630,000
3,475,902
₱4,105,902
Upon further investigation on the liabilities account, you discovered the following information:
A. Accounts payable
The balance in Santiago Company's accounts payable account at December 31, 2021, was before any necessary year-end adjustment
relating to the following:
Goods were in transit from a vendor to Santiago on December 31, 2021. The invoice cost was ₱50,000 and the goods were shipped F.O.B.
shipping point on December 29, 2021. The goods were received on January 4, 2022.
Goods shipped F.O.B. shipping point on December 20, 2021 from a vendor to Santiago was lost in transit. The invoice cost was ₱25,000.
On January 5, 2022, Santiago led a P25,000 claim against the Common carrier.
Goods shipped F.O.B. destination on December 21, 21121 from a vendor to Santiago was received on January 6, 2022. The invoice cost
was ₱15,000.
B. Warranty Liability
During 2019, Santiago Company introduced a new line of machines that car, a 3-year warranty against manufacturer's defects. Based on
industry experience, warranty costs are estimated at 2% of sales in the year of sale, 4% in the year after sale, and 6% in the second year after
sale. Sales and actual warranty expenditures for the rst 3-year period were as follows:
Actual Warranty
2019
2020
2021
Sales
₱ 200,000
Expenditures
₱ 3,000
500,000
700.000
₱1,400,000
15,000
45.000
₱63,000
The company is yet to update its warranty liabilities as of December 31, 2021.
C. Other Accruals
You also conducted a search for unrecorded liabilities by reviewing the voucher register several days before and after the reporting date.
Your review is summarized below:
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
26/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
D. Lease liability
The Santiago Company leased some plant and machinery for 10 years, its useful life, with effect from January 1, 2021. At that date the fair
value of the plant and machinery was ₱490,000. Annual rentals of ₱70,000 are payable in advance on January 1, 2021 and the interest rate
implicit in the lease is 9%. The company recorded the lease liability at the total amount expected to be paid for the 10-year period and
charges the same for the annual payments made.
E. Bonds Payable
The company issued ₱4,000,000 of 10% face value bonds for ₱3,875,902. The bonds were dated and issued on January 1, 2021, are due on
December 31. 2023. The bonds call for payment of interest annually every December 31. The company sold the bonds to yield 11%. The
company debited the bonds payable account when it paid the interest on December 31, 2021.
How much is the correct additional accruals to be included in the company's total current liabilities as of December 31, 2021?
a. ₱23,600
b. ₱28,400

c. ₱25,500
d. ₱49,400
The correct answer is: ₱23,600
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
27/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 31
Incorrect
Mark 0.00 out of 1.00
A manufacturer of a product, Esmer Co. had a lawsuit led against it by another manufacturing company XYZ Co. The suit alleges patent
rights infringement by Esmer Co. and asks for compensatory damages.
Esmer's lawyers estimates that infringement case may result to loss of P2,000,000 but considers the likelihoood of losing the case as
remote. How should Esmer report this information concerning the lawsuit?
a. Accrue and disclose

b. Neither accrue nor disclose
c. Disclose only
d. Accrue only
Your answer is incorrect.
The correct answer is:
Neither accrue nor disclose
Question 32
Incorrect
Mark 0.00 out of 1.00
On December 31, 2021, Nueva Vizcaya Co. signed a 4-year noncancelable lease for a new machine requiring ₱140,000 annual payments
beginning December 31, 2021. The annual payments include payment for insurance and property taxes amounting to ₱20,000. On the same
date, Nueva Vizcaya Co. paid ₱20,000 incremental costs that are directly attributable to negotiating and arranging a lease. The machine has
a useful life of 10 years, with no salvage value. The rate implicit on the lease is 11%. Nueva Vizcaya Co. guarantees a residual value of ₱30,
000 at the end of the lease term. The fair value of the machine at the inception of the lease amounted to ₱460,644.
Based on the above data answer the following:
Assuming that at the end of the lease, the fair value of the machinery is ₱40,000, how much is the gain on the lease?
a. ₱10,000
b. ₱20,239

c. ₱2,977
d. Nil
The correct answer is: Nil
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
28/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 33
Correct
Mark 1.00 out of 1.00
Quezon Co. issued 15,000, P1, 10% redeemable preference shares on January 1, 2016. The shares are subject to compulsory redemption by
the company on December 31, 2018. The effective interest rate on the date of issuance is 11.489%. On December 31, 2018, the directors
resolved to redeem the preference shares at a premium of P0.05 per share. This was in accordance with the terms of original issue.
What is the interest expense in 2019?
a. 2,554

b. 2,623
c. 2,400
d. 2,597
Your answer is correct.
The correct answer is:
2,554
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
29/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 34
Correct
Mark 1.00 out of 1.00
You were engaged in the annual examination of the nancial statements of Isabela Co. As part of your audit, you are assigned with lease
and its related accounts. You noted that Isabela Co. entered as a lessee in three different leases of low value assets. The following relate to
the three leases:
Lease No. 1
On January 1, 2021, Isabela Co. leased computer equipment for 6 years at a monthly rental of ₱12,000. On that date Isabela paid the lessor
the following amounts:
Lease bonus ₱300,000
First year's rent ₱144,000
The entire amount of ₱444,000 was charged to rent expense in 2021.
Lease No. 2
On January 1, 2021, Isabela Co. signed a 5-year opera t i ng lease follow value o ce equipment at ₱480, 000 per year. The lease included a
provision for additional rent of 4% on annual company sales of ₱4, 000,000 and 5% on Sales in excess of ₱4,000,000 payable every
December 31. Isabela's sales for the year ended December 31, 2021 were ₱6, 000,0000. Upon execution (Arlie lease, Isabela paid ₱500,000
as a bonus for the lease. All payments were debited to rent expense.
Lease No. 3
On January 1, 2021, Isabela Company leased a o ce furniture from Ilagan Corporation under a 3-year operating lease. The agreement
provides that Isabela Co. will be allowed to use the o ce furniture rent free for the rst six months of the lease term but will pay ₱10,000 per
month thereafter. All payments were debited to rent expense.
Based on the above data, answer the following:
What is the effect of the errors, if any, in the total assets and total liabilities as of December 31, 2021?
First gure Total Assets Second gure Total liabilities
a. ₱650,000 under ₱60,000 over
b. ₱650,000 under ₱40,000 under

c. ₱650,000 over ₱40,000 over
d. ₱670,000 under none
The correct answer is: ₱650,000 under ₱40,000 under
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
30/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 35
Correct
Mark 1.00 out of 1.00
On December 31, 2021, Nueva Vizcaya Co. signed a 4-year noncancelable lease for a new machine requiring ₱140,000 annual payments
beginning December 31, 2021. The annual payments include payment for insurance and property taxes amounting to ₱20,000. On the same
date, Nueva Vizcaya Co. paid ₱20,000 incremental costs that are directly attributable to negotiating and arranging a lease. The machine has
a useful life of 10 years, with no salvage value. The rate implicit on the lease is 11%. Nueva Vizcaya Co. guarantees a residual value of ₱30,
000 at the end of the lease term. The fair value of the machine at the inception of the lease amounted to ₱460,644.
Based on the above data answer the following:
How much is the total lease-related expense in 2022?
a. ₱140,182
b. Nil
c. ₱160,182

d. ₱113,311
The correct answer is: ₱160,182
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
31/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 36
Correct
Mark 1.00 out of 1.00
You are auditing the nancial statements of Santiago Inc. For the year ended December 31, 2021. The liability portion of the company's
balance sheet shows the following information:
Current Liabilities:
Accounts payable
₱ 900,000
Warranties liability
66,000
₱ 966,000
Noncurrent Liabilities:
Lease liability
Bonds payable
₱ 630,000
3,475,902
₱4,105,902
Upon further investigation on the liabilities account, you discovered the following information:
A. Accounts payable
The balance in Santiago Company's accounts payable account at December 31, 2021, was before any necessary year-end adjustment
relating to the following:
Goods were in transit from a vendor to Santiago on December 31, 2021. The invoice cost was ₱50,000 and the goods were shipped F.O.B.
shipping point on December 29, 2021. The goods were received on January 4, 2022.
Goods shipped F.O.B. shipping point on December 20, 2021 from a vendor to Santiago was lost in transit. The invoice cost was ₱25,000.
On January 5, 2022, Santiago led a P25,000 claim against the Common carrier.
Goods shipped F.O.B. destination on December 21, 21121 from a vendor to Santiago was received on January 6, 2022. The invoice cost
was ₱15,000.
B. Warranty Liability
During 2019, Santiago Company introduced a new line of machines that car, a 3-year warranty against manufacturer's defects. Based on
industry experience, warranty costs are estimated at 2% of sales in the year of sale, 4% in the year after sale, and 6% in the second year after
sale. Sales and actual warranty expenditures for the rst 3-year period were as follows:
Actual Warranty
2019
2020
2021
Sales
₱ 200,000
Expenditures
₱ 3,000
500,000
700.000
₱1,400,000
15,000
45.000
₱63,000
The company is yet to update its warranty liabilities as of December 31, 2021.
C. Other Accruals
You also conducted a search for unrecorded liabilities by reviewing the voucher register several days before and after the reporting date.
Your review is summarized below:
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
32/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
D. Lease liability
The Santiago Company leased some plant and machinery for 10 years, its useful life, with effect from January 1, 2021. At that date the fair
value of the plant and machinery was ₱490,000. Annual rentals of ₱70,000 are payable in advance on January 1, 2021 and the interest rate
implicit in the lease is 9%. The company recorded the lease liability at the total amount expected to be paid for the 10-year period and
charges the same for the annual payments made.
E. Bonds Payable
The company issued ₱4,000,000 of 10% face value bonds for ₱3,875,902. The bonds were dated and issued on January 1, 2021, are due on
December 31. 2023. The bonds call for payment of interest annually every December 31. The company sold the bonds to yield 11%. The
company debited the bonds payable account when it paid the interest on December 31, 2021.
How much is carrying value of the bonds payable of December 31, 2021?
a. ₱3,902,251

b. ₱3,849,553
c. ₱3,931,499
d. ₱4,099,474
The correct answer is: ₱3,902,251
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
33/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 37
Incorrect
Mark 0.00 out of 1.00
On January 1, Doors sells a building to ABC Co. At the same time, Doors Co. enters into a contract with ABC for the right to use the building.
Data relating to the sale and leaseback are as follows:
On January 1, Doors sells a building to ABC Co. At the same time, Doors Co. enters into a contract with ABC for the right to use the building.
Data relating to the sale and leaseback are as follows:
Selling price
Carrying amount
Annual lease payment
Implicit rate
Lease term
Fair value
1,000,000
500,000
60,000
5%
18years
900,000
How much is the gain (loss)on rights transferred to be recognized by the lessee?
Answer:
0

The correct answer is: 132722
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
34/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 38
Incorrect
Mark 0.00 out of 1.00
Cabarroguis leases computer equipment to customers under direct nancing leases.
First Lease
The equipment has no residual value at the end of the lease and the leases do not contain bargain purchase options. Cabarroguis wishes to
earn 8% interest on a 5-year lease of equipment with a cost of ₱3,234,000. The present value of an annuity due of 1 at 8% for 5 years is
4.312. On January 1, 2021, Cabarroguis Company leased the equipment to Quinno Company.
Second Lease
Cabarroguis expects a 12% return on its net investment on this second lease. At the end of the lease term, the equipment will revert to
Cabarroguis Company. On January 1, 2021, computer equipment is leased to a lessee with the following information:
Cost of equipment to Cabarroguis ₱5,500,000
Residual value-unguaranteed ₱400,000
Annual rental payable in advance ₱959,500
Useful life and lease term 8 years
Implicit interest rate 12%
First lease payment January 1, 2021
Based on the above and the result of your audit, determine the following:
What is the interest revenue to be reported by Cabarroguis for the year 2021 on the second lease?
a. ₱660,000
b. ₱496,860

c. ₱544,860
d. ₱322,000
The correct answer is: ₱544,860
Question 39
Correct
Mark 1.00 out of 1.00
On December 31, 2021, Nueva Vizcaya Co. signed a 4-year noncancelable lease for a new machine requiring ₱140,000 annual payments
beginning December 31, 2021. The annual payments include payment for insurance and property taxes amounting to ₱20,000. On the same
date, Nueva Vizcaya Co. paid ₱20,000 incremental costs that are directly attributable to negotiating and arranging a lease. The machine has
a useful life of 10 years, with no salvage value. The rate implicit on the lease is 11%. Nueva Vizcaya Co. guarantees a residual value of ₱30,
000 at the end of the lease term. The fair value of the machine at the inception of the lease amounted to ₱460,644.
Based on the above data answer the following:
Assuming that at the end of the lease, the fair value of the machinery is only ₱25,000, how much is the loss on the lease?
a. ₱2,977
b. Nil
c. ₱5,000

d. ₱5,239
The correct answer is: ₱5,000
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
35/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 40
Incorrect
Mark 0.00 out of 1.00
Whale, Inc. sells TV sets to various customers. They offer a special service warranty on TV sets sold. With the purchase of a TV set, the
customer has the right to purchase a 3-year warranty service contract for an additional amount of P1,500. Data concerning sales of TV sets
and warranty contract are as follows:
2017
No. of TV sets sold
Sales price per unit
No.of service contracts sold
Expenses relating to TV set
warranties
2018
2500
14,000.00
1000
45,000.00
2800
14,000.00
1200
60,000.00
How much pro t on service contract would be earned in the year 2018?
a. 930,000
b. 570,000

c. 870,000
d. 360,000
Your answer is incorrect.
The correct answer is:
870,000
Question 41
Correct
Mark 1.00 out of 1.00
Cagayan Enterprises has been leasing machine to various customers. Early in 2021, the company entered into a lease for a new milling
machine to Tuguegarao Company. The lease stipulates that annual payments will he made for 6 years. The payments are to be made in
advance on January 1 of each year. The estimated economic life of the machine is 12 years. Tuguegarao uses the calendar year for
reporting purposes and straight-line depreciation for machine. In addition, the following information about the lease is also available:
Unguaranteed residual value ₱20,000
Fair market value of machine at the date of inception of the lease ₱286,420
Implicit rate known both by the lessee and lessor 12%
Date of rst lease payment Jan. 1, 2021
The lease reverts to Tuguegarao at the end of lease term.
Based on the above and the result of your audit, compute for the following: (Round off present value factors to four decimal places.)
The amount to be reported as lease liability as of December 31, 2021 is?
a. ₱226,420
b. ₱182,243

c. ₱193,590
d. ₱144,112
The correct answer is: ₱182,243
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
36/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 42
Correct
Mark 1.00 out of 1.00
You were engaged in the annual examination of the nancial statements of Troy Co. As part of your audit, you are assigned for the lease and
its related account The following accounts appear in the ledger:
Right of use asset
Dr 1/1/2021
1,351,805
Cr 1,351,805
Bal. end, 12/31/2021
Cr 1,151,805
1/1/2021
Lease liability
Dr 12/31/2021
84,819
Bal. end, 12/31/2021 1,066,986
Dr 12/31/2021
Interest Expense
115,181
Cr. 115,181
Bal. end, 12/31/2021
Depreciation Expense
Dr. 12/31/2021
135,181
Cr. 135,181
Bal. end, 12/31/2021
Additional information:
The January 1, 2021 balance re ects the amount capitalized on December 31, 2020 when Troy Co. leased a building from Cherry Co. for a
lease term of 10 years. The building has a useful life of 20 years. There is no transfer of ownership at the end of the leased asset's useful
life and the fair value of the building on December 31, 2020 was ₱2,000,000. Troy Co's incremental borrowing rate is 10%. Lease payment
of ₱200,000 is due every December 31, starting December 31, 2020.
The beginning balance of the lease liability re ects the amount that was capitalized on December 31, 2020 less the rst payment made
on that date.
The debit entries on December 31, 2021 in the leased liability and interest expense re ected the amount paid on that date.
Depreciation expense was also recorded using straight line method. Questions: Based on the above data, answer the following:
How much is the current liabilities as ocf. December 31, 2021?
a. ₱93,301

b. ₱49,638
c. Nil
d. ₱200,000
The correct answer is: ₱93,301
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
37/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 43
Correct
Mark 1.00 out of 1.00
On January 1, Doors sells a building to ABC Co. At the same time, Doors Co. enters into a contract with ABC for the right to use the building.
Data relating to the sale and leaseback are as follows:
Selling price
Carrying amount
Annual lease payment
Implicit rate
Lease term
Fair value
1,000,000
500,000
60,000
5%
18years
900,000
Initial cost of rights of use asset to be recognized by the lessee?
Answer:
334097

The correct answer is: 334097
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
38/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 44
Correct
Mark 1.00 out of 1.00
Cabarroguis leases computer equipment to customers under direct nancing leases.
First Lease
The equipment has no residual value at the end of the lease and the leases do not contain bargain purchase options. Cabarroguis wishes to
earn 8% interest on a 5-year lease of equipment with a cost of ₱3,234,000. The present value of an annuity due of 1 at 8% for 5 years is
4.312. On January 1, 2021, Cabarroguis Company leased the equipment to Quinno Company.
Second Lease
Cabarroguis expects a 12% return on its net investment on this second lease. At the end of the lease term, the equipment will revert to
Cabarroguis Company. On January 1, 2021, computer equipment is leased to a lessee with the following information:
Cost of equipment to Cabarroguis ₱5,500,000
Residual value-unguaranteed ₱400,000
Annual rental payable in advance ₱959,500
Useful life and lease term 8 years
Implicit interest rate 12%
First lease payment January 1, 2021
Based on the above and the result of your audit, determine the following:
What is the total interest revenue that Cabarroguis will earn over the lease term on the second lease?
a. ₱1,616,500
b. ₱1,776,000
c. ₱2,576,000

d. ₱2,176,000
The correct answer is: ₱2,576,000
Question 45
Correct
Mark 1.00 out of 1.00
On December 31, 2018, Ovaltine Inc. acquired inventory with a list price of P1,300,000 and a cash price of P1,094,215 by issuing P1,200,000,
non-interest bearing note payable. Principal is due in three equal annual payments every December 31, beginning on December 31, 2018.
How much is the carrying amount of the note on December 31, 2019?
a. 920,000
b. 363,636

c. 996,667
d. 694,214
Your answer is correct.
The correct answer is:
363,636
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
39/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 46
Incorrect
Mark 0.00 out of 1.00
Eustace decided to offer a bonus to its president at 25% of net income earned by the branch during the current year. The income before tax
and bonus was P5,275,000. Tax rate is 20%.
How much is the bonus based on net income before bonus and after tax?
a. 1,110,526
b. 879,167

c. 1,318,750
d. 1,055,000
Your answer is incorrect.
The correct answer is:
1,110,526
Question 47
Correct
Mark 1.00 out of 1.00
On January 1, of the current year, ABC Company sells a building to DEF Company. At the same time ABC Company enters into a contract
with DEF Company for the right to use the building. Data relating to the sale and leaseback are as follow,
Selling price 2,600,000
Carrying amount 2,400,000
Annual lease payment at the end of each year 420,000
Implicit rate 10%
Lease term 4 years
CASE NO. 2 Assuming fair value of the asset is ₱2,500,000.
How much is the initial cost of the rights of use asset to be recognized by the lessee?
a. ₱2,500,000
b. ₱1,182,144

c. ₱1,231,400
d. ₱2,600,000
The correct answer is: ₱1,182,144
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
40/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 48
Correct
Mark 1.00 out of 1.00
During 2019, ABC Co. led a lawsuit against Toowa, Inc. seeking legal damages for patent infringement. In ABC Co.'s December 31, 2019
nancial statements, how should this be reported if it is virtually certain that ABC Co. would be successful against Toowa for an
estimated amount of P1,500,000?
a. Disclose only
b. Neither accrue nor disclose
c. Accrue only
d. Accrue and disclose

Your answer is correct.
The correct answer is:
Accrue and disclose
Question 49
Incorrect
Mark 0.00 out of 1.00
Wasted Time, a dealer of machinery and equipment, entered as a lessor on the following lease:
First Lease
On January 1, 2021, a machine was leased to another enterprise with the following provisions:
Annual rental payable at the end of each year ₱3,000,000
Lease term and useful life of machinery 5 years
Cost of machinery ₱8,000,000
Residual value-unguaranteed ₱1,000,000
Implicit interest rate 12%
PV of an ordinary annuity of 1 for 5 periods at 12% 3.60
PV of 1 for 5 periods at 12% 0.57
At the end of the lease term on December 31, 2025, the machinery will revert to Wasted Time. The perpetual inventory system is used.
Wasted Time incurred initial direct cost of ₱300,000 in nalizing the lease agreement. The lease is appropriately recorded as sales type
lease. Second Lease Tequila Sunrise Company leased equipment from Wasted Time Co. on July 1, 2021 for an eight-year period expiring
June 30, 2029. Equal payments under the lease are ₱1,200,000 and are due on July 1 of each year. The rst payment was made on July 1,
2021. The rate of interest contemplated by Tequila Sunrise and Wasted Time is 10%. The cash selling price of the equipment is ₱7,040,000
and the cost of the equipment on Wasted Time's accounting records is ₱5,600,000. The lease is appropriately recorded as sales type lease.
Based on the above and the result of your audit, determine the following:
The pro t on sale in 2021 on the rst lease?
a. ₱3,370,000
b. ₱7,700.000

c. ₱2,500,000
d. ₱3,070,000
The correct answer is: ₱3,070,000
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
41/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
Question 50
Correct
Mark 1.00 out of 1.00
On January 1, of the current year, ABC Company sells a building to DEF Company. At the same time, ABC Company enters into a contract
with DEF Company for the right to use the building. Data relating to the sale and leaseback are as follows:
Selling price 2,000,000
Carrying amount 2,150,000
Annual lease payment at the end of each year 120,000
Implicit rate 5%
Lease term 10 years
CASE NO. 3 Assuming fair value of the asset is ₱2,100,000.
How much is the gain (or loss) on rights transferred to be recognized by the lessee?
a. ₱ (25,556)

b. ₱(50,000)
c. Nil
d. ₱ (24,444)
The correct answer is: ₱ (25,556)
◄ Solutions to Quiz 5
Jump to...
Quiz on Liabilities, Financial Liabilities and Leases ►
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
42/43
lOMoARcPSD|5609269
27/05/2021
Practice Test on Liabilities, Financial Liabilities and Leases: Attempt review
https://online.msuiit.edu.ph/moodle/mod/quiz/review.php?attempt=54777&cmid=45328&showall=1
Downloaded by tintin 23 (justinejoi17@gmail.com)
43/43