ACC5115
Intermediate Financial Reporting
Quiz 1: The Conceptual Framework of Financial Reporting and
SRC Rule 68
Theories: True or False
Theories: Multiple Choice
Quiz 2: Statement of Financial Position and Notes to Financial
Statements
Theories
Multiple Choice
Supply the Answer
Quiz 3: Focus on Statement of Comprehensive Income
Theories
Multiple Choice
Supply The Answer
Quiz 4: SFP, SCI, IFRS 5, SCE, Acct. Changes, Cash to Accrual,
SCF, & EPS
Theories
Multiple Choice
Supply The Answer
ACC5115: Intermediate Financial Reporting
Quiz 1: The Conceptual Framework of Financial Reporting and SRC Rule 68
Theories: True or False
1. Incurrences that come from incidental or peripheral transactions are called expenses: a. True
b. False
2. The equity accounts of a corporation are should be broken down into components that comply with legal,
regulatory, and other requirements.
a. True
b. False
3. The financial statements are normally prepared on the assumption that the enterprise will operate for the
foreseeable future
a. True
b. False
4. Recognition also calls for the recognition of related expenses to be matched with related revenue.
a. True
b. False
5. The Securities and Exchange Commission is the regulatory agency charged with the supervision of the
corporate sector as well as the registration and deregulation of securities. a. True
b. False
6. It is appropriate to exclude information about complex matters to preserve the understandability of the
financial statements.
a. True
b. False
7.
Republic Act 8779 is otherwise known as the Securities and Regulation Code. a.
True
b. False
8. A medium-sized entity, opting to adopt the Full PFRS/IFRS instead of the PFRS for SMEs, shall include in
its Notes to the Financial Statements the facts supporting its adoption of the Full PFRS/IFRS.
a. True
b. False
9.
The choice of measurement basis is solely determined by considering the initial measurement a. True
b. False
10. The accrual method recognizes the effects of the transactions during the period when the cash is received
or paid rather than when the changes to the financial resources and claims occur. a. True
b. False
11. The deduction of one financial statement item against another financial item of a different kind is allowed.
a. True
b. False
12. The unconsolidated financial statement of a parent entity can be submitted as a substitute should it be
required to present a consolidated set of financial statements by regulatory bodies such as the SEC.
a. True
b. False
13. In some instances, information may not be provided to users if the cost of obtaining it exceeds the
perceived benefits.
a. True
b. False
14. Timeliness of information affects its relevance.
a. True
b. False
15. Exercising prudence in judgments adds to the faithful representation of financial information. a. True
b. False
16. The separate presentation of income and expenses with different characteristics allow for better
understandability of the entity's financial performance.
a. True
b. False
17. Verifiability of information means it can be replicated using the same measurement methods and applying
the same process.
a. True
b. False
18. SRC Rule 68 provides for the general guides to financial statement preparation, responsibility to financial
statements, qualifications and reports of independent auditors, and review of their quality assurance
processes.
a. True
b. False
19. Micro entities have the option to adopt either the PFRS for small entities or the income tax basis a. True
b. False
20. Inter-comparability or is achievable through consistency
a. True
b. False
Theories: Multiple Choice
21. This qualitative characteristic enables users to identify the similarities and differences between two sets
of economic circumstances.
a. comparability
b. understandability
c. verifiability
d. timeliness
22. For financial information to be faithfully represented, it must be:
a. complete, free from errors and biased
b. complete, free from errors, and neutral
c. complete, verifiable, and free from errors
d. complete, verifiable and material
23. Information has confirmatory value if:
a. It allows for the formulation of future outcomes
b. if it allows the user to validate their economic decisions
c. It allows users to easily see the similarities and differences that arise from economic transactions
d. It allows the users to understand the operations and environment of the business
24. Value in use include all of the following, except:
a. the present value of the cash or other economic resources the entity expects to be obliged to
transfer to the other party in settlement of an obligation.
b. the present value of the cash flows the entity expects to derive from the continued use of the asset
and the eventual disposal of the asset.
c. possible variations in amounts or timing
d. risk premium or discount for bearing the uncertainty of the cash flows.
25. Small entities that fall under any of the following, may at their option apply the PPRS/IFRS for SMEs or
Full PFRS/IFRS, instead of PFRS for Small Entities:
a. an entity that has been preparing its financial statements under the full PFRS or PFRS for SMEs
and has decided to liquidate.
b. a subsidiary of a parent reporting under Full PFRS/IFRS or PFRS/IFRS for SMEs. c.
neither
a nor b.
d. both a and b.
26. An entity is considered a large or publicly accountable entity if:
a. it has a total asset of more than P350 million or total liabilities of more than P250 million.
b. it has a total asset of more than P100 to P350 million or liabilities of more than P100 million to
P250 million.
c. it is not a holder of secondary licenses issued by regulatory agencies
d. it is not filing their financial statements for the purpose of issuing any class of instruments in the
public market.
27. To enhance the relevance and faithful representation of the financial information in the financial
statements, they should be presented in a manner that requires:
a. focusing on the rules rather than the principles, presentation, and disclosure objectives of the
reporting entity
b. classifying information in an organized manner that groups similar items and separates dissimilar
items
c. showing the full details of the economic transaction on the face of the financial statements
d. the omission of significant financial information from the notes to financial statements.
28. All the following statements detail the purpose of the conceptual framework, except:
a. Assist the IASB to develop International Financial Reporting Standards (IFRS) that are based on
consistent concepts.
b. Prescribe the basis for the presentation of financial statements.
c. Assist preparers to develop consistent accounting policies when no Standard applies to a
particular transaction or other event, or when a Standard allows a choice or accounting policies;
and,
d. assist all parties to understand and interpret the Standard.
29. For a liability to exist:
a. the entity must not have the practical ability to avoid the obligation
b. it is necessary for the entity to know the identity of the person or entity to whom the obligation is
owed.
c. the settlement of the obligation must be settled in the future by cash payment only.
30. Materiality depends on the following, except:
a. the nature of the item
b. the magnitude of the item to which the information relates to
c. the error judged in particular situations of omission or misstatement
d. the experience of the financial accountant.
31. An item merits recognition in the financial statements if it meets the requirement stated below, except:
a. it meets the definition of assets, liability, equity, income, and expenses
b. it provides useful information that is relevant and erroneous
c. the benefits of providing the information justify the costs of obtaining the information d.
it is measurable
32. Relevant financial information is characterized by all of the following except:
a. has confirmatory value
b. has predictive value
c. influences the user's decision and or evaluation
d. is immaterial
33. To classify an item as an asset, it must meet the following definition, except:
a. an economic resource controlled by the entity
b. have arisen from a past event
c. the economic resource is a right that has the potential to produce economic benefits
d. there must be an obligation to transfer an economic resource
34. The company's ability to adapt to unexpected economic downturns and take advantage of new business
opportunities is called:
a. profitability
b. solvency
c. liquidity
d. operational and financial flexibility
35. This is the availability of cash over the long term to meet financial statements as they fall due. a. Liquidity
b. Solvency
c. Profitability
d. Operating and financial flexibility
36. The balance sheet is useful in providing the following information about the firm, except: a. the
financial structure of the company
b. how the future cash flows will be distributed among those with interest within. the enterprise
c. Information about the liquidity and solvency of the firm
d. the firm's sources of revenue
37. The historical cost of an asset is updated over time to depict the following, if applicable, except:
a. the consumption of a part or all of the economic resource
b. payments received that extinguish part or all of the assets
c. to reflect the changes due to inflation
d. impairment of an asset
38. Financial information is considered free from error if:
a. omissions in the descriptions are present
b. the calculations exclude some components that are considered part of the line item
c. is mathematically correct, and information is accurately described
d. it follows the presentation format prescribed in IAS 1.
39. Which of the following is considered a direct user of the financial statements?
a. the Securities and Exchange commission
b. the Bureau of Internal Revenue
c. A supplier's lawyer
d. A labor union
40. This concept states that a business enterprise, government unit, a non-profit organization, an individual,
a unit within an enterprise, or any other unit is considered to have a separate personality from its owners.
a. separate entity concept
b. going concern assumption
c. liquidating concern assumption
d. none of the above
41. This group of users of financial information uses the financial statements to give advice to the owners,
managers, creditors, suppliers, customers, and taxing authorities on how they can protect their interests
in the enterprise:
a. internal users
b. external users
c. direct users
d. indirect users
42. Which of the following is not among the classification of entities provided by SRC Rule No. 68? a. large
and or publicly accountable entities
b. medium-sized entities
c. government-owned and controlled entities
d. micro-entities
43. This qualitative characteristic of information is dependent on the quality of information presented and the
quality of the user:
a. comparability
b. understandability
c. verifiability
d. timeliness
44. These are entities have a total asset of more than P100 to P350 million or liabilities of more than P100
million to P250 million.
a. large and or publicly accountable entities
b. medium-sized entities
c. micro-entities
d. small entities
45. This financial statement primarily contains information about the entity's economic resources and claims.
a. Statement of Profit and Loss
b. Statement of Financial Position
c. Statement of Cash Flows
d. Notes to Financial Statements
46. The following entities may choose to prepare their financial statements using the Full PFRS/IFRS, except:
a. large and our publicly accountable entities
b. medium-sized entities whose parent reports using the full PFRS/IFRS
c. medium-sized entities with a foreign parent moving towards the adaption of the full PRFS/IFRS.
d. an entity that has a concrete plan to conduct an initial public offering within the next two. years.
47. It is the removal of all or part of an asset or liability from an entity's statement of financial statement
a. recognition
b. derecognition
c. measurement
d. disclosure
48. Neutrality of financial information means that:
a. the information presented leans towards particular needs and interests of management
b. the information gives undue advantage to one group, to the detriment of another
c. the information disclosed are only those that are favorable to the entity.
d. the information is unbiased and discloses all significant information whether it is favorable or
unfavorable to the entity.
49. They are the users that use the financial statements for internal decisions a. internal users
b. external users
c. direct users
d. indirect users
50. These characteristics enhance the qualitative characteristics of the financial statements, except:
a. verifiability
b. relevance
c. timeliness
d. comparability
ACC5115: Intermediate Financial Reporting
Quiz 2: Statement of Financial Position and Notes to Financial Statements
Theories
1. The following are examples of adjusting events which will require an adjustment in the face of the financial
statements, except
a. Announcing a plan to discontinue an operation
b. Discovery of fraud or errors that show the FS were incorrect
c. Bankruptcy of a major customer
d. Evidence of impairment of assets
2. Which of the following is not included in classification criteria of current asset?
Statement 1: The entity holds the asset primarily for the purpose of trading
Statement 2: The entity expects to realize the asset beyond twelve months after the reporting period
Statement 3: The entity expects to realize the asset or intends to sell or consume it within the entity’s
normal operating cycle even if it is longer than one year
a. Statement 1 only
b. Statement 2 and 3
c. Statement 1 and 3
d. Statement 2 only
3. If an entity publishes a complete set of financial statements in its interim financial report, the form and
content of those statements should conform to
a. PAS 1 (Presentation of Financial Statements)
b. PAS 27 (Separate Financial Statements)
c. PFRS 10 (Consolidation of Financial Statements)
d. PAS 34 (Interim Financial Reporting)
4. All of the following should not be disclosed in the statement of financial position as a separate line item,
except
a. Contingent liabilities at back of a standby letter of credit
b. Non-controlling interest, presented within equity
c. Asset revaluation surplus
d. Undrawn commitment on a line of credit
5. Which of the following statements is not completely correct?
a. An entity whose financial statements comply with IFRS shall make an explicit and unreserved
statement of such compliance in the notes and the entity shall not describe financial statements
as complying with IFRS unless they comply with all the requirements of IFRS
b. An entity shall prepare its complete set of financial statements using the accrual basis of accounting
c. Except when IFRS permits or require otherwise, an entity shall present comparative information
in respect of the preceding period for all amounts reported in the current period’s financial
statements. Comparative information shall be included in narrative and descriptive information
when it is relevant to an understanding of the current period’s financial statements
d. An entity shall prepare financial statements on a going concern basis unless management either
intends to liquidate the entity or to cease trading, or has no realistic alternative but to do so
6. Which of the following information should be disclosed in the summary of significant accounting policies?
a. Guarantee of indebtedness of others
b. Business combination after balance sheet date
c. Criteria for determining which investment are treated as cash equivalents
d. Refinancing of date subsequent to the balance sheet date
7. An entity received an advanced payment for special order goods that are to be manufactured and delivered
within six months. The advanced payment is reported in the statement of financial position as
a. Contra-asset account
b. Noncurrent liability
c. Deferred charges
d. Current liability
8. The following are examples of non-adjusting events that would generally result in disclosure, except
a. Entering into a significant commitments or contingencies, such as issuing guarantees to related
parties
b. Resolution of a court case, as the result of which a provision has to be recognized instead of the
disclosure by note of a contingent liability
c. Abnormally large changes in asset prices or foreign exchange rates
d. Management’s plan to deal with the effect of the COVID 19 outbreak and whether there is a
material uncertainty over the entity’s ability to continue as going concern
9. In virtually all circumstances, an entity achieves a fair presentation by compliance with applicable IFRSs.
A fair presentation also requires the entity the following, except:
a. To select and apply accounting policies that management considers in the absence of an IFRS that
specifically applies to the transaction
b. To disclose the inappropriate accounting policies used, by notes or explanatory material, to rectify
and avoid ambiguity and conflict with the objective of financial statements
c. To provide additional disclosures when compliance with specific requirement is insufficient to
enable stakeholders to understand the impact of the transaction
d. To present information, including accounting policies, in a manner that provides relevant, reliable,
comparable and understandable information
10. ABC Company has a wholly-owned subsidiary, XYZ. During the year to 30 June 2021, ABC sold goods
to XYZ totaling P 250,000.
XYZ paid P 135,000 of this debt before the year end and then encountered financial difficulties. XYZ is
not expected to be able to pay the remainder of the balance and therefore it has been provided against
as uncollectible. Administration costs incurred as a result of ABC's credit controllers chasing the debt by
have been calculated as P 6,000
Under the minimum disclosure requirements of IAS24 Related party disclosures, which TWO of the
following are required to be disclosed in relation to this arrangement?
Statement 1: The costs of the credit control department incurred in pursuing the debt
Statement 2: Details of any guarantees received in relation to the outstanding balance
Statement 3: The provision in relation to the debt being uncollectible
Statement 4; Future plans regarding trading arrangements with this subsidiary
a. Statements 2 and 4
b. Statements 1 and 2
c. Statements 1 and 3
d. Statements 2 and 3
11. All of the following are general features in preparation and presentation of financial statements, except
a. Materiality and relevance
b. Going Concern
c. Offsetting
d. Frequency of Reporting
12. Which of the following is a non-current liability on December 31, 2020 statement of financial position?
a. Bonds payable maturing on March 2021 which were refinanced in 2021 before issuance of the
2020 financial statements
b. Mortgage note payable due March 15, 2021 which was rolled over in 2021 after the issuance of
the 2020 financial statements
c. Mortgage note payable due March 15, 2021, in which the entity has the intention and discretion to
roll over for a period of at least 24 months from the original maturity date
d. Mortgage note payable due March 15, 2021 which was converted into shares of the company’s
ordinary share capital in 2021 before the issuance of 2020 financial statements
13. According to IAS24 Related party disclosures, which ONE of the following is not a related party of ABC
Company?
a. Shareholder of ABC Company owning 30% of the ordinary share capital
b. An entity providing banking facilities to ABC Company
c. Key management personnel of ABC Company
d. An associate of ABC Company
14. In presentation of financial statements, which of the items should be reported as a non-current asset?
a. Bearer plant which does not bear produce for more than one period
b. Sinking Fund in relation to a short-term loan
c. Inventories pledged as a collateral for a long-term liability
d. Building to be sold within 12 months after reporting period and the sale is highly probable
15. Which of the following represents a liability?
a. The obligation to pay for goods that an entity expects to order from suppliers next year
b. The obligation to provide goods that customers have ordered and paid for during the current year
c. The obligation to pay interest on a five-year note payable that was issued the last day of the
current year
d. The obligation to distribute an entity's own shares next year as a result of a stock dividend
declared near the end of the current year
16. A statement of financial position as at the beginning of the earliest comparative period should be prepared
by an entity in any of the following circumstances, except
a. When an entity reclassifies items in the financial statements
b. When an entity applies an accounting policy retrospectively
c. When an entity changes in any of its estimates used in accounting
d. When an entity makes retrospective restatement of items in the financial statements
17. In accordance with the preparation of financial statements, which of the following statements is correct?
Statement 1: IAS 1 uses terminology that is suitable for public sector business entities, government
business enterprises and profit-oriented entities
Statement 2: An entity shall present separately each material class of similar items. An entity shall present
separately items of a dissimilar nature or function unless they are immaterial
Statement 3: IAS 1 allows offsetting of any kind of assets and liabilities
a. Statements 1 & 2
b. Statements 2 & 3
c. Statement 3 only
d. Statements 1 & 3
18. What would be included in a complete set of IFRS financial statements?
a. A statement of financial position, a statement of comprehensive income, a statement of changes
in equity, a cash flow statement, a financial review by management, value-added statements, and
notes comprising a summary of significant accounting policies and other explanatory notes
b. A statement of financial position, a statement of comprehensive income, a statement of changes
in equity, a cash flow statement, a financial review by management, and notes comprising a
summary of significant accounting policies and other explanatory notes
c. A statement of financial position, a statement of comprehensive income, a statement of changes in
equity, a cash flow statement, and notes comprising a summary of significant accounting policies
and other explanatory notes
d. A statement of financial position, a statement of comprehensive income, a statement of changes in
equity, and a cash flow statement
19. Under International Financial Reporting Standards (IFRS), the preparation of a complete set of financial
statements is best described as a (an):
a. General requirement for financial statements
b. Objective of financial reporting
c. Bridge between management and stakeholders
d. Qualitative characteristic of the IFRS framework
20. Which of the following items would be excluded from current liabilities?
a. Normal accounts payable which has been assigned by the creditor to the finance company
b. A long-term liability callable or due on demand by the creditor even though the creditor has given
no indication that the debt will be called
c. Possible litigation loss as of reporting period from customers who claim displeasure with services
and products
d. Unpaid merchandise which is in transit as of reporting period and marked Free Alongside (FAS)
Multiple Choice
Legend:
Add the amount
- Green
Deduct the Amount - Red
- Light Blue
For Inquiry
Black Board Answer - Yellow
Problem 1
LAKERS Company had the following account balances on December 31, 2020
Cash placed with MetroBPI bank, net of bank overdraft of
P 100,000 from another account within the same bank P 3,200,000
Coins and currencies (including money order of P 50,000) 250,000 Cash fund (set aside
for dividend payments)
100,000 Cash fund (set aside for acquiring land in 2021)
1,700,000
Cash fund (set aside to pay bonds payable due in 2021)
500,000
The cash in bank includes a P250,000 compensating balance against short-term borrowing and is not legally
restricted as to withdrawal by LAKERS.
1. What amount should be reported as CASH under current assets on December 31, 2020? a.
P3,950,000
b. P5,750,000
c. P4,050,000
*add green
d. P3,550,000
***For inquiry since ang labas eh hindi sya inadd back sa Cash na dapat payable sya pero wala sa
choices yung answer if iadd back man - For Sir Eli Liability ang bank overdraft kahit same bank unless
stipulated
Problem 2
The trial balance of ROCKETS Company included the following at year-end 2020
Inventory, including inventory expected in the ordinary course of operations
to be sold beyond 12 months amounting to P700,000
Trade receivables (collectible in 15 months per normal operating cycle)
Prepaid insurance
Financial asset at fair value through P/L
Financial asset at fair value through OCI (will be sold in 2021)
Cash (set aside for building construction in 2021)
Deferred tax asset (temporary difference is expected to reverse in 2021)
Bank overdraft
2. What amount should be reported as total current assets at year-end?
a. P2,480,000***
*add green
b. P3,280,000
c. P3,430,000
P 1,000,000
1,200,000
80,000
200,000
800,000
300,000
150,000
250,000
d. P2,630,000
***Interpretation based from discussion with Sir Eli: (Blue Highlight)
- Inquired if ano ba dapat ang treatment for FA - FVOCI that will be sold within next period
- For Sir Eli: Since FVOCI siya, NCA parin sya kahit mabebenta na next year
- Niraise din if ano ba dapat ang treatment if silent yung problem, is it Debt or Equity
Security
- Sir Eli said that regardless kung Debt or Equity, NCA sya
- Unless for DEBT Secutiry magmamature siya the next period then CA na siya
- Since sinabi sa problem “will be sold in 2021” hindi maaassume na Debt security and tinutukoy
Solution based on discussion with Sir Eli:
Inventory
1,000,000
Trade receivables
1,200,000
Prepaid Insurance
80,000
FVPL
200,000
Total Current Assets
2,480,000
**But Still for Maam Jam and Sir Aljon, if the management intends to dispose the FI - FVOCI within 12
months from the end of the reporting period then it will be classified as Current Assets
Problem 3
The accounts and balances shown below were gathered from UTAH Corporation’s trial balance on December
31, 2020. All adjusting entries have been made
Cash and cash equivalent (including a P 700 6-month treasury bills)
17,700
Prepaid Rent (wherein P 1,000 is expected to be utilised
beyond 12 months from reporting period)
13,600
Inventory (wherein P 800 is related to good in transit purchased
under FOB Seller)
81,800 Sinking Fund Assets 52,400 Short-term
Investments 15,200 Premium on Bonds Payable 4,600
Stock Investment – Associate
102,400
Trade and Other Receivables (including NSF checks of P 1,000)
15,000
3. The amount that should be reported as current assets on UTAH Corporation's statement of financial
position is
a. P 142,500
b. P 142,300
c. P 141,600
d. P 141,700
Current Assets
Cash (17.7k - 700)
17,000
Prepaid Rent (13.6k - 1k)
12,600 *Prepaid rent ang minus ng 1k not T/ R
Inventory
81,800
Short term investments (15.2k + 700)
15,900
Trade and Other Receivables
15,000
TOTAL Current Assets
142,300
Problem 4
The following data are available for the financial position of MAVERICKS Company on December 31, 2020
Cash, including sinking fund of P800,000
2,000,000
Notes receivable (P500,000 pledged)
1,500,000
Accounts receivable-unassigned
200,000
Accounts receivable-assigned
400,000
Notes receivable discounted
300,000
Equity in assigned accounts
50,000
Inventory, including P200,000 cost of goods in transit purchased
Ex-ship. The goods were received on January 5, 2021
4,000,000
Allowance for doubtful accounts
150,000
Financial Assets held for trading (Cost P800,000)
1,000,000
4. How much of the current assets should be shown in the statement of financial position as of December
31, 2020?
a. P 7,650,000
*add green minus red (N/R discounted assumed to be included in N/R) b. P
8,150,000
c. P 7,850,000
d. P 7,900,000
***For clarification if dapat ba sya iminus talaga sa Notes Receivable or idisregard
Problem 5
ORLANDO, Inc. is preparing its financial statements for the year ended December 31, 2020. Accounts payable
amounted to P200,000 before any necessary year-end adjustment related to the following:
●
●
At December 31, 2020, ORLANDO has a P50,000 debit balance in its accounts payable to MAGIC, a
supplier, resulting from a P50,000 advance payment for goods to be manufactured to ORLANDO's
specifications.
Checks in the amount of P25,000 were written to vendors and recorded on December 29, 2020. The
checks were dated January 5, 2021
5. What amount should ORLANDO report as accounts payable in its December 31, 2020 statement of
financial position?
a. P 125,000
b. P 275,000
*add green
c. P 250,000
d. P 200,000
Problem 6
GSW Company provided the following information on December 31, 2020
Accounts payable, including sundry creditor account of P100,000
Accrued expenses, including a bank overdraft of P 100,000
Bonds payable due December 31, 2021
Discount on bonds payable
Deferred tax liability (temporary difference will reverse in 2021)
Income tax payable
1,900,000
500,000
3,000,000
200,000
400,000
700,000
Cash dividend payable
Stock dividend payable
Note payable – 6%, due March 1, 2021
Note payable – 8%, due October 1, 2021
The 2020 financial statements were issued on March 31, 2021
800,000
300,000
1,500,000
1,000,000
On December 31, 2020, the 6% note payable was refinanced on a long-term basis
The 8% note payable maturing on October 1, 2021 includes a loan covenant. The term of the note gives the
lender to demand payment if GSW fails to make a monthly interest payment. As of December 31, 2020, GSW is
2 months behind in paying the required interest. However, the holder has agreed as of December 30, 2020 not
to demand payment in 2021 and for GSW to rectify the breach within 2021
6. What amount should be reported as total current liabilities on December 31, 2020? a. P
7,800,000
b. P 6,300,000
c. P 7,300,000
d. P 7,700,000 *add green minus red
*** Might have considerations given na may possible interest payable that will arise from these notes
payable and not yet included in the balances provided
Add these interest payable to the current 7,700,000 answer: (if iaccept consideration since iba iba
interpretation, wherein pwedeng itong interest payable is included na sa balance ng “Accrued Expenses”
N/P - 6% Interest Payable (1.5M * 6% * 10/12)
75,000 N/P - 8%
Interest Payable (1M * 8% * 2/12) 13,333
Total Interest Payable
88,333
Update: No correction has been made
Problem 7
NETS Company reported the following liabilities on December 31, 2020
Accounts payable
3,000,000
Short-term borrowings
1,500,000
Bonds payable, current portion P500,000
4,000,000
Note payable, due June 30, 2021
2,000,000
The P2,000,000 note payable was refinanced with a 5-year loan on January 15, 2021. The financial statements
were issued February 28, 2021.
7. What total amount should be reported as current liabilities on December 31,2020? a. P
4,500,000
b. P 3,500,000
c. P 5,000,000
d. P 7,000,000
*add green
Problem 8
An analysis of OKC Company’s liabilities disclosed the following:
Accounts payable, net of suppliers’ debit balances of P125,000
Accrued expenses
Customer’s credit balances
P 1,750,000
600,000
225,000
Share dividends payable
Claims for increase in wages by employees of OKC, covered in
a pending lawsuit
Estimated expenses in redeeming prize coupons
375,000
100,000
175,000
8. What amount should be reported as total current liabilities?
a. P 2,975,000
b. P 2,850,000
c. P 2,750,000
d. P 2,875,000 *add green
Problem 9
HAKEEM Company provided the following data on December 31, 2020
Trade accounts payable, including cost of goods received
on consignment P75,000
1,000,000
Accrued taxes payable
160,000
Dividend payable as a result of a bonus issue
200,000
Customer's deposit
25,000
HAKEEM Company as guarantor
150,000
Bank overdraft
40,000
Accrued electric bill
60,000
Reserve for contingencies
250,000
9. What amount should be shown as total liabilities on December 31, 2020? a. P
1,185,000
b. P 1,210,000 *add green minus red
c. P 1,410,000
d. P 1,360,000
Problem 10
SPURS Company (fully-owned by Pops Corporation) prepared its financial statements ending December 31,
2020. The financial statements were signed by the managing director on March 15, 2021 and approved by its
only shareholder – POPS Corporation on March 31, 2021. The next events have occurred:
Item 1: On January 15, 2021, a customer owing P400,000 to SPURS filed for bankruptcy. The financial
statements include an allowance for doubtful debts pertaining to this customer of 50,000
Item 2: Specialized equipment costing P600,000 purchased on September 1, 2020 was destroyed by fire
on December 15, 2020. SPURS Company has booked a receivable of P200,000 from the insurance
company. After the insurance company completed its investigation on February 1, 2021, it was discovered
that the fire too place due to the negligence of the machine operator. As a result, the insurer’s liability
was zero on this claim
Item 3: SPURS Company’s issued capital comprised 1,000 equity shares with P100 par value. The
company issued additional 2,000 shares on March 1, 2021
Item 4: SPURS declared a dividend to POPS Corporation on February 28, 2021 and payable on March
10, 2021 amounting to P 100,000
10. SPURS Company should report a net amount of “adjusting events” on December 31, 2020
amounting to:
a. P 550,000
b. P 1,050,000
c. P 1,150,000
d. P 750,000
Adjusting Events
Item 1:
Item 2:
Allow. for doubtful debts
50,000
Loss
350,000
Accounts Receivable
Loss
200,000
Insurance Receivable
400,000
200,000
Net amount of adjusting events
Item 1:
350,000
Item 2:
200,000 Net Effect
550,000
Problem 11
DENVER Company reports the following statement of financial position as of December 31, 2021:
Current assets
P 1,220,250
Noncurrent assets
P 3,142,750
Current liabilities
P 693,000 Noncurrent
liability
P 450,000
Shareholders’ Equity
P 3,220,000
I.
II.
III.
Current asset is composed of the following:
Cash
P 211,250
Financial asset at FVTPL
P 300,000
Trade receivables
Inventories including store supplies
of P 10,000
P 284,000
P 425,000
Noncurrent asset is composed of the following: Carrying
value of PPE including right-of-use asset, net of P
500,000
P 2,745,000 Deposit with supplier for goods
ordered
for February, 2022 delivery
P
10,750
Initial operating losses
P
387,000
Current liabilities include the following:
Payroll payable
P
35,750
P
20,750
Taxes payable
Rent payable
Trade accounts payable, net of P 7,500
6-month note receivable from
customer
P
57,000
P
499,500
Notes payable
P
80,000
IV.
Noncurrent liability is related to a 9% mortgage on PPE payable in semiannual installment of P 45,000
until December 31, 2026
V.
Shareholder’s equity includes the following:
Share Capital, preference shares
Share Capital, ordinary shares
Accumulated earnings
P 1,900,000
P 800,000
P 520,000
Ordinary shares were originally issued for P 1,955,000 but some losses of the company from prior years were
charged against share premium on ordinary shares
11. What is the correct amount of current assets?
a. P 1,238,500
b. P 1,220,520
c. P 1,231,000
d. P 1,217,750
12. What is the correct amount of noncurrent assets?
a. P 2,745,000
b. P 3,132,000
c. P 2,755,750
d. P 3,280,000
13. What is the correct amount of current liabilities?
a. P 790,500
b. P 700,500
c. P 801,250
d. P 745,500
14. What is the correct amount of noncurrent liabilities?
a. P 405,000
b. P 450,000
c. P 360,000
d. P 440,000
15. What is the correct amount of shareholders’ equity?
a. P 3,607,000
b. P 2,833,000
c. P 4,357,000
d. P 1,652,000
Supply the Answer
Problem 12
The following accounts are taken from the unadjusted trial balance of MIAMI Incorporated as at December 31,
2020:
Cash and Cash Equivalents
P 440,000
Trade receivables
760,000
Notes Receivable
100,000
Allowance for doubftul accounts
(50,000)
Non-trade receivables
250,000
Financial Asset at FVTPL
180,000
Financial Asset at FVTOCI
200,000
Inventories
200,000
Property, Plant and Equipment, net
1,200,000
Accounts Payable
1,300,000
10% Loans Payable – bank
400,000
Additional information:
I.
Cash and cash equivalents consist of the following items:
Deposits placed with RCBC (including 15-month time deposit of P 50,000)
P300,000
Petty cash including unreplenished vouchers and due from cashier amounting to P 5,000
and P 2,000, respectively.
40,000
Postdated checks from customers dated February 2, 2021
100,000
II.
Trade receivables include selling price of goods held by agents at gross profit of 25% based on cost
and not included in the inventory, P 500,000. One half of which has been sold already and pending
remittance from agents
III.
Non-trade Receivables are all collectible within one year except for a P 50,000 receivable from
directors due on January 15, 2022. Normal operating cycle of MIAMI is 15 months
IV.
Notes Receivable amounting to P 30,000 has been factored at a proceed of P 25,000 at December 30,
2020. The transaction is still unrecorded as at December 31, 2020. Provision for doubtful accounts is
nil for this note.
V.
Market value of FVTPL and FVTOCI as at reporting period are P 150,000 and 250,000, respectively
VI.
Land amounting to P 500,000 is held for sale
VII.
Accounts payable includes purchases in transit marked FOB Buyer P 100,000 and not included in the
inventory
VIII.
With loans payable, interest is already paid. However, with principal repayment due in 2021, a
postdated settlement check dated January 15th P 100,000 is issued and applied against loans payable
Questions:
16. Total amount of cash and cash equivalents to be presented in statement of financial position? 408000
17. What is the correct amount of current assets?
2290000
18. What is the correct amount of noncurrent assets?
1050000
19. What is the correct amount of current liabilities?
1300000
20. What is the correct amount of noncurrent liabilities?
400000 *Bali originally 500k ang L/P tapos nag minus 100k for payment of current liab
***For Inquiry yung mga Items na maapektuhan ng Normal Operating Cycle pero base sa book of Dean
Empleo “Assets other than trade receivables, inventories, and prepaid exp. are classified as current if realizable only
within 12 months. The length of the normal operating cycle is not considered”
ACC5115: Intermediate Financial Reporting
Quiz 3: Focus on Statement of Comprehensive Income
Theories
1. For information to be relevant, it should have both predictive and confirmatory value. a. True
b. False
2. Direct verification is when we check the inputs to a model or formula or recalculate outputs using the same
methodology.
a. True
b. False
3. The operating cycle is the time between the acquisition of assets for processing and their realization to
cash and cash equivalents.
a. True
b. False
4. The Capital Maintenance Approach in measuring profit follows the accrual method of accounting.
a. True
b. False
5. The Statement of Comprehensive Income addresses the user’s need to assess the overall financial
performance of an entity.
a. True
b. False
6. Reporting events are events that happen between the end of the reporting period and the date of when
the financial statements have been approved for issue by the shareholders. a. True
b. False
7. The discovery or fraud or error that shows the financial statement is incorrect after the reporting period is
an adjusting event.
a. True
b. False
8. Large or publicly accountable entities have total assets of more than P350 million or liabilities of more than
P250 million
a. True
b. False
9. If the entity has the unconditional right to defer settlement of a long-term obligation for at least 12 months
after the reporting period, then the liability should is classified as non-current. a. True
b. False
10. If a small entity has foreign investments in a foreign country with a different functional currency, it shall
apply PRFS for SMEs.
a. True
b. False
11. Which of the following is not a selling expense
a. Freight-out
b. Store supplies consumed
c. Office salaries expense
d. Advertising expense
12. Revenue recognition is governed by:
a. IFRS 5
b. IAS 8
c. IFRS 15
d. IAS 41
13. Which of the following is not a generally practiced method of presenting the income statement? a. The
consolidated statement of income
b. Including prior period adjustments in determining net income
c. Including gains and losses from discontinued operations of a component of a business in
determining net income
d. The single-step income statement
14. It is the format that presents the statement of financial position in a continuous manner: a. Financial
Position Form
b. Working Capital form.
c. Report form
d. Account form
15. The major elements of the income statement are:
a. revenues, expenses, gains, and losses.
b. all of these
c. revenue, cost of goods sold, selling expenses, and general expense
d. operating section, nonoperating section, discontinued operations, extraordinary items, and
cumulative effect.
16. The three bases of recognizing expenses are as follows, except:
a. cause and effect association
b. immediate recognition
c. systematic and rational allocation
d. cost plus method
17. The following statements pertain to the purpose of Conceptual Framework, except:
a. assist preparers to develop consistent accounting policies when no Standard applies to a
particular transaction or other event
b. assist the IASB to develop International Financial Reporting Standards (IFRS) that are based on
consistent concepts.
c. assist all parties to understand and interpret the Standard.
d. none of the above
18. The revenue recognition follows the 5-step process. What is the third step in this process?
a. Allocating the transaction price to obligations in the contract
b. Recognizing the revenue when or as the entity satisfies a performance obligation
c. Identifying the performance obligation in the contract
d. Determining the transaction price
19. Which of the following is an acceptable method of presenting the income statement? a. A singlestep income statement
b. A multiple-step income statement
c. All of these
d. A consolidated statement
20. GSMMH purchases marketable securities in SPH during 2020. At the end of 2020, the fair value of SPH
stock has dropped below its cost. GSMMH considered the decline in value to be temporary. The security
is classified as available for sale. What should be the effect on GSMMHs financial statements at the end
of 2020?
a. Decrease in available-for-sale securities and decrease in net income
b. No effect on available-for-sale assets and decrease in net income
c. No effect on net income and decrease in available-for-sale assets
d. Decrease in available-for-sale assets and decrease in other comprehensive income
Multiple Choice
Problem 1
Travis Wall had the following balances as of December 31, 2021:
Cash in Checking Account
500,000
Cash in Money Market Accounts
600,000
T-bill, bought Nov 1, 2021, maturing on January 31, 2022
4,000,000
120-Day Time Deposit, purchased Dec 1, 2021,
maturing on Mar 31, 2022
3,500,000
1. How much cash and cash equivalents should Travis report on December 31, 2021? a.
5,100,000
b. 8,600,000
c. 1,100,000
d. 4,600,000
Problem 2
Jets Company provided the following information on December 31, 2020:
Accounts payable
750,000
Accrued taxes
150,000
Ordinary share capital
8,250,000
Dividends – ordinary share 850,000 Dividends – preference share
400,000
Mortgage payable (P750,000 due in 6 months)
5,835,000
Notes payable, due March 31, 2025 2,940,000
Share premium
1,000,000
Preference share capital
3,500,000 Premium on notes payable
450,000 Income summary (credit) 4,000,000 Retained
earnings - January 1 4,750,000
Unearned rent income
225,000
2. What is the amount of non-current liabilities on December 31, 2020?
a. 9,300,000
b. 8,250,000
c. 8,550,000
d. 8,475,000
Non Current Liabilities:
Mortgage Payable (5,835,000 - 750,000)
5,085,000
Notes Payable
2,940,000
Premium on notes payable
450,000
Total Non Current Liabilities
8,475,000
3. What is the amount of retained earnings on December 31, 2020?
a. 3,750,000
b. 9,750,000
c. 1,500,000
d. 7,500,000
Retained earnings, Beginning
4,750,000
Dividends paid (850,000 + 400,000)
(1,250,000)
Income Summary
4,000,000
Retained earnings, Ending
7,500,000
4. What is the total shareholder’s equity on December 31, 2020?
a. 14,250,000
b. 12,750,000
c. 20,250,000
d. 22,500,000
Ordinary Share Capital
Preference Share Capital
Share Premium
Retained earnings, ending (#3)
Shareholder’s equity, ending
Problem 3
8,250,000
3,500,000
1,000,000
Meijer Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The
adjusted trial balance on December 31, 2019, included the following expense accounts:
Accounting and legal fees
Advertising
Freight-out
Interest
P 140,000
120,000
75,000
60,000
Loss on sale of long-term investments
Officers’ salaries
Rent for office space
30,000
180,000
180,000
Sales salaries and commissions
110,000
One-half of the rented premises is occupied by the sales department.
5. How much of the expenses listed above should be included in Meijer’s selling expenses for 2019?
a. P 305,000.
b. P 395,000.
c. P 230,000.
d. P 320,000.
Advertising
Freight-out
Sales salaries and commissions
Rent (½ * 180,000)
Total Selling Expenses
6. How much of the expenses
administrative expenses for 2019?
a. P 410,000.
b. P 500,000.
120,000
75,000
110,000
listedabove should
be included
in Meijer’s
c. P 440,000.
d. P 470,000.
Accounting and legal fees
Officer’s salaries
Rent (½*180,000)
Total General and Administrative
140,000
180,000
90,000
410,000
Problem 4
For Khonshu Company, the following information is available:
Cost of goods sold
560,000
Dividend revenue
12,500
Income tax expense
60,000 Operating
expenses
223,000
Sales
1,200,000
7. In Khonshu’s multiple-step income statement, gross profit
a. should be reported at P640,000.
b. should be reported at P652,500
c. should be reported at P369,500
d. should not be reported
general and
Problem 5
Gross billings for merchandise sold by Otter Company to its customers last year amounted to P 10,720,000;
sales returns and allowances were P 325,000, sales discounts were P 185,000, and freight-out was P 240,000.
Net sales last year for Otter Company were:
8. Net Sales
a. P 10,720,000.
b. P 10,395,000.
c. P 10,210,000.
d. P 9,970,000.
Problem 6
Silo Company reported the following information for 2019:
Sales revenue
Cost of goods sold
Operating expenses
Unrealized holding gains on available-for-sale securities
Cash dividends received on the securities
9. For 2019, Silo would report a comprehensive income of
a. P 30,000.
b. P 250,000.
c. P 275,000.
d. P 280,000.
P 580,000
250,000
85,000
30,000
5,000
Problem 7
Pencil Company reported the following information for 2020:
Sales revenue
Cost of goods sold
Operating expenses
Unrealized holding gain on available-for-sale securities
Cash dividends received on the securities
P 550,000
350,000
55,000
50,000
2,000
10. No question given
a. P 50,000.
b. P 147,000.
c. P 48,000.
d. P 145,000.
Problem 8
Asgard Corp.’s trial balance of income statement accounts for the year ended December 31, 2017, included the
following:
Debit
Sales
Cost of sales
P 50,000
Credit
P 140,000
Administrative expenses
on sale of equipment
Commissions to salespersons
Interest revenue
Freight-out
Loss due to earthquake damage
Bad debt expense
Totals
25,000 Loss
9,000
8,000
5,000
3,000
12,000
3,000
P 110,000
1
P 145,000
Other information:
Asgard’s income tax rate is 30%. Finished goods inventory:
January 1, 2017
20,000
December 31, 2017
30,000
11. No question
a. P 63,000.
b. P 40,000
c. P 43,000.
d. P 60,000.
Supply The Answer
Problem 9
The trial balance of Thor Inc. includes the following accounts on December 31, 2021:
Inventory, including inventory expected in the
ordinary course of operations to be sold
beyond 12 months amounting to P1,850,000
2,750,000
Trade receivables
2,100,000
Prepaid insurance
150,000
Investments in equity securities
held for trading purposes at fair value
250,000
Cash
750,000
Deferred tax asset
325,000
Bank overdraft
275,000
12. What amount should be reported as total current assets on December 31, 2021?
6000000
Problem 10
The following information pertains to Washington Company on December 31, 2020:
Property, plant, and equipment
72,500,000
Accounts receivable 28,000,000 Prepaid insurance
4,150,000
Short-term notes payable
4,500,000
Cash
6,000,000
Bonds payable
50,000,000 Total assets
165,150,000
Land
35,000,000
Accounts payable
Allowance for doubtful accounts
1,500,000
15,500,000
Equity investments at fair value through OCI
Wages payable
2,500,000 Total liabilities
Premium on bonds payable
15,000,000
Merchandise
inventory
5,500,000
76,750,000
3,750,000
13. What is the working capital?
30150000
Current Assets
Current Liabilities
A/R 28,000,000
Short-ter N/P 4,500,000 Prepaid Insurance 4,150,000
A/P
15,000,000 Cash
6,000,000
Wages Payable
2,500,000
ADA
(1,500,000)
Merch. Inv.
15,500,000
TOTAL C/A
52,150,000
TOTAL C/LDiff. 22,000,000
Working Capital
30,150,000
Problem 11
The statement of financial position of Benjamin Company shows cash of P 330,820. The following items were
found to comprise this total amount:
Checking account in Urbank (outstanding checks as of year-end totaled 15,200) 105,200.00
Savings account in Eastern Star Bank
30,800.00
Petty cash fund (including expense receipts for 1,000)
1,500.00
Cash on hand (undeposited sales receipts)
4,200.00
Sinking fund cash
35,000.00
Cash in Bells Wargo bank (in equivalent pesos)
65,000.00
Customers' check on hand
Traveler's Check
14,000.00
Manager's Check
23,120.00
180-day term treasury bills, purchased Jul 1, 2021
52,000.00
14. What is the correct cash balance of Benjamin Company as of December 31, 2021?
242820
Problem 12
LMM Co. has a trade receivable balance of P 1,500,000 broken down as follows as of December 31, 2021:
LMM Co has a current allowance for doubtful accounts of P 50,000 at the end of the reporting period.
15. What is the correct Allowance for Doubtful Accounts for LMM Co. as of December 31, 2021? 51900
No of Days Past Due
Totals
Estimated % of UA
Not yet Due
440,000
1%
0-30 days
290,000
2%
31-60 days
130,000
3%
31-90 days
350,000
5%
Over 90 days
290,000
7%
TOTAL Allowance for Doubtful Accounts, ending
Estimated UA
4,400
5,800
3,900
17,500
Problem 13
JIDCA Construction bought a dump truck worth P10,000,000 on Aug 1, 2020. Rina, JIDCA's accountant assumes
that based on historical data on their previous trucks, this vehicle will last for 60 months], after which it will have
a residual value of 1,000,000. JIDCA depreciates its vehicles using the straight-line method. How much is the
net carrying value of the dump truck as of Dec 31, 2021?
16. Net Carrying Value of the dump truck as of Dec 31, 2021
7450000
Dump Truck
Accumulated Depreciation (10,000,000 - 1,000,000) / 60 * 17
Dump Truck Carrying Value
10,000,000
(2,550,000)
7,450,000
Problem 14
El Camino Real Corporation reported the following items for the year ending December 31, 2021: Foreign
currency translation loss: P35,000; distributions to owners: P70,000; net income: P 525,000; unamortized prior
service cost on pension plan: P 68,000; deferred gain on an effective cash flow hedge: P87,000. What amount
should El Camino Real report as other comprehensive income (loss) on December 31, 2021?
17. Other comprehensive income (loss)
16,000 loss however the question became bonus
Translation Loss
(35,000)
Gain on cash flow hedge
87,000
Unamortized prior SC on pension plan
(68,000)
Other Comprehensive Income (loss)
(16,000)
Problem 15
Royce Corp has a total comprehensive income of P 500,000, after-tax as of December 31, 2021. Out of this
amount, 38% of the profits come from business operations. 35% of the remaining amount is gain from foreign
currency translation, while 27% is gain from the remeasurement of the defined benefit obligation. The rest is
from the fair value gains on FA through OCI.
18. How much is the fair value gains on FA through OCI in peso? 117800 singot ko pero
129580 nasa answer key
Profit from Business Operations
38%
190,000
Gain from Currency Translation
35% * (1-38%)
108,500
Gain from the rem..
FV gains on FA - FVOCI
Total Comprehensive Income
27% * (1-38%)
remaining
83,700
117,800 *not sure since naka range answer sa exam
500,000
Problem 16
Doctor Strange Company provided the following information for the current year:
Beginning inventory
450,000
Freight in
320,000
Purchase returns
870,000
Ending inventory
480,000
Selling expenses
1,750,000
Sales discount
150,000
The cost of goods sold is eight times the selling expenses.
19. What is the amount of gross purchases? 14580000
Beginning Inventory
450,000
Gross Purchases
Purchase Returns
Freight - In
TGAS
Ending Inventory
Cost of Goods Sold (1.75M * 8)
14,580,000
(870,000)
*workback
320,000
14,480,000
(480,000)
14,000,000
Problem 17
Joycee Company showed net income of P480,000 for the year. Selling expenses were equal to 15% of sales
and also 25% of cost of goods so all other expenses were 13% of sales.
20. What is the gross profit for the year?
1600000
Sales
4,000,000
100%
COGS
(2,400,000)
(60%) - computation below
Gross Profit
1,600,000
40%
Selling Expenses
(208,000)
(13%)
Other Expenses
(240,000)
(15%) of sales and also 25% of COGS (15%/25% = 60% of sales)
Net Income
480,000
12%
*divide to get sales
How to get percentage of COGS based on sales with the given amounts?
Given:
Other Expenses - 15% of sales and;
25% of COGS
In algebra:
OE = 15% * Sales
OE = 25% * COGS Therefore:
25% * COGS = 15% * Sales COGS
= 15% * Sales
25%
COGS = 60% * Sales - will be used for the computation of gross profit
ACC5115: Intermediate Financial Reporting
Quiz 4: SFP, SCI, IFRS 5, SCE, Acct. Changes, Cash to Accrual, SCF, & EPS
Theories
1. Which of the following should be presented as part of current assets in the statement of financial position?
a. Debentures
b. Preference share redemption fund
c. Advances to affiliates
d. Bank drafts
**feeling ko kaya naisama toh para kay Sir Aljon bank drafts basta same bank considered cash na
2. An entity shall not offset asset and liabilities or income and expenses, unless required or permitted by the
standard. Which of the following items does not exhibit ‘offsetting’ principle?
a. One-line item presentation of gains and losses arising on financial instruments held for trading
b. Presentation on a net basis of foreign exchange gains and losses
c. Expense relating to a provision net of the amount recognised for a reimbursement (from a third
party)
d. Valuation of receivables on a net basis after deducting allowance for doubtful accounts
3. An entity shall classify a noncurrent asset or disposal group as “held for sale” when
a. the noncurrent asset or disposal group is to be abandoned
b. the carrying amount of the asset or disposal group is recovered through a sale
c. the carrying amount of the asset or disposal group is recovered through continuing use
d. the noncurrent asset or disposal group is idle or retired from active use
4. Which is not required for component’s results to be classified as discontinued operations?
a. The component is available for immediate sale
b. The entity will not have any significant continuing involvement in the operations of the component
after disposal
c. The operations and cash flows of the component will be eliminated from the operations of the
entity as a result of the disposal
d. Management must have entered into a sale agreement
5. The Statement of Changes in Equity____
a. Includes accounts such as the retained earnings and common share accounts but not other
comprehensive income items
b. Is not one of the integral financial statements and is a supporting schedule only to statement of
financial position
c. Is used only if a corporation frequently issues common shares
d. Reconciles all of the beginning and ending balances in the equity accounts.
6. Which of the following is included on a statement of changes in equity?
a. All of the items listed are included on a statement of changes in equity
b. Column headings that identify individual stockholders' equity accounts
c. Events changing stockholders' equity accounts
d. Ending balances that tie to the items presented in the stockholders' equity section of the balance
sheet on the same date
7. An error in depreciation is treated as a
a. change in accounting estimate treated prospectively
b. change in accounting estimate treated retrospectively.
c. prior period adjustment and reported as an adjustment to the opening balance of retained earnings
d. change in accounting policy treated retrospectively
8. In preparing the 2021 financial statements of NAYEON COMPANY, there was a voluntary change of
accounting policy in relation to inventories. The accountant for NAYEON noted that this change would
not require any adjustment in the financial report for the reporting period ending on 30 June 2021.
However, the accountant considered that the change in accounting policy would have a material effect
on the subsequent reporting period. In accordance with IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors, which one of the following actions should be taken when preparing the financial
report for the year ended 30 June 2021?
a. No information about the accounting policy change needs to be disclosed.
b. Inclusion of a note stating that an accounting policy had been changed but no adjustments were
required in the 2021 financial statements
c. Disclosure of the nature and reason for the change and that no adjustments were recognized in
the 2021 financial statements
d. Disclosure of the nature and reason for the change and its estimated financial effect in the
subsequent reporting period.
9. To convert income from cash basis to accrual basis of accounting, which of the following items is being
added to income under cash basis?
a. Outstanding balance of unearned rent income as of reporting period
b. January 1 balance of subscription fee received in advanced (accounting period is calendar basis)
c. Beginning balance of accrued interest receivable
d. Amortisation expense during the period
10. Accrual basis of accounting is considered better than the cash basis because
a. It matches expenses with revenue
b. Revenue is recognized when cash is received
c. It matches revenue with expenses
d. Adjusting entries are not required
11. Which of the following items is incorrect in relation to cash and accrual basis of accounting?
a. Impairment loss of non-current asset should be added to expenses under cash basis to arrive with
the expense to be presented in income statement
b. Amortisation of premium on bonds payable should be added to interest paid to arrive with interest
expense under accrual basis of accounting
c. Decrease in warranty payable should be deducted from warranty payment during the year to arrive
with warranty expense to be presented in income statement
d. Sales revenue under cash basis of accounting is composed of cash sales and collections of
receivables (from customers)
12. To arrive with the expenses to be presented in income statement, which of the following items should be
added to expense under cash basis?
a. Decrease in salaries payable
b. Write off of debt-type investment security
c. Unfavorable change in market value of fair value through other comprehensive income d.
Increase in prepaid rent balance
13. While calculating cash flows from operating activities, how will the following information affect the net
income?
Item 1: Increase in inventory
Item 2: Depreciation expense
Item 3: Increase in prepayments
Item 4: Gain on disposal of plant assets
a. Increase, Increase, Decrease, No effect
b. Decrease, Increase, Decrease, No effect
c. Decrease, Increase, Decrease, Increase
d. Decrease, Increase, Decrease, Decrease
14. Acquisition-related costs other than those relating to the issue of equity securities are recognized as
expense and would be classified as
a. Operating
b. Financing
c. Either operating or investing
d. Investing
15. All of the following are investing activities, except
a. Expenditure on exploration or evaluation asset
b. Expenditure that is expensed as incurred, such as research cost or training cost
c. Expenditure relating to internally generated intangible asset resulting to a recognized asset
d. Interest capitalized as cost of a qualifying asset
16. Which statement is true about retranslation of foreign currency cash and cash equivalents?
a. The exchange differences from the retranslation do not give rise to any cash flows
b. All of these statements are true about retranslation of foreign currency cash and cash equivalents
c. Any exchange differences arising from the retranslation will have increased or decreased cash
and cash equivalents
d. The net impact of the exchange differences from the retranslation should be disclosed as a
reconciling item between opening and closing balances of cash equivalents at the foot of the
statement of cash flows
17. Statement 1: If both parent and consolidated statements are presented in a single report, EPS is required
only for the consolidated statements
Statement 2: If an entity presents the components of profit or loss in a separate income statement, it
presents EPS only in that separate statement
Statement 3: Basic and diluted EPS are also adjusted for the effects of errors and adjustments
resulting from changes in accounting policies, accounted for prospectively
a. TRUE, TRUE, TRUE
b. FALSE, TRUE, FALSE
c. TRUE, FALSE, FALSE
d. TRUE, TRUE, FALSE
18. Statement 1: Basic and diluted EPS must be presented with equal prominence for all periods presented
Statement 2: Basic and diluted EPS must be presented even if the performance during the year is on
loss position
Statement 3: If an entity reports a discontinued operation, basic and diluted amounts per share should
be disclosed in the face of the income statement
a. TRUE, TRUE, TRUE
b. TRUE, FALSE, FALSE
c. FALSE, TRUE, FALSE
d. TRUE, TRUE, FALSE
19. In case of convertible preference shares, how shall it be accounted for in computing diluted earnings per
share?
a. The net income shall not be reduced by the dividends on preference shares and the number of
ordinary shares outstanding shall be increased
b. The net income shall be reduced by the dividends on preference shares and the number of
ordinary shares outstanding shall be increased
c. The net income shall be reduced by the preference shares
d. The ordinary shares outstanding shall be increased
20. In case of convertible bonds payable, how shall it be accounted for in computing diluted earnings per
share?
a. The net income is adjusted by adding back the interest expense on the bond payable, net of tax
and increasing the number of ordinary shares outstanding
b. Adjustments shall be made only to the ordinary shares outstanding
c. The net income is adjusted by adding back the interest expense on the bond payable, before tax
and decreasing the number of ordinary shares outstanding
d. Adjustments shall be made only to the net income
Multiple Choice
Problem 1
●
The account balances given below appear in the post-closing trial balance of DAHYUN Company as of
December 31, 2021
Investment at fair value through profit or loss, at cost
75,000
Credit balance of fair value allowance on FVTPL
-35,000
Prepaid insurance
15,000
Cash and cash equivalent 165,000 Inventory, at cost
450,000
Right of use asset
495,000 Trade debtors
240,000
Land held for capital appreciation
600,000
Asset held for sale with a fair value of P200,000 and book value of 250,000
Provision for amortisation on the right of use asset
-60,000
Provision for returns and discounts
-25,000
Provision for inventory decline
-50,000
1. How much is the total current assets in DAHYUN’s December 31, 2021 statement of financial position?
a. P 1,155,000
b. P 905,000
c. P 1,035,000
d. P 1,105,000
Problem 2
The following information pertains to SANA Merchandising during 2021
January 1, 2021 Inventory
225,000
December 31, 2021 inventory
240,000
Purchases during the year
900,000
Purchase returns and allowances
52,500
Purchase discounts
12,500
Transportation in
5,000
Sales during the year
1,925,000
Sales discounts granted
35,000
Sales returns
60,000
Selling expenses
495,000
Administrative expenses
412,500
Rental revenue earned
32,500
Dividend received
75,000
Income tax expense
65,600
Retained earnings, January 1, 2021 100,000
Unrealized gain – FVTOCI, net of tax 10,000
Translation loss, net of tax
5,000
Dividends paid
75,000
2. If SANA Merchandising uses the natural presentation, what amount of total net revenue should be
disclosed in its profit or loss statement for the year ended December 31, 2021? a. P 1,937,500
b. P 860,500
c. P 2,100,500
d. P 1,112,500
Problem 3
ROSIE Company purchased equipment for P2,500,000 on January 1, 2019 with a useful life of 10 years and no
residual value.
On January 1,2021, the entity classified the asset as held for sale. The fair value of the equipment on January
1,2021 is P1,650,000 and the cost of disposal is P50,000. On December 31,2021, the fair value of the equipment
is P1,900,000 and the cost of disposal is P100,000 while its after-tax value in use is P 1,400,000.
On December 31, 2021, the entity believed that the criteria for classification as held for sale can no longer be
met. Accordingly, the entity decided not to sell the asset but to continue to use it.
Tax rate is 30%
3. What amount should be recognized in profit or loss as a result of the reclassification in 2021? a. P
200,000
b. P 150,000
c. Nil
d. P 400,000
January 1, 2021
Carrying Value
Vs: FVLCTS
2,000,000
1,600,000
(2,500,000/10 * 8yrs)
LOWER
**to check if dapat ba talagang 1,600,000 ang nirecognize na value
December 31, 2021
Carrying Value
Vs: Value in use
Gain
1,750,000
2,000,000
150,000
(2,500/10 * 7yrs) as if hinde nareconcile
LOWER
Compare with previous amount (1,750-1,600)
Problem 4
On May 1, 2021, LISA Company approved a plan to dispose of a business segment. It is expected that the sale
will occur on March 31, 2022. On December 31, 2021, the carrying amount of the assets of the segment was
P1,000,000 and the fair value less cost of disposal was P 900,000. During 2021, the entity paid employee
severance and relocation costs of P50,000 as a direct result of the discontinued operation. The revenue and
expenses of the discontinued segment during 2021 were:
January 1 to April 30
May 1 to December 31
Revenue
750,000
1,000,000
Expenses
350,000
450,000
4. What amount should be reported as loss from the discontinued segment for 2021? a. P 800,000
b. P 450,000
c. P 850,000
d. P 400,000
Total Revenue
Total Expenses
Impairment Loss
Employee sev and reloc
P/L from Disc. Segment
Problem 5
1,750,000
(800,000)
(100,000)
(50,000)
800,000
900,000 - 1,000,000
pero sa question ang tinatanong is “loss” however walang “nil” or 0 sa choices
MINARI Company provided the following information for the year ended December 31,2021
Retained earnings – unapppropriated, January 1
200,000
Overdepreciation of 2020 due to prior period error
100,000
Net income for current year
1,300,000
Retained earnings appropriated for treasury shares,
Original balance is P500,000 and reduced by
P200,000 by reason of reissue of the treasury
shares
300,000
Retained earnings appropriated for contingencies,
Beginning balance P700,000 and increased by
current appropriation of P100,000
800,000
Cash dividends paid to shareholders
500,000
Change from FIFO to weighted average – credit
150,000
5. How much is the ending balance of unappropriated retained earnings as of December 2021? a.
P 1,450,000
b. P 1,750,000
c. P 1,300,000
d. P 1,350,000
Problem 6
MOMO Company reported the following adjusted accounts balances at year-end
Share capital
7,500,000
Share premium
2,500,000
Treasury shares, at cost
1,000,000
Remeasurement loss on defined benefit plan
500,000
Retained earnings appropriated
3,000,000
Retained earnings appropriated
1,500,000
Revaluation surplus
2,000,000
Cumulative translation adjustment – credit
750,000
6. What amount should be reported as shareholders’ equity at year-end?
a. P 12,750,000
b. P 15,750,000
c. P 14,250,000
d. P 16,250,000
Problem 7
TZUYU Company owned a machine that was bought on January 1, 2019 for P1,880,000. The machine was
estimated to have a useful life of five years and a residual value of P120,000. The entity used the sum of years'
digits method of depreciation. On January 1, 2022, the entity determined that the total useful life of the machine
should have been four years and the residual value is P176,000. What amount should be recorded as
depreciation expense on the machine for 2022?
7. 2022 Depreciation Expense
a. P 222,000
b. P 296,000
c. P 352,000
d. P 96,000
Cost of Equipment
1,880,000
Accumulated Dep (2022, beg)
(1,408,000)
(1,880,000 - 120,000) * (5+4+3)/15
Carrying Value, 2022, beg
472,000
New Salvage Value
(176,000)
Depreciation Expense, 2022
296,000**
** Ganito na ang computation dahil narevise yung EUL from 5 years to 4 years only and as of 2022, 1
year na lang ang remaining kaya buong 296 ang deprecation expense
SYD Denominator = n * (n+1)
2
SYD Denominator = 5 * (5+1)
2
= 15
Problem 8
On January 1, 2020, JIHYO Company changed the inventory method from weighted average to FIFO for both
financial and income tax reporting. The change resulted in a P300,000 increase in the January 1, 2020 inventory
balance. The income tax rate is 30%. What is included in the journal entry to effect the accounting change?
8. What is included in the journal entry to effect the accounting change?
a. Debit inventory P210,000
b. Credit income tax payable P90,000
c. Credit retained earnings P300,000
d. Debit income tax payable P90,000
Since the beginning balance is understated, then the net income for the year 2020 is overstated which is
why to prepare its Retained Earnings for the adjustment we should have the following journal entry:
Inventory
300,000
Retained Earnings 210,000 Interest Payable
90,000 Problem 9
The following information appears in JEONGYEON Company’s records for the year ended December 31, 2020
Inventory, Jan 1
325,000
Purchase returns
40,000
Freight in
30,000
Sales
1,700,000
Sales returns
15,000
Accounts Payable, Jan 1
150,000
Accounts Payable, Dec 31
100,000
On December 31, 2020, a physical inventory revealed that the ending inventory was only P 571,000. The gross
profit on sales has remained constant at 30% in recent years. Purchases are all made via credit
9. What is the cash basis cost of sales?
a. P 1,405,500
b. P 1,455,500
c. P 1,365,500
d. P 1,415,500
Suggested Computation: (Tinatanong pa paano nacompute ang 1,415,000) Net
Sales:
Sales
1,700,000
Sales returns
(15,000)
1,685,000
100%
COGS (accrual basis)
(1,179,500)
(70%) - work back
Gross Sales
505,500
30%
Inventory, Jan 1
Net Purchases
Ending Inventory
COGS (accrual basis)
325,000
1,425,500 - workback
A/P, Jan 1
Net Purchases
Payments- workback
A/P, Dec 31
150,000
1,425,500
Problem 10
On December 31, 2020, JENNIE Inc presented the following information:
01/01/2020
12/31/2020
Raw Materials
Work in Process
Finished Goods
Accounts Payable
Data for 2020 were:
Sales
Direct Labor
Factory Overhead
Average Gross Profit Rate
150,000
500,000
700,000
1,100,000
300,000
650,000
500,000
1,000,000
1,500,000
50,000
50% of Direct Labor
30% based on Sales
10. No Question - Possible Question is Cash Basis for Cost of Sales (Pero cash to accrual topic
dito)
a. P 1,225,000
b. P 1,075,000
c. P 1,125,000
d. P 1,175,000
Sales
COGS
GP
1,500,000
(1,050,000)
450,000
100%
(70%) - workback
30%
Problem 11
RYUJIN Company's income statement for the year ended December 31, 2021, reported net income of
P180,000. The financial statements also disclosed the following information
Amortization
10,000
Purchase of FVTOCI securities
11,000
Unrealised loss – FVTOCI
2,000
Depreciation
30,000
Increase in accounts receivable
70,000
Increase in inventory
24,000
Decrease in accounts payable
38,000
Increase in salaries payable
14,000
Dividends paid
60,000
Purchase of equipment
75,000
Increase in long-term note payable 150,000
11. Net cash provided by operating activities for 2021 should be reported as a. P 42,000
b. P 117,000
c. P 162,000
d. P 102,000
Net Income
Adjustments (non cash):
Amortization
Depreciation
Cash before WC adjustments
Increase in A/R
Increase in Inventory
Decrease in A/P
Increase in S/P
Cash provided by Ope Activities
Problem 12
180,000
10,000
30,000
220,000
(70,000)
(24,000)
(38,000)
14,000
102,000
YUNA Company reported net income of P1,500,000 for the current year. Changes occurred in certain accounts
as follows
Equipment
Accumulated depreciation
Note payable
125,000 increase
200,000 increase
150,000 increase
During the year, YUNA sold equipment costing P125,000 with accumulated depreciation of P60,000 for a gain
of P25,000. In December of the current year, YUNA purchased equipment costing P250,000 with P100,000
cash and a 12% note payable of P150,000. In the statement of cash flows, what amount should be reported
as net cash provided by/(used in) investing activities?
12. Net cash provided by/ (used in) investing activities
a. P 40,000
b. (P 10,000)
c. P 10,000
d. (P 60,000)
Equipment Sold (Cost)
125,000
Accu. Dep. Sold
(60,000)
Gain on Sale
25,000
Cash Proceeds from sale
90,000
Cash used for Equipment
(100,000)
Net cash (used in) inv. act.
(10,000)
Problem 13
LIA Company reported the following on December 31, 2020:
8% cumulative preference share capital, P50 par value
4,500,000
Ordinary share capital, P1 par, 10,000,000 shares
10,000,000
Share premium
20,500,000
Retained earnings, January 1,2020
132,000,000
Net income after tax for 2020
35,000,000
5% Convertible bonds payable
10,000,000
The bonds payable can be converted to 1,000,000 shares once exercised.
Tax rate is 30%
The net income included an expropriation loss of P8,000,000.
13. No Question (based sa TOS pwedeng BEPS ang tanong)
a. P 3.46
b. P 4.63
c. P 4.67
d. P 4.04
Net Income after tax
35,000,000
Less: Div pref
(360,000)
Net income attr. Ord Shares 34,640,000
Divide by:
10,000,000 shares
BEPS
3.464/ Share
Problem 14
YEJI Company had 600,000 ordinary shares outstanding on January 1, 2020. During 2020, the entity issued
rights to acquire one ordinary share at P10 in the ratio of one new share for every 4 shares outstanding. The
market value of the ordinary share immediately prior to the rights issue is P35. The rights were exercised on
October 1, 2020. The net income for the current year is P8,550,000. What amount should be reported as basic
earnings per share in the income statement?
14. Basic Earnings Per Share
a. P 12.0
b. P 13.41
c. P 11.4
d. P 14.25
Value of Stock Right = 5
(35 - 10)/(4+1)
Adjustment Factor = 1.16666
35 / (35-5)
Denominator:
600,000 * 1.16666 * 9/12
525,000
750,000 * 3/12
187,500
WAOSO - BEPS
712,500
BEPS = 8,550,000 / 712,500
BEPS = 12/ share
Problem 15
CHAERYEONG Company reported the following capital structure at year-end:
2020
2021
Ordinary shares
500,000
500,000
Convertible preference shares
100,000
100,000
10% convertible bonds payable
P3,000,000 P3,000,000
During 2021, the entity paid the annual dividend of P5 per share on the preference share. The preference
shares are convertible into 200,000 ordinary shares and the 10% bonds are convertible into 100,000 ordinary
shares.
Net income for 2021 was P5,000,000. The tax rate is 30%
15. What amount should be reported as diluted earnings per share?
a.
P 9.0
b.
P 6.51
c.
P 7.85
d.
P 6.25
Numerator:
Net Income
5,000,000
Interest Exp (bonds) aft. tax 210,000
(3M*10%*.7)
Net Income for DEPS
5,210,000
Denominator:
Ordinary Shares
500,000 Ord. Shares
Conv. Pref Shares
Conv. Bonds Payable
Total Ord. Shares for DEPS
DEPS = 5,210,000 / 800,000
DEPS = 6.5125
200,000 Ord. Shares
100,000 Ord. Shares
800,000 Ord. Shares
Supply The Answer
Problem 16
On January 1,2020, LOLA FLORA Company purchased a large quantity of personal computers. The cost of
these computers was P6,000,000. On the date of purchase, the management estimated that the computers
would last approximately 4 years and would have a residual value at that time of P600,000. The entity used the
double declining balance method. During January 2021, the management realized that technological
advancements had made the computers virtually obsolete and that they would have to be replaced.
Management proposed changing the remaining useful life of the computers to 2 years.
16. What is the depreciation expense for 2021?
2400000
Double Declining Rate,2020 = 0.5 (2/n = 2/4)
Depreciation Expense, 2020 = 3,000,000 (6M * 0.5 double dec. rate)
Carrying Value, Jan 2021 = 3,000,000
(6M - 3M Dep exp 2020)
Res. Val, CV, Dec 2021 = (600,000) Depreciation
Expense = 2,400,000
*Since 1 year would be the remaining useful life of the personal computers then the carrying amount of the computers
at year end would be the residual value
Problem 17
The following transactions affecting the accounts receivable of CHAEYOUNG Company are presented below as
of December 31, 2020.
Sales
2,950,000
Sales discount
63,000
Cash received from customers
1,050,000
Written off accounts
25,000
Credit memo issued to credit customers for sales returns
125,000
Cash refunds given to cash customers for sales returns
10,000
Recoveries of written off accounts from prior year
(not included in cash amount mentioned above)
40,000
Accounts Receivable, beginning
475,000
Allowance for doubtful accounts, beginning
50,000
The entity provided for bad debt expense by crediting allowance for bad debts in the amount of P 35,000 for the
year.
The net realizable value of accounts receivable as of December 31, 2010 is P 550,000.
17. What is the revenue under cash basis for year ended December 31, 2020? 2602000
ADA, Beg.
Write-off
Recovery
BDE
ADA, End
50,000
(25,000)
40,000
35,000
100,000
A/R, Beg
Sales
Sales Disc
475,000
2,950,000
(63,000)
Cash from Customers
Write-off
(1,040,000)
(25,000)
Sales Returns (memo)
(125,000)
Recoveries
A/R end
Other Collections
No effect
(650,000)
1,522,000
Cash Collections:
Cash from Customers
Sales Returns (cash)
Recovery
Collections from credit customers
Cash Basis Revenue
Problem 18
(1,050,000 - 10,000)
dahil +40,000 - 40,000
(550,000 + 100,000)
1,050,000
(10,000)
40,000
1,522,000
2,602,000
**Nagraise ng concern na pwede maraming interpretation
SUZY Company provided the following information for the current year:What is the depreciation expense for
2021?
Retained Earnings
20,000
decrease
Dividends payable
20,000 increase
Share capital
500,000 increase
PPE
600,000 increase
5% Note payable - non trade 100,000 increase
8% Note payable - non trade 350,000 increase
Additional information:
1. Net Income during the year is P 50,000
2. During the 1st quarter of the year, there was an acquisition of PPE via issuance of share capital at
paramounting to P 250,000
3. In October, a building was sold with proceeds amounting to P 150,000. Gain on sale of P 50,000 was
alsorecognised
4. The 5% note payable is issued to a dealer to acquire a motor vehicle
5. The 8% note payable is related to a bank transaction wherein proceeds were used to fund the constructionof
the company's land pavements completed during the year
6. It is the company's usual approach to present its interest income and expenses in operating activities
18. What is the net cash flow provided by / (used in) financing activities? 550000
Net Income
Less: RE, end
50,000
20,000
Dividends Paid
Share Capital, end
Share issued for PPE
Share Capital for
Financing Activities:
50,000
500,000
(250,000)
Cash 250,000
Dividends Paid
Cash for Share Cap.
8% Note Payable
Cash Prov. by Fin Act
(50,000)
250,000
Problem 19
SUSAN Company had 200,000 ordinary shares, 20,000 convertible preference shares, and P5,000,000 of 10%
convertible bonds outstanding during 2020. The preference shares are convertible into 40,000 ordinary shares.
During 2020, the entity paid dividends of P20 per share on the ordinary shares and P40 per share on the
preference shares. Each P1,000 bond is convertible into 50 ordinary shares. The net income for the current
year was P8,000,000 and the income tax rate is 30%
19. What amount should be reported as basic earnings per share?
36.00 base from Answer key as of 5/30/2022
20. What amount should be reported as diluted earnings per share?
17.04 base from Answer key as of 5/30/2022
Suggested computations and answer: (Wala pa reply as of now kung paano talaga yung computation)
Solution for BEPS if 800,000 is only paid dividends but not declared, since magkaibang treatment sya
BEPS = 8,000,000 / 200,000
BEPS = 40/share
Solution for BEPS if cinonsider na 800,000 is declared dividends
BEPS = (8,000,000 - 800,000) / 200,000 BEPS
= 36/share
Computation of DEPS if titignan sya as a whole DEPS:
Numerator:
Net Income
8,000,000
Int. Exp (Bonds)
350,000
(5M*10%*70%)
Numerator
8,350,000
Denominator:
Ord Shares
200,000 Ord Shares
Conv. Pref Shares
40,000 Ord Shares
Conv. Bonds
250,000 Ord Shares (5M/1k * 50)
Denominator
490,000 Ord Shares
DEPS = 8,350,000 / 490,000
DEPS = 17.04/share
Computation of DEPS if magkakaroon ng test for dilution per convertible and irarank
Test for Dilution: Convertible Bonds
Interest Expense
Div by: Conv to Ord
350,000
250,000 ord shares
1.4/ share
dilutive pa since BEPS > 1.4
Test for Dilution: Convertible Preference Shares
Avoidable Dividends 800,000
Div by: Conv to Ord
40,000 ord shares
20/share
Order of consideration for computation of DEPS
1. Convertible Bonds
2. Convertible Pref. Shares
Net Income
Ord Shares
BEPS
7,200,000
/
200,000
Conv. Bonds 7,550,000
/
450,000
Conv. Pref Sh.8,350,000
/
490,000
As illustrated from 16.78 nagging 17.04 na tumaas yung
and the answer should be 16.78 if ganito yung method
EPS
36/ share
16.78/ share
17.04/ share
EPS that makes conv. Pref share anti dilutive