Questions
Financial Accounting and Reporting (FAR)
1. 1. Gema, Inc. uses the installment method. If the installment receivable is P600,000 and
the gross profit rate is 40%, what is the deferred gross profit?
2. 2. On December 1, Purity Co. received 2,000 donated shares with P50 par value. Market
value is P350. What is the decrease in shareholders’ equity?
Auditing
3. 3. Internal auditors should review the means of physically safeguarding assets from
losses arising from:
4. 4. Which of the following is least likely to overstate income when collectability is
doubtful?
Taxation
5. 5. A VAT-registered seller made sales of P1,120,000 inclusive of VAT. What is the VAT
payable?
6. 6. Which transaction is exempt from documentary stamp tax?
Regulatory Framework for Business Transactions (RFBT)
7. 7. What is the term of office for trustees elected to replace those whose 1-year terms
expired in a non-profit corporation?
8. 8. Which contract is void due to being contrary to public morals?
Management Advisory Services (MAS)
9. 9. Which of the following is not a function of a controller?
10. 10. Which method is most appropriate when the ultimate amount collectible is
uncertain?