Junior Philippine Institute of Accountants
College of Accountancy
Fatima College of Camiguin
Qualifying Exam & Final Exam 2019
Financial Accounting and Reporting
EASY
1. Where should raw materials be classified on the balance sheet?
a. Prepaid expenses c. Equipment
b. Inventory d. Not on the balance sheet
2. Which of the following is usually considered cash?
a. Certificate of deposit
b. Checking account
c. Money market saving certificate
d. Post-dated check
3. The income statement would help in which of the following?
a. Evaluate liquidity
b. Evaluate solvency
c. Estimate amount, timing, and uncertainty of future cash flows
d. Estimate future financial flexibility
4. Mont Company reported net assets totalling P8,750,000 at year-end which included
the following:
Treasury shares of Mint Company
250,000
Idle machinery
100,000
Trademark
150,000
Allowance for inventory writedown
200,000
What amount should be reported as net assets at year-end?
A. 8,500,000
B. 8,300,000
C. 8,400,000
D. 8,200,000
5. In preparing the bank reconciliation for the month of August, Apex Company provided
the following information:
Balance per bank statement
1,805,000
, Deposit in transit
325,000
Return of customer check for insufficient fund 60,000
Outstanding check
275,000
Bank service charge for August
10,000
What is the adjusted cash in bank?
a. 1,855,000 C.
1,785,000
b. 1,795,000 D.
1,755,000
AVERAGE
1. Cash receipts from royalties, fees commissions and other revenue are
a. Cash outflows for operating activities
b. Cash inflows from operating activities
c. Cash inflows from investing activities
d. Cash outflows for financing activities
2. Bearer plants which will be sold as scrap at the end of its life are classified as
a. Biological assets
b. Property, plant and equipment
c. Intangible asset
d. Inventories
3. When the revaluation surplus is realized because of the use of the asset by the entity
or disposal of the asset, it may transferred directly to
a. Retained earnings
b. Profit or loss
c. Share premium
d. Other comprehensive income
4. Darwin Company provided the following information at year-end:
Cash
1,500,000
Accounts receivable
1,200,000
Inventory, including inventory expected in the ordinary
course of operations to be sold beyond 12 months
amounting to P700,000
1,000,000
Financial assets held for trading
300,000
Equity investment at fair value through other
College of Accountancy
Fatima College of Camiguin
Qualifying Exam & Final Exam 2019
Financial Accounting and Reporting
EASY
1. Where should raw materials be classified on the balance sheet?
a. Prepaid expenses c. Equipment
b. Inventory d. Not on the balance sheet
2. Which of the following is usually considered cash?
a. Certificate of deposit
b. Checking account
c. Money market saving certificate
d. Post-dated check
3. The income statement would help in which of the following?
a. Evaluate liquidity
b. Evaluate solvency
c. Estimate amount, timing, and uncertainty of future cash flows
d. Estimate future financial flexibility
4. Mont Company reported net assets totalling P8,750,000 at year-end which included
the following:
Treasury shares of Mint Company
250,000
Idle machinery
100,000
Trademark
150,000
Allowance for inventory writedown
200,000
What amount should be reported as net assets at year-end?
A. 8,500,000
B. 8,300,000
C. 8,400,000
D. 8,200,000
5. In preparing the bank reconciliation for the month of August, Apex Company provided
the following information:
Balance per bank statement
1,805,000
, Deposit in transit
325,000
Return of customer check for insufficient fund 60,000
Outstanding check
275,000
Bank service charge for August
10,000
What is the adjusted cash in bank?
a. 1,855,000 C.
1,785,000
b. 1,795,000 D.
1,755,000
AVERAGE
1. Cash receipts from royalties, fees commissions and other revenue are
a. Cash outflows for operating activities
b. Cash inflows from operating activities
c. Cash inflows from investing activities
d. Cash outflows for financing activities
2. Bearer plants which will be sold as scrap at the end of its life are classified as
a. Biological assets
b. Property, plant and equipment
c. Intangible asset
d. Inventories
3. When the revaluation surplus is realized because of the use of the asset by the entity
or disposal of the asset, it may transferred directly to
a. Retained earnings
b. Profit or loss
c. Share premium
d. Other comprehensive income
4. Darwin Company provided the following information at year-end:
Cash
1,500,000
Accounts receivable
1,200,000
Inventory, including inventory expected in the ordinary
course of operations to be sold beyond 12 months
amounting to P700,000
1,000,000
Financial assets held for trading
300,000
Equity investment at fair value through other
