6th Accounting Quiz Show

1. IAS 1 Presentation of Financial Statements sets out the overall requirements for financial statements, including how they should be structured, the minimum requirements for their content and overriding concepts such as going concern, the accrual basis of accounting and the current/non-current distinction, and the prescribed format of the statement of financial position. The standard requires a complete set of financial statements to comprise a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity, and a statement of cash flows.

2. Unpaid dividends are presented on the equity section of the statement of financial position.

3. If the partner has no agreement with regards to the distribution of losses and profits, losses shall be distributed to capitalist and industrial partners by way of their capital contribution (according to the ratio of original capital investments or in its absence, the ratio of the capital balances at the beginning of the year).

4. Financial statements are a structured representation with the objective of providing information about the financial position, financial performance, and cash flows of an entity that is useful to a wide range of users in making economic decisions.

5. Underwriters are usually investment bankers who have, except:

6. An accounting principle has _____________ if it can be implemented without undue complexity or cost.

7. A professional accountant should not allow bias, conflict of interest, or undue influence of others to override professional or business judgments.

8. A threat to what fundamental principle is created when a professional accountant in public practice competes directly with a client or has a joint venture or similar arrangement with a major competitor of a client?

9. If Jackie Inc. has an equity multiplier of 1.83, total asset turnover of 1.65, and a profit margin of 5.2 percent, what is its ROE (in percentage, rounded to whole no.)?

10. If Jackie Inc. has an equity multiplier of 1.83, total asset turnover of 1.65, total assets of P500,000, and a profit margin of 5.2 percent (rounded to whole no.):

How much is the total equity?

11. If Jackie Inc. has an equity multiplier of 1.83, total asset turnover of 1.65, total assets of P500,000, and a profit margin of 5.2 percent (rounded to whole no.):

How much are the net sales?

12. If Jackie Inc. has an equity multiplier of 1.83, total asset turnover of 1.65, total assets of P500,000, and a profit margin of 5.2 percent (rounded to whole no.):

How much are the average total assets?

13. If Jackie Inc. has an equity multiplier of 1.83, total asset turnover of 1.65, total assets of P500,000, and a profit margin of 5.2 percent (rounded to whole no.):

How much are the net income?

14. Marie Equity Ventures, a vertically integrated company engaged in power generation, distribution, and energy supply, is one of the largest private power producers in the Philippines. The Generation Group harnesses power from a right-mix portfolio of renewable (hydro, geothermal and solar) and non-renewable (coal and oil) sources through its 46 generation facilities across the country. The company’s hydro group is the pioneering industry leader in the development of small to medium hydroelectric plants over the past 39 years.

On December 31, 2021, the total revenue of MEV is P223.93 billion with selected normal balances of accounts as follow (in billions):

Cash                                               148
Trade and other receivables       48
Inventories                                    32
Derivatives                                      1
Other current assets                   25
Total current assets                  254
Total assets                                 734
Total current liabilities            110
Total noncurrent liabilities     296
Share capital                                57
Treasury shares                            1

How much are the retained earnings as of December 31, 2021?

15. Marie Equity Ventures, a vertically integrated company engaged in power generation, distribution, and energy supply, is one of the largest private power producers in the Philippines. The Generation Group harnesses power from a right-mix portfolio of renewable (hydro, geothermal and solar) and non-renewable (coal and oil) sources through its 46 generation facilities across the country. The company’s hydro group is the pioneering industry leader in the development of small to medium hydroelectric plants over the past 39 years.

On December 31, 2021, the total revenue of MEV is P223.93 billion with selected normal balances of accounts as follow (in billions):

Cash                                               148
Trade and other receivables       48
Inventories                                    32
Derivatives                                      1
Other current assets                   25
Total current assets                  254
Total assets                                 734
Total current liabilities            110
Total noncurrent liabilities     296
Share capital                                57
Treasury shares                            1

How much is the applicable income tax rate for this corporation (in %)?

16. Marie Equity Ventures, a vertically integrated company engaged in power generation, distribution, and energy supply, is one of the largest private power producers in the Philippines. The Generation Group harnesses power from a right-mix portfolio of renewable (hydro, geothermal and solar) and non-renewable (coal and oil) sources through its 46 generation facilities across the country. The company’s hydro group is the pioneering industry leader in the development of small to medium hydroelectric plants over the past 39 years.

On December 31, 2021, the total revenue of MEV is P223.93 billion with selected normal balances of accounts as follow (in billions):

Cash                                               148
Trade and other receivables       48
Inventories                                    32
Derivatives                                      1
Other current assets                   25
Total current assets                  254
Total assets                                 734
Total current liabilities            110
Total noncurrent liabilities     296
Share capital                                57
Treasury shares                            1

In order to qualify for the 20% income tax rate, the total assets of the corporation shall not exceed by how much?

17. Mahinay Co. has a net working capital of P1,965, current liabilities of P5,460, and inventory amounting to P2,170. Round to 2 decimal places.

What is the current ratio?

18. Mahinay Co. has a net working capital of P1,965, current liabilities of P5,460, and inventory amounting to P2,170. Round to 2 decimal places.

What is the quick ratio?

19. Rhea Mae Co. had the following account balances at December 31, 2021.

Cash in bank                                                                     P1,000,000
Cash budgeted for bonds payable due on                     2,000,000
         July 30, 2022
Time deposit                                                                       2,000,000
Savings deposit budgeted for dividends                       4,000,000
       payable on June 30, 2022

The total amount to be reported on Rhea's cash and cash equivalents as of December 31, 2021 is?

20. On December 31, 2021, John Co. has a debit balance in its cash and cash equivalents the analyses of which are shown in the table below.

Undeposited collections                                                     60,000
Cash in Metrobank checking account                           500,000
Cash in Unionbank (overdraft)                                     (100,000)
Undeposited NSF check received from a customer     100,000
            dated December 28, 2021
Undeposited check from a customer dated                     60,000
            January 2, 2022
Money market instruments (90 days)                            100,000
Restricted cash (foreign bank)                                         200,000
IOUs from employees                                                           90,000
Sinking fund                                                                         100,000

The cash and cash equivalents to be reported as of December 31, 2021 amount to?