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The Review School of Accountoncy

Finol Pre-Bcord Exominotion


l7 Seplember 2Ol7 I l:45 AiA - 2:45 ?A

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INSTRUCTIONS: Selectthe correct onswer for eoch of the following questions. Mork only
one onswer for eoch iiem by shoding the box corresponding lo the letter of your
choice on ihe onswer sheet provided. SIRICILY NO ERASURES ALLOWED. Use pencil no.
2 only.
Set A
1. On October 17,2018, Lee, Inc. purchased from a Thailand firm an inventory costing 10,000 baht.
I Payment is due on January L5, 2OL9. Also on October 17, Lee, Inc. entered into a fureign o<change
lAry3rd. to buy 10,000 baht on January 15, 2019.

P
JW
1.30 I ?1.42

-i36 T 1.rr
In the profit and loss statement, foreign exchange qgggr.lpgs due fqlryafd
to cgntragt amounted to:
2018 2019 Es-"*' 2019 \ - i., .' ,; '-t ',
A.P 0 P 0 C. P700loss ei66-gain *7.,. -
B. P1,200 loss P200 gain D. p700 gain p300loss

fbms 2 and 3 ate bd on the following information:


The Venturs Corporation decided to open a branch store in Manila. Shipments of merchandise to the
branch totaled P108,000 which included a 20o/o mark-up on cost. All accounting records are to be kept at
the home office. The branch submitted the following report surnmarizing its operations fur the period
ended December 31, 20x4. ,

Sales on account . .. p14g,000


Sales on cash basis 44,000
Collections of accounts...... .:.,....... 120,000
Expenses paid. . 76,N0
Expenses unpaid.... .. . Z4,AOO
Purdnse of merchardise for cash ... . . 52,000
Irwentory on hand; December 31 (90% from horne office) 60,000
Rernittarrces to home office . 110,000
2. What is the adjusted balance of the albwarrce for overvaluation of branch inventory account?
a. P 9,000 c. P12,000.
b. P18,000 d. None ofthe above.
0.,
l/
3. The branch operations, in so far as the home office is concerned, resulted in a net income(loss) of:
a. P1,600 c. pg,000
b. P2,000 d. None ofthe above.
r! 4. ABC Company manufactures product X. It adds materials irr the beginning of the proess in
.. Department.A, which is the first of two stages of iF production cycle. The following are the
informatbn the materials used in

1, 2018
Units started
Units completed and transferred to next
B

Using the weightdd-average method, the materials cost of the work-in-process in the September 30,
2018 is:
A. P 5,390 c. p11,CI00
B. 10,780 D. 14,7A0
5. Consolidated ftnancial statements are designerl to provide:
a. informative information to all shareholders.
b. the resufts of operations, cash flow, and the batance sheet irr an understandable anct
informative manner for creditors.