UCC Mock Board Exam 2021 FAR 70 PDF

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UNIVERSITY OF CALOOCAN CITYBACHELOR OF SCIENCE IN ACCOUNTANCYMOCK BOARD EXAMINATION 2021FINANCIAL ACCOUNTING AND REPORTING Generally accepted accounting principles A. derive their authority from legal court proceedings. B. have been specified in detail in the FRSC Conceptual Framework. C. are fundam...

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UNI VERSI TYOFCALOOCANCI TY BACHELOROFSCI ENCEI NACCOUNT ANCY MOCKBOARDEXAMI NATI ON2 0 2 1 FI NANCI ALACCOUNTI NGANDREPORTI NG

1 . Ge n e r a l l ya c c e p t e da c c o u n t i n gp r i n c i p l e s A. d e r i v et h e i ra u t h o r i t yf r o ml e g a l c o u r t p r o c e e d i n g s . B. h a v eb e e ns p e c i fi e di nd e t a i l i nt h eFRSCCo n c e p t u a l F r a me wo r k . C. a r ef u n d a me n t a l l yt r u t h so r a x i o mst h a t c a nb ed e r i v e df r o ml a wso f n a t u r e . D. d e r i v e dt h e i r c r e d i b i l i t ya n da u t h o r i t yf r o mg e n e r a l r e c o g n i t i o na n da c c e p t a n c eb yt h ea c c o u n t i n gp r o f e s s i o n . 2 . Wh a t i sap o s s i b l ed a n g e ri f p o l i t i c sp l a y st o ob i gar o l ei nd e v e l o p i n gI FRS? A. Us e rg r o u p sb e c o mea c t i v e . B. I n d i v i d u a l sma yi n fl u e n c et h es t a n d a r d s . C. Th eI ASBd e l e g a t e si t sa u t h o r i t yt oe l e c t e do ffic i a l s . D. F i n a n c i a l r e p o r t i n gs t a n d a r d sa r en o t t r u l yg e n e r a l l ya c c e p t e d . 3 . Th eq u a l i fi c a t i o n so f t h eme mb e r so f BOAi n c l u d ea l l o f t h ef o l l o wi n g , e x c e p t . A. Mu s t b ean a t u r a l b o r nc i t i z e na n dar e s i d e n t o f t h ePh i l i p p i n e s . B. Mu s t b eo f g o o dmo r a l c h a r a c t e ra n dmu s t n o t h a v eb e e nc o n v i c t e do f c r i mei n v o l v i n gmo r a l t u r p i t u d e . C. Mu s tb ed u l yr e g i s t e r e dCPA wi t ha tl e a s tt e ny e a r so fwo r ke x p e r i e n c ei na n ys c o p eo fp r a c t i c eo f a c c o u n t a n c y . D. Mu s th a v ea n yp e c u n i a r yi n t e r e s t ,d i r e c t l yo ri n d i r e c t l y ,i na n ys c h o o lc o n f e r r i n ga na c a d e mi cd e g r e e n e c e s s a r yf o r a d mi s s i o nt ot h ep r a c t i c eo f a c c o u n t a n c y 4 . T ob er e l e v a n t , a n . i n f o r ma t i o ns h o u l dh a v ewh i c ho f t h ef o l l o wi n g ? A. Co n fi r ma t o r yv a l u e C. Un d e r s t a n d a b i l i t y B. Co s t a n db e n e fi t D. Ve r i fi a b i l i t y 5 . T h ef a i l u r et op r o p e r l yr e c o r da na d j u s t i n ge n t r yt oa c c r u ea ne x p e n s er e s u l t si n A. Ov e r s t a t e me n t o f e x p e n s ea n da nu n d e r s t a t e me n t o f a s s e t . B. Un d e r s t a t e me n t o f e x p e n s ea n da no v e r s t a t e me n t o f a s s e t . C. Un d e r s t a t e me n t o f e x p e n s ea n da no v e r s t a t e me n t o f l i a b i l i t y . D. Un d e r s t a t e me n t o f e x p e n s ea n da nu n d e r s t a t e me n t o f l i a b i l i t y . 6 . T h es t a t e me n t o f fi n a n c i a l p o s i t i o ni su s e f u l f o r a l l o f t h ef o l l o wi n g , e x c e p t A. a s s e s s i n gr i s k C. e v a l u a t i n gfi n a n c i a l fl e x i b i l i t y B. d e t e r mi n i n gf r e ec a s hfl o ws D. e v a l u a t i n gl i q u i d i t y 7 . Ch r i s t i n eCo mp a n yr e p o r t e dt h ef o l l o wi n gc u r r e n t a s s e t so nDe c e mb e r 3 1 , 2 0 2 1 : Ca s h , n e t o f b a n ko v e r d r a f t o f P2 0 0 . 0 0 0 4 , 3 0 0 , 0 0 0 Pe t t yc a s hf u n d( u n r e p l e n i s h e dp e t t yc a s he x p e n s e sP1 0 , 0 0 0 ) 5 0 , 0 0 0 Ac c o u n t sr e c e i v a b l e 7 , 5 0 0 , 0 0 0 No t e sr e c e i v a b l e , i n c l u d i n gd i s c o u n t e dn o t eP5 0 0 . 0 0 0 3 , 0 0 0 , 0 0 0 I n v e n t o r y , e x c l u d i n gg o o d so u t c o n s i g n me n t 4 , 0 0 0 , 0 0 0 Av a i l a b l ef o r s a l efi n a n c i a l a s s e t 1 , 5 0 0 , 0 0 0

De f e r r e dt a xa s s e t 1 , 2 0 0 , 0 0 0 T o t a l c u r r e n t a s s e t s 2 1 , 5 5 0 , 0 0 0 Ana n a l y s i sd i s c l o s e dt h a t a c c o u n t sr e c e i v a b l ec o mp r i s e dt r a d ea c c o u n t so f P5 , 0 0 0 , 0 0 0 , n e t o f a c c o u n t swi t hc r e d i t b a l a n c e sP1 , 0 0 0 , 0 0 0a l l o wa n c ef o rd o u b t f u l a c c o u n t sP5 0 0 , 0 0 0a n ds e l l i n gp r i c eo fP3 , 0 0 0 , 0 0 0o fg o o d so u to n c o n s i g n me n twi t hama r k u po f5 0 %o nc o s t .I twa sa l s od e t e r mi n e dt h a td e b i tb a l a n c e si ns u p p l i e r s ' a c c o u n t so f P3 0 0 , 0 0 0we r en e t t e df r o ma c c o u n t sp a y a b l e .Wh a t i st h et o t a l a mo u n t o f c u r r e n t a s s e t so nDe c e mb e r3 1 , 2 0 2 1 ? C.1 8 , 8 4 0 , 0 0 0 A.1 7 , 5 4 0 , 0 0 0 B. 1 8 , 5 4 0 , 0 0 0 D.1 9 , 0 4 0 , 0 0 0 8 . AtDe c e mb e r3 1 ,2 0 2 1 ,Ma eCo mp a n ywa sh o l d i n gl o n g l i v e da s s e t swh i c hi ti n t e n d e dt os e l l .Th ec o mp a n y a p p r o p r i a t e l yr e c o g n i z e dal o s si n2 0 2 1r e l a t e dt ot h e s ea s s e t s . Ont h ei n c o mes t a t e me n t f o r2 0 0 3 , t h i sl o s ss h o u l d b er e p o r t e da s A.Ex t r a o r d i n a r yi t e m B. Co mp o n e n t o f i n c o mef r o mc o n t i n u i n go p e r a t i o n sb e f o r ei n c o met a x C.Se p a r a t ec o mp o n e n t o f s e l l i n go r a d mi n i s t r a t i v ee x p e n s e s , d i s c l o s e dn e t o f t a x D.Co mp o n e n t o f g a i no r l o s sf r o ms a l eo f d i s c o n t i n u e do p e r a t i o n s , n e t o f i n c o met a x 9 . L o r a i n eCo mp a n yp r o v i d e dt h ef o l l o wi n gn e t o f t a xfi g u r e sf o r t h ec u r r e n t y e a r : Ne t r e me a s u r e me n t l o s so nd e fi n e db e n e fi t p l a n 3 0 0 . 0 0 0 Un r e a l i z e dg a i no na v a i l a b l ef o r s a l es e c u r i t i e s 1 , 5 0 0 , 0 0 0 Re c t i fi c a t i o na d j u s t me n t f o r g a i no ns a l eo f a v a i l a b l ef o rs a l e s e c u r i t i e si n c l u d e di nn e t i n c o me 2 5 0 . 0 0 0 Sh a r ewa r r a n t so u t s t a n d i n g 4 0 0 . 0 0 0 Ne t I n c o me 7 , 7 0 0 , 0 0 0 Wh a t i st h ec o mp r e h e n s i v ei n c o mef o r t h ec u r r e n t y e a r ? A.8 , 6 5 0 , 0 0 0 C.8 , 9 5 0 , 0 0 0 B. 8 , 9 0 0 , 0 0 0 D.9 , 0 5 0 , 0 0 0 1 0 . Wh i c ha mo n gt h ef o l l o wi n gi sn o t c o n s i d e r e da sac a s he q u i v a l e n t f o r p u r p o s e so f ac a s hfl o ws t a t e me n t ? A.A9 0 d a yT b i l l B. A6 0 d a ymo n e yma r k e t p l a c e me n t C.At h r e e y e a r t r e a s u r yn o t ema t u r i n go nMa y3 0 , 2 0 2 1p u r c h a s e db yt h ee n t e r p r i s eo nAp r i l 1 5 , 2 0 2 1 D.At h r e e y e a r t r e a s u r yn o t ema t u r i n go nMa y3 0 , 2 0 2 1p u r c h a s e db yt h ee n t e r p r i s eo nJ a n u a r y2 , 2 0 2 1 1 1 . Sp e n c e rCo mp a n yr e p o r t e dn e tc a s hfl o wf r o mo p e r a t i n ga c t i v i t i e sf o rt h ec u r r e n ty e a ra tP3 , 0 0 0 , 0 0 0 . Th e f o l l o wi n gi t e msa r ea l s or e p o r t e di nt h efi n a n c i a l s t a t e me n t s : Ca s hd i v i d e n d sp a i do no r d i n a r ys h a r e s 2 0 0 , 0 0 0 De p r e c i a t i o na n da mo r t i z a t i o n 1 2 0 , 0 0 0 I n c r e a s ei na c c o u n t sr e c e i v a b l e 2 4 0 , 0 0 0 Wh a t wa st h en e t i n c o mef o r t h ec u r r e n t y e a r ? A.2 , 5 6 0 , 0 0 0 C.2 , 9 6 0 , 0 0 0 B. 2 , 6 4 0 , 0 0 0 D.3 , 1 2 0 , 0 0 0 1 2 . St o c k h o l d e r s ' e q u i t yi sg e n e r a l l yc l a s s i fi e di n t owh i c ht woma j o r c a t e g o r i e s ? A.Ea r n e dc a p i t a l a n dc o n t r i b u t e dc a p i t a l . B. Co n t r i b u t e dc a p i t a l a n dd o n a t e dc a p i t a l . C.Ap p r o p r i a t e dc a p i t a l a n dr e t a i n e de a r n i n g s . D.Re t a i n e de a r n i n g sa n du n a p p r o p r i a t e dc a p i t a l .

1 3 . Zi n cCo mp a n yr e p o r t e dt h ef o l l o wi n gi n f o r ma t i o no nDe c e mb e r3 1 , 2 0 2 1 : Or d i n a r ys h a r ec a p i t a l , P3p a r 6 0 0 , 0 0 0 Sh a r ep r e mi u m 8 0 0 , 0 0 0 T r e a s u r ys h a r e s , a t c o s t 5 0 , 0 0 0 Ne t u n r e a l i z e dl o s so na v a i l a b l e f o r s a l es e c u r i t i e s 2 0 , 0 0 0 Re t a i n e de a r n i n g sa p p r o p r i a t e l yf o r u n i n s u r e de a r t h q u a k el o s s 1 5 0 , 0 0 0 Re t a i n e de a r n i n g su n a p p r o p r i a t e d 2 0 0 , 0 0 0 Wh a t a mo u n t s h o u l db er e p o r t e da st o t a l s h a r e h o l d e r s ’ e q u i t yo nDe c e mb e r3 1 , 2 0 2 1 ? A.1 , 6 8 0 , 0 0 0 C.1 , 7 8 0 , 0 0 0 B. 1 , 7 2 0 , 0 0 0 D.1 , 8 2 0 , 0 0 0 1 4 . Ap p l i c a t i o no f t h ef u l l d i s c l o s u r ep r i n c i p l e A.Re q u i r e st h a t t h efi n a n c i a l s t a t e me n t sb ec o n s i s t e n t a n dc o mp a r a b l e . B. I sv i o l a t e dwh e ni mp o r t a n t fi n a n c i a l i n f o r ma t i o ni sb u r i e di nt h en o t e st ot h efi n a n c i a l s t a t e me n t s . C.I sd e mo n s t r a t e db yt h eu s eo f s u p p l e me n t a r yi n f o r ma t i o np r e s e n t i n gt h ee ff e c t so f c h a n g i n gp r i c e s . D.I st h e o r e t i c a l l y "d e s i r a b l eb u t n o t p r a c t i c a l b e c a u s et h ec o s t so f c o mp l e t ed i s c l o s u r ee x c e e dt h eb e n e fi t s . 1 5 . Th ec a s ha c c o u n to fRi y a d hCo r p .o nDe c e mb e r3 1 ,2 0 2 1h a sab a l a n c eo fP1 2 7 , 6 0 0a n di tc o n s i s t so ft h e f o l l o wi n g: Bi l l sa n dc o i n so nh a n d P5 2 , 7 8 0 Pe t t yc a s hi n c l u d i n gp e t t yc a s hv o u c h e r so f P6 5 0 1 , 0 0 0 Ba l a n c ei ns a v i n g sa c c o u n t wi t hab a n kc l o s e db yt h eBSP 3 6 , 0 0 0 Cu s t o me r ' sc h e c kd a t e dJ a n u a r y1 5 , 2 0 1 9 8 , 0 0 0 Cr e d i t me mof r o ms u p p l i e r sf o r p u r c h a s e sr e t u r n s 6 , 5 0 0 Po s t a g es t a mp s 1 2 0 Mo n e yo r d e r 8 0 0 I OUo f a ne mp l o y e e 4 0 0 Ch e c k i n ga c c o u n t b a l a n c ei nBa n ko f P . I . 2 2 , 0 0 0 Th ec o r r e c t c a s hb a l a n c eo nDe c e mb e r 3 1 , 2 0 2 1Co r p . i s A.P7 5 , 1 3 0 C.P7 6 , 3 3 0 B. P7 5 , 9 3 0 D.P7 6 , 5 8 0 1 6 . Th ec a s ha c c o u n ti nt h ec u r r e n ta s s e ts e c t i o no ft h es t a t e me n to ffi n a n c i a lp o s i t i o no fGr a v eBu s t e rCo mp a n y s h o we dab a l a n c e do f P5 5 , 5 0 0 .I t wa sf o u n dt oi n c l u d et h ef o l l o wi n gi t e ms : Pe t t yc a s hf u n d( P1 0 0i si nt h ef o r mo f p a i dv o u c h e r s ) P5 0 0 Ch e c k i n ga c c o u n t b a l a n c ei nPh i l i p p i n eT r u s t Co mp a n y , p e r b a n ks t a t e me n t ( aP2 , 5 0 0c h e c ki ss t i l l o u t s t a n d i n g ) 2 5 , 5 0 0 Un d e p o s i t e dr e c e i p t s , i n c l u d i n gap o s t d a t e dc h e c kf o r P5 0 0 1 2 , 0 0 0 Cu r r e n c i e sa n dc o i n sa wa i t i n gd e p o s i t 5 , 5 0 0 Bo n ds i n k i n gf u n dc a s h 1 0 , 0 0 0 Ch e c kd r a wnb yma n a g e me n t , r e t u r n e db yb a n kma r k e dNSF 2 , 0 0 0 Th ec o r r e c t c a s hb a l a n c ef o rGr a v eBu s t e r Co mp a n y ' ss t a t e me n t o f fi n a n c i a l p o s i t i o ni s A.P4 0 , 4 0 0 C.P4 2 , 9 0 0 B. P4 2 , 4 0 0 D.P4 3 , 0 0 0 1 7 . Th ec a s h i e ro f Go b l i nI n c . p r e p a r e dt h ef o l l o wi n gb a n kr e c o n c i l i a t i o n : Ba l a n c ep e r b a n k De p o s i t si nt r a n s i t : 1 2 / 3 0 / 2 0 4 , 5 0 0

P2 8 , 3 7 5

1 2 / 3 1 / 2 0 Ou t s t a n d i n gc h e c k s 1 6 0 2 1 4 2 1 9 2 2 5 2 2 8

1 , 5 2 5 1 1 / 3 0 / 2 0 1 2 / 2 6 / 2 0 1 2 / 2 7 / 2 0 1 2 / 2 9 / 2 0 1 2 / 3 1 / 2 0

P2 , 2 0 0 6 7 5 8 5 0 2 , 5 0 0 7 , 2 2 5

Cu s t o me r n o t ec o l l e c t e db yb a n k Er r o r :Ch e c k# 2 1 6 , wr i t t e no n1 2 / 2 7 / 2 0f o rP2 7 0wa se r r o n e o u s l y c h a r g e db yt h eb a n ka sP7 2 0 ; b a n kwa sn o t i fi e do n1 / 2 / 2 1 Bo o kb a l a n c e Th ea d j u s t e dc a s hb a l a n c ea so f De c e mb e r 3 1 , 2 0 2 0i s C.P2 1 , 4 0 0 A. P1 5 , 4 0 0 B. P1 9 , 1 0 0 D.P2 1 , 8 5 0

6 , 0 2 5

( 1 3 , 4 5 0 ) 2 0 , 9 5 0 ( 3 , 0 0 0 ) 4 5 0 P1 8 , 4 0 0

1 8 . Th eAu g u s t 3 1b a n ks t a t e me n t o f Or l a n d oI n c . s h o we dab a l a n c eo f P1 1 3 , 0 0 0 . De d u c t e di na r r i v i n ga t t h i sa mo u n t wa sac u s t o me r ' sNSFc h e c kf o rP2 , 4 0 0t h a th a db e e nr e t u r n e d .Or l a n d oh a dr e c e i v e dn op r i o rn o t i c ec o n c e r n i n g t h i sc h e c k . I na d d i t i o nt ot h eb a n ks t a t e me n t , o t h e rr e c o r d ss h o we dt h e r ewe r ed e p o s i t si nt r a n s i t t o t a l i n gP1 7 , 2 0 0 a n dt h a to u t s t a n d i n gc h e c k st o t a l e dP1 0 , 8 0 0 .Wh a ti st h ec a s hb a l a n c ep e rb o o k sa tAu g u s t3 1( p r i o rt o a d j u s t me n t s ) ? A.P1 1 5 , 4 0 0 C.P1 1 9 , 4 0 0 D.P1 2 1 , 8 0 0 B. P1 1 7 , 0 0 0 1 9 . OnJ a n u a r y1 , 2 0 2 1 , t h el e n d i n gc o mp a n yma d eaP2 0 0 , 0 0 0 , 8 %l o a n . Th ei n t e r e s t i sr e c e i v a b l ea t t h ee n do f e a c h y e a r , wi t ht h ep r i n c i p a l a mo u n t t ob er e c e i v e da t t h ee n do f 5y e a r s . Aso f De c e mb e r3 1 , 2 0 2 1 ,t h ei n t e r e s tf o rt h e c u r r e n t y e a rh a sn o t y e t b e e nr e c e i v e dn o rr e c o r d e db e c a u s et h eb o r r o we ri se x p e r i e n c i n gfi n a n c i a l d i ffic u l t i e s . Th e l e n d i n gc o mp a n yn e g o t i a t e dar e s t r u c t u r i n go ft h el o a n .Th ep a y me n to fa l lo ft h ei n t e r e s tb a s e do nt h eo r i g i n a l p r i n c i p a l wi l l b ed e l a y e du n t i l t h ee n dt h e5 y e a rl o a nt e r m.I na d d i t i o n ,t h ea mo u n to fp r i n c i p a l r e p a y me n twi l l b e d r o p p e df r o mP2 0 0 , 0 0 0t oP1 0 0 , 0 0 0 . Th ep r e v a i l i n gi n t e r e s t r a t ef o rs i mi l a rt y p eo fl o a na so fDe c e mb e r3 1 , 2 0 2 1 i s1 0 %. Th ec a r r y i n ga mo u n t o f t h el o a na so f De c e mb e r3 1 , 2 0 2 2i s A. P6 7 , 7 0 0 C. P1 3 5 , 2 3 4 B. P1 3 2 , 3 0 0 D. P1 4 2 , 8 8 4 2 0 . Ry a nNo r ma nCo r p o r a t i o nf a c t o r e dP8 , 0 0 0 , 0 0 0o fa c c o u n t sr e c e i v a b l et oVi v i e nGi r l i eCo r p o r a t i o no nOc t o b e r1 , 2 0 2 1 .Co n t r o l wa ss u r r e n d e r e db yRy a nNo r ma n .Vi v i e nGi r l i ea c c e p t e dt h er e c e i v a b l e ss u b j e c tt or e c o u r s ef o r n o n p a y me n t .Vi v i e nGi r l i ea s s e s s e daf e eo f 3 %a n dr e t a i n sah o l d b a c ke q u a l t o5 %o f t h ea c c o u n t sr e c e i v a b l e .I n a d d i t i o n , Vi v i e nGi r l i ec h a r g e d1 2 %i n t e r e s t c o mp u t e do nwe i g h t e da v e r a g et i met oma t u r i t yo f t h er e c e i v a b l e so f 4 0 d a y s .F a i rv a l u eo f t h er e c o u r s eo b l i g a t i o ni sP1 0 0 , 0 0 0 .Ry a nNo r ma nwi l l r e c e i v ea n dr e c o r do nOc t o b e r1 , 2 0 2 1 c a s ho f A.7 , 2 3 5 , 3 3 3 C.7 , 3 6 0 , 0 0 0 B. 7 , 2 5 4 , 7 9 5 D.7 , 6 5 4 , 7 9 5 2 1 . Wh i c ho f t h ef o l l o wi n gi sc o r r e c t a b o u t t h ee ff e c t i v ei n t e r e s t me t h o do f a mo r t i z a t i o n ? A.Amo r t i z a t i o no f ad i s c o u n t d e c r e a s e sf r o mp e r i o dt op e r i o d . B. Amo r t i z a t i o no f ap r e mi u md e c r e a s e sf r o mp e r i o dt op e r i o d . C.Th ee ff e c t i v ei n t e r e s tme t h o da p p l i e dt oi n v e s t me n t si nd e b ts e c u r i t i e si sd i ff e r e n tf r o mt h a ta p p l i e dt ob o n d s p a y a b l e .

D.Th ee ff e c t i v ei n t e r e s tme t h o dp r o d u c e sac o n s t a n tr a t eo fr e t u r no nt h eb o o kv a l u eo ft h ei n v e s t me n tf r o m p e r i o dt op e r i o d .

2 2 . OnJ a n u a r y1 ,2 0 2 1 ,Ne x tCo r p o r a t i o np u r c h a s e dP1 , 0 0 0 , 0 0 01 0 %b o n d sf o rP9 2 7 , 8 8 0( i n c l u d i n gb r o k e r ' s c o mmi s s i o no f P2 0 , 0 0 0 ) .Ne x t h a st h ei n t e n t i o nt oh o l dt h eb o n d si n d e fi n i t e l y .Th eb o n d swe r ep u r c h a s e dt oy i e l d 1 2 %.I n t e r e s t i sp a y a b l ea n n u a l l ye v e r yDe c e mb e r3 1 .Th eb o n d sma t u r eo nDe c e mb e r3 1 , 2 0 2 5 .OnDe c e mb e r 3 1 ,2 0 2 1t h eb o n d swe r es e l l i n ga t9 9 .Ho wmu c hi st h ec a r r y i n ga mo u n tt h ei n v e s t me n ti nb o n d so nDe c e mb e r 3 1 , 2 0 2 1 ? A.P9 1 6 , 5 3 4 C.P9 6 1 , 6 2 6 B. P9 3 9 , 2 2 6 D. P9 9 0 , 0 0 0 2 3 . OnJ u l y1 ,2 0 2 1 ,Mo r a l e sCo r p .a c q u i r e dP4 , 0 0 0 , 0 0 0f a c ev a l u eo fXCo r p o r a t i o nb o n d swi t han o mi n a lr a t eo f i n t e r e s t o f4 %.Th eb o n d sma t u r eo nJ u l y1 , 2 0 2 6a n dp a yi n t e r e s t s e mi a n n u a l l ye a c hJ u l y1a n dJ a n u a r y1 , wi t h t h efi r s ti n t e r e s tp a y me n td u eo nJ a n u a r y1 ,2 0 2 2 .Th eb o n d sa r eh e l dt oma t u r i t y .Att h ed a t eo fi s s u a n c et h e b o n d sh a dama r k e t r a t eo f i n t e r e s to f6 %. Th ee n t i t yi n c u r r e dt r a n s a c t i o nc o s t so f1 %o ft h ep u r c h a s ep r i c e .On De c e mb e r3 1 , 2 0 2 1 , t h ema r k e t v a l u eo f t h eb o n d swa sP3 , 7 0 0 , 0 0 0 .Th ea mo u n t t ob er e c o g n i z e di n2 0 2 1p r o fi t o r l o s sr e l a t e dt ot h eb o n di n v e s t me n t i s A.Ni l C.P1 0 9 , 7 6 4 B. P1 0 6 , 7 9 7 D.P1 4 2 , 4 9 8 Th en e x t t woq u e s t i o n sa r eb a s e do nt h ef o l l o wi n gi n f o r ma t i o n . OnJ u l y1 , 2 0 2 1 ,T GVp u r c h a s e d1 0 , 0 0 0o f BPO' s5 0 , 0 0 0o u t s t a n d i n gs h a r e sa tap r i c eo fP6 . 0 0p e rs h a r e .BPO h a de a r n i n g so f P3 , 0 0 0p e rmo n t hd u r i n g2 0 1 9a n dp a i dd i v i d e n d so f P1 0 , 0 0 0o nMa r c h1 ,2 0 2 1a n dP1 2 , 5 0 0o n De c e mb e r1 , 2 0 2 1 .Th ema r k e t v a l u eo f BPO' ss h a r e swa sP6 . 5 0p e rs h a r eo nDe c e mb e r 3 1 , 2 0 2 1 . 2 4 . As s u mi n gt h a t T GVa c c o u n t sf o ri t si n v e s t me n t i nBPOa saFVPL , wh a t wo u l db et h et o t a l e ff e c t o nTGV' sp r o fi t o r l o s sf o rt h ey e a re n d e dDe c e mb e r 3 1 , 2 0 2 1 ? A.P2 , 5 0 0 C.P9 , 5 0 0 B. P4 , 5 0 0 D.P7 , 5 0 0 2 5 . As s u mi n gt h a tT GVh a ds i g n i fi c a n ti n fl u e n c eo v e rBPO,wh a t wo u l db et h eb a l a n c ei nT GV' s" I n v e s t me n ti nBPO" a c c o u n t o ni t ss t a t e me n t o f fi n a n c i a l p o s i t i o no nDe c e mb e r3 1 , 2 0 2 1 ? A.P6 1 , 1 0 0 C. P6 4 , 7 0 0 B. P6 2 , 7 0 0 D. P6 5 , 0 0 0 2 6 . Wh i c ho f t h ef o l l o wi n gi sNOTa ne x a mp l eo f ad e r i v a t i v efi n a n c i a l i n s t r u me n t ? A.Ac o mme r c i a l b i l l c o n t r a c t . C.Af u t u r e sc o n t r a c t . B. Af o r wa r de x c h a n g ec o n t r a c t . D.Ano p t i o nc o n t r a c t . 2 7 . Ro we e n a , I n c . , e n t e r si n t oac a l l o p t i o nc o n t r a c t wi t hJ a n eI n v e s t me n t Co . o nJ a n u a r y2 ,2 0 2 1 .Th i sc o n t r a c t g i v e s Ro we e n at h eo p t i o nt op u r c h a s e1 , 0 0 0s h a r e so fWSMs t o c ka tP1 0 0p e rs h a r e .Th eo p t i o ne x p i r e so nAp r i l 3 0 , 2 0 2 1 .WSMs h a r e sa r et r a d i n ga t P1 0 0p e rs h a r eo nJ a n u a r y2 ,2 0 2 1 ,a t wh i c ht i meRo we e n ap a y sP1 0 0f o rt h e c a l l o p t i o n . As s u met h a t t h ep r i c ep e rs h a r eo f WSMs t o c ki sP1 2 0o nAp r i l 3 0 , 2 0 2 1 , a n dt h a t t h et i mev a l u eo f t h eo p t i o nh a s n o t c h a n g e d . I no r d e rt os e t t l et h eo p t i o nc o n t r a c t , Ro we e n a , I n c . , wo u l dmo s t l i k e l y A.p a yJ a n eI n v e s t me n t P2 0 , 0 0 0 . B. r e c e i v eP4 0 0f r o mJ a n eI n v e s t me n t . C.r e c e i v eP2 0 , 0 0 0f r o mJ a n eI n v e s t me n t .

D.p u r c h a s et h es h a r e so f WSMa t P1 0 0p e r s h a r ea n ds e l l t h es h a r e sa t P1 2 0p e r s h a r et oJ a n e . 2 8 . Wh i c hi sn o t ap o s s i b l er e a s o nf o r a ni n v e n t o r y ’ sn e t r e a l i z a b l ev a l u et of a l l b e l o wi t sc o s t s ? A.Pr o d u c t o b s o l e s c e n c e . B. Ph y s i c a l d e t e r i o r a t i o no f i n v e n t o r i e s . C.Ani n c r e a s ei nt h ee s t i ma t e dc o s t so f c o mp l e t i o n . D.Ani n c r e a s ei nt h ee x p e c t e dr e p l a c e me n t c o s t so f t h ei n v e n t o r y . 2 9 .I ny o u rr e v i e wo fRi a nCo mp a n y ,y o ufi n dt h a tap h y s i c a l i n v e n t o r yo nDe c e mb e r3 1 ,2 0 2 1 ,s h o we dme r c h a n d i s e wi t hac o s t o f P4 4 1 , 0 0 0wa so nh a n da t t h a t : d a t e . Y o ua l s od i s c o v e rt h ef o l l o wi n gi t e mswe r ea l l e x c l u d e df r o mt h e P4 4 1 , 0 0 0 . a . Me r c h a n d i s eo f P6 1 , 0 0 0wh i c hi sh e l...