Intermediate Acctg 3
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MaxineIntermediate Acctg 3
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MaxineSelected data for CBN Co.
for 2020 are as follows: Decrease in merchandise inventory: P20,000
increase in accounts payable: P50,000 Disbursements for purchases of merchandise: P580,000.
How much is the 2022 Cost of goods sold?
P510,000
P550,000
P610,000
P650,000
Assets and liabilities, and income and expenses, when material, shall not be offset against each
other. Which among the following is not an allowed offsetting?
foreign exchange gains and losses
gain from the proceeds of selling equipment and the related selling expenditures
share premium and organizational costs
"gain" from donated land and the related cost of transferring the title
Missy Corp. provided the following information on December 31, 2000 ( in their normal
balances): Accounts Receivable- 350,000; Accounts payable - 200,000; Accrued Expenses -
150,000; Building in progress - 500,000; Cash in bank - 200,000; Cash surrender value -
150,000; Merchandise Inventory - 580,000; Office equipment - 200,000; Share Capital -
1,500,000; Accummulated profits - 400,000. Revaluation Surplus - 50,000. What is the total
current assets?
1,780,000
1,280,000
1,130,000
answer not given
S1: Contingent liabilities require disclosures in the notes to financial statements but not a
recorded journal entry. S2: A company's deficit is not presented as an asset but as a deduction
from the cost of Treasury Shares to determine the total Shareholders' equity.
Only S1 is true
Only S2 is true
Both statements are true
Both statements are false
[S1] Operating performance of an entity is reflected by the level of income earned by the
entity thru efficient and effective utilization of resources. [S2] Comprehensive income would
include gain on sale of investment in ordinary shares.
both are true
both are false
Only S1 is true
Only S2 is true
The following expenses were recognized by McQueen Co., a retailer, during 2008: Interest
expense: P120,000 Telephone expense: P95,000 Loss on sale of store equipment: P47,000
Legal fees: P74,000 Officers’ salaries: P115,000. How much should McQueen Co. report as
general and administrative expenses for 2008?
P210,000
P284,000
P330,000
P404,000
