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Name:____________________________________________________________________Date:____________________________

Section:__________________________________________________________________Score:___________________________
Direction: Read and solve the following problems. Write the letter of your best answer on the space provided before each
number. Erasures are not allowed and considered wrong.

___1. Manila Holdings Inc., is the parent company of a group of companies who also does its own trading. It bought
equipment from a US supplier for $10,000 on November 2,2008 and opened the corresponding letter of credit when the
exchange rate was P55.00 to $1.00. On December 31,2008 which is the company’s year end the US supplier has not
been paid and the exchange rate at that time was P57.00 to $1.00. On the Statement of Financial Position of Manila
Holdinds, Inc. on December 31,2008 what will be the amount to be presented as Equipment and Accounts Payable,
respectively?
a. P570,000 and P570,000 c. P550,000 and P550,000
b. P570,000 and P550,000 d. P550,000 and P570,000

___2. The accounts of Palawan International, a Philippine Company, show P813,000 accounts receivable and P389,000
accounts payable at December 31,2008 before adjusting entries are made. An analysis of the balances reveals the
following:
Accounts Receivable Accounts Payable
Receivable denominated in Philippine peso P285,000 Payable denominated in Philippine peso P 68,500
Receivable denominated in 200,000 Yen 118,000 Payable denominated in 10,000 dollar 76,000
Receivable denominated in 250,000 Baht 410,000 Payable denominated in 150,000 Baht 244,500
Total P813,000 Total P389,000
Current exchange rates on December 31,2008 are:
YEN P0.66 BAHT P1.65 DOLLAR P7.00
What is the net exchange gain or loss that should be reflected in Palawan’s income statement for 2008 after the year-end
adjustments?
a. P19,500 gain c. P19,000 gain
b. P16,500 loss d. P17,500 loss

___3. On December 12,2007, Davao Import Inc. entered into a forward exchange contract to purchase 100,000 foreign
currencies in 90 days to hedge a purchase of inventory on November 30,2007 payable in March 2008. The relevant
exchange rates are as follows:
Spot Rate Forward Rate for March 12,2008
November 30,2007 P8.70 P8.90
December 12,2007 8.80 9.00
December 31,2007 9.20 9.30
At December 31,2007, what amount of net foreign exchange gain or loss to be presented in Davao’s Income Statement?
a. P50,000 gain c. P30,000 gain
b. P20,000 loss d. P40,000 loss

___4. On December 31,2008, a foreign subsidiary in Hongkong submitted the following Statement of Financial Position in
foreign currency: Hongkong Dollar
Total Assets $100,000
Total Liabilities 20,000
Common Stock 50,000
Retained Earnings 12/31 30,000
The exchange rates are: Current Rate – P7.40; Historical Rate – P7.10; and Average Rate – P7.00.
Assuming that the retained earnings of the subsidiary on December 31,2008 translated to Philippine Peso is P212,000,
what amount of cumulative translation adjustment in other comprehensive income to be presented in the Consolidated
Statement of Financial Position on December 31,2008?
a. P22,000 credit c. P25,000 credit
b. P20,000 debit d. P2,000 debit

___5. On December 31,2008, a branch in Singapore submitted the following financial statements stated in Singaporean
Dollar:
Statement of Financial Position Income Statement and Retained Earnings
Monetary assets $20,000 Sales $27,000
Non-monetary assets 15,000 Expenses (including dep.$1,000) 25,000
Monetary liabilities 18,000 Net income 2,000
Common stock 12,000 Retained earnings, 1/1 3,000
Retained earnings, 12/31 5,000 Retained earnings, 12/31 $ 5,000
The exchange rates are: Current Rate – P37; Historical Rate – P34; and Average Rate – P35
Assuming the Retained Earnings of the Singaporean Branch in Philippine Pesos is P128,100, what amount of cumulative
translation adjustment in other comprehensive income to be presented in the Consolidated Statement of Financial
Position on December 31,2008?
a. P22,900 credit c. P12,000 credit
b. P10,000 debit d. P21,900 debit

___6. The Italy branch of Manila Company reports the following results of its operations for 2008 (in Euro):
Sales 10,000 Euro
Cost of Sale:
Purchases 1,000
Shipment from Manila 5,000
Inventory, end (800) 5,200
Gross profit 4,800
Operating expenses 1,000
Net Income 3,800 Euro
The relevant exchange rates for Euro for 2008 are: Jan. 1 – P69.20; December 31 – P69.95; and Average Rate – P69.50.
The only shipment from Manila during the year was determined to have a cost to home office of P346,500. The ending
inventory was identified to have come from shipments from Manila. What is the translated net income of the branch of
Italy?
a. P264,940 c. P265,810
b. P264,100 d. P262,960

___7. On September 1,2009, Bain Corporation received an order from a foreign customer for 300,000 local currency units
when the peso equivalent was P96,000. Bain shipped the equipment on October 15,2009, and billed the customer for
300,000 LCU when the peso equivalent was P100,000. Bain received the customer’s remittance in full on November
16,2009 and sold the 300,000 LCU for P105,000. In its income statement for the year ended December 31,2009, Bain
should report a foreign exchange gain of
a. zero c. P5,000
b. P4,000 d. P9,000

___8. On September 1,2009, Cano & Co. sold merchandise to a foreign firm for 250,000 francs. Terms of the sale require
payment in francs on February 1,2010. On September 1,2009, the spot exchange rate was P1.20 per franc. At December
31,2009, Cano’s year-end, the spot rate was 1.19, but the rate increased to 1.22 by February 1,2010, when payment was
received. How much should Cano report as foreign exchange gain or loss for 2009 and 2010, respectively?
a. P5,000 gain and P2,500 loss c. P5,000 gain and P5,000 loss
b. P2,500 loss and P7,500 gain d. P7,500 loss and P5,000 gain

___9. Lindy Corp. bought inventory items from a foreign supplier in Japan on November 15,2009 for 100,000 yen, when
the spot rate was P0.4295. An Lindy’s December 31,2009, year-end, the spot rate was P0.4245. On January 15,2010,
Lindy bought 100,000 yen at the spot rate of P0.4345 and paid the invoice. How much should Lindy report in its income
statements for 2009 and 2010, respectively, as foreign exchange gain or loss?
a. P1,500 gain and P1,000 loss c. P500 gain and P1,000 loss
b. P500 loss and P1,500 gain d. P1,000 gain and P500 loss

___10. Craft Corporation sold metal crafts to a US firm for $70,000 and pertinent information on exchange conversion
rates related to this transaction were as follows: November 4:Receipt of Order – P27.40; November 22:Date of Shipmen –
P27.50; December 31:Year-end Date – P27.60; and January 6:Date of Collection – P27.00. What is the amount of sale to
be appropriately recorded by Craft Corporation for the year converted at peso?
a. P1,890,000 c. P1,925,000
b. P1,918,000 d. P1,932,000

___11. On November 15,2009, Celt Inc., a Philippine company located in Baguio City, ordered merchandise FOB
shipping point from a German Company for 200,000 marks. The merchandise was shipped and invoiced to Celt on
December 10,2009. Celt paid the invoice on January 1,2010. The spot rate for marks on the respective dates are as
follows: November 15,2009 – P22.4955; December 10,2009 – P22.4875; December 31,2009 – P22.4675; and January
10,2010 – P22.4775. What is the net foreign exchange gain or loss to be recognized by Celt for 2009 and 2010?
a. P1,000 net loss c. P2,000 net loss
b. P1,600 net gain d. P1,000 net gain

___12. Phil Corp. sold to American customer merchandise worth US$10,000. As of Phil’s balance sheet cut-off date on
June 30,2009, the exchange rate was P26.60. On August 15,2009, payment was received in the form of a bank transfer
whereby Phil’s account was credited the amount of P265,400 before any charges. At the time of acceptance of the
merchandise in San Francisco, the exchange rate was P26.75. The appropriate exchange rate for the recognition of the
sale should be:
a. P26.54 c. P26.63
b. P26.60 d. P26.75

___13. Local Corporation imported heavy machine from the US for US$50,000 on October 10,2009. A letter of credit was
opened with a Makati branch based on the commercial invoice for US$50,000, on which Local Corporation made a 100%
deposit cover based on the exchange rate of $1.00 to P27.50. Shipment of the heavy machine was effected on December
30,2009, at which time the exporter collected the proceeds of the letter of credit when the prevailing exchange rate was
$1.00 to P28.00. From the exchange rate fluctuation, Local Corporation should realize
a. No gain, no loss c. P25,000 gain
b. P5,000 gain d. P25,000 loss

___14. On June 15,2010, Boni Corporation purchased merchandise worth 100,000 Swiss Francs from its supplier in
Switzerland payable within 30 days under an open account arrangement. Boni issued a 30-day, 6% note payable in Swiss
francs. On July 15,2010, Boni paid the note in full. The following information in spot rates is provided:
Buying Selling
June 15,2010 P24.03 P24.15
July 15,2010 24.10 24.22
What is Boni’s foreign exchange gain or loss for the transaction?
a. P5,040 gain c. P12,075 gain
b. P7,035 loss d. P19,110 loss

___15. On November 30,2008, Tyrola Publishing Company located in Manila executed a contract with Ernest Blyton, an
author from Canada, providing for payment of 10% royalties on Canadian sales of Blyton’s book. Payment is to be made
in Canadian dollars each January 10 for the previous year’s sales. Canadian sales of the book for the year ended
December 31,2009 totaled $50,000 Canadian dollars. Tyrola paid Blyton his 2006 royalties on January 10,2010. Tyrola’s
2009 financial statements were issued on February 1,2010. Spot rates for Canadian dollars were as follows: November
30,2008 – P27.87; January 1,2009 – P27.88 – December 31,2009 – P27.89; and January 10,2010 – P27.90. How much
should Tyrola accrue for royalties payable at December 31,2009?
a. P139,350 c. P139,450
b. P139,400 d. P139,500

___16. On September 9,2011, Selma Inc. accepted a noncancellable merchandise sales order from a Japanese firm. The
contract price was 10,000 Yens. The merchandise was delivered on December 14,2011. The invoice was dated
December 11,2011, the shipping date (FOB Shipping point). Full payment was received on January 22,2012. The spot
direct exchange rates for the Japanese Yens on the respective dates are as follows: September 9,2011 – P0.75;
December 11,2011 – P0.78; December 14,2011 – P0.77; December 31,2011 – P0.73; and January 22,2012 – P0.725.
Determine the following:
Sales for 2011 Forex Gain/Loss for 2011 Accounts Receivable,12/31/2011 Forex Gain/Loss for 2012
a. P77,000 P1,000 loss P78,000 P500 loss
b. P78,000 P5,000 loss P73,000 P500 loss
c. P75,000 P3,000 loss P78,000 P1,500 loss
d. P77,000 P1,500 loss P72,500 P2,500 gain
___17. An entity purchases a plant from a foreign supplier for P3,000,000 Baht on January 31,2011, when the exchange
rate was 2 Baht = P1. At the entity’s year-end of March 31,2011, the amount has not been paid. The closing rate was 1.5
Baht = P1. The entity’s functional currency is the peso. Which of the following statements is correct?
a. Cost of plant – P2,000,000; exchange loss – P500,000; and trade payable – P1,500,000.
b. Cost of plant – P1,500,000; exchange loss – P600,000; and trade payable – P2,000,000
c. Cost of plant – P1,500,000; exchange loss – P500,000; and trade payable – P2,000,000
d. Cost of plant – P2,000,000; exchange loss – P500,000 and trade payable – P2,000,000
___1. UST, a private university, had the following cash inflows during the year ended December 31,2008:
I. P500,000 from students for tuition.
II. P300,000 from a donor who stipulated that the money be invested indefinitely.
III. P100,000 from a donor who stipulated that the money be spent in accordance to the wishes of UST’s board of
Directors.
On UST’s statement of cash flows for the year ended December 31,2008, what amount of these cash flows should be
reported as operating activities?
a. P900,000 c. P800,000
b. P400,000 d. P600,000

___2. Sta. Clara Hospital, a private nonprofit hospital earned P250,000 revenues from its gift shop located at the lobby
and spent P50,000 on research during the year ended December 31,2008. The P50,000 spent on research was part of a
P75,000 contribution received during December of 2007 from a donor who stipulated that the donation be used for
medical research. Assume none of the gift shop revenues were spent in 2008. For the year ended December 31,2008,
what was the increase in unrestricted net assets from the events that occurred during 2008?
a. P300,000 c. P250,000
b. P200,000 d. P275,000

___3. San Luis Hospital, non-profit hospital affiliated with a religious group, reported the following information for the year
ended December 31,2008:
Gross patient service revenue at the full rates P980,000
Bad debts expense 10,000
Contractual adjustments, Value added tax 89,090
Allowance for discounts to hospital employees 15,000
On hospital’s statement of activities for the year ended December 31,2008, what amount should be reported as net
patient service revenue?
a. P875,910 c. P855,000
b. P890,910 d. P955,000

___4. San Jose Hospital, a nonprofit hospital affiliated with San Carlos College, had the following cash receipts for the
year ended December 31,2008:
Patient service revenue P750,000
Contribution from donor to be invested indefinitely (endowment fund) 250,000
Tuition fees from nursing school 50,000
Dividends received from permanent investments 80,000
The dividends received are restricted by the donor for hospital building improvements, No improvements were made
during 2008. On the hospital’s statement of cash flows for the year ended December 31,2008. what amount of these cash
receipts would be included in the amount reported for net cash provided (used) by operating activities?
a. P880,000 c. P1,050,000
b. P800,000 d. P750,000

___5. Santa Rosa College, a private nonprofit college, received the following contributions during 2008:
I. P5,000,000 from alumni for construction of a new wing on the building to be construed in 2008.
II. P1,000,000 from a donor who stipulated that the contribution be invested indefinitely and that the earnings be
used for scholarship. As of December 31,2008, earnings from investments amounted to P50,000.
For the year ended December 31,2008, what amount of these contribution should be reported as temporarily restricted
revenues on the statement of activities?
a. P50,000 c. P5,000,000
b. P5,050,000 d. P6,050,000

___6. On December 30,2008, Saint Peter Hospital, a nonprofit organization, received a P7,000,000 donation of BW Co.
shares of stocks with donor-stipulated requirements as follows:
- Shares valued at P5,000,000 are to be sold, with the proceeds used to erect a building.
- Shares valued at P2,000,000 are to be retained, with the dividends used to support current operations.
As a result of the receipt of the BMW shares how much should Saint Peter Hospital report as temporarily restricted net
assets on its 2008 statement of financial position?
a. P-0- c. P5,000,000
b. P2,000,000 d. P7,000,000
___7. Gentle Care Foundation, a non-profit organization, received the following pledges:
Unrestricted P200,000
Restricted for acquisition of equipments 150,000
All pledges are legally enforceable, however, the foundation’s experience indicates that 10% of all pledges prove to be
uncollectible. What amount should the foundation report as pledges receivable net of any required allowance account?
a. P135,000 c. P315,000
b. P180,000 d. P350,000

___8. The following receipts were among those recorded by Baliwag College, a non-profit organization during 2008:
Unrestricted gifts P500,000
Restricted current funds (expended for current operating expenses) 200,000
Restricted current funds (not yet expended) 100,000
What amount should be included as revenues and current fund revenue, respectively?
a. P800,000 and P700,000 c. P600,000 and P600,000
b. P700,000 and P800,000 d. P500,000 and P500,000

___9. Christian Hospital, a nonprofit hospital affiliated with a religious group, received the following cash contributions
from donors during the year ended December 31,2008:
Capital acquisitions of hospital equipment P400,000
For permanent endowment 300,000
The cash received for acquisition of hospital equipment will be spent in 2009, while the cash received for the permanent
endowment was used to acquire investments during 2008. What effect did these cash contributions have on the amount
reported for cash flows from investing activities and cash flows from financing activities on the statement of cash flows for
the year ended December 31,2008?
Cash flows from Investing Activities Cash flows from Financing Activities
a. Decrease P300,000 Increase P400,000
b. Decrease P700,000 Increase P700,000
c. Decrease P300,000 Increase P300,000
d. Decrease P300,000 Increase P400,000

___10. Miriam Hospital, a nonprofit hospital affiliated with Miriam College, had the following cash receipts for the year
ended December 31,2008:
Collections of Philhealth care receivable P750,000
Contributions from donor to establish a term endowment 250,000
Tuition fee from nursing school 50,000
Dividends received from investments n permanent endowment 80,000
The dividends received are restricted by the donor for hospital building improvements. No improvements were made
during 2008. On the hospital’s statement of cash flows for the year ended December 31,2008, what amount of these cash
receipts would be included in the amount reported for net cash provided (used) by operating activities?
a. P880,000 c. P1,050,000
b. P800,000 d. P750,000

___11. Out of its total appropriation for 2008, Department EE received its allotments broken down as follows:
Capital outlay (CO) P20,000,000
Maintenance and Other Operating Expenses (MOOE) 10,000,000
Personal Services 5,000,000
Financial Expenses 1,000,000
Total P36,000,000
Department of Budget and Management issued Notice of Cash Allocation to Department EE in the amount of
P20,000,000.

What is the journal entry of Department EE to record the receipt of Notice of Cash Allocation?
a. Cash – National Treasury – MDS 20,000,000
Subsidy Income from National Government 20,000,000
b. Subsidy Income from National Government 20,000,000
Cash – National Treasury – MDS 20,000,000
c. Notice of Cash Allocation 20,000,000
Subsidy Income from National Government 20,000,000
d. Cash – National Clearing Account 20,000,000
Subsidy Income from National Government 20,000,000
___12 Agency SS issued a purchase order for the purchase of office equipment costing P50,000. The equipment was
received with the charge invoice and was paid by check after withholding tax of 10%. Agency SS remitted the tax withheld
to BIR through a government depository bank. What is the entry to record the remittance of the tax withheld to BIR?
a. Due to BIR 5,000
Subsidy Income from National Government 5,000
b. Accounts payable 5,000
Cash – National Treasury – MDS 5,000
c. Due to BIR 5,000
Cash – National Treasury – MDS 5,000
d. Due to BIR 5,000
Cash – Check Disbursements – MDS 5,000

___13. Cash advances were released to the disbursing officer for petty cash fund (PCF) for miscellaneous expenses of
P10,000. The petty cash fund was replenished for total expenses of P7,000. At year end expenses liquidated are office
supplies expense, P5,000 and traveling expenses, P3,000. The unused petty cash fund was replenished. What is the
entry to record the return of the unused PCF?
a. Cash – National Treasury – MDS 2,000
PCF 2,000
b. Cash – Collecting Officer 2,000
PCF 2,000
c. Cash – Collecting Officer 3,000
PCF 3,000
d. Cash – National Treasury – MDS 3,000
PCF 3,000

___14. Agency PP prepares the following payroll fund for the month of June,2005:
Salaries and wages P100,000
Additional compensation (ADCOM) 30,000
Personnel economic relief allowances (PERA) 20,000
P150,000
Gross payroll P4,000
Less: Withholding tax 3,000
GSIS Contribution 2,000
Philhealth contribution 1,000 10,000
Net payroll P140,000
What is the entry to record the advances to the disbursing officer?
a. Cash – Disbursing Officer 140,000
Cash – Check Disbursements 140,000
b. Cash – Disbursing Officer 140,000
Cash – National Treasury – MDS 140,000
c. Cash – Disbursing Officer 140,000
Cash – Local Currency – Local Bank 140,000
d. Cash – Disbursing Officer 140,000
Cash – Collecting Officer 140,000

___15. On February 1,2008. Agency GG signed a contract for the construction of a building. The contract price is
P50,000,000. The agency made a down-payment of 30% of the contract price. On May 1,2008, Agency GG received the
first billing of 50% of the contract price. The agency paid the first billing less P100,000 withholding tax. What is the entry to
record to payment of the first billing?
a. Accounts payable 25,000,000
Due to BIR 100,000
Cash – National Treasury – MDS 24,900,000
b. Accounts payable 10,000,000
Cash – National Treasury – MDS 10,000,000
c. Accounts payable 10,000,000
Due to BIR 100,000
Cash – National Treasury – MDS 9,900,000
d. Accounts payable 10,000,000
Due to BIR 100,000
Cash – Disbursing Officer 9,900,000
___16. On April 15,2008, BIR collected taxes from individual taxpayers in the amount of P10,000,000. The BIR has no
authority to use these collections in their operation and therefore deposited it to the Bureau of Treasury. What is the entry
to record the remittance of the collections to Bureau of Treasury thru a government depositary bank?
a. Cash – deposits 10,000,000
Cash – collecting officer 10,000,000
b. Cash – deposits 10,000,000
Cash – local currency – local bank 10,000,000
c. Income taxes – individuals 10,000,000
Cash – collecting officer 10,000,000
d. No entry.

___17. On June 30,2008, Agency KK collected P50,000 from tenants for the rent of office space in its building and
deposited the collections to Philippine National Bank. On July 5, the agency uses P20,000 of this collection for the repair
of the office space. What is the entry to record the payment of the repair of the office space?
a. Repairs and Maintenance – Office Building 20,000
Cash – Collecting officer 20,000
b. Repairs and Maintenance – Office Building 20,000
Cash in Bank – LCCA 20,000
c. Building 20,000
Cash in Bank – LCCA 20,000
d. Building 20,000
Cash – Collecting Officer 20,000

___18. During the year, 2008 Department ZZ received Notice of Cash Allocation of P10,000,000 out of its total allotments
of P15,000,000. Check disbursements during the year amounted to P9,000,000. What adjustment is made for the unused
NCA as of the end of the year?
a. Appropriation allotted 1,000,000
National Clearing Account 1,000,000
b. Subsidy Income from National Government 1,000,000
Cash – National Treasury – MDS 1,000,000
c. Cash – National Treasury – MDS 1,000,000
Subsidy Income from NG 1,000,000
d. Subsidy Income from National Government 6,000,000
Cash – National Treasury – MDS 6,000,000
___19. The approved appropriation of Department SS for 2008 was P50,000,000. 90% of this appropriation was allotted
by the DBM accompanied with Notice of Cash Allocation of 80% of the allotment. During the year, the amount of
obligation incurred was equal to 90% of the NCA. 75% of these obligations was paid. What is the adjusting entry at the
end of the year to adjust the unused NCA?
a. Subsidy Income from National Government 11,700,000
Cash – National Treasury – MDS 11,700,000
b. National Clearing Account 3,600,000
Appropriation allotted 3,600,000
c. Subsidy Income from National Government 3,600,000
Cash – National Treasury – MDS 3,600,000
d. Cash – National Treasury – MDS (3,600,000)
Subsidy Income from NG (3,600,000)
___20. The following data were taken for the accounting records of Agency RR on December 31,2008:
Notice of Cash Allocation received P150,000,000
Unused NCS 30,000,000
Refund of excess cash advance 5,000,000
Salaries and wages – Regular pay 55,000,000
ADCOM 2,000,000
PERA 10,000,000
Traveling expense – Local 1,000,000
Electricity 20,000,000
Rent expense 8,000,000
Office supplies expense 4,000,000
What is the net income over expense on December 31,2008?
a. P15,000,000 c. P45,000,000
b. P50,000,000 d. P20,000,000
___21. Mild Care Centers Inc, a non-for-profit organization, receives revenue from various sources during the year to
support its day care center. The following cash amounts were received during 2011:
- P2,000 restricted by the donor to be used for meals for the children.
- P1,500 received for subscriptions to a monthly child care magazine with a fair market value to subscribes of
P1,000.
- P10,000 to be used only upon completion of new playroom that was 75% complete at December 31,2011.
What amount should Mild Care Centers record as contribution revenue in its 2011 Statement of Activities?
a. P2,000 c. P10,000
b. P2,500 d. P11,000

___22. Leslie Hospital, a nonprofit hospital affiliated with a private university reported the following information for the year
ended December 31,2011:
Cash contributions received from donors for capital additions to be acquired in 2012 P150,000
Proceeds from sales at hospital gift shop and snack bar 75,000
Dividend revenue not restricted by donors or by law 25,000
Using the information provided, what amount should be reported as “other revenue and gains” on the hospital’s statement
of operations for the year ended December 31,2011?
a. P25,000 c. P100,000
b. P75,000 d. P250,000

___23. For the 2011 summer session, FEU assessed its students for tuition and fees. However, the net amount realized
was only P290,000 because of the following reductions:
Tuition remissions granted to faculty member’s families P3,000
Class cancellations refunds 7,000
How much unrestricted current fund revenues from tuition and fees should FEU report for the period?
a. P290,000 c. P297,000
b. P293,000 d. P300,000

___24. For the summer session of 2011, Siliman University assessed its students P1,700,000 (net of refunds), covering
tuition and fees for educational and general purposes. However, only P1,500,000 was expected to be realized because
scholarships totaling P150,000 were granted to students, and tuition remissions of P50,000 were allowed to faculty
members’ children attending Siliman. What amount should Siliman include in the unrestricted current funds as revenues
from student tuition and fees?
a. P1,500,000 c. P1,650,000
b. P1,550,000 d. P1,700,000

___25. On July 31,2011, St. Vincent’s College showed the following amounts to be used for:
Renewal and replacement of college properties P200,000
Retirement of indebtedness on college properties 300,000
Purchase of physical properties for college purposes but unexpended at 7/31/2011 400,000
What total amount should be include in St. Vincent’s plant funds at July 31,2011?
a. P900,000 c. P400,000
b. P600,000 d. P200,000

___26. In 2011, Manila Health, a voluntary health and welfare organization, received a bequest of a P200,000 certificate
of deposit maturing in 2012. The testator’s only stipulations were that this certificate be held until maturity and that the
interest revenue be used to finance salaries for a pre-school program. Interest revenue for 2012 was P16,000. When the
certificate matured and was redeemed, the board of trustees adopted a formal resolution designating P40,000 of the
proceeds for the future purchase of equipment for the pre-school program. What amount should Manila report in its 2012
year-end current funds balance sheet as fund balance designated for the pre-school program?
a. P -0- c. P40,000
b. P16,000 d. P56,000

___27. Seniors Association is a not-for-profit organization that provides services to senior citizens. Seniors employs a full
time staff of 10 people at an annual cost of P150,000. In addition, two volunteers work as part-time secretaries replacing
last year’s full time secretary who earned P10,000. Services performed by other volunteers for special events had an
estimated value of P15,000. These volunteers were employees of local businesses and they received small-value items
for their participation. What amount should Seniors report for salary and wages expenses related to the above items?
a. P150,000 c. P165,000
b. P160,000 d. P175,000
___28. The following expenditures were made by Green Community, a society for the protection of the environment:
Printing of the annual report P12,000
Unsolicited merchandise sent to encourage contributions 25,000
Cost of an audit performed by a CPA firm 3,000
What amount should be classified as fund-raising costs in the society’s activity statement?
a. P37,000 c. P25,000
b. P28,000 d. P-0-

___29. The following funds were among those held by CEU at December 31,2011:
Principal specified by the donor as non-expandable P500,000
Principal expendable after the year 2012 300,000
Principal designated from current funds 100,000
What amount should CEU classify as regular endowment funds for Permanently Restricted Endowment?
a. P100,000 c. P500,000
b. P300,000 d. P900,000

___30. FEU Hospital, a nonprofit hospital affiliated with FEU University, received the following cash contributions from
donors during the year ended December 31,2011:
Contributions restricted by donors for research P 50,000
Contributions restricted by donors for capital acquisitions 250,000
Neither of the contributions was spent during 2011, however, during 2012, the hospital spent the entire P50,000
contribution on research and the entire P250,000 contribution on a capital asset which was placed into service during the
year. On the hospital’s statement of activities of operations for the year ended December 31,2012, what total amount
should be reported for “net assets released from restrictions”?
a. P50,000 c. P250,000
b. P300,000 d. P -0-

___31. Agency RRR had the following account balances for the year 2011:
Current Assets P10,000,000 Liabilities P18,000,000
Investments and Fixed Assets 90,000,000 Contingent Liabilities 5,000,000
Other Assets 5,000,000 Contingent Assets 3,000,000
What is the Government Equity for the year 2011?
a. P105,000,000 c. P87,000,000
b. P85,000,000 d. P82,000,000

___32. Agency ABC sold a 50% depreciation motor vehicle which had an original cost of P300,000 for P200,000. The
proceeds shall be deemed automatically appropriated for the purchase of replacement higher capacity vehicle worth
P500,000 net of applicable tax. The agency subsequently received a NCA for P500,000 for the purchased of the said
vehicle. What is the entry to record the receipt from the disposal of the motor vehicle?
a. Cash – Collecting Officer 200,000
Due to BTR 200,000
b. Cash – Collecting Officer 200,000
Gain on sale of Disposed Assets 200,000
c. Cash – Collecting Officer 200,000
Acc. Depreciation – Vehicles 150,000
Motor Vehicles 300,000
Gain on sale of disposed assets 50,000
d. Cash – Collecting Officer 200,000
Acc. Depreciation – Vehicles 150,000
Motor vehicles 300,000
Due to BTR 50,000

___33. Agency XXX conducted a seminar/conference and was able to collect seminar fees from attendees totaling a
P100,000. The authority to use such receipt is subjected to limitations that any excess over those expended for
seminar/conference costs shall be remitted to the National Treasury. P20,000 and P5,000 from the amount collected were
used for rent of the seminar/conference venue and office supplies used, respectively. The excess amount was remitted to
the BTR. What is the entry to record the remittance of the excess?
a. Seminar fees 75,000
Cash in Bank – LCCA 75,000
b. Due to BTR 75,000
Cash in Bank – LCCA 75,000
c. Rent expense 20,000
Office supplies expense 5,000
Due to BTR 75,000
Cash in Bank – LCCA 100,000
d. Subsidy Income from NG 75,000
Cash in Bank – LCCA 75,000

___34. Agency JJJ grants cash advance to Mr. Ube for traveling expenses amount to P12,000. Mr. Ube presented
certificates of appearance for the travel completed along with the necessary documents to support the travel expenses,
P10,000. Mr. Ube refunded the agency for the excess. What is the entry for this presentation of certificates of appearance
and the refund?
a. Traveling expenses 10,000
Cash Collecting Officer 2,000
Due from officers and employees 12,000
b. Cash collecting officer 2,000
Traveling expenses 2,000
c. Cash – National Treasury – MDS 2,000
Traveling expenses 2,000
d. Traveling expenses 10,000
Cash – National Treasury – MDS 2,000
Due from officers and employees 12,000

___35. Agency OOO had a balance of P1,000,000 unused NCA (Cash-NT, MDS) balance, what would be the entry to
adjust this Unused NCA?
a. Subsidy Income from National Government 1,000,000
Due from National Government 1,000,000
b. Subsidy Income from National Government 1,000,000
Cash – National Treasury – MDS 1,000,000
c. Cash – National Treasury, MDS 1,000,000
Subsidy income from National Government 1,000,000
d. No entry

___36. Agency AAA received the following allotment for year 2011:
Capital Outlay (CO) P50,000,000
Maintenance and Other Operating Expenses (MOOE) 10,000,000
Personal Services (PS) 5,000,000
Financial Expenses (FE) 100,000
P65,100,000
What is the entry to record the above allotment?
a. No entry
b. Memorandum entry in Registry of Allotments and Obligations
c. National Clearing Account 65,100,000
Appropriations Alloted 65,100,000
d. Cash – National Treasury – MDS 65,100,000
Subsidy Income from National Gov’t 65,100,000

___37. Agency HHH received spare parts amounting to P10,000 and set-up liability. What is the entry for this transaction?
a. Spare parts expense 10,000
Accounts payable 10,000
b. Spare parts inventory 10,000
Accounts payable 10,000
c. Spare parts inventory 10,000
Due from suppliers 10,000
d. Memorandum entry only

___38. Agency LLL has obligation for Information Technology Software from Microsoft Great Plains Solutions amounting
to P120,000. Agency LLL received the IT Software based in invoice/delivery receipt. What is the entry for the receipt of
the IT Software?
a. Memorandum entry in RAOCO
b. IT Equipment and Software 120,000
Cash – National Treasury – MDS 120,000
c. IT Equipment and Software 120,000
Accounts payable 120,000
d. IT Equipment and Software 120,000
Subsidy Income from National Gov’t 120,000

___39. Agency NNN issued check to Non-government organizations (NGO’s) for fund assistance amounting to P100,000.
What is the entry to record this transaction?
a. No entry
b. Memorandum entry in RAOMO
c. Due from National Gov’t Agency 100,000
Cash – National Treasury – MDS 100,000
d. Other receivables 100,000
Cash – National Treasury – MDS 100,000

___40. Agency PPP had a P20,000 credit balance of Subsidy Income from National Government. What would be the
entry to record the transaction?
a. Subsidy income from National Gov’t 20,000,000
Income and expense summary 20,000,000
b. Subsidy income from National Gov’t 20,000,000
Cash – National Treasury – MDS 20,000,0000
c. Subsidy Income from National Gov’t 20,000,000
Due from National Gov’t agency 20,000,000
d. No entry