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    Prac 001 Justification

    Uploaded by

    Vanessa San Jose
    This document contains 10 multiple choice questions about financial accounting concepts. It includes questions about current ratio, working capital, current assets, current and non-current liabilities, shareholders' equity, and cash reconciliation.

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    © All Rights Reserved
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    Prac 001 Justification

    Uploaded by

    Vanessa San Jose
    28 views2 pages
    This document contains 10 multiple choice questions about financial accounting concepts. It includes questions about current ratio, working capital, current assets, current and non-current liabilities, shareholders' equity, and cash reconciliation.

    Original Title

    PRAC 001 JUSTIFICATION

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    © © All Rights Reserved

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    This document contains 10 multiple choice questions about financial accounting concepts. It includes questions about current ratio, working capital, current assets, current and non-current liabilities, shareholders' equity, and cash reconciliation.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    28 views2 pages

    Prac 001 Justification

    Uploaded by

    Vanessa San Jose
    This document contains 10 multiple choice questions about financial accounting concepts. It includes questions about current ratio, working capital, current assets, current and non-current liabilities, shareholders' equity, and cash reconciliation.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    VANESSA SAN JOSE

    PRAC 001 JUSTIFICATION

    1. C Cash P 1,500,000.00 .
    Borrowed Funds 220,000
    Revenues 164,000
    Expenses (128,000)
    TOTAL ASSETS P 1,756,000

    2. D. It would Improve the current ratio because it would reduce current liabilities and increase the
    proportion of current assets to current liabilities.

    3. A. 100,000 + 20,000 = 0.8 to 1


    150,000

    4. C.
    Accounts Receivable P 120,000
    Building 400,000
    Cash 60,000
    Equipment 160,000
    Land 50,000
    Total Assets P790,000

    5. A.
    Working Capital P 600,000
    Liabilities 300,000
    Current Assets P900,000

    6. B.

    Cash and Cash Equivalents P 175,000


    Prepaid Insurance 136,000
    Inventory 820,000
    Trading securities 153,000
    Loans and Receivables 366,000
    Total Current Assets P1,650,000
    7. B.

    Wages and payable P 250,000 Bond payable P600,000


    Dividends payable 140,000 Premium on Bond Payable 48,000
    Taxes payable 228,000 Total Non- current Liabilities P 648,000
    Accounts payable 248,000
    Total Current Liabilities P 866,000

    8. C.

    Current Liabilities P 2,000,000


    Accounts Payable 300,000
    Bonds Payable 500,000
    Discounts on Bonds Payable 60,000
    Fall option 210,000
    Bond Issue Costs 20,000
    Current Liabilities P3,090,000

    9. D.

    Ordinary Shares, no par P600,000


    Preference Share 150,000
    Preference Shares-Subscribe 180,000
    Gain on sale 200,000
    Accumulated profits and losses 250,000
    Revaluation reserve 80,000
    Total Shareholder’s equity P1,460,000

    10. A.

    Cash P525,000
    Less : PDC Check 10,000
    Vouchers Paid out for 25,000
    collections
    IOUs Signed by employees 15,000
    Total Cash P 375,000

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