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Congratulations to our reviewees from URS Binangonan for making their dreams come true! This is a success not just for you but for your family as well.

To some that did not make it, still a good job for doing your best. Your efforts are improvements for you and would last a lifetime!

Shocking 14.32% passing rate! Congratulations to all CPA Passers especially to RRC Reviewees! Job Well done guys!

To the 85.68%, do not lose hope. God has a better plan for you. In His perfect time, you will claim it. Continue the fight and never lose hope!

Announcement:

Classes start on June 15, 2019 ☑😊 So what are you waiting for, come and join us "Let your dreams become reality".

“Every time you stay out late; every time you sleep in; every time you miss a workout; every time you don’t give 100% – You make it that much easier for me to beat you.”

Hi guys, here are the answers on the RFBT quizzer posted last May 23.

1. B
2. A
3. A
4. A
5. D

Subject: RFBT

Comment your answer below.

Question #1
Which of the following indorsements may make a negotiable instrument non-negotiable?
a. Facultative indorsement
b. Restrictive indorsement
c. Conditional indorsement
d. Qualified indorsement

Question #2
A subscribed to 1,000 shares of stock of X Corporation and paid 25% of the said subscription. Can he vote all his subscribed shares?
a. Yes, because shares although unpaid but not delinquent can be voted.
b. No, because the subscription has not been fully paid.
c. Yes, as regards the paid percentage of the subscription
d. No, because his shares have become delinquent shares

Question #3
One incorporated under the laws of the Philippines
a. Domestic corporation
b. Foreign corporation
c. De facto corporation
d. Close corporation

Question #4
X sold Y 100 sacks of rice that Y was to pick up from Xs rice mill on a particular date. Y did not, however, appear on the agreed date to take delivery of the rice. After one week , X automatically rescinded the sale without notarial notice to Y. Is the rescission valid?

a. Yes, automatic rescission is allowed since, having the character of movables and consumable, rice can easily deteriorate.
b. No, the buyer is entitled to a customary 30-day extension of his obligation to tae delivery of the goods.
c. No, since there was not express agreement regarding automatic rescission.
d. No, the seller should first determine that Y was not justified in.

Question #5
What is the legal remedy available to the injured party in case of absolutely simulated contract?
a. Action for damages for breach of contract
b. Action for reformation of instrument
c. Action for rescission of contract
d. Action for declaration of nullity of contract

To All May 2019 CPA Board Examination Takers, especially to RRC Reviewees, may our Good Lord bless you with wisdom and knowledge to overcome this momentous event in your lives! Stay focused and persevere! The good end is in sight! Fight fight fight!

Subject: MAS

Choose the correct answer. 😊

1. The following characterize management advisory services except

a. Involve decision for the future
b. Broader in scope and varied in nature
c. Utilize more junior staff than senior member of the firm
d. Relate to specific problems expert help is required


2. A Certified Public Accountant’s scope of management services is broad and covers all of the following except:

a. Change management engagement
b. Computerization engagements
c. Audit engagements
d. Re-engineering jobs

3. Which of the following statement is False?

a. CPAs provide management services to go around the ethical constraints as mandated by the accountancy act.
b. Businesses hire management consultants to help define specific problems and develop solutions.
c. Included in the practice of consulting is the provision of confidential service in which the identity of the client is concealed.
d. CPAs performing management services may be considered to be in the practice of management consulting.


4. These statements relate to MAS practice standards:

a. A practitioner is to notify the client of any reservation he has regarding anticipated benefits.
b. Throughout the engagement, there ought to be a systematic critical review of accomplishments and work should be done within the framework of the code of ethics and other professional standards.
c. During the engagement, should there be significant changes between cost and anticipated benefits, the client should be informed.
d. Before the engagements, the practitioner must make arrangements with, and inform the client on significant matters related to the engagement, in writing.


5.Which of the following will not impair the independence of a CPA in the rendition of Management Services?

a. The CPA performs decision-making services for his client.
b. The CPA perform services wherein he is in effect, acting as an employee of the client.
c. The CPA loses his objectivity and acts in a manner as if he is advocating fir the interest of his client.
d. The CPA does not extend his services beyond the presentation of recommendation or giving of advice.

Subject: RFBT

Choose the correct answer. Goodluck !😊

Question #1
What is the required vote for the removal of the director or officer of a cooperative?
a At least 3/4 of all the members with voting rights
b. At least 2/3 of all the members with voting rights
c. At least majority of all the members with voting rights
d. At least 25% of all members with voting rights

Question #2
What is the status of an agreement or stipulation that a hotel is not liable for the loss of guests belongings?
a. always void
b. valid if posted
c. valid if written
d. voidable if orally entered into

Question #3
Which of the following corporations is not allowed to be incorporated as a close corporation?
a. stock exchange
b. restaurant business
c. business process outsourcing
d. manpower agency

Question #4
Subscriber Jane has a total 1,000 delinquent shares at P10 par value, to be sold at public auction sale. Total amount recoverable includes total amount of the delinquent shares P10,000 and total expenses of the sale P5,000. Who will be declared the highest bidder among the following bidders in the public sale
a. James, who is willing to pay the P15,000 at 970 shares
b. Jordan, who is willing to pay the P15,000 at 950 shares
c. Janice, who is willing to pay the P15,000 at 920 shares
d. Jabal, who is willing to pay the P15,000 at 900 shares

Question #5
A sold Bs car in the name of B without authority to C. The sale is:
a. Rescissible
b. Voidable
c. Unenforceable
d. Void

FYI

Subject: Taxation

Hi guys, here are the solutions for the problem posted yesterday.

Subject: Taxation

Goodluck! 😊

A non-resident alien died. The following data were made available by the administrator of the estate:

Real Property, Philippines P3,000,000
Land and Building, USA 5,000,000
Car, Philippines 800,000

Shares of stock in Philippine Corporation, certificates are kept in a foreign bank 500,000

Cash dividend on shares of stock in Philippine Corporation that accrued before death 50,000

Shares of stock in a foreign corporation 100,000
Shares of stock in a foreign corporation (85% of its business in the Philippines) 200,000

Savings bank deposit, Philippines 150,000

1. How much is the Philippine gross estate?

2. How much is the Philippine gross estate assuming the country where the non-resident alien is a citizen allows exemption to non-resident aliens including Filipinos?

Room assignments are out! Good luck takers. 😊

CPA Room Assignment – Certified Public Accountant Board Exam May 2019 MANILA, Philippines - The room assignments for Certified Public Accountant (CPA) board exam May 2019 are released by the Professional Regu...

Hi guys, here is the solution for Auditing Problem.

Subject: Financial Accounting and Reporting

Comment your answer below.

1. International Financial Reporting Standards are applicable to the following entities:
a. not-for-profit entities;
b. government activities
c. government business enterprises
d. public sector non-profit organizations

2. The standards of the International Auditing and Assurance Standards Board include international standards on:
I. Quality control.
II. Auditing.
III. Review Engagements.
IV.Assurance Engagements.
a. I, II and III only; c. II, II, III and IV.
b. I, III and IV only; d. II, II and IV only;

3. Information about the sources and uses of an enterprise’s cash and cash equivalents is provided in the:
a. income statement; c. statement of changes in equity;
b. cash flow statement; d. balance sheet.

4. The IASB Framework outlines two underlying assumptions of financial statements. These are:
Assumption 1 Assumption 2
a. Accrual basis of accounting Going concern assumption;
b. Cash basis of accounting Insolvency assumption;
c. Historical cost accounting Limited life concept;
d. Fair value basis of measurement Perpetual life concept.

5. If financial information that is presented in a balance sheet or income statement is misstated, and it influences the economic decisions of users, that information is described as:
a. reliable; c. Material
b. prudent; d. faithful.

Subject: Auditing

Comment your answer below. Solution will be posted later.

Nutella Company asks you to review its December 31, 2019 inventory values and prepare the necessary adjustments to the books. The following information is given to you.
a. Nutella uses the periodic method of recording inventory. A physical count reveals P2,348,900 inventory on hand at December 31, 2019.

b. Not included in the physical count of inventory is P134,200 of merchandise purchased on December 15 from Gardenia. This merchandise was shipped F.O.B shipping point on December 29 and arrived in January. The invoice arrived and was recorded on December 31.

c. Included in inventory is merchandise sold to Peanut on December 30, F.O.B destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for P128,000 on December 31. The merchandise cost P73,500 and Peanut received it on January 3.

d. Included in inventory was merchandise received from Cheese on December 31 with an invoice price of P156,300. The merchandise was shipped FOB. destination. The invoice, which has not yet arrived, has not been recorded.

e. Not included in inventory is P85,400 of merchandise purchased from Hershey Inc. The merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30.

f. Included in inventory was P104,380 of inventory held by Nutella on consignment from Mayo Inc.

g. Included in inventory is merchandise sold to Tinapay FOB shipping point. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale for P189,000 on December 31. The cost of this merchandise was P105,200 and Tinapay received the merchandise on January 5.

h. Excluded from inventory was carton labeled, “Please accept for credit.” This carton contains merchandise costing P15,000 which had been sold to a customer for P25,000. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged.

Determine the adjusted balance of Inventory.

Here is the answer key for the last week Quizzer. Hope your answer is correct! 😉🙂
Auditing: 1.B 2.A 3.B 4.C 5.C
FAR: 1.D 2.A 3.D 4.B 5.A
Tax: 1.D 2.D 3.D 4.C 5.A
RFBT: 1.B 2.D 3.A 4.B 5.B
AFAR: 1.C 2.C 3.A 4.A 5.B
MAS: 1.C 2.D 3.C 4.D 5.B
5.Solution:
Materials and labor [(P200,000+P100,000)/100,000] x 110,000 = 330,000
Overhead (P100,000/100,000) x 110,000 = 110,000
Selling and adm. expenses (P50,000/100,000) x 110,000 = 55,000
Fixed cost (P100,000 + P100,000) = 200,000
Total 695,000

Subject: Advanced Financial Accounting and Reporting.

Comment your answer below. Goodluck!

1. Which of the following is not a characteristic of the proprietary theory that influences accounting for partnership?
A. Partner's salaries are viewed as a distribution of income rather than a component of net incme.
B. A partnership is not viewed as separate entity, distinct, taxable3 entity.
C. A partnership is characterized by limited liability.
D. Changes in the ownership structure of a partnership result in the dissolution of the partnership.

2. An advantage of the partnership as a form of business organization would be
A. Partners do not pay income taxes on their share in partnership income.
B. A partnership is bound by the act of the partners.
C. A partnership is created by the mere agreements of the partners.
D. A partnership may be terminated by the death or withdrawal of a partner.

3. When property other than cash is invested in a partnership, at what amount should the noncash property be credited to the contributing partner's capital account?
A. Fair value at the date of contribution.
B. Contributing partner's original cost.
C. Assessed valuation for property tax purposes.
D. Contributing partner's tax basis.

4. Partnership capital and drawings accounts are similar to the corporate:
A. Paid in capital, retained earnings, and dividends accounts
B. Retained earnings account
C. Paid in capital and retained earnings accounts
D. Preferred and common stock accounts

5. The Flat and Iron Partnership agreement provides for Flat to receive a 20% bonus on profits before bonus. Remaining profits and losses are divided between Flat and Iron in the ratio of 2:3, respectively. Which partner has a greater advantage when the partnership has a profit or when it has a loss?
Profit Loss
A. Flat Iron
B. Flat Flat
C. Iron Flat
D. Iron Iron

Subject: RFBT

Comment your answers below.

1. A,B,C and D owe X,Y and Z the sum of P12,000. Based on the foregoing data, which of the following statements is incorrect?
a. The obligation is Joint
b. There are 7 distinct debts
c. Each debtor is Liable only for a total P 3,000.
d. Each creditor is entitled to collect a maximum of P4,000.

2. One of the following obligations is not immediately demandable
a. pure obligation
b. Obligation with a resolutory condition
c. Obligation with an in diem period
d. Obligation with an ex die period

3. An Aleatory contract is one:
a. the fulfillment of which depends upon chance
b. the parties of which are obliged to perform reciprocal prestations.
c. where only one party actually and physically enters into the contract.
d. where delivery of the object is required to be made for its perfection.

4.A contract of pledge is perfected upon the:
a. meeting of the minds
b. delivery of the object of the contract.
c. acknowledgement by the parties of the instrument
d. evidencing the contract before a notary public

5. The right of pre-emption differs from the right of redemption in the in pre-emption:
a. the action is directed against the buyer
b. the action is directed against the seller
c. the right arises after the sale
d. there can be a rescission of the original sale.

Subject: Management Advisory Services

Comment your answer below.

1. The primary purpose of management advisory services is to
a) Conduct special studies, preparation of recommendation, development of plans and programs, and provision of advice and assistance in their implementation.
b) Provide services or to fulfill some social need.
c) Improve the client’s use of its capabilities and resources to achieve the objective of the organization.
d) Earn the best rate of return on resources entrusted to its care with safety investment being taken into account and consistent with the firm’s social and legal responsibilities.

2. Which of the following is not classified as a management advisory service by CPA?
a) System design
b) Project feasibility study
c) Make or buy analysis
d) Assistance in budget preparation

3. The following are characteristic of financial accounting, except?
a) Reporting of historical information
b) Compliance to generally accepted accounting principles
c) Contribution approach income statement
d) External users of financial report

4. Design and redesigning are activities that are classified as
a) Facility level
b) Batch level
c) Unit level
d) Product Level

5.A company has the following cost components for 100,000 units of product for the year:
Materials P200,000
Labor 100,000
Manufacturing overhead 200,000
Selling and administrative expenses 150,000
All costs are variable except for P100,000 of manufacturing overhead and P100,000 ofselling and administrative expenses. T
he total costs to produce and sell 110,000 units forthe year are:a. P540,000 c. P715,000b. P695,000 d. P650,00
a) P540,000 b) P715,000
b) P695,000 c) 650,000

Subject: Taxation

Comment below your correct answer. 😊😊😊

1. The share of a partner in the profits of a general professional partnership is regarded as received by him and thus taxable although not yet distributed. This principle is known as
a. Advance reporting of income
b. Actual receipt of income
c. Accrual method of income
d. Constructive receipt of income

2. Situs of taxation literally means place of taxation. Which of the following is wrong?
a. Poll tax may properly be levied upon persons who are inhabitants or residents of the state, whether citizens or not.
b. Real estate is subject to taxation in the state in which it is located, whether the owner is a resident or non-resident.
c. Tangible personal property is taxable where it has actual situs, or where it is physically located, even if the owner resides in another jurisdiction.
d. Intangible personal property is taxable where the property is located.

3. If a corporation to which the stockholder is indebted forgives the debt, the transaction has the effect of a payment of what kind of dividend?
a. Stock dividends
b. Cash dividends
c. Liquidating dividends
d. Indirect dividend

4. Which of the following items are not taxable?
a. Income from jueteng
b. Gains arising from expropriation of property
c. Income taxes paid and subsequently refunded
d. Gains on the sale of a car used for personal purposes

5. Yves, a Chinese billionaire and a Canadian resident, died and left assets in China valued at P80 billion and in the Philippines, assets valued at P20 billion. For Philippine estate tax purposes, the allowable deductions for expenses, losses, indebtedness, and taxes, property previously taxed, transfers for public use, and the share of his surviving spouse in their conjugal partnership amounted to P15 billion. Yves’ gross estate for is?
a. P20 billion
b. P5 billion
c. P100 billion
d. P85 billion

Subject: Financial Accounting & Reporting

Comment below your correct answer. Goodluck! 😊📝

1. The name that is now used for standards issued by the International Accounting Standards Board is:
a. International Accounting Standards (IAS);
b. International Generally Accepted Accounting Principles (IGAAP);
c. International Financial Accounting Interpretations (IFAI)
d. International Financial Reporting Standards (IFRS).

2. The responsibilities of the International Financial Reporting Interpretations Committee include:
I. Report to the IASB and obtain its approval for final interpretations.
II. Interpret the application of IFRS.
III. Provide timely guidance on financial reporting issues not addressed in IFRS or IAS.
IV. Publish draft interpretations for public comment.
V. Consider comments made on interpretations before finalising an interpretation.
a. I, II, III, IV and V;
b. I, II and III only;
c. II, III, and IV only;
d. III, IV and V only.

3. A document that contains disclosures including financial statements, that is issued to potential investors, by companies seeking capital, is known as a:
a. securities statement; c. trust deed;
b. company constitution; d. prospectus.

4. Under IFRS 2 Share-based Payment, the method that must be used to measure employee stock options and other payments given to employees in the form of equity securities, is:
a. initial cost; c. discounted cash flows;
b. fair value; d. selling price.

5. A company is regarded as a first-time adopter of International Financial Reporting Standards if, for the first time, it makes an explicit and unreserved statement that:
a. its general purpose financial statements comply with IFRS;
b. it has prepared its financial statements using national GAAP;
c. it has selected accounting policies that are based on IFRS in force prior to 31 December 2005;
d. it will prospectively adjust its comparative financial statements by applying IFRS in force at 1 January 2006.

Hi guys, here is our first quiz for the week. Please leave your answers in the comment section and share the post after you are done. Top 3 persons who will get the highest score at the end of the week will receive a prize. Good luck everyone!

1. The measure of the quality of audit evidence and its relevance to a particular assertion and its reliability.
a. Sufficiency
b. Appropriateness
c. Significance
d. Assurance

2. It serves as a set of instructions to assistants involved in the audit and as a means to control the proper ex*****on of the work.
a. Audit program
b. Overall audit plan
c. Engagement letter
d. Internal control questionnaire

3. A type of audit the purpose of which is to determine whether the auditee is following specific procedures or rules set down by some higher authority
a. Operational audit.
b. Compliance audit.
c. Financial audit.
d. Management audit.

4. A technique for regularly and systematically appraising a unit of function and its effectiveness against corporate and industry standards with the objective of assuring management that its aims are being carried out and/or identifying conditions capable of being improved
a. Financial auditing.
b. Compliance tests.
c. Operations auditing.
d. Management auditing.

5. A detailed examination of the utilization of the resources of the company, including the organization structure to carry out objectives, to indicate areas of increased efficiency and possible cost reduction is
a. Internal audit.
b. Audit of assets.
c. Management audit.
d. Financial audit.