C Inc. Investment Analysis Quiz

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Questions and Answers

What is the total point value for the True or False section of the quiz?

15 points

10 points

13 points (correct)

20 points

How much time is allocated for the entire quiz?

93 minutes (correct)

60 minutes

120 minutes

90 minutes

Which of the following statements is true about the usage of calculators during the quiz?

Only basic calculators are allowed.

Any calculator can be used for solving problems. (correct)

No calculators are allowed.

Microsoft Excel can be used for calculations.

What action must be avoided to prevent being detected by the Canvas activity log?

Opening multiple tabs Signup and view all the answers

What happens if a student puts their device in sleep mode during the quiz?

It may be detected as a change of tabs. Signup and view all the answers

Which of the following describes what should be done for computations with present value?

Do not round off present value factors while computing. Signup and view all the answers

What is the consequence of cheating during the quiz as per Section 5.3.1.1 of the SH?

It will lead to a major offense. Signup and view all the answers

How many items are included in the Problem Solving section of the quiz?

16 items Signup and view all the answers

What is the primary purpose of ISSB Standards?

To standardize on a single, global baseline of sustainability disclosures Signup and view all the answers

When is an expense recognized according to accounting principles?

When an expenditure is incurred and provides future economic benefits Signup and view all the answers

How is a petty cash fund primarily used?

To maintain sufficient cash for small operating expenses Signup and view all the answers

What implication does an aging schedule of accounts receivable have?

Longer unpaid periods increase the likelihood of collection Signup and view all the answers

Which classification applies to financial assets that are expected to be collected beyond one year?

Non-current assets Signup and view all the answers

What does the Unrealized Gain or Loss–FVTPL account reflect?

Changes in fair value categorized under investing activities Signup and view all the answers

What does an equity security holding between 20 and 50 percent indicate?

The investor qualifies for majority influence but not control Signup and view all the answers

What happens to the carrying value of an investment when dividends are received under the equity method?

It decreases the investment’s carrying value Signup and view all the answers

What is the purpose of acquiring wealth through regular income such as interests and dividends?

For reinforcing stronger internal control over cash and marketable securities Signup and view all the answers

Which types of investments are reported at fair value?

Both debt and equity investments Signup and view all the answers

What should A Corporation report regarding its investment income from B Incorporated after acquiring shares?

Share in profit from the date of acquisition and dividends received as deductions Signup and view all the answers

How should cash dividends received from equity investments at FVTPL and FVTOCI be accounted for?

As dividend income Signup and view all the answers

Which account should be excluded when reporting cash and cash equivalents on December 31, 2023?

Union Bank – restricted account for factory construction Signup and view all the answers

What is the correct total cash and cash equivalents reported for A Company on December 31, 2023?

P3,230,000 Signup and view all the answers

Which of the following reflects the best classification of a certificate of deposit with a maturity of less than three months?

Cash equivalent Signup and view all the answers

Which statement about the cash dividend received by an investor in equity investment at FVTOCI is true?

It is classified as dividend income Signup and view all the answers

What is the adjusted cash balance after accounting for the items provided in the bank reconciliation?

P75,000 Signup and view all the answers

Which of the following amounts should be included in the non-trade receivables of B, Inc. as of December 31, 2024?

Ordinary share subscription receivable, currently due Signup and view all the answers

Which item would NOT be considered a part of B, Inc.'s total non-trade receivables?

Accounts receivable from customers Signup and view all the answers

What is the total amount of the dishonoured cheque in the bank reconciliation?

P12,000 Signup and view all the answers

How is the note received in settlement of a delinquent customer's account classified?

Notes receivable Signup and view all the answers

Which of the following would NOT affect the adjusted balance in a bank reconciliation?

Total receivables from customers Signup and view all the answers

What would the sum of total non-trade receivables of B, Inc. be at year-end?

P102,100 Signup and view all the answers

Which of the following best describes 'unpresented cheques' in a bank reconciliation?

Cheques issued but not yet cleared by the bank Signup and view all the answers

What is the total trade receivables for B, Inc. at December 31, 2024?

371,500 Signup and view all the answers

What percentage of CeCe Corp.'s ordinary shares did C, Inc. acquire?

30% Signup and view all the answers

What is the total dividend received by C, Inc. from CeCe Corp. in 2024?

P120,000 Signup and view all the answers

What was C's cash gain from selling half of its shares in CeCe Corp.?

P264,000 Signup and view all the answers

What should C, Inc. report as investment revenue for 2023?

P320,000 Signup and view all the answers

After purchasing shares at P50 each, what is the total investment value of C, Inc. in CeCe at year-end 2023?

P16,000,000 Signup and view all the answers

How does C, Inc. treat its investment in CeCe at the end of 2023?

As an investment at fair value through other comprehensive income Signup and view all the answers

What is the total value of shares C, Inc. sold back to CeCe Corp.?