Pre Qualifying Exam

7/25/2019 Pre Qualifying Exam

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Name: Score:

Section:

SUMMER TUTORIAL FOR INCOMING 3RDYEAR BS ACCOUNTANCY

PRE-QUALIFYING EXAMINATION

1. The following are characteristics of a partnership, except;

a. Separate Legal personalityb. Mutual gencyc. !ase of formation". #ight of succession

$. %hich of the following statement is incorrect&a. 'artnership cre"itors are preferre" as to partnership assets.b. 'artnership cre"itors are preferre" as to each partner(s separate assets.c. partner(s separate cre"itors are preferre" as to the partner(s separate assets.". partner(s separate cre"itors may attach a partner(s share in the partnership

assets.

). The change in the relation of the partners cause" by any ceasing to be associate"

in the carrying on the business is *nown as:a. Termination of the partnershipb. %in"ing up of partnership a+airsc. Liui"ation of the partnership business". -issolution of the partnership

. %hat is the or"er of payment of liabilities of a "issol/e" general partnership using

the co"e number representing each liability&

0. Those owing to partners other than for capital or for prots.00. Those owing to cre"itor(s other than partners.000. Those owing to partners in respect of prots.02. Those owing to partners in respect of capital.

a. 0,00,000,02b. 00,0,02,000c. 00,0,000,02". 0,00,02,000

3. 4n 5ebruary $3, $617 8ef an" -om forme" a partnership. 8ef contribute" cash.

-om, pre/iously a sole proprietor, contribute" property other than cash, inclu"ing

realty sub9ect to a mortgage, which the partnership assume". -om(s capitalaccount of 5ebruary $3, $617 shoul" be recor"e" at:a. -om(s boo* /alue of the property at 5ebruary $3, $617.b. -om(s boo* /alue of the property less mortgage payable at 5ebruary $3, $617.c. The fair /alue of the property less mortgage payable at 5ebruary $3, $617.". The fair /alue of the property at 5ebruary $3, $617.

7. 0f the partnership agreement pro/i"es for the "i/ision of loss only. 'rot shoul" be

"i/i"e":a. !ually


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b. ccor"ing to beginning capitalc. ccor"ing to en"ing capital ratio". ccor"ing to a/erage ratio

. 0f, A is the total capital of the partnership before the a"mission of a new partner, B

is the total capital of the partnership after the in/estment of a new partner, C is

the amount of the new partner(s in/estment, an" Dis the amount of capital cre"it

to the new partner, then there is:a. bonus to the new partner if < => an" - ? >.b. @oo"will to the ol" partners if A B=>C an" -c. Neither bonus nor goo"will if < = > an" - A >.". @oo"will to the new partner if A B =>C an" - ? >

D. 0n the liui"ation of a partnership, a loan payable to a partner:a. May o+set against that partners( capital account balance before liui"ation

commences.b. %ill not a"/ance the time of payment to that partner "uring the liui"ation.c. Eas the same priority as amounts payable to outsi"e cre"itors of the

partnership.". Must be close" to that partners( "rawing account.

F. 0n calculating safe payments, you assume:a. 'artnership liabilities ha/e been pai".b. No liui"ation expense will be pai".c. ll nonGcash assets are worthless.". >ash on han" can be fully "istribute".

16. -uring liui"ation, a partners( capital account "rops below Hero. %hat shoul"

happen&

a. The other partners shoul" le a legal suit against the partner with the "ecitbalance.

b. The partner with the highest capital balance shoul" contribute suIcient assets

to eliminate the "ecit.c. The "ecit balance balance shoul" be remo/e" from the accounting recor"s

with only the remaining partners sharing in the future gains an" losses.". The partner with a "ecit shoul" contribute enough assets to o+set the "ecit

balance.

11. corporation(s articles of incorporation establish the total number of shares

that may be issue". %hat is the term applie" to these shares&a. 4utstan"ing Shareb. 0ssue" sharesc. >ommon Shares". uthoriHe" Shares

1$. %hat are shares that carry /oting rights calle"&a. 'referre" Sharesb. 2oting Sharesc. >ommon Shares


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". >ontribute" >apital

1). The #etaine" !arnings account has a "ebit balance of ),666 at the beginning

of $616. -uring $616 net income totale" 1$,666 an" "i/i"en"s of D,666 were pai".

-uring $611, no "i/i"en"s were pai" an" an economic slow"own cause" the

business to lose $3,666. %hat was the balance of the retaine" !arnings account at

the en" of $611&

a. 1D,666b. 1D,666 "ecitc. $,666". $,666 "ecit

1. The following may be the consi"eration of the share of stoc* of a corporation

except:a. ctual cash pai" to the corporationb. 're/iously incurre" in"ebte"ness of the corporationc. mounts transferre" from unrestricte" retaine" earnings". Ser/ice to be performe" by a lawyer on the propose" increase in capital stoc* of

the corporation.

13. Their names are mentione" in the articles of incorporation as originally

forming the corporation an" are signatories thereof.a. >orporatorsb. Stoc*hol"ersc. 0ncorporators". Members

17. Stoc* "i/i"en"s "i+er from cash "i/i"en"s in that stoc* "i/i"en".a. -o not increase the legal capitalb. 0n/ol/es "isbursement of corporate fun"sc. #euire appro/al of both the boar" of "irectors an" the stoc*hol"ers.". 4nce recei/e" by the stoc*hol"ers, are beyon" the reach of corporate cre"itors.

1. %hen a treasury share is reissue" abo/e its cost, any excess abo/e cost is

cre"ite" in what account&a. Share 'remium J 4r"inary Sharesb. #etaine" !arningsc. @ain on share issuance". Share 'remium J Treasury Shares

1D. %hen a treasury share is reissue" below its cost, any "eciency is "ebite" to

what account&a. Loss on share issuanceb. #etaine" !arningsc. Share 'remium J 4r"inary share". 4r"inary Share >apital

1F. 0n the absence of any contrary statement, the preference share is:


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a. >umulati/e an" Non J 'articipatingb. Non J >umulati/e an" 'articipatingc. Non J>umulati/e an" Non J 'articipating". >umulati/e an" 'articipating

$6. -uring retirement of Treasury share, any excess of cost o/er par /alue is

"ebite" in the following or"er;0. Share 'remium J Treasury Shares

00. Share 'remium J 4r"inary Shares000. #etaine" !arnings02. Loss on retirement of Treasury Sharesa. 02,00,0,000b. 0,00,02,000c. 00,0,000". 00,0,02,000

PROBLEM

1. s part of the initial in/estment, a partner contributes oIce euipment that has

cost $6,666 an on which accumulate" "epreciation of 1$,366 ha" been recor"e". 0f

the partners agree on a /aluation of F,666 for the euipment. %hat amount shoul"

be "ebite" to the oIce euipment account&a. ,366b. F,666c. 1$,366". $6,666

$. >hip an" -ale agree to form a partnership. >hip is to contribute 36,666 in asset

an" to "e/ote oneGhalf time to the partnership. -ale is to contribute $6,666 an" to

"e/ote full time to the partnership. Eow will >hip an" -ale share in the "i/ision ofnet income or net loss&a. 3:$b. 1:$c. 1:1". $:3:1

). Tracy an" Eepburn in/est 166,666 an" 36,666 respecti/ely in a partnership an"

agree to a "i/ision of net income that pro/i"es for an allowance of interest at 16K

on original in/estment, salary allowances of 1$,666 an" $,666 respecti/ely, with

the remain"er "i/i"e" eually. %hat woul" be Tracey(s share of a net income of

3,666&a. $$,366b. $$,666c. 1F,666". 16,666


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. Lee an" Stills are partner who share income in the ratio of $:1 an" who ha/e

capital balance of 73,666 an" )3,666 respecti/ely. 0f Morr, with the consent of

Stills, acuire" oneGhalf of Lee(s interest for 6,666, for what amount Morr(s >apital

account be cre"ite".a. )$,366b. 6,666c. 36,666

". $,366

3. >, a"mits - as a partner in the business. ccounts in the le"ger for > on No/ember

)6, $613, 9ust before the a"mission of -, show the following balances:

>ash ' 7,D66ccounts #ecei/able 1,$66Merchan"ise in/entory $6,666ccounts payable D,666>, >apital )),6660t is agree" that for the purpose of establishing > interest, the following a"9ustment

shall be ma"e:BaCn allowance for "oubtful accounts of )K of accounts recei/able is to be

establishe".BbCThe Merchan"ise in/entory is to be /alue" of $),666BcC'repai" salary expense of 766 an" accrue" rent expense of D66 are to be

recogniHe".

- is to in/est suIcient cash to obtain 1) interest in the partnership.

>ompute for: B1C > a"9uste" capital before the a"mission of -: an" B$C the amount

of cash in/estment by -:

a. B1C )3,) B$C 11,F1b. B1C )7,) B$C 1D, Dc. B1C )3,) B$C 1, 7D". B1C $D,1 B$C 1, 6D

7. The partnership agreement of , O P pro/i"es for the yearGen" allocation of net

income in the following or"er:G 5irst, is to recei/e 16K of net income up to $66,666 an" $6K o/er $66,666.G Secon", an" P each are to recei/e 3K of the remaining income o/er )66,666G The balance of income is to be allocate" eually among the three partners.

The partnership(s $611 net income was 366,666 before any allocations to

partners. %hat amount shoul" be allocate" to &a. $6$,666b. $17,666c. $67,666". $$6,666


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. E, #, T an" * own a publishing company that they operate as a partnership. The

partnership agreement inclu"es the following:G E recei/es a salary of $6,666 an" a bonus of )K of income after all bonuses.G # recei/es a salary of 16,666 an" a bonus of $K of income after all bonuses.G ll partners are to recei/e 16K interest on their a/erage capital balances.

The a/erage capital balances are as follows:E 36,666# 3,666

T $6,666Q ,666

ny remaining prot an" loss are to be "i/i"e" eually among the partners.-etermine how a prot of 163,666 woul" be allocate" among the partners.a. E 1,36; # $F,F36; T 13,36; Q 1D,136b. E $F,F36; # 1,36; 13,36; Q 1D,136c. E 1,36; # $F,F36; T 13,36; Q 1D,136". >annot be "etermine".

D. M, N O 4 partners, share prot on a 3:):$ ratios. 4n 8anuary 1, $617, ' a"mitte"

into the partnership with a 16K share in prots. The ol" partners continue to

participate in prot in their original ratio.5or the year $617, the net income of the partnership was reporte" as 1$,366.

Eowe/er, it was "isco/ere" that the following items were omitte" in the rm(s

boo*s:Rnrecor"e" at yearGen" $613 $617'repai" !xpenses D66ccrue" expenses 766Rnearne" income 66ccrue" income 366

B1CThe new prot an" loss ratio for N, an" B$C the share of partner 4 in the $617net income:

a. B1C )6K; B$C $,$1b. B1C $K; B$C $,$1c. B1C $K; B$C $,$D7". B1C )6K; B$C $,$D7

F. # an" forme" a partnership an" agree" to "i/i"e initial capital eually, e/en

though # contribute" $3,666 an" contribute" $1,666 in i"entiable asset. Rn"er

the bonus approach to a"9ust the capital accounts. uni"entiable assets shoul"

be "ebite" for:a. 11,366b. ,666c. $,666". 6

16. ', # O S were partners with capital balances as of 8anuary 1, $613 of,

$6,666; )6,666; an" 6,666 respecti/ely, sharing prot an" loss on 3:):$ ratio.4n 8uly 1, $613 ' with"raw from the partnership. 'artners agree" that at the time

of with"rawal, certain in/entories ha" to be re/alue" at 1,666 from its cost of


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16,666. 5or the six months perio" en"ing 8une )6, $613, the partnership generate"

a net income of $D,666, further, partners agree" to pay ', )F,666 for his interest

an" that the remaining partners( capital accounts, woul" be a"9uste" for whate/er

goo"will the settlement woul" generate. The payment of ' inclu"e" a goo"will of:a. ),666b. 3,666c. 16,666

". D,366

11. The assets an" euities of the ueen, #ee" an" Stac partnership at the en"

of its scal year in 4ctober )1, $613 are as follows:

SS!TS L00L0T0!S an" !R0T

>ash 13,666 Liabilities 36,666

#ecei/ableG net $6,666 Loan from Stac 16,6660n/entory 6,666 ueen, >apitalG )6K

3,666'lant asset J Net 6,666 #ee", >apitalG 36K

)6,666Loan to #ee" 3,666 Stac, >apital J $6K

13,666T4TL SS!TS 136,666 T4TL L0 O !R0T

136,666

The partners "eci"e to liui"ate the partnership. They estimate that the non cash assets,

other than the loan to #ee", can be con/erte" into 166,666 cash o/er the two months

perio" en"ing -ecember )1, $613. >ash is to be "istribute" to the appropriate parties as

it becomes a/ailable "uring the liui"ation process.

The partner most /ulnerable to partnership losses on liui"ation is:

a. ueenb. #ee"c. #ee" an" ueen eually". Stac

1$. Rsing the information abo/e, if 73,666 is a/ailable for rst "istribution, it

shoul" be pai" to:

'riority >re"itors ueen #ee" Staca. 76,666 3,666 6 6b. 76,666 1,366 $,366 1,666c. 36,666 3,666 6 16,666". 36,666 1$,666 6 ),666


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1). The partnership of , an" > was "issol/e" on 8une )6, $613 an" account

balances after nonGcash assets were con/erte" into cash on September 1, $613

are:

SS!TS L00L0T0!S an" !R0T>ash 36,666 ccounts payable 1$6,666

, >apital J )6K F6,666, >apital J )6K B76,666C>, >apital J 6K B166,666C

'ersonal assets an" liabilities of the partners at September 1, $613 are:'ersonal sset 'ersonal Liabilities

D6,666 F6,666 166,666 71,666> 1F$,666 D6,666

0f > contributes 6,666 to the partnership to pro/i"e cash to pay the cre"itors,

what amount of F6,666 partnership euity woul" appear to be reco/erable&

a. F6,666b. D1,666c. F,666". None

1. fter all partnership assets were con/erte" into cash an" all a/ailable cash

was "istribute" to cre"itors, the le"ger of -, 4 an" M partnership showe" the

following balances:

-ebit >re"it

ccounts payable $6,666-, >apital B6KC 16,6664, >apital B)6KC 76,666M, >apital B)6KC F6,666

F6,666 F6,666

'ersonal assets an" liabilities of the partners are as follows: - 4 M

'ersonal assets 36,666 36,666 166,666'ersonal liabilities 3,666 6,666 6,666

The partnership cre"itors procee" against M for reco/ery of their claims, an" thatpartners settle their claims against each other. Eow much woul" 4 recei/e&a. 6b. 3,666c. ,1)". 76,666


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13. #oy an" @il are partners sharing prots an" losses in the ratio 1:$,respecti/ely. 4n 8uly 1, $613, they "eci"e" to form the #O@ >orporation bytransferring the asset an" liabilities from the partnership to the >orporation inexchange of its shares. The following is the postGclosing trial balance of thepartnership.

-ebit >re"it>ash 3,666

ccounts #ecei/able J Net 76,6660n/entory F6,6665ixe" asset J net 1,666Liabilities 76,666#oy, >apital F,D66@il, >apital $1,$66T4TL )7F,666 )7F,666

0t was agree" that a"9ustments be ma"e to the following assets to be transferre"to the corporation:

ccounts #ecei/able 6,6660n/entory 7D,6665ixe" ssets 1D6,766

The #O@ >orporation was authoriHe" to issue 166 par preference" shares an" 16par or"inary shares. #oy an" @il to recei/e for their euity in the partnership $6or"inary share each, plus e/en multiples of 16 shares for their remaining interest.

The total number of shares of preference an" or"inary shares issue" by thecorporation in exchange of the assets an" liabilities of the partnership are:

'reference Share 4r"inary Sharesa. $,36 shares 1,366 sharesb. $,3F$ shares 1,6 sharesc. $,7$ shares 1,6 shares". $,7$ shares 1,336 shares

17. %alang 5ore/er >ompany was organiHe" on 8anuary 1, $61) with authoriHe"capital of 166,666 shares of $66 par /alue.8anuary 16 0ssue" $3,666 shares at $$6 a share.March 13 0ssue" 1,666 shares for legal ser/ices when the fair /alue was$6 a share.September )6 0ssue" 3,666 shares for a tract of lan" when the fair /aluewas $76 a share.%hat amount shoul" be reporte" for Share premium&a. D6,666b. D66,666c. 36,666". 366,666


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1. ro*en hearte" >ompany hel" 16,666 shares of 16 par /alue as treasuryreacuire" in $61$ for 1$6,666. 4n -ecember )1, $61) entity reissue" all 16,666shares for 1F6,666. Rn"er the cost metho" of accounting for treasury shares, whatis cre"ite" for the excess of the issue price o/er the cost of treasury shares&a. Share >apital of 166,666b. #etaine" !arnings of 6,666c. @ain on sale of in/estment of 6,666". Share 'remium of 6,666

1D. 4n 8anuary 1, $61), No oyfrien" Since irth >ompany ha" 1$3, 666 shareissue" which inclu"e $3,666 shares hel" as treasury.

8anuary 1 through 4ctober )1 G 1),666 Treasury shares were "istribute" to oIcersas part of a share compensation plan.No/ember 1 J ) for 1 share split too* e+ect.-ecember 1 J The entity purchase" 3,666 of its own shares to "iscourage anunfrien"ly ta*eo/er. These share were not retire"

4n -ecember )1, $61), how many shares were issue" an" outstan"ing,

respecti/ely&a. )3,666 an" )),666b. )3,666 an" )$,666c. )),666 an" )),666". )$,666 an" )$,666

1F. rea* Na Sila >ompany issue" all of the outstan"ing shares for )F6 per sharein $61). 4n 8anuary 1, $61, the entity reacuire" $66,666 shares at )76 pershares an" retire" them. The entity reporte" the following sharehol"ers( euity on-ecember )1, $61):

#etaine" !arnings 3,666,666Share 'remium 17$,666,666Share >apital, )66 par /alue, $,666,666 shares authoriHe",

1,D66,666 shares issue" an" outstan"ing 36,666,666

%hat is the balance of the share premium imme"iately after the retirement of theshares&

a. 137,666,666b. 136,666,666c. 1,666,666". 17D,666,666

$6. itter >ompany was organiHe" on 8anuary 1, $61) at which "ate it issue"166,666 or"inary shares of 16 par /alue at 13 per share. -uring the perio" 8anuary1, $61) through -ecember )1, $61, the entity reporte" net income of 36,666an" pai" cash "i/i"en"s of $)6,666. 4n 8anuary 16, $61, the entity purchase"7,666 treasury shares at 1$ per share. 4n -ecember )1, $61, the entity sol",666 treasury shares at D per share an" retire" the remaining treasury shares.%hat is the total sharehol"ers( euity on -ecember )1, $61&a. 1,$6,666b. 1,6,666


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c. 1,7DD,666". 1,7D6,666

$1. Eopia >ompany pro/i"e" the following information in 8anuary 1, $61):Share >apital, $36,666 shares authoriHe"; 166,666 shares issue" an" outstan"ing

),666,666Share 'remium ,666,666#etaine" !arnings

D,666,666

The entity "eclare" a 16K "i/i"en" on pril 1, $61) when the mar*et /alue of theshare was 6. The stoc* "i/i"en" was issue" on 8uly 1, $61) when the mar*et/alue of the share was 166. The share has a par /alue of )6. The entity sustaine" anet loss of 1,$66,666 for $61). %hat amount shoul" be reporte" as retaine"earnings on -ecember )1, $61)&a. 7,166,666b. 7,366,666c. 7,D66,666". 3,636,666

$$. 4n No/ember 1, $61), 'aasa >ompany "eclare" a property "i/i"en" ofeuipment payable on March 1, $61. The carrying amount of the euipment is),666,666 an" the fair /alue is $,366,666 on No/ember 1, $61).Eowe/er, the fair /alue less cost to "istribute the euipment is $,$66,666 on-ecember )1, $61) an" $,666,666 on March 1, $61.%hat is the "i/i"en" payable on -ecember )1,$61)&a. $,366,666b. $,$66,666c. ),666,666". ll of the choices is incorrect

$). 4n 8anuary 1, $61), Eugotboy >ompany ha" or"inary an" preference sharesoutstan"ing. The incorporators or original sharehol"ers own ten or"inary sharesbut no preference shares. 4n -ecember )1, $61), the entity "eclare" "i/i"en"s onthe or"inary shares. The entity "eci"e" to gi/e the or"inary sharehol"ers a choicebetween recei/ing a cash "i/i"en" of 366,666 per share or a property "i/i"en" inthe form of a noncash asset. The noncash asset is a stan"ar" mo"el from theentity(s car eet. !ach car has a fair /alue of 766,666. The entity estimate" thatD6K of the or"inary sharehol"ers will ta*e the option of cash "i/i"en" an" $6K willelect the noncash asset. %hat is the "i/i"en" payable that shoul" be recogniHe"on -ecember )1, $61)&a. 3,366,666b. 3,$66,666c. ,666,666". 7,666,666

$. 'afall >ompany pro/i"e" the following "ata on -ecember )1, $61):

1$K 'referance share capital, $6,666 shares, 166 par /alue

$,666,666


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1K 'referance share capital, 16,666 shares, )66 par /alue

),666,6664r"inary Share >apital, 36,666 shares, 166 par /alue 3,666,666#etaine" !arnings $,$6,666Share 'remium 1,366,666

1$K preference share is cumulati/e an" participating. The 1K preference share is

noncumulati/e an" participating. -i/i"en"s are in arrears for ) years. %hat is the

boo* /alue per or"inary share&a. 1)$b. 1$7c. 166". 11$

$3. Eeartbrea*er >ompany pro/i"e" the following on -ecember )1, $61):

4r"inary Share capital, $6 par /alue, $66,666 shares ,666,666'reference share >apital, 7K 166 par /alue, cumulati/e

an" fully participating, 16,666 shares outstan"ing1,666,666

'reference "i/i"en"s ha/e been in arrears for $611 an" $61$. 4n -ecember )1,

$61), a cash "i/i"en" of F66,666 was "eclare". %hat is the "i/i"en" payable on

the preference an" or"inary shares, respecti/ely&a. )$,666 an" 37,666b. $$6,666 an" 7$,666c. $7,666 an" 7$,666". 1D6,666 an" $6,666

$7. >hoosy >ompany was organiHe" on 8anuary 1, $61) with the following capitastructure:16K cumulati/e preference share capital, par /alue 16, liui"ation /alue 1$,

authoriHe", issue" an" outstan"ing 166,666 shares, 1,666,666.

4r"inary Share capital, par /alue 166, authoriHe" 6,666 shares issue" an"

outstan"ing )6,666 shares, ),666,666.

The net income for $61) was 7,666,666 an" no "i/i"en"s were "eclare" in $61).

%hat is the boo* /alue per or"inary share&

a. $F6b. $F)c. )66". )))

$. -uring $61), Qiligmuch >ompany ha" the following two classes of share

capital issue" an" outstan"ing for the entire year:4r"inary Share >apital, $66,666 shares, 16 par $,666,666'reference share capital, $,666 shares, 166 par,

1$K con/ertible share for share into or"inary share $66,666


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The net income for $61) was 1,D66,666 an" the income tax rate was )6K.%hat is

the basic earnings per share&a. D.DDb. 7.1Dc. F.6". ll of the answers are incorrect

$DG)6

Eunter Eunter >ompany pro/i"e" the following statement of nancial position on

-ecember )1, $61) an" $61$ an" information relating to $61) acti/ities:

$61) $61$SS!TS>ash 76,666 $66,666Tra"ing securities 766,666 Gccounts recei/able BnetC 1,6$6,666 1,6$6,6660n/entory 1,)76,666 1,$66,666

LongGterm in/estment 66,666 766,666'roperty, plant an" euipment ),66,666 $,666,666ccumulate" "epreciation BF66,666C BF66,666C'atent 1D6,666 $66,666Total assets 7,3$6,666 ,)$6,666

L00L0T0!S an" SE#!E4L-!#S( !R0Tccounts payable an" accrue" liabilities 1,736,666 1,6,666ShortGterm "ebt 736,666 GShare >apital, $6 par 1,766,666 1,66,666Share 'remium 6,666 366,666

#etaine" !arnings 1,DD6,666 FD6,666Total Liabilities an" Sharehol"ers( !uity 7,3$6,666 ,)$6,666

G Net income for $61) was 1,)D6,666G >ash "i/i"en"s of D6,666 were "eclare" an" pai" in $61).G !uipment >osting D66,666 an" ha/ing a carrying amount of )66,666 was sol"

in $61) for )66,666.G long term in/estment was sol" in $61) for $6,666. There were no other

transactions a+ecting long term in/estments in $61).G 16,666 shares were issue" in $61) for a share.G Tra"ing securities were purchase" were purchase" for cash on -ecember )1,

$61).$D. %hat is the net cash pro/i"e" by operating acti/ities&

a. 1,)D6,666b. 1,D)6,666c. 1,$D6,666". 1,F66,666

$F. %hat is the net cash use" in in/esting acti/ities&a. $,$)6,666b. 1,F6,666


14/14

c. 1,)6,666". 1,7)6,666

)6. %hat is the net cash pro/i"e" by nancing acti/ities&a. 716,666b. DD6,666c. F16,666". 1,6F6,666

BONUS QUESTION

)1. 4n -ecember )1,$61), aste" >ompany reporte" the following balances:

Share capital authoriHe", 166 par 3,666,666Share capital unissue" $,666,666Subscribe" share capital 1,666,666Treasury shares, 3,666 shares at cost 766,666Share 'remium 366,666#etaine" earnings 1,366,666

4n -ecember )1, $61), the boar" of "irectors "eclare" an" issue" a "i/i"en" fromthe treasury shares of one share for each ten shares hel". The mar*et /alue of theshare on same "ate is 136. %hat is the "ecrease in retaine" earnings as a result ofthe stoc* "i/i"en"s&

a. D6,666b. 3$3,666c. )36,666". $6,666

P - PrayF - Focus

R Be ResponsibleS Self Discipline

Good Luck Future CPA!!pply '5#S in your stu"ies.You must be prepared to face the orst poss!b"e sce#ar!os because

harsh rea"!t$ str!%es !thout ar#!#&' You must be prepared for the

da$ $our paths d!(er&e')Eunter Eunter !piso"e $

*md+cpa,./

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