MAS
It is the level at which total revenue equals total costs, resulting in neither profit nor loss.
Break-even / Break-even sales/ Break-even point
The obligation to compensate another person for taking over the management of an abandoned business arises from this source of obligation:
Quasi-Contract
It is a charge imposed under the police power for the purposes of regulation
Permit or License Fee
The original cost of an inventory item is above the replacement cost. The inventory item’s replacement cost is above the net realizable value. Under the lower of cost or market method, the inventory item should be valued at ____
Net Realizable Value
What accounting standard is most applicable to a sale of a building unit of a realty company that is within the ordinary course of business of the entity where its value is reduced by a storm?
IFRS 15 / International Financial Reporting Standard 15 / PFRS 15 / Revenue from Contracts with Customers
This type of cost refers the total amount a company incurs to transform raw materials into finished goods.
Hint: Direct labor + Manufacturing overhead
Conversion Cost
It refers to the deprivation of the vendee of the whole or a part of the thing sold by virtue of a final judgment based on a right prior to the sale or an act imputable to the vendor.
Eviction
The constitutional limitation declaring churches, parsonages, mosques exempt from taxation applies only to what kind of tax.
Real Estate Tax
This is a transaction whereby the original shares are called in for cancellation and replaced by a larger number accompanied by a reduction in the par value or stated value.
Share Split / Split Up
It is a special type of credit arrangement which provides for a series of payments over a period of months or years.
Installment Sales/ Installment Sales Contract
A firm estimates that it will sell 100,000 units of its sole product in the coming period. It projects the sales price per unit at P40 per unit, the Contribution Margin ratio at 60 percent, and profit at P500,000. What is the firm budgeting for fixed costs in the coming period?
P1,900,000
It refers to a type of transaction that shall be reported by a covered person to the Anti-Money Laundering Council because the transaction breaches the quantitative threshold
Covered Transaction
A domestic corporation sold its investment in shares through the local stock exchange. Total par value of the shares of stocks is P1,500,000. How much is the documentary stamp tax (DST) due on the transfer of shares?
0
On January 1, 2023, an entity paid in total a premium on a three - insurance policy expiring on December 31, 2025. The entity has a six-month operating cycle. On December 31, 2023, the prepaid insurance, to be reported as a current asset, would be for how many months.
12 / Twelve
Ina and Isa form a new partnership. Ina invests P300,000 in cash for her 60% interest in the capital and profits of the business. Isa contributes land that has an original cost of P40,000 and a fair market value of P70,000 and a building that has a tax basis of P50,000 and a fair market value of P90,000. The building is subject to a P40,000 mortgage that the partnership will assume. What amount of cash should Isa contribute?
P80,000.00
Assuming a current ratio of 3.5 and a quick ratio of 1.4, determine the amount of inventory of a company whose current liabilities are P120,000 and long-term liabilities P480,000.
P252,000
This Board Committee of a publicly-listed company is tasked to oversee the periodic performance evaluation of the Board and its Committees as well as executive management and conducts an annual self-evaluation of its performance.
Corporate Governance Committee
Any person retiring from a business subject to percentage tax shall notify the nearest internal revenue officer, file his return and pay the tax due thereon within how many days after closing the business
20 days
PAS 34 is an accounting standard that provides guidelines for preparing _____________
Interim Financial Reports
Partners A and B share profits and losses equally for the remainder and have the provision for annual salary allowances of P750,000 and P600,000, respectively.
Under this agreement, what is the total net income of the partnership in order for B to receive P850,000 as his share?
P1,850,000
Ian uses an economic order quantity model and has determined an optimal order size of 600 units. Annual demand is 18,000 units, ordering costs are P15 per order, and holding costs are P1.50 per unit. Ian’s annual ordering and holding costs total:
P900
This is when a device appropriates a prior invention by incorporating its innovative concept, and although with some modification and change, performs in substantially the same way to achieve the same result.
Equivalent Infringement/Doctrine of Equivalent Infringement
BBLAN Inc. was issued its certificate of incorporation on December 28, 2020. Noting that on the same day, the said corporation has been registered with the Bureau of Internal Revenue and issued its Tax Identification Number (TIN). On January 5, 2021, it had its first ever commercial transaction. It shall be required to compute and pay Minimum Corporate Income Tax (MCIT), if higher than normal tax, beginning the taxable year ____
2024
This is a tendency to place more weight on information that corroborates an existing belief than information that contradicts or casts doubt on that belief.
Confirmation Bias
A home office ships inventory to its branch at a mark-up of 125% based on cost. The required balance of the unrealized intercompany account is P1,140,000. During the year, the home office sent merchandise to the branch costing P7,200,000. At the start of the year, the branch’s books showed P1,440,000 of inventory coming from the home office.
The unrealized intercompany account must be decreased by _______
P8,660,000