AnimoSpace Support
ACYFAR3_Q3_T2_20242025
Due Feb 11 at 11am
Points 52
Questions 36
Available Feb 11 at 9am - Feb 11 at 11am 2 hours
Time Limit 90 Minutes
This quiz was locked Feb 11 at 11am.
Attempt History
Attempt Time Score
LATEST Attempt 1 90 minutes 17 out of 52
Score for this quiz: 17 out of 52
Submitted Feb 11 at 10:41am
This attempt took 90 minutes.
Question 1
0 / 1 pts
Investment property is property (land or a building—or part of a building— or both) held (by the owner and by the lessee as a right-of-use
asset) to earn rentals or for capital appreciation or both
You Answered
True
Correct Answer
False
Question 2
1 / 1 pts
An extension of the period required to complete a sale does not preclude an asset (or disposal group) from being classified as held for sale
if the delay is caused by events or circumstances beyond the entity’s control and there is sufficientCourse
evidence that the entity remains
Chat
committed to its plan
AnimoSpace to sell the asset (or disposal group).
Support
Correct!
True
False
Question 3
1 / 1 pts
When bearer plants are no longer used to bear produce they might be cut down and sold as scrap, for example, for use as firewood. Such
incidental scrap sales would not prevent the plant from satisfying the definition of a bearer plant
Correct!
True
False
Question 4
1 / 1 pts
If a company plans to retire long-term debt from a bond retirement fund, it should report the debt as current.
True Send
Correct!
False
Question 5
1 / 1 pts
The replacement of an existing bond issue with a new one is called refunding.
Correct!
True
False
Question 6
1 / 1 pts
PeriodicAnimoSpace
interest expense
Support is the stated interest rate times the amount of debt outstanding during the period.
True
Correct!
False
Question 7
1 / 1 pts
The rate of interest that actually is incurred on a bond payable is called the Effective Rate.
Correct!
True
False
Question 8
1 / 1 pts
The cash paid for interest will always be greater than interest expense when using effective-interest amortization for a bond.
True
Correct!
False
Question 9
0 / 1 pts
At any point during the term of the bond, the balance in the bonds payable account should be the carrying value of the bond
Correct Answer
True
You Answered
False
Question 10
AnimoSpace Support
0 / 1 pts
Premium on bonds payable is a contra liability account.
You Answered
True
Correct Answer
False
Question 11
1 / 1 pts
ANIMO Company had a P4.0 Mn note payable due March 15, 2027. On January 15, 2027, before the issuance of its 2026 financial
statements, ANIMO issued long-term bonds in the amount of P4.5 Mn. Proceeds from the bonds were used to repay the note when it
came due. How should Cali classify the note in its December 31, 2026 financial statements?
Correct!
as a current liability with separate disclosure of the note refinancing.
as a non-current liability with no separate disclosure required
as a current liability with no separate disclosure required
as a non-current liability with separate disclosure of the note refinancing
Question 12
0 / 1 pts
Which of the following statements is incorrect concerning acquisition of an intangible asset as part of a business combination?
If there is no active market for the intangible asset, the fair value may be equal to the quoted price of a similar asset.
If there is an active market for the intangible asset, the fair value is equal to the quoted price of an identical asset.
You Answered
The cost of the intangible asset is based on the fair value at the date of acquisition.
Correct Answer
The fair value of an intangible asset acquired in a business combination cannot be measured with sufficient reliability separately from goodwill.
Question 13
AnimoSpace Support
0 / 1 pts
Which of the following items is true about development cost?
Development costs must be expensed
Development cost is recorded as component
Correct Answer
Development cost may be capitalized as an intangible asset in very restrictive situations
You Answered
Development costs is always deferred and expensed against future revenue
Question 14
0 / 1 pts
What is the effective interest rate of a bond or other debt instrument measured at amortized cost?
You Answered
The interest rate currently charged by the entity or by others for similar debt instruments (i.e., similar remaining maturity, cash flow pattern, currency, credit
risk, collateral, and interest basis).
The basic, risk-free interest rate that is derived from observable government bond prices.
The stated coupon rate of the debt instrument.
Correct Answer
The interest rate that exactly discounts estimated future cash payments or receipts through the expected life of the debt instrument or, when appropriate, a
shorter period to the net carrying amount of the instrument.
Question 15
0 / 1 pts
The entry to record the amortization of a premium on bonds payable is
You Answered
No answer text provided.
debit Interest Expense, credit Premium on Bond Payable
AnimoSpace
No answer Support
text provided.
Correct Answer
debit Interest Expense, debit Premium on Bonds Payable, credit Cash
Question 16
1 / 1 pts
Bond issuance costs, including the printing costs and legal fees associated with the issuance, should be
accumulated in a deferred charge account and amortized over the life of the bonds.
expensed in the period when the debt is issued.
Correct!
recorded as a reduction in the carrying value of bonds payable.
reported as an expense in the period the bonds mature or are retired.
Question 17
1 / 1 pts
A corporation issues for cash P8,000,000 of 8%, 30-year bonds, interest payable semiannually. The amount received for the bonds will
be
present value of 30 annual interest payments of P640,000
present value of $8,000,000 to be repaid in 30 years, less present value of 60 semiannual interest payments of P320,000
present value of 30 annual interest payments of P640,000, plus present value of P8,000,000 to be repaid in 30 years
Correct!
present value of 60 semiannual interest payments of P320,000, plus the present value of P8,000,000 to be repaid in 30 years
Question 18
1 / 1 pts
Unamortized bond discount should be reported on the financial statements of the issuer as a
Part of the issue costs
Direct deduction from the present value of the bond
Deferred charge
Correct!AnimoSpace Support
Direct deduction from the face amount of the bond
Question 19
1 / 1 pts
For a bond issue which sells for less than its face amount, the market rate of interest is
Equal to rate stated on the bond.
Correct!
Higher than rate stated on the bond.
Less than rate stated on the bond.
Dependent on the rate stated on the bond.
Question 20
1 / 1 pts
The journal entry a company records for the issuance of bonds when the contract rate is greater than the market rate would be
debit Cash, credit Bonds Payable
debit Bonds Payable, credit Cash
Correct!
debit Cash, credit Premium on Bonds Payable and Bonds Payable
debit Cash and Discount on Bonds Payable, credit Bonds Payable
Question 21
0 / 2 pts
In 2023, ANIMO started the construction of a mall, which is to be leased out under various operating leases. The construction was
completed at the end of 2024 at a total cost of P29,370,874. ANIMO’s operations started at the beginning of 2025. The mall has an
estimated useful life of 20 years. ANIMO uses the cost model and the straight-line method of depreciation. On December 31, 2026, the
mall was estimated to have a fair value of P28,000,000. The mall has a total leasable space of 1,141 sq. meters. However, a 5 sq. meter
space is used as an office for administering the mall.
How much is presented
AnimoSpace Support as investment property in ANIMO’s December 31, 2026 financial statements? (Round off your answer to the
nearest peso)
You Answered
26,317,951
26,433,787 (with margin: 0)
Question 22
0 / 2 pts
On December 1, 2021, ANIMO Corporation decided to dispose of an item of plant that is carried in its records at a cost of P450,000, with
accumulated depreciation of P80,000. Depreciation on the plant since it was originally acquired has been charged at P5,000 per month.
The plant will continue to be operated until it is sold, at which time operations will be outsourced. The company undertook all the
necessary actions to classify the asset as held for sale. It is estimated that it could sell the plant for its fair value, P350,000, incurring
P10,000 selling costs in the process. The plant has been depreciated at an amount of P5,000 per month.
On December 31, 2021, the plant was not sold, but due to a shortage of this type of plant, there was an increase in the fair value to
P360,000 while expected costs to sell remained at P10,000. If ANIMO Corporation had not sold the plant as of December 31, 2022, and
the recoverable amount at that date is P315,000, the plant should be carried in ANIMO’s statement of financial position on December 31,
2022, at
You Answered
340,000
305,000 (with margin: 0)
Question 23
0 / 2 pts
The ANIMO Co. seeks your advice on classifying or reclassifying its biological assets. The total value of the biological assets, per their
records, is P17,800,000, composed of the following:
Forest Assets:
AnimoSpace Support
Freestanding trees P5,000,000
Land on which the trees were planted P3,000,000
Roads in orchard P2,000,000
Palay Farm:
Palay stalks (not yet harvested) 1,500,000
Land on which the palay stalks were planted 2,500,000
Poultry:
Growing stocks - to be sold to meat dealers in one to three months from balance sheet date P1,800,000
Poultry hatching eggs P500,000
Breeding stocks 860,000
Poultry housing, net of accumulated depreciation P540,000
Eggs (for sale, as agricultural produce) P100,000
How much shall be classified as biological assets under PAS 41?
You Answered
6,360,000
9,660,000 (with margin: 0)
Question 24
0 / 2 pts
ANIMO sells one-year subscriptions for an industry publication published semiannually and shipped to subscribers on May 1 and
November 1. Subscriptions received after April 1 and October 1 cut-off dates are held for the next publication. Receipts during 20x1 for
subscriptions were made evenly. Information on subscriptions is shown below:
Unearned revenue – January 1, 20x1 ₱12,000,000
Receipts from subscriptions during 20x1 P96,000,000
How much is the recognized revenue in 20x1?
You Answered
AnimoSpace Support
36,000,000
60,000,000 (with margin: 0)
Question 25
0 / 2 pts
ANIMO has the following liabilities as of December 31, 20x1:
Trade account payable (net of debit balance in supplier’s account of ₱20,000, net of unreleased checks of ₱16,000, and net of post-
dated checks ₱8,000); P1,200,000
Credit balance in customer’s accounts; P8,000
Financial liability at FVPL; P200,000
Bonds payable (maturing in 10 equal annual installments of P400,000); P4,000,000
12%, 5-year note payable issued on 01 October 20x1; P400,000
Deferred tax liability; P20,000
Unearned Rent; P16,000
Contingent liability; P40,000
Reserve for contingencies; P100,000
How much is the total current liabilities?
You Answered
1,438,000
1,880,000 (with margin: 0)
Question 26
0 / 2 pts
On January 1, 2024, ANIMO Company showed a patent of P1,920,000 with a related accumulated amortization of P240,000. The
patent was purchased on January 1, 2022 at which date the legal life is 16 years.
On January 1, 2024,
AnimoSpace Supportthe useful life of the patent was determined to be only eight years from the date of acquisition.
On January 1, 2024, in connection with the purchase of a trademark from Cat Company, the parties entered into a noncompetition
agreement and a consulting contract. ANIMO Company paid Cat Company P800,000, of which three-fourths was for the trademark,
and one-fourth was for Cat Company's agreement not to compete for five years in the line of business covered by the trademark.
ANIMO Company considered the life of the trademark to be indefinite. Moreover, ANIMO Company agreed to pay Cat Company
P50,000 annually on January 1 for five years.
What is the total amortization of intangible assets for 2024?
You Answered
210,000
320,000 (with margin: 0)
Question 27
2 / 2 pts
On June 30, 2021, ANIMO Co. had an outstanding 8%, P3,000,000 face amount, 15-year bonds maturing on June 30, 2031. Interest is
payable on June 30 and December 31. The unamortized amount of the bond discount on June 30, 2021 was P135,000. On June 30, 2021,
ANIMO acquired all of these bonds at 94 and retired them. What net carrying amount should be used in computing gain or loss on this
early extinguishment of debt?
Correct!
2,865,000
2,865,000 (with margin: 0)
Question 28
0 / 2 pts
Magenta Company purchased a machine from Pink Corporation on October 31, 2018. In payment for the P288,000 purchase, Magenta
issued a one-year installment note to be paid in equal monthly payments of P25,588 at the end of each month. The payments include
interest at the rate of 12%. The amount of interest expense that Magenta will report in its income statement for the year ended December
31, 2018, is:
You Answered
AnimoSpace Support
5,520
5,533 (with margin: 0)
Question 29
0 / 2 pts
Miles Company has the following three loans payable scheduled to be repaid in February of next year. The company's accounting year
ends on December 31.
The company intends to repay Loan 1 for P100,000 when it comes due in February. In the following October, the company intends to
get a new loan for P80,000 from the same bank.
The company intends to refinance Loan 2 forcP150,000 when it comes due in February. The refinancing agreement, for P180,000, will
be signed n April, after the financial statements for this year have been authorized for issue
The company intends to refinance Loan 3 for P200,000 before it comes due in February. The actual refinancing, for P175,000, took
place in January, before the financial statements for this year have been authorized for issue.
As of December 31 of this year, the Total non-current liabilities to be reported in the company's statement of financial position should be
You Answered
150,000
0 (with margin: 0)
UnansweredQuestion 30
0 / 2 pts
On January 1, 2023, ANIMO Company issued 3-year, 4,000 convertible bonds at face value of P1,000 per bond. Interest is to be paid
annually in arrears at the stated coupon rate of 6%. Each bond is convertible, at the holder's option, into 200 P2 par value ordinary shares
at any time up to maturity. On the date or issuance, the prevailing market Interest rate for similar debt without the conversion privilege was
9%. On the same date, the market price of one ordinary share was P3. The bonds were converted on December 31, 2024.
The following present
AnimoSpace value factors are obtained from the present value tables:
Support
6% 9%
Present value of 1 for 3 periods 0.83962 0.77218
Present value of an ordinary
Annuity of 1 for 3 periods 2.67301 2.53130
Present value of an annuity
due of 1 for 3 periods 2.83339 2.75911
You Answered
2,593,661 (with margin: 0)
Question 31
0 / 2 pts
On June 30, 2020, King Company had outstanding 9%, ₱5,000,000 face value bonds maturing on June 30, 2025. Interest was payable
semiannually every June 30 and December 31. The entity did not elect the fair value option for reporting financial liabilities. On June 30,
2020, after amortization was recorded for the period, the unamortized bond premium and bond issue cost were ₱30,000 and ₱50,000,
respectively. On that date, the entity acquired all outstanding bonds on the open market at 98 and retired them. On June 30, 2020, what
amount should be recognized as gain or loss before income tax on redemption of bonds?
You Answered
80,000
-80,000 (with margin: 0)
Question 32
2 / 2 pts
ANIMO Company issued 5,000 of its 10% P1,000 bonds on January 1, 2020. These bonds will mature at an amount equivalent to
P1,000,000 annually at the end of each year. Annual interest payments are made together with the principal. The effective interest rate
was determined to be at 12%. How much is the current portion of the bonds payable on December 31, 2021? (Use 4 decimal places for
the PV Factors)
Correct!AnimoSpace Support
951,956
951,956 (with margin: 0)
Question 33
0 / 2 pts
On January 1, 2020, ANIMO issued a three-year 12% P1,500,000 face value bond at a price yielding a 10% effective interest rate. The
annual interest is payable every December 31. Assume that 60% of the bonds in were retired on October 1, 2021. The redemption price
and interest to date on the retired bonds amounted to 750,000. How much is the gain or loss on the retirement of bonds? (Use 6 decimal
places for the PV factors)
You Answered
174,545
251,043 (with margin: 0)
UnansweredQuestion 34
0 / 2 pts
In 2023, Gavin Company issued the following bonds to generate funds as part of its expansion plan:
On January 1, issued a ₱3,000,000 face value bond with a face rate of 12% and a term of 5 years to yield 10%.
On April 1, issued a ₱2,000,000 face value bond with a face rate if 12% and a term of 3 years to yield 14%.
On July 1, issued a ₱5,000,000, 8%, 8-year term bonds. The bonds were dated July 1, 2023, with interest dates every June 30 and
December 31. It was issued accordingly to give it a yield of 6%.
On October 1, issued P20,000 of P1,000 face value convertible bonds. The 6% convertible bonds have a 6-year term and were issued
at 112. Each bond is convertible into 100 ordinary shares of Gavin Company, whose par value was ₱5.00. When the bonds were
issued, the prevailing market rate for a similar debt instrument without a conversion feature was 8%.
Determine the interest expense to be recognized in 2023
You Answered
AnimoSpace Support
1,054,582 (with margin: 0)
Question 35
0 / 2 pts
On April 1, 2018, Austere Corporation issued P300,000 of 10% bonds at 105. Each P1,000 bond was sold with 25 detachable stock
warrants, each permitting the investor to purchase one share of common stock for P17. On that date, the market value of the common
stock was P15 per share and the market value of each warrant was P2. Austere should record what amount of the proceeds from the bond
issue as an increase in liabilities?
You Answered
425,000
300,000 (with margin: 0)
UnansweredQuestion 36
0 / 2 pts
In 2023, Gavin Company issued the following bonds to generate funds as part of its expansion plan:
On January 1, issued a ₱3,000,000 face value bond with a face rate of 12% and a term of 5 years to yield 10%.
On April 1, issued a ₱2,000,000 face value bond with a face rate if 12% and a term of 3 years to yield 14%.
On July 1, issued a ₱5,000,000, 8%, 8-year term bonds. The bonds were dated July 1, 2023, with interest dates every June 30 and
December 31. It was issued accordingly to give it a yield of 6%.
On October 1, issued P20,000 of P1,000 face value convertible bonds. The 6% convertible bonds have a 6-year term and were issued
at 112. Each bond is convertible into 100 ordinary shares of Gavin Company, whose par value was ₱5.00. When the bonds were
issued, the prevailing market rate for a similar debt instrument without a conversion feature was 8%.
Determine the carrying value of the bonds as included in the December 31, 2023 Statement of Financial Position.
You Answered
AnimoSpace Support
28,928,338 (with margin: 0)
Quiz Score: 17 out of 52
