Noteworthy Concepts in Basic Accounting: Assets, Prices, and

School: Harvard University - Course: ACCOUNTING 108 - Subject: Accounting

12THANNUAL GRAND SUMMIT CUP Basic Accounting and Basic Subjects Easy Round Which of the following is not an essential characteristic of an asset? a.It provides the entity with probable future benefits b.The event giving rise to the enterprise's right to the benefit has already happened c.A particular enterprise can obtain the benefit and control other's access to it d.It is acquired at a cost and is exchangeable Answer: D E2 12THANNUAL GRAND SUMMIT CUP Basic Accounting and Basic Subjects Easy Round Which of the following is considered an asset but not an economic resource? a. Piglet for sale b. Productive resources c. Deferred tax asset d.Ownership interest in ordinary shares of another corporation Answer: C E3 12THANNUAL GRAND SUMMIT CUP Basic Accounting and Basic Subjects Easy Round Assets acquired in a long-term credit transaction are measured at a. Invoice price b. Equivalent net cash price c. Installment price d. Exchange price Answer: A E4 12THANNUAL GRAND SUMMIT CUP Basic Accounting and Basic Subjects Easy Round Which of the following has the highest price elasticity coefficient? a. Milk b. Hotdog c. Bread d. Ski boats Answer: D E5 12THANNUAL GRAND SUMMIT CUP Basic Accounting and Basic Subjects Easy Round The partnership of Adams and Baker was formed on February 28, 2019. At that date the following assets were invested: AdamsBaker Cash120,000200,000 Merchandise-0-320,000 Building-0-840,000 Furniture and equipment200,000-0- The building is subject to a mortgage loan of P280,000, which is to be assumed by the partnership. The partnership agreement provides that Adams and Baker share profits or losses 30% and 70%, respectively. Baker's capital account at February 28, 2019, should be Answer: 1,080,000

E6 12THANNUAL GRAND SUMMIT CUP Basic Accounting and Basic Subjects Easy Round A company receives interest on a P30,000, 8%, 5-year note receivable dated April 1, 2018 and the principal is payable in 5 annual equal installments; the interest is also received annually. If the company has a fiscal year ending on July 1 and adjusting entries are properly made. What is the entry on interest received (ignore payment on principal for the entry) on April 1, 2021? Answer: Dr: Cash 1,440.00Cr: Interest Income 1,080.00Cr: Interest Receivable: 360.00 E7 12THANNUAL GRAND SUMMIT CUP Basic Accounting and Basic Subjects Easy Round What is the present value of a P65,000,000 interest-free note payable semi-annually for 13 years dated December 31, 2015 if the market rate of interest is 8% on such date of issuance and 9% on December 31, 2018? (Use 2 Decimal place for the present value factor)