Fundamentals of Accounting , Part 21. What is the correct order of the following events in the accounting process?I. Financial statements are preparedII. Adjusting entries are recordedIII. Nominal accounts are closeda. I,II, IIIb. II, I, IIIc. III,II,Id. II,III,I2. The first step in the accounting cycle is toa. Record transactions in a journalb. Analyze transactions from source documentsc. Post journal entries to general ledger accountsd. Adjust the general ledger accounts3. Which of the following is not characteristic of proprietary theory that influences accounting for partnerships?a. Partners salaries are viewed as a distinguishing of income rather than component of net income.b. Partnership is not viewed as separate entity, distinct, taxable entity.c. A partnership is characterized by limited liability.d. Changes in ownership structure of a partnership result in the dissolution of the partnership.4. Which of the following statement is correct with respect to a limited partnership?a. A limited partner may not be an unsecured creditor of the limited partnership.b. A general may not also be limited partner at the same time.c. A general partner may be a secured creditor of the limited partnership.d. A limited partnership can be formed with limited liability for all partners.5. On January 1, 2006, Atta and Boy agreed to form a partnership contributing their respective assets and equities subject to adjustments. On that date, the following were provided:CashPAtta28,000Boy 62,000

Accounts receivable200,000600,000

Inventories120,000200,000

Land600,000

Building500,000

Furniture and fixtures50,00035,000

Intangible assets2,0003,000

Accounts payable180,000250,000

Other liabilities200,000350,000

Capital620,000800,000

The following adjustments were agreed upon:a. Accounts receivable of 20,000 and 40,000 are uncollectible in As and Bs respective books.b. Inventories of 6,000 and 7,000 are worthless in As and Bs respective books.c. Intangible assets are to be written off in both books.What will be the capital balances of the partners after adjustments?AttaBoya. P 592,000P 750,000b.600,000700,000

c.592,000756,300

d.600,000750,000

6. When property other than cash is invested in a partnership, at what amount should the non-cost property be credited to the contributing partners capital account?a. Fair value at the date of contribution.b. Contributing partners original cost.c. Assessed valuation for property tax purposes.d. Contributing partners tax basis.7. May 1, 2006, Cobb and Mott formed a partnership and agreed to share profits and losses in the ratio of 3:7 respectively. Cobb contributed a parcel of land that cost him 10,000.Moth contributed P 40,000 cash. The land was sold for P 18,000 on May 1, 2006,immediately after formation of the partnership. What amount should be recorded in Cobbs capital account on formation of the partnership?a.P18,000

b.17,000

c.15,000

d.10,000

8. Abel and Carr formed a partnership and agreed to divide initial capital equally, even though Abel contributed P100, 000 and Carr contributed P84, 000 in identifiable assets. Under the bonus approach to adjust the capital accounts, Carrs unidentifiable asset should be debited fora. P46, 000b. 16, 000c. 8, 000d. 0

9. Mary admits Jane as a partner in the business. Balance sheet accounts of Mary just before the admission of Jane show: Cash, 26,000. Accounts receivable, 120,000, Merchandise inventory, 180,000 and accounts payable, 62,000. It was agreed that for purposes of establishing Marys interest, the following adjustments be made: 1. an allowance for doubtful accounts of 3% of accounts receivable is to be established. 2. Merchandise inventory is to be adjusted upward by 25,000 and 3 prepaid expenses of 3,600 and accrued liabilities of 4,000 are to be recognized.If Jane is to invest sufficient cost to obtain 2/5 interest in the partnership, how much would Jane contribute to the new partnership?a.176,000

b.190,000

c.95,000

d.113,980

10. If the partnership agreement does not specify how income is to be allocated, profit and loss should be allocateda. Equallyb. In proportion to weighted average of capital invested during the period.c. Equitability so that partners are compensated for the time and effort expended on behalf of the partnership.d. In accordance with their capital contribution.

11. Which of the following is not a component of the formula used to distribute income?a. Salary allocation to those partners working.

b. After all other allocation, the remainder divided according to the profit and loss sharing ratio.c. Interest on the average capital investments.d. Interest on notes to partners.

12. The ABC partnership reports net income of P60, 000. If partners A, B, and C have income ratio of 50%, 30%, and 20% respectively. What is the share of partner C from the net income of the partnership, if he was given a capital ratio of 25%?a.30,000

b.12,000

c.18,000

D. 15,000

13. Which of the following will not comprise financial statements of a partnership business?a. Statement of Financial Positionb. Statement of Changes in Owners Equityc. Statement of Comprehensive Incomed. Statement of Cash Flow14. Which of the following can be found in a Statement of Financial Position of a partnership business but not in the sole proprietorship?a. Owners equityb. Accumulated Depreciationc. Partners Equityd. Accounts payable15. The basic components of financial statements include all of the following, excepta. Statement of Retained Earningsb. Statement of Changes in Equityc. Cash Flow statementd. Statement of recognized gains and losses16. The elements of financial statements shall be measured ina. Constant pesosb. Nominal pesosc. Fixed pesosd. Flexible pesos17. The following information is available from Domi Companys accounting records for the current year:

Purchases5,300,000

Purchase discounts100,000

Beginning inventory1,600,000

Ending inventory2, 150,000

Freight out400,000

What is the cost of goods sold for the current year?a. 4,750,000c. 5,050,000b. 4,650,000d. 5,850,0018. Nikkoey Company showed net income of P480,000 in its income statement for the current year. Selling expenses were equal to 15% of sales and also 25% of cost of sales. All other expenses were 13% of sales. What was the gross profit for the current year?

a. 4,000,000c. 1,600,000b. 2,400,000d. 2,000,00019. Which of the following should be presented on the statement of changes in partners equity?a. Total comprehensive income for the period showing separately the total amounts attributable to owners of the parent and to minority interests.b. The amounts of transactions with owners in their capacity as owners, showing separately contributions by and distributions to owners.c. For each component of equity, a reconciliation between the carrying amount at he beginning and the end of the period, separately disclosing each change.d. All of the above20. A statement of changes in partners equity should include all of the following, excepta. Partners payments of loansb. Investment during the periodc. Beginning capital balancesd. Ending capital balances21. Statement of Financial Position analysis is useful in assessing an entitys liquidity which is the ability toa. Satisfy short-term obligationsb. Maintain profitable operationsc. Maintain past levels of preference and ordinary dividendsd. Survive a major economic downturn22. Accrued revenue would normally appear on the balance sheet undera. Plant assetsc. Long-term liabilitiesb. Current assetsd. Current liabilities23. Which of the following indicates a cash inflow from operating activities?a. Payments to employeesb. Receipt from royalties, fees, commissions and other revenuesc. Receipts from sale of property and equipmentd. Receipts from investment by owners24. Which of the following indicates a cash outflow from investing activities?a. Payments to acquire property plant and equipmentb. Payments for taxesc. Payments to settle notes payabled. Payments to employees25. Which of the following results in dissolution of a partnership?a. The contribution of additional assets to the partnership by an existing partner.b. The receipt of a draw by an existing partner.c. The winding of the partnership and the distribution of the remaining assets to the partners.d. The withdrawal of a partner from a partnership26. Partnership A has an existing capital of P70, 000. Two partners currently owned the partnership in split profits 50/50. A new partner is to be admitted and will contribute newt assets with a fair value of P90, 000. For no goodwill or bonus [depending on which ever method is used] to be recognized, what is the interest in the partnership granted the new partner?a.33.33%

b.50.00%

c.56.25%

d.75.00%

27. In May 2006, Imelda, a partner of an accounting firm decided to withdraw when the partners capital balances were: Mikee, P600, 000; Raul, P600, 000; and Imelda, P400, 000. It was agreed that Imelda is to take the partnerships fully depreciated computer with a secondhand value of P24, 000 that costs the partnership P36, 000. If profits and losses are shared equally, what would be the capital balances of the remaining partners after the retirement of Imelda?MikeeRaul

a.P600,00P600,000

b.c.P592,000P608,000P592,000P608,000

d.P612,000P612,000

28. Ranken purchases 50% of Larks capital interest in the K and L partnership for P22, 000. If the capital balances of Kim and Lark are P40, 000 and P30, 000 respectively. Rankens capital balance following the purchase isa.P22,000

b.35,000

c.20,000

d.15,000

29. The following information pertains to ABC partnership of Amor, Bing, and Cora: Amor, capital [20%]P200,000Bing, capital[30%]200,000Cora, capital [50%]300,000On this date, the partners agreed to admit Dolly to the partnership. Assuming Dolly purchase 50% of the partners capital and pays P500, 000 to old partners, how would this amount be distributed to them?a.P100,000P150,000P250,000

b.c.d.P130,000 P166,667 P150,000P145,000 P166,667 P150,000P225,000 P166,666 P200,000

30. When a partnership business dissolved and formed a corporation, one of the partner rendered a services and in return the business gave him shares to compensate for the rendered service, in this case, when shares are issued for services received, the measure is equal to thea. Fair value of such servicesb. Par value of the share issuedc. Book value of the shares issuedd. Fair value of the shares issued31. When a partner withdraws from a partnership taking assets that represent less than his capital balance,a. No bonus resultsb. The remaining partner receives a bonusc. The withdrawing partner receives a bonusd. The remaining partners owe the withdrawing partner the difference.32. The doctrine of marshaling of assetsa. Is applicable only if the partnership is insolventb. Allows partners to first contribute personal assets to unsatisfied partnership creditors.c. Is applicable if either the partnership is insolvent or individual partners are insolvent.d. Amount owed to personal creditors and to the partnership for debit capital balances are shared proportionately from the personal assets of the partners.33. The following is the priority sequence in which liquidation proceeds will be distributed for a partnership.

a. Partnership liabilities, partnership capital balances, partnership loansb. Partnership liabilities, partnership loans, partnership drawings, partnership capital balancesc. Partnership liabilities, partnership loans, partnership capital balancesd. Partnership drawings, partnership liabilities, partnership loans, partnership capital balances34. Pedro and Juan who share profits and losses equally, decided to liquidate heir partnership when their net assets amounted to P260,000, and capital balances of P170,000 and P90,000, respectively.If the non-cash assets were sold for amount equal to its book value, what amount of cash should Pedro and Juan received?PedroJuan

a.P 130,000P 130,000

b.170,00090,000

c.180,00080,000

d.195,00065,000

35. Because of very unprofitable operations, partners Nal, Lou and Gee decided to dissolve the partnership when their capital balances and profit and loss ratio were:Nal, capital (30%)P 175,000Lou, capital (20%)125,000Gee, capital (50%)175,000 TotalUpon liquidation, all of the partnerships assets are sold and sufficient cash is realized to pay all liabilities except one for P25,000. Gee is personally insolvent, but the others are capable of meeting any indebtedness of the firm. By what amount would the capital of Nal change?a. P 7,500 decreaseb. 150,000 decreasec.195,000 decreased.No change

36. As of December 31, the books of AME Partnership showed capital balances of A-P40,000; M- P25,000; and E- P 5,000. The partners profit and loss ratio was 3:2:1 respectively. The partners decided to dissolve and liquidate. They sold all the non-cash assets for P37,000 cash. After settlement of all liabilities amounting to P12,000, they still have P28,000 cash left for distribution.The loss on the realization of the non-cash assets was a. 40,000c. 44,000b. 42,000d. 45,00037. Assuming in No. 36, that any partners capital debit balance is uncollectible, the share of A in the P28,000 cash for distribution would bea. 19,000c. 40,000b. 18,000d. 17,80038. The condensed balance sheet of Alex, Jay and John as March 31, 2010 follows:

CashP 28,000LiabilitiesP 48,000

Other assets265,000Alex, capital95,000

Jay, capital80,000

John, capital 70,000

TotalP293,000TotalP 293,000

39. A corporation has the following attributes excepta. Enjoys the right of successionb. An artificial being with a personality separate and apart from its shareholders.c. Created by operation of lawd. None of the above40. The advantage of a corporation from a partnership isa. The death of a shareholder will not dissolve the corporation because of its power of succession.b. Its management is centralized on the board of directors

c. Shareholders have limited liabilityd. All of the above41. It is the process of bringing together the incorporators or the persons interested in the business, of procuring subscriptions or capital for the corporation and of setting in motion the machinery that leads to the incorporation of the corporation itself.a. Commencementc. advertisementb. Promotiond. organization42. When should By-laws be adopted?a. One month from the issuance of he certificates of incorporation by the SEC.b. Two months from the issuance of he certificates of incorporation by the SEC.c. Three months from the issuance of he certificates of incorporation by the SEC.d. Six months from the issuance of he certificates of incorporation by the SEC.

43. Which of the following are not permitted to issue no-par value shares?a. Trust companiesc. Lending associationsb. Educational institutionsd. None of the above44. When Bradley Company incorporated, it was authorized to issue 1,000,000 shares of common stock. It immediately issued 50,000 shares. In 2007, it issued an additional 20,000 shares. In 2010, it repurchased 5,000 shares with the intent of reissuing them. On the December 31, 2010, balance sheet, Bradley Company would showa. 50,000 shares issued and 45,000 shares outstandingb. 70,000 shares issued and 65,000 shares outstandingc. 70,000 shares issued and 70,000 shares outstandingd. 1,000,000 shares issued and outstanding.45. Choose a situation which illustrates the minimum requirement of the law to corporate formation:

AuthorizedSubscribedPain-in Capital

a.P 100,000P 25,000P 5,000

b.100,0005,0005,000

c.50,00012,5003, 125

d.60,00015,0005,000

46. These are persons who bring about or cause to bring about the formation and organization of a corporationa. Underwritersc. Promotersb. Subscribersd. Incorporators47. These represent the record of all business transactions. This normally includes the journal and the ledger.a. Shareholders ledgerc. Books of accountsb. Subscribers ledgerd. Minutes book48. This is kind of shares in which a specific amount is fixed in the articles of incorporation and appearing on the certificate of stock.a. Parc. No-parb. Votingd. Non-voting49. This is a stock that has been issued by the corporations as fully paid and later reacquired but not retired.a. Promotion sharesc. Treasury sharesb. Convertible sharesd. De-bawi shares50. Polar Company issued 20,000 new P100 par ordinary shares at a fair value of P180 each. Polar identified costs in relation to the shares issue:Professional fees400,000Internal management time in managing the process300,000

What is the increase in equity as a result of the issuance of shares? a. 3,200,000c. 2,900,000b. 3,320,000d. 2,970,000

51. At the beginning of the current year, Alto Company declared 1 for 5 reverse share split, when the market value of the share was P100. Prior to the split, Alto had 100,000 shares of P10 par value issued and outstanding. After the split, what is the par value of the share?a. 10c. 50b. 20d. 252. In case shares are issued for outstanding liabilities, what is the measure for recording?a. Book value of the shares issuedb. Amount of liabilities set offc. Fair value of the shares issuedd. Par value of the shares issued53. The Lucky Company was authorized to issue P400,000 ordinary shares divided into 4,000 shares with a par value of 100 per share.Using the Journal entry method, what is the entry on that date?a. Memo entry onlyb. Unissued Ordinary shares400,000 Authorized Ordinary Shares400,000c. Subscription Ordinary Shares 400,000 Authorized Ordinary Shares400,000d. No entry even a memorandum54. Subscription receivable and other receivables from sale of shares which are not collectible shall be presented asa. Other assetb. Deduction from the related subscribed share capital in the shareholders equity sectionc. Current assetd. Long-term investment55. Loss on retirement of treasury shares shall be debited toa. Retained Earningsb. Share premium from treasury shares and then to retained earningsc. Share premium from treasury shares, share premium from original issuances and then to retained earningsd. Share premium from original issuances, share premium from treasury shares and then retained earnings.56. Korina Company was organized on January 1, 2010 with 100,000 shares authorized of P100 par value. On January 5, Korina issued 75,000 shares at P140 per share and on December 31, Korina purchased 5,000 shares at P110 per share. Korina used the par value method of recording the purchased of treasury shares. What is the balance of the share premium from treasury shares on December 31, 2010?a. 200,000c. 50,000b. 150,000d.057. The total cost of treasury shall be reported asa. Deduction from shareholders equityb. Assetc. Deduction from retained earningsd. Deduction from share premium58. What is the effect of a thing donated to the corporation?a. Increase the asset and decrease the equityb. Increase the asset and stockholders equityc. Decrease the asset and stockholders equityd. Decrease the asset and increase stockholders equity59. On December 1 of the current year, Line Company received a donation of 2,000 shares with P50 par value from a shareholder. On that date, the share market value was P350. The shares were originally issued for P250 per share.What is the decrease in shareholders equity as a result of the donation? a. 700,000c. 200,000

b. 500,000d.060. It is contributions, including shares of the corporation, received from shareholders should be recorded at the fair market value of the items received, with the credit going to share premium. This is calleda. Contributed capitalc. Donated capitalb. Legal capitald. Given capital61. This represent the cumulative balance of periodic net income or loss, dividend distributions, prior period errors, changes in accounting policy and other capital adjustments.a. Retained Earningsc. Investmentb. Net Incomed. Income Summry62. On July 31 of the current year, Sun Company purchased 500,000 shares of Star Company. On December 31,Sun distributed 250,000 shares of Star as a dividend to Suns shareholders. This is an examplea. Property dividendb. Investment dividendc. Liquidating dividendd. Stock dividend63. The issuer should charge retained earnings for the market value of shares issued in aa. 1 for 5 stock dividendb. 1 for 8 stock dividendc. 4 for 1 stock splitd. 2 for 1 stock split64. On November 1, 2010, Grande Company declared a property dividend of equipment payable on March 1, 2011. The carrying amount of the equipment is P3,000,000 and the fair value is P 2,500,000 on November 1, 2010.However, the fair value less cost to distribute the equipment is P2,200,000 on December 31, 2010 on March 1,2011.What is the dividend payable on December 31,2010? a. 2,500,000c. 3,000,000b. 2,200,000d.065. With regards to No. 64, what is the measurement of the equipment on December 31, 2010? a. 2,500,000c. 3,000,000b. 2,200,000d. 2,000,00066. The following information pertains to Mega Company: Dividends on its 10,000 cumulative preference shares of 10%, P100 par value have not been declared or paid for 3 years. Treasury shares were acquired at a cost of P1,500,000. The treasury shares had not been reissued as of year-end.What amount of retained earnings should be appropriated as a result of these items? a. 1,500,000c. 300,000b. 1,800,000d.067. East Company, a calendar year company, had sufficient retained earnings in 2010 as a basis for dividends but was temporarily short of cash. East declared a dividend of P1,000,000 on April 1,2010, and issued promissory notes to its shareholders in lieu of cash. The notes, which were dated April 1, 2010, had a maturity date of March 31, 2011 and a 10% interest rate.How should East account for the scrip dividend and related interest?a. Debit retained earnings for P1,000,000 on April 1,2010b. Debit retained earnings for P1,100,000 on March 31,2011c.Debit retained earnings for P1,000,000 on April 1,2010 and debit interest expense for P1,000,000 on March 31, 2011d. Debit retained earnings for P1,000,000 on April 1,2010 and debit interest expense for P75,000 on December 31, 2011.68. Undistributed stock dividend should be reported asa. A current liabilityc. an addition to share capital outstandingb. A reduction in total shareholders equity d. A note to FS

69. A retained earnings appropriation is used toa. Absorb a fire loss when a company is self-insuredb. Smooth periodic incomec. Provide for a contingent loss that is probable and measurabled. Restrict earnings available for dividends70. Long Company had 10,000 shares issued and outstanding at January 1, 2010. During 2010, Long took the following actions:March 15Declared a 2-for-a share split, when the fair value of he share was P80 per share. December 15Declared a P5 per share cash dividend.

In the statement of changes in equity for 2010, what amount should be reported as dividends? a.50,000c. 850,000b. 100,000d. 950,00071. In computing basic earnings per share, the amount of preference dividends on noncumulative preference shares shall bea. Deducted from net income whether declared or notb. Added to net income only when declaredc. Deducted from net income only when declaredd. Ignored72. An entity has an ordinary A class, nonvoting share, which is entitled to a fixed dividend of 6% per annum.The A class ordinary share willa. Be included in the per share calculation after adjustment for the fixed dividend.b. Be included in the per share calculation for EPS without adjustment for the fixed dividend.c. Not be included in the per share calculation for EPS.d. Be included in the calculation of diluted EPS.73. Manufacturing costs would include buta. Indirect materials usedb. Sales salaries expensec. Indirect labor costd. Depreciation on factory equipment74. The purchases-raw materials account is debited whena. Direct materials are purchasedb. indirect materials are purchasedc. direct materials are placed into productiond. indirect materials are placed into production75. Zew Company has a job costing system and an overhead application rate of 120% of direct labor cost. Job No. 33 is charged with direct material of P12,000 and overhead of P7,200. Job No. 34 has direct material of P2,000 and direct labor of P9,000. What amount of direct labor cost has been charged to Job No. 33?a. 6,000c. 7,200b. 8,640d. 14,40076. Application rates for factory overhead best reflect anticipated fluctuations in sales over a cycle of years when they are computed under the concept ofa. Maximum capacityc. Normal capacityb. Practical capacityd. Expected actual capacity77. Chorokee Co. applies factory overhead on the basis of direct labor hours. Budget and actual data for direct labor and overhead for the year are as follows:BudgetActual Direct labor hours600,000650,000 Factory overhead costs P 720,000P760,000The factory overhead for Chorokee for the year isa. Overapplied by P20,000b. Overapplied by P40,000c. Underapplied by P20,000

d. Underapplied by P40,00078. Worley Co. has underapplied overhead of P45,000 for the year. Before disposition of underapplied overhead, selected year-end balances form Worleys accounting records were

SalesP 1,200,000Cost of Goods Sold720,000

Direct materials inventory36,000

Work in process inventory54,000

Finished goods inventory90,000

Under Worleys cost accounting system, over or under applied overhead is assigned to appropriate inventories and cost of goods sold based on year-end balances. In its year-end income statement, Worley should report cost of goods sold ofa. 765,000c. 684,000b. 757,500d. 682,50079. How much is the total manufacturing cost of a product that consume P500,000 of raw materials, 50% of raw materials equivalent to direct labor and a manufacturing cost of P250,000?a. P750,000c. P1,000,000b. P 500,000d. P 250,00080. Under a job order cost system, the peso amount of the general ledger entry involved in the transfer of inventory from work in process to finished goods is the sum of costs charged to all jobsa. Completed during the periodb. Completed and sold during the periodc. In process during the periodd. Started in process during the period.81. What is the difference of the worksheet of a Manufacturing Company from that of other forms of business organization?a. It has a purchases accountb. It omits the depreciation and accumulated depreciation account of the companyc. Includes a pair of columns for cost of goods manufactured.d. It omits the nominal accounts82. The analysis for financial statement is important for all of the company, there are many bases that can be used for comparison of this analysis, which one is not being use?a. Intercompany basisb. Intracompany basisc. Industry averagesd. Ratio analysis83. Provides a rough approximation of the average time that it takes to collect receivablesa. Average age of receivablesb. Inventory turnoverc. Accounts receivabled. None of the above84. This is a technique for evaluating a series of financial statement data over a period of time.a. Horizontal analysisb. Vertical analysisc. Intercompany analysisd. Ratio analysis85. Assume Company A has a profit of P2,000,000 with net sales of P25,000,000 and Company B has a profit of P1,800,000 on net sales of P9,000,000. Company A and Company B have profit-to-net-sales ratios of 8% and 20% respectively. If the two company works of the same industry, which of the following is true?a. Company B is better managed than Company Ab. Company A is quite good than Company Ac. Company A has a higher profit margin

d. All of the above86. Measures managements efficiency in using its assets to earn profitsa. Basic earnings per shareb. Return on total assetsc. Return on ordinary equityd. None of the above87. You have been asked to evaluate the liquidity position of Kim Fitness Center. The following data are from Kims annual report:

CashP260,000

Trading Investments120,000

Accounts Receivable

Jan 1312,000

Dec 31428,000

Merchandise Inventory

Jan 1504,000

Dec 31372,000

Current Liabilities480,000

Cost of Goods Sold6,000,000

Credit Sales10,000,000

What is the Companys working capital?a. P500,000b. P700,000c. P350,000d. P800,000

88. Based on Number 87, what is Kims Inventory turnover?a. 27.4b. 26.8c. 13.7d. 30.0

89. Based on Number 87, what is Kims Average age of receivables?a. 13 daysb. 28 daysc. 27 daysd. 26.8 days

90. Based on Number 87, what is Kims quick ratio?a.1. 68b. 1.89c. 2.0d. 2.5

91. The following data are from the financial statements of FAILA, Inc.:Dec. 31, 2010Jan. 1, 2010Total AssetsP 180,000P140,000Total Equity144,000112,000Total Preference Equity30,00030,000 Preference Dividend Declared 2,400Profit20,000Interest Expense5,750

Calculate the ratio on return on Total Assets:a.15.10%b. 14.50%c. 18.9%d. 16.09%

92. Based on # 91, what is return on ordinary equity?a.17.96%b. 13.56%c. 14.57%d. 12.5%

93. Cozy is analyzing the earnings performance of the Baliwag Star Transport Corporation. She has gathered the following data from Baliwag Stars financial statements and from a report of the closing market prices of shares:

Profit for 2010P 743,000Preference dividends declared during 201060,000Ordinary dividends declared Dec. 31, 2010620,000 Number of Baliwag Star ordinary shares outstanding:

Jan. 1, 20101,100 sharesDec. 31,20101,300 sharesMarket price per ordinary share on December 31,2010P15

What is the Basic earnings per ordinary share?a. .57b. .45c. .89d. .75

94. Based on Number 93, what is the Price-earnings ratio?a. 20.25:1b. 26.36:1c. 34.45:1d. 42.12:1

95. Based on Number 93, what is the companys dividend yield on ordinary share? a. 3.44%b. 2.5%c. 4.44%d. 1.2%

96. The president of Corpuz, Inc., has asked you to gather some statistics about his companys solvency. You have complied the following data:

ProfitP900,000

Income Tax Rate35%

Interest Expense100,000

Total Liabilities2,048,000

Total Equity4,352,000

What is the companys Times interest earned ratio?a.15.25c. 14.85b.12.67d. 18.90

97. Using the data in # 96, what is Corpuz debt ratio?a.23&b. 32%c. 45%d. 12%

98 Using the data in # 97, what is Corpuz Equity ratio?a.68%b. 69%c. 79%d. 75%

99. Measures how readily a company can meet interest payments with profit earned from operationsa. times interest earned ratioc. equity to total assets ratiob. debt to total assets ratiod. none of these

100. Shows the percentage of he companys assets financed by debta. equity to total assets ratioc. times interest earned ratiob. debt to total assets ratiod. none of these