1. A partner's interest in the partnership is his share of the profits and surplus which he may assign to a third person. Which of the following statements concerning such right is correct? *

A. The conveyance of a partner's interest will cause the dissolution of the partnership

B. The assignee becomes a partner

C. The assignee has a right to interfere in the management of the partnership business

2.Which of the following statements is incorrect?

A. Partnership creditors are preferred as to partnerships assets

B. . Partnership creditors are preferred as to each partner's separate assets

C. A partner's separate creditors may attach a partner's share in the partnership assets

D. A partner's separate creditors are preferred as to the partner''s separate asset

3. Torres is indebted for P5.000.00 to MACE Trading Company, a partnership managed by Mendoza to whom Torres also owes P10,000.00. The 2 debts which are both demandable are unsecured. Torres remits P4,500.00 to Mendoza in payment of his debt to him. Accordingly, Mendoza issues a receipt for his own credit, To which credit should the payment be applied? *

A. Top Mendoza's credit because its amount is greater than that of the partnership credit.

B. To Mendoza's credit balance because the payment made by Torres is intended for his debt to Mendozas who issues his own receipt.

C. To the partnership credit because the managing partner should not prefer his own interest to that of the partnership

4. Samorano is the owner of 500 shares of stock of Center Sales Corporation whose articles of incorporation provide for 5 directors. In the annual election of directors, the following ran for the position of director: Abanes, Baricuatro, Castillo, Doromal, Elmora, and Filamor, Samorano asks you which of the following is the incorrect way of casting his votes.

A. 1,000 votes for Abanes, 1,000 votes for Baricuatro, and 500 votes for Castillo

B. 500 votes each for the 6 candidates

C. 2,500 votes for Abanes

5. In a limited partnership where there are 4 partners:

A. All the partners must be limited partners

B. The number of limited partners must be equal to the number of general partner, that is, 2:2

C. It is enough that there is one limited partner; the rest may all be general partners

6. Alpine Corporation obtained a loan amounting to P1,000,000.00 from Eastern Bank. To secure the obligation, P, the president of Alpine, mortgaged his own building in favor of the bank. The contract of loan and deed of mortgage have been signed by the parties but have not been acknowledged before a notary public. *

A. The mortgage of Alpine to the bank

B.Alpine corporation and P are one and the same person

C. P may validly mortgage his own property to secure the obligation of Alpine to the bank

D. The mortgage contract can stand independently from the contract of loan.

7. Which of the following statements is false concerning treasury shares? *

A. They have no voting rights

B. They are entitled to dividends

C. They may be disposed of for a price lower than the par value provided such price is reasonable

8. The subscriber of unpaid shares which are not delinquent shall be entitled to the following rights, except the right to: *

A. A stock certificate

B. Inspect corporate books

C,. Vote

9. Under this theory, the nationality of a corporation is that of the country under whose laws it was formed *

A. Domiciliary test

B. Control test

C. Incorporation

10.The following statements pertaining to the power of a corporation to issue non-voting shares are presented to you for evaluation: I. Those classified as "redeemable" or "preferred" may be deprived of the voting right II. All shares of the corporation may be deprived of the voting right III, Non-voting shares may vote in certain corporate acts such as in the amendment of the articles of incorporation *

A. I and II are true

B. All statements are true

C. I and III are true

11. A stockholder is entitled to the payment of the fair value of his shares when he dissents from certain corporate acts. Such fair value shall be the fair value of the shares as of the day: *

A. Prior to the date on which the vote was taken, excluding any appreciation or depreciation in anticipation of such corporate action was taken

B.. On which the vote was taken, including any appreciation or depreciation in anticipation of such corporate action

C. On which the vote was taken, excluding any appreciation or depreciation in anticipation of such corporate action.

12. On June 15, 2010, Solder Corporation accepted delivery of merchandise which it purchased on account. As of June 30, Solder had not recorded the transaction or included the merchandise in its inventory. The effect of this on its balance sheet for June 30, 2010 would be

A. assets and shareholders' equity were overstated but liabilities were not affected.

B. none of these

C. assets, liabilities, and shareholders' equity were understated.

13. On January 1, 2010, the merchandise inventory of Morton, Ltd. was P1.2 million. During 2010 Morton purchased P2,300,000 of merchandise and recorded sales of P2.7 million. The gross profit rate on these sales was 35%. What is the merchandise inventory of Morton at December 31, 2010? *

A. 1,125,000

B. 945,000

C. 1,745,000

14. On August 1, 2010, Danube Corporation purchased a new machine on a deferred payment basis. A down payment of P2,000 was made and four monthly instalments of P3,000 each are to be made beginning on September 1, 2010. The cash equivalent price of the machine was P12,000. Danube incurred and paid installation costs amounting to P1,000. The amount to be capitalized as the cost of the machine is

A. 14,000

B. 12,000

C. 13,000

15. Gerard Corporation had purchased an investment in 2011 (an equity investment without significant control). The purchase price of P94,000 included transaction costs of P1,000. Assuming the transaction costs were capitalized and Gerard uses the appropriate IFRS method, which model did Gerard NOT use to account for this investment? *

A. None of these

B. The fair value through net income model

C. The amortized cost model

16. On October 1, 2011, Moreau Co. purchased 500 of the P1,000 face value, eight percent bonds of Lear, Ltd., for P585,000, including accrued interest of P10,000. The bonds, which mature on January 1, 2018, pay interest semiannually on January 1 and July 1. Moreau used the straight-line method of amortization and appropriately recorded the bonds as long-term. On Moreau's December 31, 2012 balance sheet, the carrying value of the bonds is *

A. 570,000

B. 560,000

C. 568,000