1) If easier dissolved is to partnership, (blank) is to corporation.*

a. greater degree of government control and supervision

b. limited liability

c. greater ability to acquire funds

d. continuity of existence

2) ABC Corporation has a total shareholders' equity of P1,000,000, including retained earnings of P210,000. The cash balance is P370,000. The maximum cash dividend the corporation can declare and pay is

a. P370,000

b. P210,000

c. P1,000,000

d. P630,000

3) Which of the following statements is correct?

a. LIke a limited partnership, corporations have limited liability.

b. All dividends, when declared, are liabilities of a corporation.

c. Like the general partners' right in the dissolution of partnership assets, preference shareholders have the first right to participate in the distribution of corporate assets upon dissolution.

d. The corporation uses books of accounts to record all business transactions.

4) If commercial (or trading) is to partnership, (blank) is to corporation.*

a. domestic corporation

b. private corporation

c. de jure corporation

d. corporate aggregate

5) If managing partner is to partnership, (blank) is to corporation.*

a. board of directors

b. chief finance officer

c. president

d. chief executive officer

6) ABC Corporation reported Ordinary Shares P90,000 (P90 par value); Share Premium P150,000; and Retained Earnings P300,000. How much is the book value per share?*

a. P240

b. P300

c. P540

d. P90

7) Which of the following statements IS NOT correct?*

a. The corporate treasurer may or may not be a director but is required to be a resident of the Philippines.

b. The corporate secretary must be a resident and a citizen of the Philippines.

c. The president of a corporation must be a director of the corporation but he cannot act as president and secretary or as president and treasurer at the same time.

d. The shareholders elect the chairman of the board.

8) On January 1, 2019, ABC Corporation had 100,000 ordinary shares outstanding. On March 31, 2019, 10% ordinary share dividend was declared. On June 30, 2019, a 2-for-1 share split was declared. On December 5, 2019, a P0.50 cash dividend per share was declared. How many shares are outstanding on December 31, 2019?

a. 210,000

b. 220,000

c. 330,000

d. 110,000

9) On July 1, 2019, ABC Corporation has 250,000 shares of P10 par ordinary shares outstanding and the market price of the stock is P12 per share. On the same date, ABC Corporation declared a 1-for-2 reverse split. The par value of the share was increased from P10 to P20 and one new P20 par value was issued for every two P10 par shares outstanding. Immediately before the 1-for-2 reverse share split, ABC Corporation share premium was P480,000. What should be the balance in ABC Corporation's share premium account immediately after the reverse share split is declared?

a. P980,000

b. zero

c. P480,000

d. P730,000

10) At January 1, 2019, ABC Corporation had issued 12,000 ordinary shares. On May 31, 2019, ABC Corporation reacquired 2,000 ordinary shares as treasury stock. On June 30, 2019, ABC Corporation declared dividend P2 per share. What is the total amount of dividend declared?*

a. P28,000

b. P4,000

c. P24,000

d. P20,000

11) ABC Corporation acquired 5,000 shares of G&G Corporation ordinary shares on October 20, 2018 for P825,000. On Nov. 30, 2020. G&G Corporation distributed a 10% ordinary share dividend when the market price of the stock was P250 per share. On Dec. 20, 2020, ABC Corporation sold 500 shares of its G&G stock for P132,500 For the year ended Dec. 31, 2020, how much should ABC Corporation report as dividend revenues?*

a. P132,500

b. Zero

c. P125,000

d. P57,500

12) ABC Corporation has 100,000 ordinary shares authorized, has 60,000 ordinary shares issued and holds 6,000 ordinary shares as treasury stock. How many shares are outstanding?

a. 46,000

b. 40,000

c. 54,000

d. 94,000

13) At Dec. 31, 2018 and 2019, ABC Corporation had outstanding 2,000 shares of P1,000 par value, 5% cumulative preference shares and 10,000 shares of P100 par value ordinary shares. At Dec. 31, 2018, dividends in arrears on the preference shres were P50,000. Cash dividends declared in 2019 totaled P180,000. What amount were payable on ordinary shares?

a. P80,000

b. Zero

c. P30,000

d. P50,000

14) ABC Corporation has more than 200 shareholders of which are holding at least 100 ordinary shares. According to degree of participation, this corporation is

a. open corporation.

b. a close corporation.

c. publicly-held corporation.

d. de jure corporation.

15) Under the Revised Corporation Code of the Philippines, which of the following statements is correct?

a. At least 25% of the authorized capital stock must be subscribed and at least 25% of the subscribed must be paid-up.

b. If a corporation has commenced its business but subsequently becomes inoperative for a period of at least five consecutive years, its certificate of incorporation shall be deemed revoked as of the day following the end of the five-year period.

c. Majority of the incorporators must be resident of the Philippines.

d. Minimum number of directors is required for educational corporations.

16) Under the Revised Corporation Code of the Philippines, the signatories in the Articles of Incorporation are the incorporators and (blank).

a. chairman of the board.

b. secretary.

c. president.

d. treasurer.

17) Under the Revised Corporation Code of the Philippines, all of the following statements is correct EXCEPT

a. Singly or jointly with others but not more than five (5) in number, may organize a corporation for any lawful purpose or purposes.

b. OPC is inlucded in the coporate name.

c. Partnerships , organized for practicing a profession, shall not be allowed to organize as a corporation.

d. A separate treasurer's affidavit is no longer required in the registration of a corporation.

18) On Dec. 31, 2018 and 2019, ABC Corporation had 5,000 shares of P100 par, 6% cumulative preference shares outstanding. No dividends were arrears as of Dec. 31, 2017. ABC Corporation did not declare dividend during 2018. During 2019, ABC Corporation paid a cash dividend P20,000 on its preference shares. ABC Corporation should report dividends in arrears in its 2019 financial statements as

a. an accrued liability P30,000.

b. a disclosure of P30,000.

c. an accrued liability P40,000.

d. a disclosure of P40,000.

19) If rights and duties of each partner is to partnership, (blank) is to corporation.*

a. the term of existence if the corporation has not elected perpetual existence.

b. the required quorum in meetings of stockholders or members and the manner of voting therein

c. the modes by which a stockholder, member, director or trustee may attend meetings and cast their votes

d. in the case of stock corporation, the manner of issuing stock certificates

20) Under the Revised Corporation Code of the Philippines, which of the following is correct?

a. A majority of the directors must be Philippine residents.

b. 25% of the authorized capital must be subscribed and at least 25% of the total subscription must be paid upon subscription.

c. Minimum paid-in capital five thousand pesos (P5,000).

d. If the corporation did not elect perpetual existence, the maximum 50 years shall be the term of a corporation.

21) ABC Corporation issued 3,000 shares, P1,000 par value, 8% Preference shares upon receipt of P3,200,000 cash. What is the effect of the issuance of preference shares to shareholders?

a. Increase in preference shares outstanding

b. No effect on preference shares outstanding

c, Decrease in preference shares authorized

d. Increase in preference shares authorized

22) On Jan. 10, 2019, ABC Corporation declared a cash dividend P5,000,000 to shareholders of record on January 30, 2019. It was payable on February 14, 2019. The following data pertained to 2018: Profit for year ended December 31, 2018 is P1,900,000.; Share Premium at December 31, 2018 is P6,750,000; Retained Earnings on January 1, 2019 is P4,250,000. The P5,000,000 dividend included a liquidating dividend of*

a. P3,100,000

b. P4,850,000

c. Zero

d. P750,000