1. Which of the following statements is false?

a. When inventory is received from the home office, a branch increases its home office account

b. Shipments to branch is added to the home office's purchases account in determining the cost of goods sold

c. Both are true

d. Both are false

2. Popo Co. has a sales agency in Davao in which a separate account is maintained. The home office paid P5,000 for the rental on behalf of the agency. Which of the following will be part of the entries of the Home Office?

a. Debit to Accounts Receivable - Davao Agency

b. No entry

c. Debit to Davao Agency

d. Debit to Rent Expense - Davao Agency

3. Anya has the following expenses stated in Foreign Currency: Depreciation of 120,000 for asset acquired in January 2022; doubtful accounts expense of 80,000 and rent expense of 200,000. The exchange rates at various dates were as

follows: January 2022 at P0.40, December 2022 at P0.50, and average for year ended December 2022 is P0.44. What

total peso amount should be included in Pony's 2022 consolidated statement of Cl to reflect the expenses?

a. P68,000

b. P60,000

c. P183,200

d. P176,000

4. The Branch Current account in the home office books had a debit balance of P430,000 at December 31, 2020. The reciprocal accounts were equal at the beginning of the year. Determine the unadjusted balance of the Home Office account in the branch's books at December 31, 2020 given the following

a. The branch has not taken up its share of P9,000 for advertising expense.

b. Merchandise shipped by HO at P3,600 was taken by the branch at P3,000

c. The home office erroneously recorded as remittance of P5,500 from Cebu Branch when it was from Roxas Branch.

424,500

435,000

425,900

414,900