Our thoughts on CPA review:

The CPA review takes thought, time and effort.

When answering questions in the actual board exam, think deeply, consider all angles, and
be patient.
You will be a CPA in 2019.

Sean James Borja, Top 1 Bar Batch 2018

"Failure is not a disability, it’s just a bruise, and a setback can be the perfect setup for a
comeback if you just make it happen. Trust yourself, trust in the process, and know in your
heart it will be worth it when you reach that summit."

May 2019 Preweek

1. Under TRAIN, what is the rate of penalty imposed by the BIR
a.20% surcharge
b. 1/2 the rate of loan or forbearance of any money, goods or credits and in judgments
as prescribed by the BSP
c. Twice the rate of loan or forbearance of any money, goods or credits and in judgments
as prescribed by the BSP.
d.40% penalty

May 2019 Preweek: Local Taxation

Quezon City imposes real property tax within its territorial jurisdiction over lands, buildings
and other improvements in accordance to Local Government Code shall:
a. not exceed 1% of assessed value within its territorial jurisdiction where the property is
situated
b. Not exceed 1% of zonal value within its territorial jurisdiction where the owner resides
c. Not exceed 1% of fair market value within its territorial jurisdiction where the property and its
owner may be found.
d. Not exceed 2% of assessed value within its territorial jurisdiction where the property is situated.

May 2019 Preweek: Tax: CPAR Preweek Batch 85

Topic: General Principles of Taxation
Charles Antony Towns is a non-resident American citizen in the Philippines assigned as
consular head of the US Embassy in the Philippines. As consul he generates several passive
income from interest on bank deposit, royalties from intellectual creation and dividends from
several multinational corporation. BIR assessed Mr. Towns of deficiency income tax, as his
accountant what would you advise Mr. Towns?
a. BIR is erroneous because of international comity
b. BIR is erroneous because of territorial jurisdiction
c. BIR is correct but with application of reciprocity provision
d. BIR is correct but with application of tax paring rule.
ANS:
Justify your answer to help the others.
Embassy territory is a jurisdiction of the country occupying it..
Sa amerika sya dapat magbayad??? Right??
A. Ph govt cannot tax foreign ambassadors nor impose RPT upon foreign embassies
International comity pertains to both countries having recognized the same tax exemptions being imposed
on their respective citizens..
Ay tama hahaha B pala dapt. extension pla nung isang country yung embassy. Tama ba? Haha

May 2019 Preweek: Tax: CPAR Preweek Batch 85

Topic: General Principles of Taxation
A form of tax escape through which one is given immunity wherein others are subjected to
tax:
a. shifting
b. tax immunity
c. tax exemption
d. tax avoidance
ANS:
Justify your answer to help the others.
shifting - passing the tax burden to another taxpayer
tax immunity - not sur but i think it covers both exemption and amnesty
Tax exemption- immunity from civil liability
tax avoidance- use of legal method to reduce tax liability

May 2019 Preweek: Tax Remedies

Pre - Assessment Notice (PAN) is a communication issued by the Regional Assessment
Division, or any concerned BIR office, informing a taxpayer who has been audited of the
findings of the Revenue Officer, following the review of these findings.
This is a letter to the taxpayer by the BIR asking him to explain within a period of 15 days
from receipt why he should not be subject of an assessment notice.
A PAN should not be required in the following except
a. When the finding for any deficiency tax is the result of mathematical error in the computation of tax
appearing on the face of the tax return filed by the taxpayer.
b. When a discrepancy has been determined between the tax withheld and the amount actually
remitted by the withholding agent.
c. When an article locally purchased or imported by an exempt person, such as, but not limited to,
vehicles, capital equipment, machineries and spare parts, has been sold, traded or transferred to non-
exempt persons.
d. When there is an alleged fraud or non-filling of return when more than 30% was unduly over
declare or under declare.
ANS:
Donald verbally leased his house and lot to Barack for 2 years at a monthly rental of P5,000
a month. After the first year, Donald demanded a rental of P10,000 claiming that due to the
energy crisis, with the sudden increase of the price of oil, which no one expected, there was
also a general increase in prices. When Barack refused to vacate the house, Donald brought
an action for ejectment. Donald denied that they had agreed to a lease for 2 years. Is there a
contract of lease?
a. Yes, any contract of lease does not need to be in writing.
b. Yes, the Statute of Frauds do not apply since the contract herein is partially consummated.
c. No, absent any written contract, a lease cannot be established.
d. No, since the lessor denies the lease, it is conclusive.
ANS:
Pre Week: Corporation Code
Implications of corporation as an artificial being
1. The corporation cannot be held criminally liable particularly the penalty of imprisonment
but may be held liable for fines. The corporate officers who approve the particular corporate
crime will be the persons to be criminally liable.
2. As a general rule, a corporation is not entitled to moral damages because, not being a natural
person, it cannot experience physical suffering or sentiments like wounded feelings, serious anxiety,
mental anguish and moral shock except when a corporation has a reputation that is debased, resulting
in its humiliation in the business real or in case of libel.
3. The corporation is not entitled to right against self-incrimination.
Preweek Law: Corporation Code
Doctrine of separate personality. A corporation has a personality separate and distinct from
the stockholders and affiliated companies.
Piercing the veil of corporate fiction is an exception to doctrine of separate personality.
Happens when:
1. Fraud cases - When corporate fiction is used to commit fraud.
2. Alter ego cases - When the corporation is a mere instrumentality of the stockholders.
3. Defeat public convenience cases - When the corporate fiction is used to commit tax evasion or
justify a wrong or defend a crime.
4. Equity cases – When the corporate fiction is used to commit tax evasion.
Preweek Law: Corporation Code
Limited liability rule means that the stockholders are liable only up to the extent of their
capital contribution when it comes to corporation’s liabilities.
Why is auditing important in a free market society?
a. The public requires auditors to function as divisions of regulatory bodies.
b. Auditors detect all errors and fraud perpetrated by company employees.
c. Audits provide reliable information upon which to judge economic performance.
d. The auditor is a form of insurance policy for investors.
ANS: ?
How is rescission different from resolution?
a.In rescission, the only ground is failure of one of the parties to comply with what is
incumbent upon him; whereas in resolution, several grounds are lesion, fraud and others
expressly specified by law.
b. In rescission, the action may be instituted not only by a party to the contract but even by
third persons; whereas in resolution, the action may be instituted only by a party to the
contract.
c. In rescission, the law expressly declares that courts shall the discretionary power to grant an
extension for performance provided that there is a just cause; whereas in resolution, the court has no
power to grant an extension of time for the performance of the obligation so long as there is ground
for resolution.
d. In rescission, only reciprocal contracts may be rescinded, whereas in resolution, any contract
whether unilateral or reciprocal may be resolved.
ANS:
When income tax expense for a period is greater than income tax payable the difference will
be reported how and on which financial statement?
a. Deferred tax asset and Statement of Cash Flows
b. Deferred tax asset and Balance Sheet
c. Deferred tax liability and Statement of Cash Flows
d. Deferred tax liability and Balance Sheet
ANS: ?
P.S. More questions like these in iCPA Test Premium.
Solve and show a solution:
A project has a NPV of P15,000 when the cutoff rate is 10%. The annual cash flows are
P20,505 on an investment of P50,000. the profitability index for this project is
X - 50k = 15k

X = 65k

65/50k = 1.3

Profitability index =(Npv + initial investment)/ initial investment

=(15000+ 50000)/50000
=1.3

Solve and show a solution

Signal Co. manufactures a single product. For 2020, the company had sales of P90,000,
variable costs of P50,000, and fixed costs of P30,000. Signal expects its cost structure and
sales price per unit to remain the same in 2021, however, total sales are expected to jump by
20%. If the 2021 projections are realized, net income in 2021 should exceed net income in
2020 by
CM before 20% increase: 40k
Net income = 10k (40k - 30k)

CM after 20% increase: 48k (40k x 1.2)

Net income = 18k (48k - 30k)

Increase in income = 8k or 80% (8k/10k)

80% or 8k (18k-10k). Kasama sa first preboard namin sa MAS to sa CPAR.

CM: 40k x 1.2 = 48k NewCM

48k-30k(Fc)= 8k increase in N.I

90x1.2-50(1.2)-30=18k -10k =8k

Net Income in 2020= 90-50-30= 10k

Net Income in 2021= [(90-50)*1.2]-30= 18k
Increase of 8k

Solve and show a solution:

Escanaba Company has 200 units of an obsolete component. The variable cost to produce
them was P10 per unit. They could now be sold for P1.75 each and it would cost P7.60 to
make them now. If the units could be used to make a product for a special order, their
relevant cost is
1.75 is the relevant cost

Solve and show a solution

The Fields Company is planning to purchase a new machine which it will depreciate, for
book purposes, on a straight-line basis over a ten-year period with no salvage value and a
full year’s depreciation taken in the year of acquisition. The new machine is expected to
produce cash flow from operations, net of income taxes, of P66,000 a year in each of the
next ten years. The accounting (book value) rate of return on the initial investment is
expected to be 12%. How much will the new machine cost?
Let x= initial investment 12% = [66k-(x/10)]/ x 12%x = 66k-(x/10) 1.2x= 660k-x 2.2x= 660k x= 300k

12% = [66k-(X/10)] / X

X = 300,000

Solve and show solution

Scrambled Brain Company has fixed costs of P90,000. At a sales volume of P300,000,
return on sales is 10%; at a P500,000 volume, return on sales is 22%. What is the break-
even volume?
Diff. in income / Diff in. Sales = CMR

(500 x 22%) - (300 x 10%)

----------------------------------
500 - 300

= 40%

90,000 / 40% = 225000

P300,000 × 10% = P30,000

P30,000 + 90,000 = P120,000
P120,000 / P300,000 = 40%
BEP = 90,000 / 40% = P225, 000

Contracts/CPAR Preweek
A borrowed P1 million from B. A mortgaged his land to secure the fulfillment of the contract
of loan. The real estate mortgage contract provides that B will become the automatic owner
of the land upon default of A. At the maturity date of the loan, A defaulted. B foreclosed the
real estate mortgage and tried to sell it in public auction. Two public auctions were held, but
there were no bidders. Which is correct?
a. B may appropriate the land since it is not sold in the first and second public auctions.
b. B becomes the owner of the land upon default of A since that is provided in the contract.
c. A is no longer liable to pay the loan since the land is not sold in the first and second public auctions.
d. A remains to be the owner of the land and remains to be liable to B.
ANS:

Solve and show solution:

An organization offers its customer credit terms of 5/19 net 20. One-third of the customers
take the cash discount and the remaining pay on day 20. On average, 20 units are sold per
day, priced at P10,000 each. The rate of sales is uniform throughout the year. Using a 360-
day year, the organization has days sales outstanding in accounts receivable, to the nearest
full day of,
19days*1/3=6.33~6days
20days*2/3=13.33~13days
Age of AR/collection period=6+13=19days
Solve and show solution
Tarzan Mfg. is planning to purchase a new machine which it will depreciate, for book
purposes, on a straight-line basis over a 10-year period with no salvage value and full year’s
depreciation taken in the year of acquisition. The new machine is expected to produce cash
flow from operations net of taxes, of P66,000 a year in each of the next 10 years. A 12%
accounting (book value) rate of return on the initial investment is expected. How much will
the new machine cost?
300, 000
ARR=NI/INV
12%=(66000-1/10x) ÷ x
x= (66000-1/10x) ÷ 12%
x = 550000 - 0.833333333x
1.0833333333x = 550000
x = 550000 / 1.0833333333x
x=300000

Checking for solution:

30000p/10=30000 depn
Net cashflow of 66000-30000 depn = 36000 net income
Therefore, ARR=36000/300000
12%.

correct me too, it's just based on what i understand po.

300,000 workback lang po

Solve and show solution:

Rainstorm, Ltd. Is planning to spend P84,000 on a new machine, to be depreciated on the
straight-line basis over 10 years with no salvage value. The related cash flow from
operations, net of income taxes, is expected to be P10,000 a year for each of the first 6
years and P12,000 for each of the next 4 years. What is the payback period?
CF (10,000 x 6 years) + (12,000 x 2 years) = 84,000 cost of investment
8 yrs

Solve and show solution:

Hercules Inc. invested in a machine with a useful life of 6 years and no salvage value. The machine
was depreciated using the straight-line method. It was expected to produce annual cash inflow from
operations, net of income taxes, of P2,000. The present value of an ordinary annuity of P1 for six
periods at 10% is 4.355. The present value of P1 for six periods is 0.564. Assuming that Hercules used
a time adjusted rate of return of 10%, what was the amount of the original investment?

Cost of Investment = after tax cash flow x pvoa of irr

2000 x 4.355 = 8710

An obligation ceases to be alternative and becomes a simple obligation in the following cases, except:
a. when the debtor has communicated his choice to the creditor.
b. when the right of choice has been expressly granted to the creditor and his choice has been
communicated to the debtor.
c. when among the several prestations that are due only one is practicable.
d. when three prestations are due but one of them is unlawful or impossible.
ANS:
RFBT/Obligation/CPAR Preweek
While on the way to deliver an 18K diamond ring to B and P100,000 in payment of his debt
to B, A (debtor) was robbed. What is the effect of this to his obligation?
a. Extinguished as to P100,000 but not as to ring.
b. Extinguished as to ring but not as to P100,000
c. Both obligations are not extinguished because generic thing never perishes.
d. The obligations to the ring and P100,000 are both extinguished.
ANS:

Audit Theory
Which of the following is not a factor that would impact the effectiveness of a substantive
analytical procedure?
a. Nature of the assertion being tested.
b. Plausibility and predictability of the relationships in the data.
c. Excessive disaggregation of the relevant data.
d. Rigor of the analytical procedure employed.

RFBT/Corporation Law/CPAR Preweek

When does the juridical personality of a private corporation commence?
a. From the moment of execution of contract among the incorporators of the corporation.
b. From the moment of submission of articles of incorporation by the incorporators to the SEC
c. From the moment of obtaining consent among the incorporators.
d. From the moment of issuance by SEC of Certificate of Registration
ANS:

RFBT/CPAR Preweek
On January 1, 2000, Vendor Inc. sold a specific car to Buyer Inc with payment to be made
after two months. The parties agreed that Vendor Inc shall deliver the car to Depositary Inc in
behalf of Buyer Inc. Depositary Inc has the obligation to preserve the said car until Buyer Inc
obtains the same. On January 2, 2000, Vendor Inc actually delivered the car to Depositary
Inc. On January 3, 2000, the car was destroyed by a storm while it was in Depositary’s
possession. Who shall suffer the risk of loss?
a. Buyer Inc. because it is already the owner at the time of loss.
b. Depositary Inc even it exercised ordinary diligence to prevent or minimize the loss during the
storm.
c. Vendor Inc because actual possession has not yet been given to Buyer Inc.
d. Vendor Inc because non-payment of the price will result to non-transfer of ownership to Buyer Inc.
RFBT/Obligations/CPAR Preweek
A, B and C wrote and signed a promissory note which states “We promise to pay D and E
P60,000.” At the maturity date of the note, D indorsed back the promissory note to A. How
much obligation is extinguished and by what mode of extinguishments of obligation?
a. P20,000 by confusion
b. P60,000 by compensation
c. P30,000 by remission
d. P10,000 by merger
joint debtors and creditors, share ni creditor sa credit na pwedeng isingil per debtor limited up to
10,000(60,000 /2creditors=30,000/3debtors=10,000) at yun lng extinguished
Audit Theory
Directional testing involves testing transactions or balances for which type of error?
a. Overstatement.
b. Understatement.
c. Either overstatement or understatement.
d. Neither overstatement nor understatement.
ANS:
There are two types of directional testing bro. Vouching (overstatement) and tracing
(understatement).

You can read Auditing Theory by Salosagcol.

Which of the following attributes contributes to the reliability and usefulness of audit
reporting?
a. The audit methodology is well structured.
b. Quality technical support is available when auditors require guidance.
c. Auditors appropriately conclude as to the truth and fairness of the financial statements.
d. The audit work is effectively reviewed.
ANS: ?

RFBT/Contract of Sales
S sold a residential condo unit to B at an installment proceeds of P6 million payable in 50
years at a monthly rental of P10,000 per month. After payment of several installments
totaling P1,200,000, B defaulted in the payment of remaining installments which resulted to
the cancellation of the contract of sale after the lapsing of the grace period prescribed by law.
What is the amount of cash surrender value to be received by B from S as a result of the
cancellation.
ANS:
1 200 000 / 10 000 = 120 payments
120 payments / 12 = 10 years

RA 6552 Section 3 par. b

(b) If the contract is canceled, the seller shall refund to the buyer the cash surrender value of the payments
on the property equivalent to fifty per cent of the total payments made, and, after five years of installments,
an additional five per cent every year but not to exceed ninety per cent of the total payments made:
Provided, That the actual cancellation of the contract shall take place after thirty days from receipt by the
buyer of the notice of cancellation or the demand for rescission of the contract by a notarial act and upon
full payment of the cash surrender value to the buyer.

5 years = 50%
6 years = 55%
7 years = 60%
8 years = 65%
9 years = 70%
10 years = 75% ( eto ang multiplier mo sa total payments made)

1 200 000 x 75% = 900 000

1,200,000/10,000 a month =120 months or 10 years

5 years - 50% plus 5% every year but not to exceed 90%

5 years = 50 years + (5% x 5 years) = 75%

1200000 x 75% = 900000

RFBT/Cooperative Law/CPAR Preweek

Which of the following is not a purpose of Cooperative Unions?
a.To acquire, analyze, and disseminate, economic, statistical, and other information relating
to its members and to all types of cooperatives within its area of operation.
b. To carry on, encourage, and assist educational and advisory work relating to its member
cooperatives.
c. To sponsor studies in the economic, legal, financial, social and other phases of cooperation, and
publish the results and to represent its member organization.
d.To promote the knowledge of cooperative principles and practices and to develop the cooperative
movement in their respective jurisdictions.
ANS:????
B. Its one of the functions of a Federation of Cooperatives not a Cooperative Union.

B. Basta may word na "member cooperatives", Federation yan.

Last January 2019, coins.ph was acquired by Go Jek Indonesia. Which of the following
valuation method was used to value Coins.ph?
a. Net asset value
b.Dividend yield
c. Discounted cash flow
d. Price-earnings
ANS:
Kung sa AFAR, Fair Market Value of Net Asset. Pero pag hindi given, Book Value na lang?
Based sa IFRS...

Solve and show solution:

Six-Two Convenience Store currently opens only Monday through Saturday. Six-Two is
considering opening on Sundays. The annual incremental fixed costs of Sunday openings
are estimated at P39,000. Six-Two’s gross margin on sales is 25 percent. Six-Two estimates
that 60 percent of its Sunday sales to customers would be made on other days if the stores
were not open on Sundays. The one-day volume of Sunday sales that would be necessary
for Six-Two to attain the same weekly operating income as the current six-day week is
ANS: P7,500

(39,000/ 52)
= ———————
25% x 40%

750
= ——-
10%

=7,500

Is the Gross Margin here in this problem, considered as Contribution Margin?

Solve and show Solution

Gorilla, Co. provides two products, M and W. M accounts for 60 percent of total sales,
variable cost as a percentage of selling price are 60% for M and 85% for W. Total fixed costs
are P225,000. If fixed costs will increase by 30 percent, what amount of peso sales would be
necessary to generate an operating profit of P48,000?
ANS: 1,135,000
M (60% x 40%) = 24%
W (40% x 15%) = 6%
CMR = 30%

225,000 x 1.3 = 292,500

+ 48,000
= 340,500
/ 30%
= 1,135,000

Solve and show the solution

Signal Co. manufactures a single product. For 2020, the company had sales of P90,000,
variable costs of P50,000, and fixed costs of P30,000. Signal expects its cost structure and
sales price per unit to remain the same in 2021, however, total sales are expected to jump by
20%. If the 2021 projections are realized, net income in 2021 should exceed net income in
2020 by
ANS: 80%
S 90,000
VC (50,000)
————————
CM 40,000
FC (30,000)
————————
NI 10,000

2021:
CM 2020 40,000
X 120%
——————-
48,000
FC (30,000)
———————
NI 18,000

18,000-10,000
———————-
10,000

= 80%

You can learn more by spending less time studying.

1. Set concrete studying hours that leave room for rest time.
2. Switch passive learning tasks to active ones (take tests rather than continue reading
notes).
3. Study in a comfy but distraction-free working environment.
Solve Me 😛
Edwin Company was incorporated on January 1, 2018 with proceeds from the issuance of
P750,000 in shares and borrowed funds of P110,000. During the first year of operations,
revenue from sales and consulting amounted to P82,000, and operating costs and expenses
totalled P64,000. On December 15, the entity declared a P3,000 cash dividend, payable to
shareholders on January 15, 2018. No additional activities affected owner’s equity in 2018.
The liabilities increased to P120,000 by December 31, 2018. What amount should be
reported as total assets on December 31, 2018?
Quick Answer: P885,000
Solve Me 😛
Colger Company manufactures a single product using standard costing. Variable production
costs are P12 and fixed production costs are P125,000. Colger uses a normal activity of
12,500 units to set its standard costs. Colger began the year with 1,000 units in inventory,
produced 11,000 units, and sold 11,500 units. The standard costs of goods sold under
absorption costing would be?
Quick Check: P253,000
Cost/unit = 12 + (125,000/12,500) = 22
11,500 × 22 = 253,000

Inventories should be measured at the lower of cost, and net realizable value (NRV).
Cost includes all costs to bring the inventories to their present condition and location.
If specific cost is not determinable, the benchmark treatment is to use either the first in, first
out (FIFO) or weighted average cost formulas.
The cost of inventory is recognized as an expense in the period in which the related revenue is
recognized.
If inventory is written down to NRV, the write-down is charged to expense. Any reversal of such a
write-down in a later period is credited to income by reducing that period’s cost of goods sold.
Required disclosures include:
o accounting policy and the carrying amount of inventories by category,
o the carrying amount of inventory carried at NRV and amount of any reversal of a write-down,
o the carrying amount of inventory pledged as security for liabilities,
o the cost of inventory charged to expense for the period.
Accrue deferred tax liability for nearly all taxable temporary differences.
Accrue deferred tax asset for nearly all deductible temporary differences if it is probable a tax
benefit will be realized.
Accrue unused tax losses and tax credits if it is probable that they will be realized.
Use tax rates expected at settlement.
Current and deferred tax assets and liabilities are measured using the tax rate applicable to
undistributed profits.
Non-deductible goodwill: no deferred tax.
Unremitted earnings of subsidiaries, associates, and joint ventures: Do not accrue tax.
Capital gains: Accrue tax at an expected rate.
Do not "gross up" government grants or other assets or liabilities whose initial recognition differs
from the initial tax base.
May 2019 CPA Exam
Practice answering questions under exam conditions. This will help you in your retention.
The CPA dream is a product of a clear study strategy and relentless effort.
Which of these constitutes fraud?
a. The usual exaggeration in trade if the other party had an opportunity to know the facts.
b. An expression of opinion which did not turn out to be true if made by an expert and the
other party relied on it.
c. Failure to disclose facts when there is no duty to reveal them.
d. A misrepresentation made in good faith.
ANS:
Question for the Day:
Understanding the client’s business environment is important to the auditor because
a. it helps distinguish interim audit work from year-end audit work
b. management’s draft financial statements contain assertions about the business
environment
c. it helps the auditor to assess the risks that the financial statements contain misstatements
d. it eliminates the need for the auditor to understand the auditee’s internal controls
ANS: C
Question of the Day (Auditing):
Events that can adversely affect the company, such as asset losses due to theft or spoilage,
accounting errors and their consequences, revenue losses, expense overruns, business
interruptions, fraud and embezzlement, fines and penalties, civil liabilities, and losses of
competitive advantage are called:
a. risk exposures.
b. loss exposures.
c. internal control areas.
d. audit exposures
ANS:
Question of the Day (Globalization):
On May 1, 2014, Mint Corporation purchased merchandise from a German firm for 78,000
euros when the spot rate for the euro was 1.48 euro per dollar. The account payable was
denominated in the euro. Mint settled the account on August 1 when the spot rate for the
euro was 1.39 euro per dollar. How much cash will Mint have to disburse to settle the
account?
ANS:
78,000 Euros or $56,115.11

78,000 ÷ 1.39 = 56,115.11

A derivative is a financial instrument that derives its value from the price or rate of an
underlying item.
1. Forward contracts
These are agreements to buy or sell an asset at a fixed price at a fixed future date.
2. Future contracts
Similar to forward contracts except that contracts are standardized and traded on an exchange.
3. Options
Rights (but not obligations) for the option holder to exercise at a pre-determined price; the option
writer loses out if the option is exercised.
4. Swaps
Agreements to swap one set of cash flows for another (normally interest rate or currency swaps).
The value of derivatives depends on MOVEMENTS in an underlying item (such as an exchange rate).
A company which has derivatives is exposed to uncertainty and risk (potential gain or loss) and this
can have a very material effect on its financial performance, financial position and cash flows.
Refresher Certificate Program FAQs
We ventured into this Refresher Certificate Program with NRC Review Center because we
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exam.
What is a refresher?
The law requires that you undergo a Refresher Certificate after 2 failures in any licensure
examination. The certificate is valid for 2 retakes.
NRC iCPA Refresher Program
This is a hybrid review program that uses traditional classroom instruction and iCPA developed
technologies.
How much does it cost?
Enrollment Fee: P4,600
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Total Learning Fee: P8,600
NRC Income: P8,100
iCPA Income: P500
I live in the province, do I need to go to Manila?
No need. If there are many enrollees in your place we can go to your place.
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Yes, we can provide hardcopy materials for a fee.
Fill up this form: http://bit.ly/2EO13k9
Chattel mortgage is a conditional sale of personal property as security for the payment of a
debt, or the performance of some other obligation specified therein, the condition being that
the sale shall be void upon the seller paying to the purchaser a sum of money or doing some
other act named. If the condition is performed according to its terms the mortgage and sale
immediately become void, and the mortgagee is thereby divested of his title.
Essential requisites of contract of chattel mortgage
a. That it be constituted to secure the fulfillment of a principal obligation or contract of loan.
b. That the mortgagor be the absolute owner of the thing mortgaged.
c. That the person constituting the mortgage must have the free disposal of his property, and in the
absence thereof, that he be legally authorized for the purpose.
d. That the document in which the mortgage appears be recorded in the Chattel Mortgage Register.
Characteristics Contract of chattel mortgage
a. Accessory - It cannot exist without a principal obligation.
b. Indivisible - It creates a lien on the whole or all of the properties mortgaged, which lien continues
until the obligation is secures has been fully paid.
c. Inseparable - It subjects the property upon which it is imposed, whoever the possessor may be, to
the fulfillment of the obligation for whose security it was constituted.
d. Formal contract - It is perfected by the registration if the chattel mortgage register.
Subject matter of chattel mortgage
a. Personal property
b. Movable property
Rules for the place of registration of Chattel Mortgage
a. As a general rule, it must be recorded in the Chattel Mortgage Register of the province where the
mortgagor resides.
b. If must be recorded in the both Chattel Mortgage Registers of the provinces where the mortgagor
resides and where the property is located if the property is not located in the province of domicile of
the mortgagor.
c. If the mortgagor is domiciled outside the Philippines, the mortgage must be registered in the Chattel
Mortgage Register where the property is located.
d. With respect to motor vehicles, it must be registered Chattel Mortgage Register where the
mortgagor resides and LTO.
e. With respect to shares of stock, Chattel Mortgage Register in the province where the corporation
has its principal office and in the domicile of the mortgagor.
f. With respect to vessel, Bureau of Customs at port of entry.
Rules in deficiency or excess in foreclosure of chattel mortgage
a. Rule in case of deficiency
The mortgagee can recover the deficiency in the absence of stipulation to the contrary.
b. Rule in case of excess
The mortgagor is entitled to the excess in the absence of stipulation to the contrary.

May 2019 Preweek: Local Taxation

Quezon City imposes real property tax within its territorial jurisdiction over lands, buildings
and other improvements in accordance to Local Government Code shall:
a. not exceed 1% of assessed value within its territorial jurisdiction where the property is
situated
b. Not exceed 1% of zonal value within its territorial jurisdiction where the owner resides
c. Not exceed 1% of fair market value within its territorial jurisdiction where the property and its
owner may be found.
d. Not exceed 2% of assessed value within its territorial jurisdiction where the property is situated.
ANS:
D.. since MMA (Metro Manila Area)

D City 2% Prov. 1%