Académique Documents
Professionnel Documents
Culture Documents
AUDITING THEORY
I. Topic(s):
Code of Ethics
III. Rundown
Please read and understand the other file entitled “Code of Ethics.pdf”
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Copyright of Prof. Hector U. Santos Jr., CPA, MBA
This online resource is intended solely to whom it is authorized to receive it. If you are not the intended recipient you are hereby notified that
any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be
unlawful.
SAINT VINCENT DE FERRER COLLEGE AUGUST 2019
BS ACCOUNTANCY (1st semester SY 2020-2019) Part 3
ONLINE RESOURCES by Prof. Hector Santos Jr., CPA, MBA
I. Topic(s):
Systems Design: Job-Order Costing
III. Rundown
2
Copyright of Prof. Hector U. Santos Jr., CPA, MBA
This online resource is intended solely to whom it is authorized to receive it. If you are not the intended recipient you are hereby notified that
any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be
unlawful.
SAINT VINCENT DE FERRER COLLEGE AUGUST 2019
BS ACCOUNTANCY (1st semester SY 2020-2019) Part 3
ONLINE RESOURCES by Prof. Hector Santos Jr., CPA, MBA
THEORY OF ACCOUNTS
I. Topic(s):
CASH AND CASH EQUIVALENTS
BANK RECONCILIATION
III. Rundown
Please read the latest textbook version of “Financial Accounting Volume 1” by Valix
Chapter 3 and 4
Cash Equivalents
Under PAS 7 it is defined as short-term and highly liquid investments that are readily
convertible into cash and so near their maturity that they present insignificant risk of changes
in value because of changes in interest rates.
The standard states that only highly liquid investments that are acquired three months before
maturity can qualify as cash equivalents.
Examples of cash equivalents are:
a. Three-month BSP treasury bill
b. Three-month BSP treasury bill purchased three months before date of maturity
c. Three-month time deposit
d. Three-month money market instrument
Compensating Balance
A set of amount of cash that a firm must keep to its checking account or savings accounts at
all times as part of loan agreement.
Bank Reconciliation
Bank Reconciliation
is a statement which brings into agreement the cash balance per bank and cash balance
per book. It is usually prepared monthly because the bank provides the depositor with the
bank statement at the end of every month.
Bank Statement
is a monthly report of the bank to the depositor showing the cash balance per bank at the
beginning, the deposits acknowledged, the checks paid, other charges and credits and the
daily cash balance per bank during the month.
Reconciling Items
At the end of every month, comparison between the cash records of the depositor and the
bank statement received from the bank will yield the following reconciling items:
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Copyright of Prof. Hector U. Santos Jr., CPA, MBA
This online resource is intended solely to whom it is authorized to receive it. If you are not the intended recipient you are hereby notified that
any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be
unlawful.
SAINT VINCENT DE FERRER COLLEGE AUGUST 2019
BS ACCOUNTANCY (1st semester SY 2020-2019) Part 3
ONLINE RESOURCES by Prof. Hector Santos Jr., CPA, MBA
Credit Memos
Refer to items not representing deposits credited by the bank to the account of the
depositor, but not yet recorded by the depositor as cash receipts.
Examples of credit memos are:
a. Notes receivable collected by the bank in favor of the depositor and credited to
the account of the depositor
b. Proceeds of bank loan credited to the account of the depositor
c. Matured time deposits transferred by the bank to the current account of the
depositor
Debit Memos
Refer to items not representing checks paid by the bank which are charged or debited by
the bank to the account of the depositor but not yet recorded by the depositor as cash
disbursements.
Examples of debit memos are:
a. NSF checks
b. Defective checks
c. Bank service charges
d. Reduction of loan
Deposit in Transit
Collections already recorded by the depositor as cash receipts but not yet reflected on the
bank statement.
Outstanding Checks
Checks already recorded by the depositor as cash disbursements but not yet reflected on
the bank statement.
Outstanding checks include:
a. Checks drawn and already given to payees but not yet presented for payment.
b. Certified checks – is one where the bank has stamped on its face the word
“accepted” or “certified” indicating sufficiency of fund.
Certified checks should be deducted from the total outstanding checks because
they are no longer outstanding for bank reconciliation purposes
5
Copyright of Prof. Hector U. Santos Jr., CPA, MBA
This online resource is intended solely to whom it is authorized to receive it. If you are not the intended recipient you are hereby notified that
any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be
unlawful.
SAINT VINCENT DE FERRER COLLEGE AUGUST 2019
BS ACCOUNTANCY (1st semester SY 2020-2019) Part 3
ONLINE RESOURCES by Prof. Hector Santos Jr., CPA, MBA
BUSINESS LAW
I. Topic(s):
Law on Business Transactions - Contracts
III. Rundown
Please read above topic in the latest textbook version of “Obligation and Contract” by Hector S.
De Leon
6
Copyright of Prof. Hector U. Santos Jr., CPA, MBA
This online resource is intended solely to whom it is authorized to receive it. If you are not the intended recipient you are hereby notified that
any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be
unlawful.
SAINT VINCENT DE FERRER COLLEGE AUGUST 2019
BS ACCOUNTANCY (1st semester SY 2020-2019) Part 3
ONLINE RESOURCES by Prof. Hector Santos Jr., CPA, MBA
ONLINE ASSESSMENTS
Reminders:
1. Should be submitted using excel format on or before January 15, 2020 exclusively to
saintvincentdeferrercollege@yahoo.com
2. Answers should follow below format for easy checking
a. Mutiple Choice
Multiple
Choice AT TOA MAS BL
1 a a b a
2 c a a a
3 a a b a
4 c a a a
5 a a b a
6 c
7 a
8 a
9 c
10 a
b. True or False
True or
False AT TOA MAS BL
1 True False True False
2 True False True False
3 True False True False
4 True False True False
5 True False
6 True False
7 True False
8 True False
9 True False
10 True False
c. Identification
True or
False AT TOA MAS BL
Management
1 PSA GAAP Accounting Obligatio
2 AASC
3
4
5
6
7
8
9
10
d. Problem Solving
– must write/type the solution and answer.
e. Fill in the blanks
– must write the question and answer
3. Excell file should have a file name which consists of surname, first name and part
number (Example: SantosHectorPart1, DelaCruzJuanPart1, etc.)
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Copyright of Prof. Hector U. Santos Jr., CPA, MBA
This online resource is intended solely to whom it is authorized to receive it. If you are not the intended recipient you are hereby notified that
any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be
unlawful.
SAINT VINCENT DE FERRER COLLEGE AUGUST 2019
BS ACCOUNTANCY (1st semester SY 2020-2019) Part 3
ONLINE RESOURCES by Prof. Hector Santos Jr., CPA, MBA
QUESTIONS:
(Multiple Choice, Computation & Identification)
Auditing Theory
a. Independence
b. Integrity and objectivity
c. General standards
d. Compliance with standards
e. Accounting principles
f. Confidential client information
g. Contingent fees
h. Acts discreditable
i. Advertising and other forms of solicitation
j. Commissions and referral fees
k. Form of practice and name
c. Technical Standards
d. Confidence
3. In the marketing and promotion of themselves and their work, professional accountants
may make claims for the services they are able to offer, the qualifications they possess,
or experience they have gained.
4. If a firm, or a network firm, has a direct financial interest in an audit client of the firm, the
self-interest threat created would be so significant no safeguard could reduce the threat
to an acceptable level. The action appropriate to permit the firm to perform the
engagement would be to dispose of the financial interest
Safeguards created by the profession, legislation or regulation, include the policies and
procedures that emphasize the assurance client’s commitment to fair financial reporting.
5. Professional accountant who author books or articles on professional subjects, may not
state
a b c d
His or her name Yes Yes Yes No
Professional qualifications Yes Yes Yes No
Name of organization Yes Yes No No
Information as to the services his or her firm
provide Yes No No Yes
9
Copyright of Prof. Hector U. Santos Jr., CPA, MBA
This online resource is intended solely to whom it is authorized to receive it. If you are not the intended recipient you are hereby notified that
any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be
unlawful.
SAINT VINCENT DE FERRER COLLEGE AUGUST 2019
BS ACCOUNTANCY (1st semester SY 2020-2019) Part 3
ONLINE RESOURCES by Prof. Hector Santos Jr., CPA, MBA
1. At the end of April, Good News Company had completed Job 766 and 765. Job 766 is for 675
units, and Job 765 is for 900 units. According to the individual job cost sheets the information is
as follows:
Job 765 produced 152 units, and Job 766 consisted of 250 units.
Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $150
per hour, determine the cost per unit of Job 766 and Job 765 at the end of April.
2. Put the following in the order of the flow of manufacturing costs for a company
a. Closing under/over applied factory overhead to cost of goods sold
b. Materials purchased
c. Factory labor used and factory overhead incurred in production
d. Completed jobs moved to finished goods
e. Factory overhead applied to jobs according to the predetermined overhead rate
f. Materials requisitioned to jobs
g. Selling of finished product
h. Preparation of financial statements to determine gross profit
3. A manufacturing company applies factory overhead based on direct labor hours. At the beginning of
the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be
45,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were
46,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the
year?
a. $17,000 overapplied b. $17,000 underapplied.
c. $9,200 overapplied d. $9,200 underapplied.
4.Selected accounts with some debits and credits omitted are presented as follows:
Work in Process
Aug. 1 Balance 275,000 Aug. 31 Goods finished 1,230,000
31 Direct materials X
31 Direct labor 350,000
31 Factory overhead X
Factory Overhead
Aug. 1-31 Costs incurred 90,000 Aug. 1 Balance 15,000
31 Applied X
If the balance of Work in Process at August 31 is $200,000, what was the amount debited to Work in
Process for factory overhead in August, assuming a factory overhead rate of 30%?
a. $105,000
b. $120,000
c. $90,000
d. $70,000
5. On the balance sheet for a manufacturing business, the cost of direct materials, direct labor,
and factory overhead, which have entered into the manufacturing process but are associated
with products that have not been finished, is reported as direct materials inventory. True or
False?
10
Copyright of Prof. Hector U. Santos Jr., CPA, MBA
This online resource is intended solely to whom it is authorized to receive it. If you are not the intended recipient you are hereby notified that
any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be
unlawful.
SAINT VINCENT DE FERRER COLLEGE AUGUST 2019
BS ACCOUNTANCY (1st semester SY 2020-2019) Part 3
ONLINE RESOURCES by Prof. Hector Santos Jr., CPA, MBA
A receiving report is prepared when purchased materials are first received by the
manufacturing department. True or False?
In the job order system, the finished goods account is the controlling account for the factory
overhead ledger. True or False?
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Copyright of Prof. Hector U. Santos Jr., CPA, MBA
This online resource is intended solely to whom it is authorized to receive it. If you are not the intended recipient you are hereby notified that
any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be
unlawful.
SAINT VINCENT DE FERRER COLLEGE AUGUST 2019
BS ACCOUNTANCY (1st semester SY 2020-2019) Part 3
ONLINE RESOURCES by Prof. Hector Santos Jr., CPA, MBA
Theory of Accounts
If the balance in Cash Short and Over at the end of a period is a credit, it indicates that
cash shortages have exceeded cash overages for the period. True or False?
The bank often informs the depositor of bank service charges by including a credit
memorandum with the monthly bank statement. True or False?
Bank customers are considered creditors of the bank so the bank shows their accounts
with credit balances on the bank's records. True or False?
2. In preparing a bank reconciliation, the amount of deposits in transit is deducted from the
balance per bank statement. True or False?
In preparing a bank reconciliation, the amount of a check omitted from the journal is
added to the balance per depositor's records. True or False?
A check outstanding for two consecutive months will appear only on the first month's
bank reconciliation. True or False?
Most companies who have several bank accounts, petty cash, and cash on hand,
would list each separately on the balance sheet. True or False?
A petty cash fund is used to pay relatively large amounts. True or False?
The petty cash fund eliminates the need for a bank checking account. True or False?
4. The notification accompanying a check that indicates the specific invoice being paid is
called a
a. remittance advice b. voucher
c. debit memorandum d. credit memorandum
5. Following the completion of the bank reconciliation, an adjusting entry was made that
debited cash and credited Interest Revenue. Therefore the bank reconciliation must have
included an item that was
a. deducted from the balance per depositor's records
b. deducted from the balance per bank statement
c. added to the balance per bank statement
d. added to the balance per depositor's records
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Copyright of Prof. Hector U. Santos Jr., CPA, MBA
This online resource is intended solely to whom it is authorized to receive it. If you are not the intended recipient you are hereby notified that
any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be
unlawful.
SAINT VINCENT DE FERRER COLLEGE AUGUST 2019
BS ACCOUNTANCY (1st semester SY 2020-2019) Part 3
ONLINE RESOURCES by Prof. Hector Santos Jr., CPA, MBA
Business Law
1. May the validity or compliance of a contract be left to the will of one of the parties?
2. Suppose the offerer has allowed the offeree a certain period to accept. May the offer be
withdrawn even before expiration period?
Does a threat to enforce one’s claim through competent authority vitiate consent?
5. A contract shall be obligatory or binding in whatever form it may have been entered into
provided part of the essentials requisites for its validity are present?
There is an undue influence when a person takes improper advantage of his power over
the will of another depriving the later reasonable freedom of choice?
13
Copyright of Prof. Hector U. Santos Jr., CPA, MBA
This online resource is intended solely to whom it is authorized to receive it. If you are not the intended recipient you are hereby notified that
any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be
unlawful.