1. What is the most possible reason why the balance of Home Office account in Lipa Branch’s book is higher than the balance of Investment in Lipa branch account in Home Office’s books? A. There is shipment to Lipa Branch from home office still in transit at the end of the year. B. Lipa Branch reported net income during the year but still unrecorded by the home office. C. The home office paid Lipa Branch’s liability without informing Lipa Branch. D. Lipa Branch failed to notify the home office about Lipa’s cash advances to Lina Branch. 2. Which of the following costs will be properly classified as prime costs? A. Factory overhead costs and direct material costs B. Direct labor costs and factory overhead costs C. Direct material costs and direct labor costs D. Indirect labor costs and indirect material costs 3. Under PFRS 15, what account will be presented by the entity in its statement of financial position where the customer has paid an amount of consideration prior to the entity performing by transferring the related goods or services to the customer? A. Contractasset B. Contractreceivable C. Contractliability D. Contractpayable
PLEASE GIVE AN ANSWER TO THESE. THANK YOU!
1. What is the most possible reason why the balance of Home Office account in Lipa Branch’s book is higher than the balance of Investment in Lipa branch account in Home Office’s books?
A. There is shipment to Lipa Branch from home office still in transit at the end of the year.
B. Lipa Branch reported net income during the year but still unrecorded by the home office.
C. The home office paid Lipa Branch’s liability without informing Lipa Branch.
D. Lipa Branch failed to notify the home office about Lipa’s cash advances to Lina Branch.
2. Which of the following costs will be properly classified as prime costs?
A. Factory
B. Direct labor
C. Direct material costs and direct labor costs
D. Indirect labor costs and indirect material costs
3. Under PFRS 15, what account will be presented by the entity in its
A. Contractasset
B. Contractreceivable C. Contractliability
D. Contractpayable
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