[ CPALE 3 ] Certified Public Accountant Licensure Exam Reviewer III

Certified Public Accountant Licensure Exam Reviewer

Instructions:

Please answer each question to the best of your ability. Each question is multiple choice, and only one answer per question is correct. Select the most appropriate answer from the options provided. There are 20 questions in total.

When you have completed all questions, click the "Submit" button at the bottom of the page to see your score. Good luck!

A company has total assets of PHP 500,000 and total liabilities of PHP 300,000. What is the equity of the company?

A) PHP 200,000
B) PHP 300,000
C) PHP 500,000
D) PHP 800,000

A business had beginning inventory of PHP 50,000, purchased PHP 200,000 worth of goods, and had an ending inventory of PHP 30,000. What is the cost of goods sold?

A) PHP 220,000
B) PHP 210,000
C) PHP 220,000
D) PHP 240,000

A company’s total revenue for the year is PHP 1,000,000, and the total expenses are PHP 750,000. What is the net income?

A) PHP 250,000
B) PHP 500,000
C) PHP 750,000
D) PHP 1,000,000

If a company has a debt-to-equity ratio of 1.5 and total equity of PHP 400,000, what is the total debt?

A) PHP 200,000
B) PHP 600,000
C) PHP 800,000
D) PHP 1,000,000

A business has PHP 80,000 in cash, PHP 50,000 in accounts receivable, and PHP 20,000 in inventory. What is the total current assets?

A) PHP 150,000
B) PHP 130,000
C) PHP 100,000
D) PHP 170,000

A company sells a product for PHP 500. If the cost of goods sold is PHP 300, what is the gross profit?

A) PHP 100
B) PHP 200
C) PHP 300
D) PHP 400

If a company has a return on equity (ROE) of 15% and total equity of PHP 200,000, what is the net income?

A) PHP 30,000
B) PHP 15,000
C) PHP 45,000
D) PHP 25,000

A company has a cash flow from operations of PHP 100,000, cash flow from investing activities of PHP -30,000, and cash flow from financing activities of PHP 20,000. What is the net cash flow?

A) PHP 90,000
B) PHP 70,000
C) PHP 50,000
D) PHP 100,000

A business's total liabilities are PHP 500,000, and its total equity is PHP 250,000. What is the total assets?

A) PHP 750,000
B) PHP 500,000
C) PHP 1,000,000
D) PHP 250,000

Which of the following transactions would increase both assets and liabilities?

A) Borrowing cash from a bank
B) Purchasing equipment with cash
C) Selling goods on credit
D) Paying off a loan

If a company's current assets are PHP 150,000 and its current liabilities are PHP 100,000, what is its current ratio?

A) 0.67
B) 1.5
C) 2.0
D) 1.0

A company issues 1,000 shares at PHP 50 each. What is the total amount raised from this issuance?

A) PHP 1,000
B) PHP 50,000
C) PHP 500,000
D) PHP 5,000

A firm has a profit margin of 10% and total sales of PHP 1,000,000. What is the net income?

A) PHP 50,000
B) PHP 100,000
C) PHP 150,000
D) PHP 200,000

If a company pays PHP 30,000 for a machine and expects it to have a useful life of 10 years with no salvage value, what is the annual depreciation expense using straight-line depreciation?

A) PHP 2,000
B) PHP 3,000
C) PHP 4,000
D) PHP 1,500

A company’s retained earnings increased from PHP 150,000 to PHP 200,000 during the year. If the company declared dividends of PHP 30,000, what was the net income for the year?

A) PHP 80,000
B) PHP 60,000
C) PHP 70,000
D) PHP 90,000

What is the breakeven point in units if a product sells for PHP 200, has variable costs of PHP 120 per unit, and fixed costs of PHP 160,000?

A) 800 units
B) 1,000 units
C) 1,600 units
D) 900 units

If a firm has a total of PHP 500,000 in assets and a debt-to-asset ratio of 40%, what is the total amount of liabilities?

A) PHP 200,000
B) PHP 300,000
C) PHP 250,000
D) PHP 100,000

A company has total sales of PHP 1,000,000 and cost of goods sold of PHP 700,000. What is the gross profit margin?

A) 30%
B) 20%
C) 10%
D) 40%

A company has fixed costs of PHP 150,000, variable costs of PHP 50 per unit, and sells each unit for PHP 100. How many units must the company sell to break even?

A) 1,000 units
B) 2,500 units
C) 3,000 units
D) 1,500 units

What is the present value of PHP 1,000 to be received in 5 years if the discount rate is 10%?

A) PHP 620.92
B) PHP 700.00
C) PHP 620.92
D) PHP 750.00

Result

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