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    AUDITING PROBLEMS - 2nd Preboard Suggested Answers

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    Kim Cristian Maaño
    This document provides the answers to multiple problems related to auditing. It lists answers to 50 multiple choice questions across 8 different problems. It also includes detailed solutions and explanations for 4 sample word problems related to calculating patent costs, machine construction costs, research and development expenses, and patent amortization.

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    AUDITING PROBLEMS - 2nd Preboard Suggested Answers

    Uploaded by

    Kim Cristian Maaño
    236 views3 pages
    This document provides the answers to multiple problems related to auditing. It lists answers to 50 multiple choice questions across 8 different problems. It also includes detailed solutions and explanations for 4 sample word problems related to calculating patent costs, machine construction costs, research and development expenses, and patent amortization.

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    AUDITING PROBLEMS_2nd Preboard suggested answers

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    This document provides the answers to multiple problems related to auditing. It lists answers to 50 multiple choice questions across 8 different problems. It also includes detailed solutions and explanations for 4 sample word problems related to calculating patent costs, machine construction costs, research and development expenses, and patent amortization.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    236 views3 pages

    AUDITING PROBLEMS - 2nd Preboard Suggested Answers

    Uploaded by

    Kim Cristian Maaño
    This document provides the answers to multiple problems related to auditing. It lists answers to 50 multiple choice questions across 8 different problems. It also includes detailed solutions and explanations for 4 sample word problems related to calculating patent costs, machine construction costs, research and development expenses, and patent amortization.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    AUDITING PROBLEMS_2nd PRE-Board Exam Answers

    Problem No1:

    1. C

    2. B

    3. A

    4. D

    Problem No. 2:

    5. B

    6. C

    7. B

    8. A

    9. C

    Problem No. 3

    10. A

    11. C

    12. C

    13. C

    14. C

    15. B

    Problem No. 4:

    16. C

    17. D

    18. C

    19. B

    20. D

    21. C
    Problem No. 5:

    22. C

    23. A

    24. D

    25. A

    26. A

    27. B

    28. C

    Problem No. 6:

    29. A

    30. A

    31. B

    32. C

    33. C

    34. A

    35. B

    Problem No. 7:

    36. B

    37. B

    38. C

    39. A

    40. D

    Problem No. 8:
    41–44: B; D; A;
    B

    SOLUTION:
    Question 1
    Legal expenses to obtain patent P480,000
    Expense of drawing required by the patent office 68,000
    Fees paid to the government patent office 100,000
    Cost of patent P648,000

    Question 2
    Metal used in the construction of the machine P 320,000
    Blueprints used to design of the machine 128,000
    Wages paid for the employees’ (1,200,000 x 40%) 720,000
    Cost of machine P1,168,000

    Question 3
    Research and development laboratory expenses P1,000,000
    Wages paid for the employees’ (1,200,000 x 40%) 480,000
    R & D expense P1,480,000

    Question 4
    Cost of patent (see no.1) P648,000
    Less amortization (P648,000 x 2/20) 64,800
    Carrying amount of patent, 12/31/06 P583,200

    Notes: 1) Cost of defending the patent should be expensed.


    2) Since the useful life is not given, the patent was amortized using the legal life of 20 years.

    Problem No. 9:
    45. D
    46. D
    47. B
    48. C
    49. D
    50. D

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