A3 Quiz 3 Midterms PDF
A3 Quiz 3 Midterms PDF
A3 Quiz 3 Midterms PDF
Instructions
Directions: Read each question carefully and choose the BEST answer. Your response to each
question is FINAL because there will be NO BACKWARD NAVIGATION. This means that you will
have NO ability to GO BACK to a specific question once you skipped or answered it.
Attempt History
Attempt Time Score
LATEST Attempt 1 132 minutes 41 out of 50
Question 1 1 / 1 pts
https://canvas.instructure.com/courses/3240243/quizzes/9317727 1/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
Correct!
Question 2 1 / 1 pts
Correct!
Disclosed in the notes
Question 3 1 / 1 pts
https://canvas.instructure.com/courses/3240243/quizzes/9317727 2/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
matching
verifiability
Question 4 1 / 1 pts
Correct!
Question 5 1 / 1 pts
https://canvas.instructure.com/courses/3240243/quizzes/9317727 3/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
Question 6 1 / 1 pts
Correct!
the face value of the note
Question 7 1 / 1 pts
Correct!
Direct loan origination cost incurred by the lender
https://canvas.instructure.com/courses/3240243/quizzes/9317727 4/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
Question 8 1 / 1 pts
7% and 9%
0% and 0%
6% and 9%
Correct!
7% and 7%
Question 9 1 / 1 pts
Correct!
contra asset account for the face amount of the note
contra asset account for the proceeds from the discounting transaction
https://canvas.instructure.com/courses/3240243/quizzes/9317727 5/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
Question 10 1 / 1 pts
P 12,350
P 12,375
not given
Correct!
P 12,575
Question 11 1 / 1 pts
Pink Co. has an 8 % note receivable dated June 30, 2024, in the original
amount of P 600,000. Payments of P 200,000 in principal plus accrued
interest are due annually on July 1, 2025, 2026, and 2027.
In its June 30, 2026 statement of financial position, what amount should
Pink report as a current asset for interest on the note receivable?
P 16,000
Correct!
P 32,000
https://canvas.instructure.com/courses/3240243/quizzes/9317727 6/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
P 48,000
P0
Question 12 1 / 1 pts
On May 1, 2026, Pager Co. bought a parcel of land for P 300,000. After
seven months, Pager sold this land to a triple-A rated company for P
450,000 under the following terms: 25 % at closing and a first mortgage
note (at the market rate of interest) for the balance. The first payment on
the note, plus accrued interest is due December 1, 2027. Pager reported
this sale on the installment basis in its 2026 tax return.
How much gain should Pager report from the sale of this land in its 2026
income statement?
Correct! P 150,000
P 112,500
P 37,500
P0
Question 13 1 / 1 pts
What amount of contingent liability for this note must be disclosed in the
financial statements for the year ended December 31, 2023?
P3,600,000
P4,400,000
Correct! P4,000,000
P0
Question 14 1 / 1 pts
The customer paid the note to the bank on October 30, 2025, the date of
maturity.
P21,250
P25,000
P50,000
Correct! P28,750
https://canvas.instructure.com/courses/3240243/quizzes/9317727 8/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
Question 15 0 / 1 pts
P 15,000
ou Answered P0
P 5,000
Question 16 0 / 1 pts
https://canvas.instructure.com/courses/3240243/quizzes/9317727 9/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
ou Answered P 12,000
P 42,000
P0
Question 17 1 / 1 pts
How much cash did Hero receive from Halo at the time of the transfer?
P 335,000
P 301,500
P 327,000
Correct!
P 328,300
Question 18 1 / 1 pts
https://canvas.instructure.com/courses/3240243/quizzes/9317727 10/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
P290,000
Correct!
P285,290
P289,620
P0
Question 19 1 / 1 pts
P 2,024,000
https://canvas.instructure.com/courses/3240243/quizzes/9317727 11/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
P 2,000,000
Correct!
P 1,976,000
not given
Question 20 1 / 1 pts
P 1,024,000
P0
Correct! P 424,000
P 400,000
Question 21 1 / 1 pts
https://canvas.instructure.com/courses/3240243/quizzes/9317727 12/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
Correct!
P 470,000
not given
480,000
P 50,0000
Question 22 1 / 1 pts
https://canvas.instructure.com/courses/3240243/quizzes/9317727 13/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
P 714,520
P 770,520
Correct! P 730,520
P 754,520
Question 23 1 / 1 pts
Correct! P 40,000
P 100,000
P0
P 90,000
Question 24 0 / 1 pts
https://canvas.instructure.com/courses/3240243/quizzes/9317727 14/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
P 85,480
P 69,480
ou Answered P 16,000
Question 25 1 / 1 pts
Assume that New York factors the receivables on a recourse basis. The
recourse obligation has a fair value of P 30,000. The loss to be reported
should be
P 150,000
P 60,000
Correct! P 90,000
https://canvas.instructure.com/courses/3240243/quizzes/9317727 15/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
P 120,000
Question 26 1 / 1 pts
P 100,000
Correct!
P 60,000
P0
P 160,000
Question 27 1 / 1 pts
Correct! P 190,000
P 225,000
P 150,000
P0
Question 28 0 / 1 pts
https://canvas.instructure.com/courses/3240243/quizzes/9317727 17/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
ou Answered P 150,000
P0
P 120,000
Question 29 1 / 1 pts
P 405,000.00
P 371,428.50
P 392,857.50
Correct! P 384,750.00
https://canvas.instructure.com/courses/3240243/quizzes/9317727 18/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
Question 30 0 / 1 pts
P 9,750
ou Answered P 5,250
P 20,250
orrect Answer P0
Question 31 1 / 1 pts
P0
P 9,750
P 20,250
https://canvas.instructure.com/courses/3240243/quizzes/9317727 19/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
Correct! P 5,250
Question 32 1 / 1 pts
P 3,000
P 2,000
P 4,000
Correct! P 1,700
Question 33 0 / 1 pts
https://canvas.instructure.com/courses/3240243/quizzes/9317727 20/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
Based on a 360-day year, what amount should Sad report as net revenue
from this transaction?
P 2,000
ou Answered P 1,500
P 1,000
Question 34 0 / 1 pts
P0
P 206,000
ou Answered P 202,000
https://canvas.instructure.com/courses/3240243/quizzes/9317727 21/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
Question 35 1 / 1 pts
P 5,476,850
P 5,296,850
Correct! P 5,386,850
P 5,556,850
Question 36 0 / 1 pts
https://canvas.instructure.com/courses/3240243/quizzes/9317727 22/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
ou Answered P 180,000
P 613,150
P 433,150
Question 37 1 / 1 pts
P 990,000
P 972,000
P 1,040,000
Correct! P 988,000
Question 38 1 / 1 pts
https://canvas.instructure.com/courses/3240243/quizzes/9317727 23/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
P52,000
Correct!
P12,000
P50,000
P40,000
Question 39 1 / 1 pts
P 6,174,000
Correct! P 6,048,000
P 5,640,000
P 5,760,000
Question 40 1 / 1 pts
https://canvas.instructure.com/courses/3240243/quizzes/9317727 24/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
P48,000
Correct!
P52,000
P152,000
P252,000
Question 41 1 / 1 pts
On January 1, 2026, Ott Co. sold goods to Fox Co. Fox signed a
noninterest-bearing note requiring payment of P 600,000 annually for
seven years. The first payment was made on January 1, 2026. The
prevailing rate of interest for this type of note at date of issuance was 10
%. Information on present value factors is as follows:
Present value of
Present value
Period ordinary annuity
of 1 at 10 %
of 1 at 10 %
6 0.56 4.36
7 0.51 4.87
Correct!
P 3,216,000
P 2,616,000
P 2,142,000
https://canvas.instructure.com/courses/3240243/quizzes/9317727 25/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
P 2,922,000
Question 42 1 / 1 pts
On January 1, 2026, Ott Co. sold goods to Fox Co. Fox signed a
noninterest-bearing note requiring payment of P 600,000 annually for
seven years. The first payment was made on January 1, 2026. The
prevailing rate of interest for this type of note at date of issuance was 10
%. Information on present value factors is as follows:
Present value of
Present value
Period ordinary annuity
of 1 at 10 %
of 1 at 10 %
6 0.56 4.36
7 0.51 4.87
P 3,600,000
P 2,322,000
P 3,216,000
Correct!
P 2,616,000
Question 43 1 / 1 pts
https://canvas.instructure.com/courses/3240243/quizzes/9317727 26/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
On January 1, 2026, Ott Co. sold goods to Fox Co. Fox signed a
noninterest-bearing note requiring payment of P 600,000 annually for
seven years. The first payment was made on January 1, 2026. The
prevailing rate of interest for this type of note at date of issuance was 10
%. Information on present value factors is as follows:
Present value of
Present value
Period ordinary annuity
of 1 at 10 %
of 1 at 10 %
6 0.56 4.36
7 0.51 4.87
P 600,000
Correct! P 984,000
P 965,000
P 722,400
Question 44 1 / 1 pts
On January 1, 2026, Ott Co. sold goods to Fox Co. Fox signed a
noninterest-bearing note requiring payment of P 600,000 annually for
seven years. The first payment was made on January 1, 2026. The
prevailing rate of interest for this type of note at date of issuance was 10
%. Information on present value factors is as follows:
https://canvas.instructure.com/courses/3240243/quizzes/9317727 27/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
6 0.56 4.36
7 0.51 4.87
Correct! P261,600
P232,200
P360,000
P300,000
Question 45 1 / 1 pts
On January 1, 2026, Ott Co. sold goods to Fox Co. Fox signed a
noninterest-bearing note requiring payment of P 600,000 annually for
seven years. The first payment was made on January 1, 2026. The
prevailing rate of interest for this type of note at date of issuance was 10
%. Information on present value factors is as follows:
Present value of
Present value
Period ordinary annuity
of 1 at 10 %
of 1 at 10 %
6 0.56 4.36
7 0.51 4.87
https://canvas.instructure.com/courses/3240243/quizzes/9317727 28/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
P2,277,600
Correct!
P2,877,600
P3,000,000
P3,600,000
Question 46 1 / 1 pts
P 1,520,000
Correct! P 1,480,000
P 1,440,000
P 1,500,000
https://canvas.instructure.com/courses/3240243/quizzes/9317727 29/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
Question 47 1 / 1 pts
P 1,500,000
Correct!
P 1,440,000
P 1,480,000
P 1,520,000
Question 48 1 / 1 pts
https://canvas.instructure.com/courses/3240243/quizzes/9317727 30/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
P 5,360,000
P 2,140,000
P 2,240,000
Correct! P 2,965,000
Question 49 1 / 1 pts
https://canvas.instructure.com/courses/3240243/quizzes/9317727 31/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
Amount projected
Date of cash flow as of December 31,
2026
P 599,456
https://canvas.instructure.com/courses/3240243/quizzes/9317727 32/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
P 825,000
P 534,600
Correct! P 589,600
Question 50 0 / 1 pts
Amount projected
Date of cash flow as of December 31,
2026
https://canvas.instructure.com/courses/3240243/quizzes/9317727 33/34
10/28/21, 1:15 PM Quiz on Receivables Part II - Discounting of Notes Receivable; Loan Impairments: 1ST 21-22 Acctg 3 Intermediate Accounting 1
How much is the present value of the loan as of December 31, 2026?
ou Answered P 2,140,000
P 2,965,000
P 2,240,000
https://canvas.instructure.com/courses/3240243/quizzes/9317727 34/34