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FINAL PREBOARD EXAMINATION September 17, 2011 1. Which Which of the the followi following ng is not corr correct? ect? a. A check check must be prese present nted ed for payment payment within within a reaso reasonab nable le tie after after its issue or the drawer will be discharged for liability thereon b. Where a check is certied by the bank on on which it is drawn! drawn! the certication is e"ui#alent to acceptance c. Wher Where e the holder holder of a check check procu procure res s it to be certie certied d or accept accepted! ed! the drawer and all indorsers are discharged for liability thereon d. A check of itself itself does does not operat operate e as an assignmen assignmentt of any of the funds funds to to the credit of the drawer with the bank! and the bank is not liable to the holder unless unless and until it accepts or certies the the check $. Where a promissory promissory note is drawn payable payable to the order order of the maker! maker! which of the the following statements is not correct? a. %he maker maker must sign sign as such maker maker and and must sign sign it again as indors indorser er to complete the instrument b. &f the note is deli#ere deli#ered d by the maker to another another without without indorsem indorsement! ent! the transferee cannot reco#er from the maker c. %he note note is not not complet complete e until until indorse indorsed d by the the maker maker d. &f there there is no indorsemen indorsementt yet by the maker! maker! the transfe transferee ree will will not be able to negotiate the note '.
Where a bill payable after a sight sight is accepted accepted for honor! its maturity maturity is calculated calculated from the date of a. Ac Accep ceptan tance ce for for the the honor honor b. (rese (resentm ntment ent for for accepta acceptance nce c. )ishon )ishonor or by non* non*acc accept eptanc ance e d. +otin +oting g for for non*a non*acce ccepta ptance nce
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A! -! and ) are partners partners contrib contributin uting g ($0!000! ($0!000! ('0!000! ('0!000! (0!000 (0!000 and industry! industry! resp respect ecti#e i#ely ly.. %he %he partne partners rship hip failed failed so the partne partners rs decide decided d to dis disso sol#e l#e the the partne partners rship hip.. At the the sae sae tie of li"ui li"uidat dation ion!! the unpai unpaid d oblig obligati ation on amount amounted ed to (100!000 distributed as follows %o %o partnership! partnership!
(hp 0!000
%o %o partners A
,0!000
-
$0!000
&f the remaining cash amounting to (10!000 was gi#en to as partial payment. Which of the following is correct? a. b. c. d.
can collect collect (10!00 (10!000 0 from from the separat separate e property property of ) As an indus industria triall partner! partner! ) is is not liabl liable e to A! - and are liable liable to in propor proportion tion to their their capital capital contrib contributio ution n A! - and and are are liabl liable e to at (1'!''' (1'!''' each
. 2sing 2sing the abo#e informat information. ion. &f succeeds succeeds in collectin collecting g the deciency deciency from from the partners concerned! which of the following is not correct? a. 3nly will be liable liable to the the other other partner partners s b. A and - will will not not make make addition additional al contrib contributio ution n c. ) is entitl entitled ed to get get reimbur reimbursemen sementt from from A! - and and d. will will pay pay ('!000 ('!000 to his his partne partners rs
4.
A! -! and and ) are are part partne ners rs in 5 orp orp!! a limi limite ted d part partne ners rshi hip p cont contri ribu buti ting ng (10!000! ($0!000! ('0!000 and (,0!000! respecti#ely. A! and ) are general partners while - is the limited partner. %he partnership failed and the partners 1
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09/17/11 decided to dissol#e partnership. At the time of li"uidation! the unpaid obligation amounted to (100!000 distributes as follows %o partnership creditor %o partners A -
(0!000 '0!000 $0!000
&f there remaining cash amounting to ($0!000 was gi#en to as partial payment! which of the following is correct? a. b. c. d.
can collect (7!00 each from the separate properties of the partners can collect ('0!000 form A! or ! or ) but not from - is not liable to because - is also a creditor of the partnership can collect to (10!000 each from A! and )
7.
6ssential elements of pledge! 66(% a. (ledgor is the absolute owner of the thing pledged b. %he person constituting the pledge has the free disposal of his property or if he is an agent or representati#e! that he is legally authori8ed c. %he thing pledged must be placed in the possession of the creditor or of a 'rd person by common agreement d. %o bind third person there must be an ada#it of good faith
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6ssential elements of chattel mortgage! 66(% a. %he ob;ect is a personal or mo#able property b. %he thing mortgaged is not deli#ered to the creditor c. %he mortgagor cannot sell without the consent of the mortgagee d. )escription of the thing mortgaged must appear in a public instrument
9.
6ssential elements of real estate mortgage! 66(% a. &n case of foreclosure sale! the mortgagor is entitled to the e
10. Which of the following statements is not correct? a. &f the thing pledged is returned by the pledgee to the pledger! the obligation is e
ect d. hare of stock can be the ob;ect of pledge or mortgage 11.)eli#er a negotiable promissory note payable to ( or order. @ater! ( makes a special indorsement to A and A deli#ers the note to -. who is the holder? a. -! because he is in possession of the note b. A! because he is the indorsee c. (! because he is the payee d. +o one can be considered as holder
1$.A issued a negotiable promissory note to the order of - for (10!000 payable in '0 days after date. @ater -! endorsed the note . then stole the note from ! forged the signature of and negotiated it to )! and ) to 6! 6 to ! the holder. 3n maturity of the note! which of the following statement is not correct? a. can collect from either ) or 6 because their signatures are genuine and the note is operati#e against them b. can collect for A because A cannot put up forgery as his defense as his signature is genuine $
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09/17/11 c. cannot collect from because it was Bs signature which was forged d. cannot collect from - because - is a party prior to the forgery 1'.C! D and E formed a general partnership with a capital of (100!00 and the partners contributing 0F! '0F and $0F respecti#ely. 3 has a claim of (140!00 against the partnership. &f 3 les a suit to collect her claim! which of the following is not correct? a. All the partners are liable to the eered to sell to ) all the remaining unsold lots at a price #ery much higher than the pre#ailing market prices. @ater! A bought out - and from the partnership and thereafter family sold all the lots at #ery big prots.
Statement 1 I When A bought out - and from the partnership! the partnership was dissol#ed so - and ha#e no more share in the prots of the sale Statement 2 I%he sale of the lots between A and ) is #oid because it was without the knowledge and constant of - and a. b. c. d.
%rue! true %rue! false alse! true alse! false
17. %he following are ways of enforcing payment of unpaid subscription. Which is the e
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09/17/11 b. - cannot negotiate the note because the consideration between a and - is illegal c. &f - negotiates to ! a holder in due course! can collect from A d. A is not liable because of illegal consideration 19.A! minor issued a promissory note to - as follow G& promise to pay - or order (10!000. gd! AH Which of the following statements is not correct? a. b. c. d.
%he promissory note is not negotiable because the maker is a minor - cannot collect from A because A is a minor &f - negotiates to ! a holder in due course! cannot collect from A &f - negotiates to ! a holder for #alue! cannot collect from A
$0.-elow are two promissory notes prepared by A A. G& promise to pay - or order (100!000 if he will pass the (A board e
-oth promissory note are negotiable -oth promissory note are non*negotiable 3nly the rst promissory note is negotiable 3nly the second promissory note is negotiable
$1.2sing the abo#e facts! and both condition are satised! which of the following statements is correct? a. -oth - and can collect from A b. +either - or can collect form A c. 3nly - can collect from A d. 3nly can collect from A $$.2sing the abo#e facts! and - assigns the note to )! and assigns the note to 6! which of the following statement is correct? a. -oth ) and 6 can collect from A! if both acted in good faith b. +either ) or 6 can collect from A! e#en if both acted in good faith c. 3nly ) can collect from A e#en if both acted in good faith d. 3nly 6 can collect from A e#en if both acted in good faith
$'.A and - are partners. 3n Dune 1! $011 when the total obligation of the partnership totals (:0!000! was admitted as a new partner. At the time of his admission! the partnership creditors were C for (0!000 and + for ('0!000. After Dune 1! the partnership borrowed from 3! ($0!000 and (10!000 from (. 3n )ecember 1! $011! the partnership became insol#ent lea#ing an obligation of (110!000 and the partnership asset amounting to ('0!000. %he creditors are going after separate properties of the partners to satisfy their remaining claims. Kow are the creditorBs claim satisfy?
Answer 1 I C and + can go after the separate properties of A and - but Bs separate properties are not answerable to their claims. ,
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Answer 2 I 3 and ( can go after the separate properties properties of A! - and a. b. c. d.
alse! false alse! true %rue! false %rue! true
$,.%he following statements pertain to a #oting trustee! 66(% a. %he representati#e ac"uired legal title to the shares b. &t is good only for the meeting for which it was intended c. &t is generally irre#ocable and the representati#e may #ote e#en in the presence of the stockholder d. %he agreement gi#ing the representati#e the power to #ote must be duly notari8ed and a copy thereof must be submitted to the 6 to be e>ecti#e and enforceable $.%he article of incorporation of A- orporation pro#ides for 7 directors. &n the monthly meeting of the board of directors held on April :! $011 directors -! ! ) and 6 were present and the following resolution were appro#ed A a resolution for the purchase of a deli#ery truck from 6 trading! a sole proprietorship owned by 6 B a resolution appointing % as the new corporate secretary where -! ! ) and 6 #oted for the resolution Which is correct? a. -oth resolution are #alid and do not need stockholders appro#al b. -oth resolution are #alid but need stockholders appro#al c. =esolution A needs stockholders appro#al! =esolution 6 is #alid d. =esolution A is not #alid! =esolution - needs stockholders appro#al $4.A sells to - a sony colored %L for (1$!000 payable in twel#e e"ual monthly instalment beginning Cay ! $011 and e#ery th day of each month thereafter. %he contract pro#ides that upon failure to pay any instalment due! the whole balance becomes due and demandable. %o secure the obligation! a chattel mortgage o#er the %L set was eect b. es! e#en though there was no stipulation c. +o! any stipulation allowing reco#ery is #oid d. +o! if there was no stipulation to that e>ect
$7.C e
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09/17/11 $:.A pledged his ring to - for ($0!000 A failed to pay his obligation. - sold it at a public auction for (1:!000. an - reco#er the deciency? a. es! e#en without stipulation b. es! if there is stipulation c. +o! e#en if there is stipulation d. +o! unless there is stipulation $9.2sing the abo#e data! if the sale is ($$!000. an A reco#er the e
'. I A corporation commences to ha#e a ;uridical personality upon the eerent date is set by the incorporators.
II A partnership begins from the moment of the eerent date is set by the partners. a. b. c. d.
%rue! true %rue! false alse! true alse! false 4
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'4.&f par #alue shares are now treasury shares! the following rules are applicable! e
,$. %he gross receipt of A! a lessor! from his residential units for the year! show M!nt"#$ Rent%&n't N! !( &n'ts T!ta# (hp 9!000 (hp ,0!000 (hp 10!000 400!000 (hp 11!000 440!000 (hp 1$!000 7$0!000 %he output #at is 7
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09/17/11 a. b. c. d.
(14!400 ('0$!,00 ($'7!400 (0
,'. %his miller is sub;ect to LA% on sale of ser#ices if he is engaged in milling for others a. (alay into rice b. Wheat into Oour c. orn into grits d. ugar cane into raw sugar ,,. or LA% purposes! the following transactions shall be Gdeemed saleH! e
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09/17/11 ,9.)6 orporation! due to nancial incapacity re"uested that it be allowed to pay its income ta< liability per return for calendar year $010! amounting to (1 million in fourM,N e"ual monthly instalments starting April 1! $011. &ts re"uest has been duly appro#ed. %he ta< due for the second instalment on Cay 1! $011 is a. ($0!000 b. ($,!147 c. ($4$!00 d. ('00!000 0.A led his income ta< return for calendar year $010 on Carch $0! $011. When is the last day for the -&= to collect! assuming A did not pay the ta< due upon ling? a. Carch $0! $01, b. April 1! $01, c. April 1! $014 d. Carch $0! $01 1.A insured his life for (10C. in case A dies! the proceeds of the life insurance shall be a. 6
,. %he total creditable input #at a. (100!000 b. (1:0!000 9
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09/17/11 c. ($0!000 d. (170!000 . A ac"uired his residential land in $000 at a cost of (1!000!000. Ke sold the property on Danuary 1! $011 with a fair market #alue of (!000!000 for a consideration of (,!000!000. Within 1: months! he purchased his new principal residence at a cost of (7!000!000. Kow much is the capital gain ta
40. %he total amount of income of A- orporation sub;ect to nal ta< is a. (1!0$0!000 b. (1!000!000 c. (1!01:!000 10
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09/17/11 d. (0 41. Which of the following is ta
(:0!000 ($9!$: (,:!000 ('$!000
4.Which of the following is sub;ect to #at? a. ale of passenger or cargo #essels and aircraft for domestic or international transport operations b. ale of agricultural and marine food products in their original state c. ales by agricultural cooperati#es duly registered with the ooperati#e )e#elopment Authority d. ale of fuel! goods and supplies by person engaged in international shipping or air transport operations
44. Statement 1 I -orn of a poor family in 194'! A worked his way through college. After working for $0 years! A decided to retire in $011 and a#ail of the benets under a #ery reasonable retirement plan maintained by his employers for those who ha#e rendered continuous ser#ice for at least $0 years. A recei#ed (1C as retirement benets. Statement 2 ) Crs. -! wife of a deceased employee recei#ed nancial benets #oluntarily #oted upon by the -oard of )irectors of the employer company in 11
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09/17/11 recognition of her husbandBs long!loyal and dedicated ser#ice and primarily to help her meet nancial needs. a. -oth statement are sub;ect to income ta< b. -oth statement are e in imported goods to protect local producers against foreign competition d. %o encourage the growth of home industries through the proper use of ta< incenti#es 71. )uring $010! the total net amount paid for the salaries and wages amounted to (9!000!000 after e>ecting the following deductions for emplyees premiums contributions (,$0!000 (hilhealth premiums contributions 100!000 (AE*&-&E premiums contributions 1:0!000 reditable withholding ta< '00!000 &n addition! the corporation pro#ides its #ice*president for opeartions (',0!000 cash as fringe benet. %he allowable deduction for salaries and benets is a. (9!',0!000 b. (10!00!000 c. (10!',0!000 d. (10!000!000
7$. A-! a domestic corporation had a net income from business operations of ($00!000 before considering capital gain of (1!000!000 on a sale of land to the +ational Eo#ernment of the (hilippines Mselling price (4C! CL is (7C and cost of (CN. 2sing the best alternati#e a#ailable to minimi8e ta
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09/17/11 a. b. c. d.
(,$0!000 ('40!000 (,:0!000 (1$0!000
7'. Which of the following statement is not correct? a. When a compulsory heir is gi#en by will less than his legitime! the pro#ision of the will should modied in such a way that he will recei#e his legitime b. %he &= may e
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