CPAEAM case studies
CPAEAM · Put your knowledge to work in context.
The CPAEAM - the Certified Public Accountant Examination of the Philippines, commonly called the CPA Board Exam - is the licensure examination administered for candidates seeking the CPA title and the right to practise public accountancy in the Philippines. It is intended for graduates of accounting programs who have completed the academic and other prerequisites set by the regulatory authorities, and it is the gateway to signing audit reports, offering assurance services, and holding out as a CPA. The CPAEAM case studies are 5 cases and about 2,338 words.
1Revenue Cutoff Under Bill-and-Hold Terms
Northline Components signs a contract on December 20, Year 1, to sell specialized industrial valves for ₱4,800,000 (cost ₱3,100,000). The buyer requests delivery in January because its plant is closed for retrofitting, but wants title and invoicing in December to lock the price.
528 words, about 3 min2Consolidation When Control Exists Without Majority Voting
acquires 45% of Target Inc.'s voting shares for ₱9,000,000. The remaining 55% is widely dispersed among many unrelated shareholders, none holding more than 4%.
468 words, about 2 min3Going Concern Judgement With a Maturing Loan
During the audit of Harborline Trading for the year ended December 31, Year 3, the auditor learns that a ₱25,000,000 term loan matures in March Year 4. Cash flow projections show operating cash of ₱6,000,000 over the next twelve months against ₱22,000,000 of scheduled debt service.
458 words, about 2 min4Related-Party Sales and Unsupported Deductions
Crestview Manufacturing, a domestic corporation, reports gross revenue of ₱80,000,000 for Year 2. Of this, ₱15,000,000 arises from sales to a sister company owned by the same individual, priced at 20% above prices charged to unrelated customers.
436 words, about 2 min5Make-or-Buy Decision With a Constrained Resource
Ridgeway Electronics produces 40,000 units of a circuit board annually. Per-unit costs at that volume are: direct materials ₱120, direct labor ₱80, variable overhead ₱40, fixed overhead ₱60, and allocated corporate costs ₱30, totaling ₱330.
448 words, about 2 min