ReSA - THE REVIEW SCHOOL OF ACCOUNTANCY

CPA Review Batch 43  May 2022 CPALE  RFBT Preweek-Summary Lecture

REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS J. DOMINGO  N. SORIANO

RFBT PREWEEK LECTURE

OBLIGATIONS

1. An obligation may arise in all of the following instances even without an agreement, except:
a. Law d. Delict
b. Contract e. Quasi-Delict
c. Quasi-contract
2. A student was stabbed inside the campus by a stranger. Will there be a liability or obligation on
the part of the school?
a. No, there will only be a criminal liability on the part of the stranger.
b. Yes, the school is liable due to quasi-delict.
c. Yes, the school is liable due to a contract.
d. No, no one should be liable because the student deserved it.
3. An overspeeding jeepney (that was carrying several passengers) turned turtle because one of its
tires blew out. One of the passengers died. The heirs filed a suit for damages. The owner of the
jeep filed an answer contending that the cause of the accident was a fortuitous event because the
tires were not yet old and overused. Who is liable, if any?
a. No one is liable because it was just an accident. No one wanted it to happen.
b. The owner of the jeep is liable.
c. The tire company is liable.
d. Both B and C.
4. Which among the following is not a requisite for a fortuitous event?
a. The cause of the breach of the obligation must be independent of the will of the debtor
b. The event must be foreseeable or avoidable
c. The event must be such as to render it impossible for the debtor to fulfill his obligation in
a normal manner
d. The debtor must be free from any participation in, or aggravation of the injury to the
creditor.
5. X is indebted to Y in the amount of P1,000,000 payable in 10 monthly installments and with
interest at 15% per year. What is the effect if Y would be receiving payment of the principal
without receiving first the interest?
a. None. The liability for the interest would still remain.
b. It presupposes that there has already been payment of the interest.
c. The interest would now be doubled.
d. This amounts to a condonation of the interest.
6. An obligation by Mr. X is payable from January 2022 to October 2022. X did not pay the installment
for June 2022. But when when he paid in July 2022, the creditor issue a receipt for July 2022.
What is the effect of this?
a. The liability for the June 2022 amortization would still subsist.
b. There is now a disbutable presumption that the June 2022 installment has been paid.
c. Additional interest can now be collected for the unpaid amortization.
d. There is now a conclusive presumption that the June 2022 installment has been paid.

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY
Batch 43 – May 2022 CPALE Licensure Examination RFBT Preweek
7. Arnold promised to deliver a specific car to his son Benny once the latter passes the CPA Board
Exam. Later on, Benny passed the said exam and demanded the delivery of the car. In this case,
a. The obligation is void since it is based on a potestative condition solely dependent on the
will of Jeremy
b. If Arnold voluntarily prevented Benny from passing the exam, the condition is deemed
fulfilled
c. The obligation is void since it is based on an impossible condition
d. Benny cannot validly demand the car yet since the obligation is one with a period
8. There is no extinguishment of the obligation:
a. In a facultative obligation, where the thing lost was the principal object prior to substitution
b. In an alternative obligation, where all the things were lost due to fortuitous event and the
creditor had the right to choose
c. In a joint obligation, where one of the joint creditors condoned the obligation of all the
joint debtors
d. In an indivisible obligation, where the thing has been lost without the fault of the solidary
debtors
9. A and B entered into a contract of loan, providing that B shall pay when his means permit him to
do so. What is the remedy of A in case of non-payment by B?
a. There is none because the obligation is one with a condition. It is not guaranteed.
b. Since the obligation is deemed to be one with a period, the remedy of A is to go to court
and ask the court to fix the period.
c. The remedy of A is to file a case of quo warranto with the Court of Appeals.
d. Both B and C.
10. Within what period should the action to fix the period be filed?
a. It must be filed within 1 year, otherwise it would prescribe.
b. It must be filed within 3 years, otherwise it would prescribe.
c. It must be filed within 5 years, otherwise it would prescribe.
d. It must be filed within 10 years, otherwise it would prescribe.
11. This kind of fraud vitiates consent and makes the contract voidable:
a. Dolo causante c. Dolo revilla
b. Dolo incidente d. None of the above
12. A, B and C are solidary debtors of X. Thirteen years later, after the obligation has become due
and demandable, A paid X and later on asked for reimbursement of B’s and C’s shares. Is the
contention of A correct?
a. Yes, he deserves reimbursement from his co-debtors because there was an actual payment
on the part of Mr. A.
b. Yes, he is entitled to reimbursement under the concept of solutio indebiti.
c. No, because the obligation has already prescribed.
d. Both A and B.
13. X, Y and Z are solidary co-debtors of A. X obtained remission of the total amount of the
obligation from A. Can X ask for reimbursement of Y’s and Z’s shares?
a. Yes, because there was an effort on the of Mr. X to obtain the remission.
b. Yes, he is entitled to reimbursement under the concept of solutio indebiti
c. Both A and B.
d. No, because the remission of whole obligation, obtained by one of the solidary debtors,
does not entitle him to reimbursement from his co-debtors.

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY
Batch 43 – May 2022 CPALE Licensure Examination RFBT Preweek
14. A special form of payment where property is alienated to the creditor in satisfaction of a debt
in money:
a. Dation in payment c. Application of Payments
b. Cession d. Consignation
15. Who has the right of choice in an alternative obligation?
a. The right of choice belongs to the debtor, in all cases.
b. The right of choice belongs to the creditor, in all cases.
c. The right of choice belongs to the debtor, unless it has been expressly granted to the
creditor.
d. The right of choice belongs to the creditor, unless it has been expressly granted to the
debtor.
16. The nullity of the penal clause does not carry with it that of the principal obligation.
The nullity of the principal obligation carries with it that of the penal clause.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.
17. What is the effect if the check which was used as payment was a manager’s check? Is it going
to constitute payment?
a. Yes, a manager’s check is good as cash.
b. Yes, a manager’s check has the assurance of the issuing bank.
c. Both A and B.
d. No, because a manager’s check is a not a legal tender here in the Philippines.
18. What is the basis of payment of an obligation in case of extraordinary inflation or deflation?
a. In case of extraordinary inflation or deflation of the currency stipulated should supervene,
the value of the currency at the time of the establishment of the obligation shall be the
basis of payment, unless there is an agreement to the contrary.
b. In case of extraordinary inflation or deflation of the currency stipulated should supervene,
the value of the currency at the time of the establishment of the obligation shall be the
basis of payment, in all cases.
c. In case of extraordinary inflation or deflation of the currency stipulated should supervene,
the value of the currency at the time of maturity of the obligation shall be the basis of
payment, unless there is an agreement to the contrary.
d. In case of extraordinary inflation or deflation of the currency stipulated should supervene,
the value of the currency at the time of maturity of the obligation shall be the basis of
payment, in all cases.
19. X promised to deliver a car to B provided that he passes the CPA board examination. The car
was lost because of a fortuitous event without his fault. If B passed the board exam, can he
compel X to deliver the car?
a. No, because the obligation to deliver has already been extinguished by the loss of the
car due to a fortuitous event.
b. No, because the obligation to deliver has already been extinguished by the loss of the
car and it is without his fault.
c. Both A and B
d. No, the loss nor destruction of the car does not extinguish the obligation.

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY
Batch 43 – May 2022 CPALE Licensure Examination RFBT Preweek
20. X owes Y the amount of P25,000. Without X’s knowledge and consent, Y and Z entered into an
agreement whereby Z assumed X’s obligation. Z, however, turned out to be insolvent. What is
the effect of Z’s insolvency in relation to X’s obligation?
a. The obligation of X is extinguished and Z’s insolvency does not revive his obligation.
b. The obligation of X is not extinguished and Z’s insolvency will revive his obligation.
c. Both of them will be liable solidarily.
d. Both of them will no longer be liable for the obligation.
21. Suppose it was X who proposed to Z, and Z would turn out to be insolvent. Would X’s
obligation be revived?
a. Yes, because the novation was initiated by X. He was the one who chose Z.
b. No, except when said insolvency was already existing and of public knowledge.
c. No, except when said insolvency was already known to the debtor.
d. Both B & C.

CONTRACTS

22. Which of the following is considered an essential element of a contract:

a. Consent c. Interest
b. Implied Warranty d. Public Instrument
23. X owns a house and lot. He sent a letter to Y and offered it for sale. Two days after the receipt,
Y sent X a letter accepting the offer. But when the letter of acceptance reached X’s residence,
he was already dead. Was there a perfected contract of sale?
a. Yes, it was perfected on the day the offer was sent by X to Y.
b. Yes, it was perfected on the day the acceptance was sent by X to Y.
c. Yes, it was perfected on the day the letter of acceptance reached X’s residence.
d. None of the above.
24. Suppose the acceptance was communicated to the agent of X who was alive at the time his
agent came to know of such acceptance, is there a binding contract?
a. None, because knowledge of the agent is not tantamount to knowledge of the principal.
b. Yes, because the act of the agent or knowledge acquired by the agent duly authorized is
also the act of the principal, provided that acted within the scope of his authority.
c. Yes, because the act of the agent or knowledge acquired by the agent duly authorized is
also the act of the principal, even if he acted beyond the scope of his authority.
d. None, because a contract of sale is personal and must be directly communicated to the
principal.
25. Within what period should an action for annulment of a contract entered into by minors or other
incapacitated persons be brought?
a. It should be brought within 2 years from the time the guardianship/incapacity ceases.
b. It should be brought within 4 years from the time of the perfection of the contract.
c. It should be brought within 4 years from the time the guardianship/incapacity ceases.
d. It should be brought within 10 years from the time of the perfection of the contract.
26. It means the right of the parties to enter into such stipulations or terms and conditions in
their contracts
a. Mutuality of contracts
b. Relativity of contracts
c. Liberty of contracts
d. Effectivity of contracts

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY
Batch 43 – May 2022 CPALE Licensure Examination RFBT Preweek
27. Cris donated her house and lot to Debbie in a private instrument which was accepted by the latter
on a separate instrument. In this case,
a. Debbie can compel Cris to execute a public instrument
b. The donation is valid since there was acceptance in the same form
c. The donation is void since the acceptance must be in the same document
d. The donation is void since it was not in a public instrument
28. A contract entered into by a minor and an insane person is:
a. Valid c. Rescissible
b. Voidable d. Unenforceable
29. The following contracts require delivery for perfection, except:
a. Pledge c. Deposit
b. Mortgage d. Mutuum
30. What is the effect if both parties to a contract employed fraud?
a. The contract would be void.
b. The contract would be voidable.
c. The contract would be valid.
d. The contract would be unenforceable.
31. How are contracts infringing the Statute of Frauds ratified?
a. It can never be ratified. It will remain unenforceable.
b. By the failure to object to the presentation of oral evidence to prove the same.
c. By the acceptance of benefits under them.
d. Both B and C.
32. A is the owner of a house which is being verbally leased to B for 7 years. A orally promised B that
the lease would be renewed, only to refuse it later. Can B go to court and enforce his right that the
contract be renewed after the expiration of the contract?
a. Yes, because there was an oral promise made by A to B.
b. Yes, because the contract is valid and enforceable.
c. No, because the contract is void.
d. No, because the contract is unenforceable.
33. Which is not a rescissible contract:
a. Those which are entered into by guardians whenever the wards whom they represent suffer
lesion by more than one-fourth of the value of the things which are the object thereof.
b. Those which are entered into by agents whenever the principal suffer lesion by more than
one-fourth of the value of the things which are the objects thereof.
c. Those agreed upon in representation of absentees, if the latter suffer the lesion by more
than one-fourth of the value of the things which are the object thereof.
d. Those undertaken in fraud of creditors when the latter cannot in any other manner collect
the claims due them

PARTNERSHIP
34. The partners contribute all the property which actually belongs to them to a common fund, with
the intention of dividing the same among themselves, as well as all the profits which they may
acquire therewith
a. Universal partnership of all present property
b. Universal partnership of all profits
c. Limited partnership
d. Particular partnership

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY
Batch 43 – May 2022 CPALE Licensure Examination RFBT Preweek
35. First statement: a partner is deemed to be a co-owner of his co-partners of specific partnership
property.
Second statement: A partner’s right in specific partnership property is not assignable even if there
is consent from the other partners.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct
36. First statement: A stranger who includes his name in the partnership name shall be liable as a
partner but without any rights as such
Second statement: A limited partner who included his name in the firm name shall be generally
liable as a general partner
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct
37. The revocation of the authority of a managing partner who was appointed after the formation of
the partnership and not in the Articles of Partnership would require:
a. Just and lawful cause
b. Vote of the controlling interest
c. Unanimous vote of the partners
d. A and B
e. A and C
38. May an industrial partner engage in another business during the existence of the partnership?
a. No, in all cases.
b. No, unless the capitalist partners expressly permit him to do so.
c. No, unless the other business is not of the same kind.
d. Yes, he has every right to do so.
39. In case of imminent losses, this type of partner is exempted from making additional contributions
to save the partnership:
a. Capitalist partner c. Secret partner
b. Industrial partner d. Strong and Independent Partner
40. Dustin, Mike, Lucas and Will formed Stranger Things Partnership contributing equally to the capital.
They agreed to a loss-sharing ratio of 1:1:2:2. The partnership earned a profit amounting to
P120,000. How much would be Dustin’s share?
a. P20,000 c. P30,000
b. P30,000 d. P0
41. In the liquidation of a general partnership, which of the following is to be settled last?
a. Claims of creditors
b. Claims of creditor-partners
c. Partners’ capital
d. Partners’ share in the profits

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY
Batch 43 – May 2022 CPALE Licensure Examination RFBT Preweek
CORPORATION
42. No corporation under the Code, shall possess or exercise any corporate powers, except those
conferred by law, its Articles of Incorporation, those implied from express powers and those
necessary or incidental to the exercise of the powers so conferred.
a. Business Entity Theory
b. Right of Succession
c. Doctrine of Limited Capacity
d. Piercing the Veil of Corporate Fiction
43. Under the Revised Corporation Code, the law now expressly authorizes a corporation to enter into
a partnership or a joint venture.
Under the Revised Corporation Code, a domestic corporation can now give donations in aid of any
political party or candidate.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.
44. An ultra-vires act is an act made by a corporation beyond the powers conferred upon it by law. As
such, it is considered as a __________ transaction.
a. Valid
b. Void
c. Voidable
d. Rescissible
45. These are group of persons which holds itself out as a corporation and enters into a contract
with third persons on the strength of such appearance.
a. Corporation by estoppel
b. Ostensible corporation
c. Both A & B
d. De facto corporation
46. The legality of a de facto corporation can only be attacked through
a. Impeachment proceedings
b. Quo warranto proceedings
c. Both A & B
d. None of the above
47. What is considered to be the smallest public corporation in the Philippines?
a. Sitio
b. Barrio
c. Barangay
d. Purok
48. Under the old Corporation Code, only natural persons can become incorporators of a corporation.
Under the revised Corporation Code, a partnership can now become an incorporator of a
corporation.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY
Batch 43 – May 2022 CPALE Licensure Examination RFBT Preweek
49. An independent director is a person who, apart from the shareholdings and fees received from the
corporation, is independent of management and free from any business or other relationship which
could materially interfere with the exercise of independent judgment. For a corporation having 10
directors, what is the minimum number of independent directors in order to comply with the law?
a. 10
b. 6
c. 2
d. 1
50. Under the Revised Corporation Code, the notice requirement for Director’s Meeting is now
________ prior to the date of the meeting.
a. 1 day
b. 2 days
c. 1 week
d. 2 weeks
51. Under the Revised Corporation Code, directors are now allowed to attend the meeting through
remote communication such as videoconferencing and teleconferencing.
Under the Revised Corporation Code, directors or trustees can now attend or vote by proxy
at board meetings.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.
52. Under the Revised Corporation Code, the term for trustees of non-stock non-educational
institutions is three (3) years.
Under the Revised Corporation Code, the term of office of 1/3 of the number of trustees of
non-stock non-educational institutions shall expire every year.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.
53. Under the Revised Corporation Code, the President of the corporation must be a resident and
citizen of the Philippines.
Under the old Corporation Code, the term of a corporation is 50 years, subject to a renewal not
earlier than 5 years prior to expiration.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.
54. Under the Revised Corporation Code, a corporation shall have perpetual existence unless its
articles of incorporation provide otherwise.
As to corporations already existing prior to the effectivity of the new Corporation Code, it would
have perpetual existence upon its notification with the SEC.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY
Batch 43 – May 2022 CPALE Licensure Examination RFBT Preweek
55. Under the Revised Corporation Code, what is the minimum paid-in capital for a corporation with
an authorized capital stock amounting to P1,000,000?
a. P1,000,000
b. P250,000
c. P62,500
d. None of the above
56. It is the method of determining the nationality of a corporation which in turn is owned by another
corporation by breaking down the entity structure of the shareholders of the corporation.
a. Piercing the veil of corporate fiction
b. Grandmother rule
c. Holistic test
d. None of the above
57. MINERO Corporation would like engage in the business of mining gold in Abra. It is 80% owned
by LEICA (a domestic corporation) and 20% owned by individual foreigners. Leica, on the other
hand, is 70% owned by Filipino individuals and 30% owned by individual foreigners. Should the
SEC approve the application of MINERO Corporation?
a. Yes, it was able to comply with the requirements of the law.
b. No, the required Filipino ownership percentage was not met.
c. Yes, anything is possible as long as there is unity.
d. No, because it is late in the evening and she is wondering what clothes to wear.
58. The shares issued to the founders of the corporation which are granted certain rights and
privileges such as the exclusive right to vote and be voted for in the election of the directors, for
a period not to exceed ______ , subject to the approval of the SEC.
a. 2 years
b. 3 years
c. 5 years
d. 10 years
59. Par value shares can be issued for as low as
a. P5
b. P1
c. 1 centavo
d. P2.50
60. Emma subscribed to 2,000 shares of KILLER BRIDE Corporation at P50. She only paid P10,000
cash. How many shares, if any, is to be issued to Emma upon her payment of P10,000?
a. 2,000 shares
b. 1,000
c. 200 shares
d. None of the above
61. Directors of a corporation must not have been convicted by final judgment of an offense
punishable by imprisonment for a period of six years or a violation of the Corporation Code within
5 years before the date of his election.
Majority of the directors or trustees of a corporation must be citizens of the Philippines.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY
Batch 43 – May 2022 CPALE Licensure Examination RFBT Preweek
62. FUJI Corporation has a principal office located on ELJ Building, Diliman, Quezon City. What
are the possible valid venues for the upcoming shareholder’s meeting?
a. ELJ Building only
b. Any venue in Quezon City
c. Any venue in Metro Manila
d. Any venue in the Philippines
63. OLYMPUS Corporation has a principal office located in SM JAZZ Building, Bel-Air, Makati City. What
are the possible valid venues for the upcoming Board of Director’s meeting?
a. Any venue in Makati
b. Any venue in Metro Manila
c. Any venue in the Philippines
d. Any venue in the world
64. One person corporations are likewise required to submit and file their corporate by-laws.
A single stockholder can be appointed as the corporate secretary of a One Person Corporation.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.
65. Which of the following vacancies in the Board of Directors can be filled up by the stockholders
only?
a. Death of a director
b. Abandonment made by a director
c. Resignation of a director
d. Removal of a director
66. This involves an intensive selling campaign through numerous salesmen by telephone or through
direct mail offerings for securities of either a certain type or from a specific issuer
a. Marking the close
b. Boiler room operations
c. Scalping
d. Squeezing the float

COOPERATIVES

67. Which of the following is not a qualification for organizers of a primary cooperative?
a. Must be 15 or more natural persons
b. Must be residents of the Philippines
c. Must be of legal age
d. None of the above
68. A cooperative for farmers has an authorized share capital amounting to P100,000. How much is
the minimum paid up share capital for this cooperative?
a. P100,000
b. P25,000
c. P6,250
d. None of the above

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY
Batch 43 – May 2022 CPALE Licensure Examination RFBT Preweek
69. The failure of the Office of the President to act on the appeal of a cooperative within ______ from
the filing thereof shall mean an approval of the said application.
a. 30 days
b. 60 days
c. 90 days
d. 120 days
70. Which of the following is an invalid cooperative name?
a. Ilocos Farmers Development Cooperative
b. ISABELA ELECTRIC COOPERATIVE (Iselco)
c. Both A & B
d. None of the above
71. Its primary purpose is to procure and distribute commodities to members and non-members.
a. Cooperative bank
b. Consumers cooperative
c. Agrarian reform cooperative
d. Dairy cooperative
72. He is one who has no right to vote nor be voted upon and shall be entitled only to such rights and
privileges as the by-laws of the cooperative may provide
a. Regular member
b. Associate member
c. Affiliate member
d. None of the above
73. It is a cooperative organized by minors
a. Guardian cooperative
b. Junior cooperative
c. Laboratory cooperative
d. Kiddie cooperative
74. For cooperative banks, what is the quorum needed for meetings of the General Assembly?
a. At least 25% of the members entitled to vote
b. At least 50% plus one of the members entitled to vote
c. At least 5% of all members entitled to vote, unless the by laws provide otherwise
d. None of the above
75. No member of a primary cooperative other than the cooperative itself shall own or hold more than
______ of the share capital of the cooperative
a. 5%
b. 10%
c. 25%
d. 50%
76. A cooperative will be dissolved if it has not commenced business and its operation within two
years after the issuance of its certificate of registration or has not carried on its business for
_____ consecutive years.
a. Five
b. Three
c. Two
d. Ten
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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY
Batch 43 – May 2022 CPALE Licensure Examination RFBT Preweek
SALES

77. Under the Maceda Law, a buyer would be entitled to how many days as grace period after paying
seven years-worth of installment?
a. 60 days
b. 90 days
c. 180 days
d. 210 days
78. In case the same personal property is sold to two buyers, the one who will have a better right is:
a. The first one to register the sale in good faith
b. The first one to take possession in good faith
c. The one with the oldest title
d. The one who is the boyfriend/girlfriend of the seller
79. The following rights of an unpaid seller are mutually exclusive:
a. Possessory Lien and Rescission
b. Rescission and Stoppage in Transitu
c. Stoppage in Transitu and Possessory Lien
d. Resale and Rescission
80. The liability of a seller in good faith for breach of warranty against eviction, when the buyer, who
did not know the risk of eviction, executed a waiver:
a. Value of the thing, interest on the price, costs of the suit, expenses of the contract,
damages
b. Value of the thing, interest on the price, costs of the suit, expenses of the contract
c. Value of the thing
d. None
81. Gerry stole the watch belonging to Harry and sold it to Ivan. Suppose Harry finds it in the possession
of Ivan, can he recover it from Ivan?
a. No, because the ownership of the watch has already been transferred to Ivan.
b. No, because there was payment on the part of Ivan.
c. Both A & B.
d. Yes, because Gerry was not the owner, hence Ivan acquired no better right than what
the vendor had.
82. X is the owner of a parcel of land covered by a title. He sold it to Y, but the latter failed to register.
X sold it to Z one year later. Before Z registered the sale, he came to know of the sale between X
and Y. Who has the better right to the parcel of land?
a. Y has the better right because he was the first buyer.
b. Y has the better right because Z was in bad faith.
c. Z has the better right because he was the first registrant.
d. Both of them have equal rights to the parcel of land.
83. Within what period should the vendor a retro repurchase the property?
a. In the absence of an agreement, it must be done within four years from the date of
the contract.
b. In the absence of an agreement, it must be done within ten years from the date of the
contract.
c. In the absence of an agreement, it must be done within twenty years from the date of
the contract.
d. None of the above

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY
Batch 43 – May 2022 CPALE Licensure Examination RFBT Preweek
CREDIT TRANSACTIONS

84. A kind of pledge entered into by agreement of the parties:

a. Conventional
b. Legal
c. Judicial
d. Pledge of love
85. The period to exercise the right of redemption in case of extrajudicial foreclosure of the real
estate mortgage is:
a. 1 year
b. 90 to 120 days
c. 3 months or upon registration of certificate of sale, whichever is earlier
d. 30 days

NEGOTIABLE INSTRUMENTS
86. All of the following are requisites of negotiability applicable to a promissory note, except:
a. That the instrument is written and signed by the drawer
b. That the instrument contains an unconditional promise to pay a sum certain in money
c. That the instrument is payable on demand or at a fixed or determinable future time
d. That the instrument is payable to order or bearer
BANKING LAWS

87. Which among the following transactions is not covered by the protection of the Bank Secrecy Law?
a. Impeachment cases
b. Cases covered by the Unclaimed Balances Act
c. Cases involving dereliction of duty of public officials
d. Both A and B
e. All of the above
88. It is obligatory of every bank to report, in sworn statement, to the Treasurer of the Philippines of
deposits that have not been touched for a period of _____ years or held in favor of persons known
to be dead.
a. 2 years
b. 5 years
c. 10 years
d. 50 years
89. Who is liable for the payment of the insurance premium for deposits covered by the PDIC?
a. The depositor
b. The bank
c. The BSP
d. Both A & B, equally
90. Camila has an individual savings account with PNB-Morayta amounting to P1,000,000. She also has
a P5,000,000 checking account with PNB-Malolos. Due to a failing economy, PNB was ordered to
close down by the BSP. How much can Camila recover from the PDIC, if any?
a. P 500,000
b. P 1,000,000
c. P 6,000,000
d. Zero
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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY
Batch 43 – May 2022 CPALE Licensure Examination RFBT Preweek
91. Deposits of a closed insured bank has _______ from the date of bank turnover to his deposit
insurance claim. Otherwise, he should file his claim directly against the assets of the bank.
a. 12 months
b. 24 months
c. 36 months
d. 60 months

92. Under the provisions of the Anti-Money Laundering Act, a single casino cash transaction involving
an amount in excess of _____________will be considered a “covered transaction”.
a. P500,000
b. P1,000,000
c. P2,000,000
d. None of the above

93. Under the provisions of the Anti-Money Laundering Act, which among the following is not a covered
person?
a. Lawyers
b. Accountants
c. Security dealers
d. Both A & B
e. All of the above

94. What court would have jurisdiction for cases involving violations of the Anti-Money Laundering Act?
a. Municipal Trial Court
b. Regional Trial Court
c. Sandiganbayan
d. Both B & C
e. All of the above

95. The AMLC may inquire into deposits upon order of the court when there is a probable cause that
the deposits are related to the crime or unlawful activity. However, a court order is not even
necessary when the offense or unlawful activity involved is any of the following:
a. Hijacking
b. Murder
c. Plunder
d. Both A & B
e. All of the above

INTELLECTUAL PROPERTY LAW

96. Mondragon Corporation commissioned Romina and her daughter Cassie, both noted artists, to paint
a mural for the main lobby of their new building. The contract price is P2,000,000. Who owns the
mural?
a. Mondragon Corporation
b. Romina
c. Cassie
d. Mondragon Corporation and the artists, in equal shares

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 ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY
Batch 43 – May 2022 CPALE Licensure Examination RFBT Preweek
97. This test focuses on the similarity of the prevalent features of the competing trademarks which
might cause confusion or deception, and thus infringement
a. Holistic Test
b. Dominancy Test
c. Substantive Test
d. Botha A and B

DATA PRIVACY

98. All government agencies, national or local, government owned and controlled corporations,
government instrumentalities located in the Philippines or abroad shall comply with prescribed
processing time. Complex transactions should be processed within ______________.
a. 3 working days
b. 7 working days
c. 20 working days
d. None of the above

99. The processing of this type of information is generally allowed under the Data Privacy Act:
a. Personal Information
b. Sensitive Personal Information
c. Privileged Information
d. All of the above

100. The agency tasked to implement the Data Privacy Act is:
a. Department of Trade and Industry
b. National Privacy Commission
c. Securities and Exchange Commission
d. National Bureau of Investigation

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