PRELIM 30/30

Special journals are generally used to record frequently occurring transactions.

Select one:
True 
False

Question 2
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What journal will you use to record the following transaction:Purchases of merchandise on
account.

Select one:
a. General Journal
b. Purchases Journal 
c. Cash Payments Journal
d. Cash Receipts Journal

Question 3
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Question text

On March 1, 2017, Mr. A bought 10 units of cell phones with a listed price of P 10,000 each,
less 2%, 4%, for resale. Terms of payment: 2/10, n/30. The total sales to be recorded by the
supplier is
Select one:
a. P94,000
b. P98,000
c. P80,384
d. P94,080 

Question 4
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______is a business involving buying goods and selling it in its original form.

Select one:
a. Merchandising 
b. Freight in or transportation in
c. Merchandiser or trader
d. Cost of goods sold or cost of sales

Question 5
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The merchandise inventory ______is the ratio of cost of goods sold to average merchandise
inventory.

Select one:
a. Merchandise Inventory 
b. Cost of goods sold or cost of sales
c. Turnover
d. Sales discount

Question 6
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_____-is the cost of the merchandise that the merchandiser has sold.

Select one:
a. Freight in or transportation in
b. Cost of goods sold or cost of sales 
c. Merchandiser or trader
d. Merchandising

Question 7
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The owner of a merchandising business is called

Select one:
a. Buyer and/or Seller
b. Merchandiser
c. Trader
d. All of these 

Question 8
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On March 1, 2017, Mr. A bought 10 units of cell phones with a listed price of P 10,000 each,
less 2%, 4%, for resale. Terms of payment: 2/10, n/30. Assuming Mr. A paid on March 8,
2017, he will be paying

Select one:
a. P100,000
b. P92,000 
c. P92,198
d. P98,000

Question 9
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What journal will you use to record the following transaction:Cash sale of merchandise
inventory.

Select one:
a. Purchases Journal
b. Cash Payments Journal 
c. Cash Receipts Journal
d. General Journal

Question 10
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 Flag question

Question text

The following items can be found in the income statement of a merchandising firm except

Select one:
a. Freight-out 
b. Trade Discount
c. Purchase Discount
d. Net Sales

Question 11
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Purchases of merchandise for cash is recorded in the

Select one:
a. Cash Receipts Journal
b. Cash Disbursement Journal 
c. Purchases Journal
d. General Journal

Question 12
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Question text

It is a business combining raw materials, labor and overhead to produce finished goods to
sell.

Select one:
a. Merchandising
b. Manufacturing 
c. Service Concern
d. Buy and Sell

Question 13
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The detailed record of individual accounts is

Select one:
a. Sales Journal
b. Purchases Journal
c. Subsidiary Ledger
d. Special Journal 

Question 14
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On March 1, 2017, Mr. A bought 10 units of cell phones with a listed price of P 10,000 each,
less 2%, 4%, for resale. Terms of payment: 2/10, n/30. The total trade discount to Mr. A. is
Select one:
a. P19,616
b. P2, 000
c. P5,920
d. P3, 920 

Question 15
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In the income statement of a merchandising firm, the gross profit is arrived at by

subtracting _____from net sales.

Select one:
a. Merchandise Inventory
b. Sales discount
c. Turnover
d. Cost of goods sold or cost of sales 

Question 16
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Debit memo is the document issued by the buyer for returned merchandise. Recording this
will require a credit to

Select one:
a. Purchase Discount
b. Purchases
c. Accounts Payable
d. Accounts Receivable 

Question 17
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The entries of which are posted individually in the Accounts Payable Subsidiary Ledger.

Select one:
a. Sales Journal
b. Purchases Journal
c. Cash Payments Journal 
d. Cash Receipts Journal

Question 18
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What journal will you use to record the following transaction:Cash purchases of
merchandise

Select one:
a. General Journal
b. Purchases Journal 
c. Cash Payments Journal
d. Cash Receipts Journal

Question 19
Correct
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Discount received by the merchandiser for paying on time

Select one:
a. Purchase Discount 
b. Periodic Inventory System
c. Trade discount
d. Freight-in

Question 20
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Document supporting the sales return and allowances is called a debit memo.

Select one:
True 
False

Question 21
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The discount that is not recorded in the books of the business is

Select one:
a. Purchase discount
b. Cash Discount 
c. Trade discount
d. Sales discount

Question 22
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Question text

What journal will you use to record the following transaction:Payment of account.

Select one:
a. General Journal
b. Cash Payments Journal 
c. Purchases Journal
d. Cash Receipts Journal

Question 23
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Purchases of merchandise debited to Merchandise inventory

Select one:
a. Purchase Discount
b. Trade discount
c. Freight-in
d. Periodic Inventory System 

Question 24
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Buy and Sell business

Select one:
a. Gross Profit 
b. Freight-in
c. Merchandising
d. Sales

Question 25
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Following are selected purchase transactions of Mr. Cruz, a merchandiser, during  April of
the current year:
 
April 8  Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB
Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
 
April 10  Returned defective merchandise purchased on the 8th, P 10,000.
 
April 17 Paid ABC Textile Corporation.
 
April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City.
Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The
shipment arrived at the  Port of Manila, A
 
April 25  Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point.
Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on
May 2.
Purchase Discount availed by Mr. Cruz is

Select one:
a. P1,800
b. P4,500 
c. P3,000
d. P 2,000
Feedback

Your answer is incorrect.

Question 26
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The discount given by the supplier to a trader will be recorded in the latter's books as

Select one:
a. Purchase discount
b. Sales discount
c. Trade discount 
d. All of these

Question 27
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What journal will you use to record the following transaction:Collection of dividends earned
on an investment.

Select one:
a. Cash Payments Journal
b. Purchases Journal
c. Cash Receipts Journal
d. General Journal 

Question 28
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What journal will you use to record the following transaction:Payment of advertising.

Select one:
a. General Journal
b. Cash Receipts Journal
c. Cash Payments Journal 
d. Purchases Journal

Question 29
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 Flag question

Question text

It is used to summarize the collectibles and payments from every individual or customer.

Select one:
a. General Journal
b. Sales Journal
c. Accounts Receivable Subsidiary ledger
d. Accounts Payable Subsidiary Ledger 

Question 30
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Credit memo is the document the issuance of which requires a debit to

Select one:
a. Sales Discount
b. Accounts Receivable
c. Cash
d. Sales Returns and Allowance 
2ND

Depreciation is recorded in the

Select one:
a. Debit Memorandum
b. Special journal
c. General Journal 
d. Purchases Journal

Question 2
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Discount not recorded in the seller's books

Select one:
a. Trade discount 
b. Purchase Discount
c. Freight-in
d. Periodic Inventory System

Question 3
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It is the cost of transporting the goods from the merchandiser to the ultimate consumer.

Select one:
a. Freight in
b. F.O.B.
c. Delivery expense
d. Transportation in 

Question 4
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Question text

In the books of seller, ____ is deducted from the invoice price when the buyer pays earlier or
on the date/term stipulated.

Select one:
a. Sales discount 
b. Merchandise Inventory
c. Periodic
d. Cash

Question 5
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What journal will you use to record the following transaction:Receipt of returned
merchandise from customers.

Select one:
a. Cash Receipts Journal
b. Purchases Journal
c. General Journal 
d. Cash Payments Journal

Question 6
Correct
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 Flag question

Question text

Following are selected purchase transactions of Mr. Cruz, a merchandiser, during  April of
the current year:
 
April 8  Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB
Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
 
April 10  Returned defective merchandise purchased on the 8th, P 10,000.
 
April 17 Paid ABC Textile Corporation.
 
April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City.
Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The
shipment arrived at the  Port of Manila, A
 
April 25  Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point.
Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on
May 2.
The freight that will be paid by the buyer is

Select one:
a. P26,500
b. P21,500
c. P5,000
d. P11,500 
Feedback

Your answer is correct.

Question 7
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What journal will you use to record the following transaction:Borrowing money on a long-
term note payable.

Select one:
a. Purchases Journal
b. Cash Receipts Journal 
c. Cash Payments Journal
d. General Journal

Question 8
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What journal will you use to record the following transaction: Prepayment of rent.

Select one:
a. General Journal
b. Purchases Journal
c. Cash Payments Journal 
d. Cash Receipts Journal

Question 9
Correct
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 Flag question

Question text

What journal will you use to record the following transaction:Expiration of prepaid
insurance.

Select one:
a. General Journal 
b. Cash Receipts Journal
c. Cash Payments Journal
d. Purchases Journal

Question 10
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Question text

Following are selected purchase transactions of Mr. Cruz, a merchandiser, during  April of
the current year:
 
April 8  Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB
Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
 
April 10  Returned defective merchandise purchased on the 8th, P 10,000.
 
April 17 Paid ABC Textile Corporation.
 
April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City.
Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The
shipment arrived at the  Port of Manila, A
 
April 25  Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point.
Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on
May 2.
The total purchases inclusive of freight during April is

Select one:
a. P 241,500
b. P265,000
c. P 220,000
d. P231, 500 
Feedback

Your answer is correct.

Question 11
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It is also called check register or cash disbursements journal.

Select one:
a. Special Journals
b. Cash Receipts Journal
c. Accounts Receivable subsidiary ledger
d. Cash Payments Journal 

Question 12
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 Flag question

Question text

Perpetual inventory system requires an actual count of the good at the end of the
accounting period to determine the

Select one:
a. Merchandise inventory , beginning 
b. Cost of goods sold
c. Total freight-in
d. Total purchases

Question 13
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It is a detailed record of individual customer's accounts.

Select one:
a. Accounts Receivable subsidiary ledger
b. Special Journals 
c. Cash Receipts Journal
d. Cash Payments Journal

Question 14
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 Flag question

Question text

The total of all the balances of the customers' subsidiary ledgers should be equal to the
balance of Account Receivable general ledger.

Select one:
True 
False

Question 15
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Question text

Following are selected purchase transactions of Mr. Cruz, a merchandiser, during  April of
the current year:
 
April 8  Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB
Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
 
April 10  Returned defective merchandise purchased on the 8th, P 10,000.
 
April 17 Paid ABC Textile Corporation.
 
April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City.
Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The
shipment arrived at the  Port of Manila, A
 
April 25  Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point.
Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on
May 2.
The net purchases to be reported on April 30 is

Select one:
a. P 155,000
b. P 220,000 
c. P145, 000
d. P140,000
Feedback

Your answer is correct.

Question 16
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It is a special journal used to record the business cash receipts from whatever source.

Select one:
a. Accounts Receivable subsidiary ledger
b. Cash Receipts Journal 
c. Special Journals
d. Cash Payments Journal

Question 17
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All cash outflows are recorded in the

Select one:
a. General Journal
b. Purchases Journal
c. Cash Receipts Journal
d. Cash Disbursement Journal 

Question 18
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Question text

Following are selected purchase transactions of Mr. Cruz, a merchandiser, during  April of
the current year:
 
April 8  Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB
Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
 
April 10  Returned defective merchandise purchased on the 8th, P 10,000.
 
April 17 Paid ABC Textile Corporation.
 
April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City.
Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The
shipment arrived at the  Port of Manila, A
 
April 25  Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point.
Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on
May 2.
The amount to be included in the merchandise inventory as of April 30 is

Select one:
a. P246,500 
b. P145,000
c. P170,000
d. P220,000
Feedback

Your answer is incorrect.

Question 19
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Question text

It is an accounting journal for recording one specific kind of business transactions.

Select one:
a. Special Journals
b. Cash Receipts Journal
c. Accounts Receivable subsidiary ledger 
d. Cash Payments Journal

Question 20
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Cost of transporting goods from supplier to the buyer

Select one:
a. Freight-in
b. Merchandising
c. Gross Profit 
d. Sales

Question 21
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Term for revenue of a merchandiser

Select one:
a. Freight-in
b. Sales 
c. Gross Profit
d. Merchandising

Question 22
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________is the cost of transporting the goods from the supplier to the merchandiser/buyer.

Select one:
a. Cost of goods sold or cost of sales 
b. Merchandising
c. Merchandiser or trader
d. Freight in or transportation in

Question 23
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If merchandise sells his goods on credit, his operating cycle will be a little longer than when
he sells them on ____basis.

Select one:
a. Merchandise Inventory 
b. Cash
c. Sales discount
d. Periodic

Question 24
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Sales Discount is recorded in the

Select one:
a. General Journal
b. Cash Receipts Journal 
c. Cash Payments Journal
d. Sales Journal

Question 25
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 Flag question

Question text

Excess of net sales over cost of goods sold

Select one:
a. Gross Profit 
b. Sales
c. Merchandising
d. Freight-in

Question 26
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Question text

It is an accounting journal for recording sales on account.

Select one:
a. Cash Receipts Journal
b. Sales Journal 
c. Subsidiary Ledger
d. Purchases Journal

Question 27
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Question text

What journal will you use to record the following transaction:Sales of merchandise inventory
on credit.

Select one:
a. Purchases Journal 
b. Sales Journal
c. General Journal
d. Cash Receipts Journal

Question 28
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Purchases of merchandise under the perpetual inventory system will be recorded by

debiting _______.

Select one:
a. Cash
b. Sales discount 
c. Periodic
d. Merchandise Inventory

Question 29
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What journal will you use to record the following transaction:Depreciation of Equipment.
Select one:
a. Cash Receipts Journal
b. General Journal 
c. No correct answer
d. Purchases Journal

Question 30
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The issuance of this document results to a debit to Sales Returns and Allowances and credit
Accounts Receivable.

Select one:
a. Accounts Payable Subsidiary Ledger
b. General Journal
c. Debit memorandum
d. Credit memorandum 
3RD

On March 1, 2017, Mr. A bought 10 units of cell phones with a listed price of P 10,000 each,
less 2%, 4%, for resale. Terms of payment: 2/10, n/30. The total trade discount to Mr. A. is

Select one:
a. P5,920 
b. P3, 920
c. P2, 000
d. P19,616

Question 2
Correct
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 Flag question

Question text

Credit memo is the document the issuance of which requires a debit to

Select one:
a. Cash
b. Sales Returns and Allowance 
c. Sales Discount
d. Accounts Receivable

Question 3
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Question text

The following items can be found in the income statement of a merchandising firm except

Select one:
a. Net Sales
b. Trade Discount 
c. Purchase Discount
d. Freight-out

Question 4
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Question text

Cost of transporting goods from supplier to the buyer

Select one:
a. Merchandising 
b. Sales
c. Gross Profit
d. Freight-in

Question 5
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The merchandise inventory ______is the ratio of cost of goods sold to average merchandise
inventory.

Select one:
a. Turnover
b. Merchandise Inventory
c. Cost of goods sold or cost of sales 
d. Sales discount

Question 6
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Question text

Following are selected purchase transactions of Mr. Cruz, a merchandiser, during  April of
the current year:
 
April 8  Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB
Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
 
April 10  Returned defective merchandise purchased on the 8th, P 10,000.
 
April 17 Paid ABC Textile Corporation.
 
April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City.
Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The
shipment arrived at the  Port of Manila, A
 
April 25  Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point.
Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on
May 2.
The amount to be included in the merchandise inventory as of April 30 is

Select one:
a. P220,000
b. P145,000 
c. P170,000
d. P246,500
Feedback

Your answer is incorrect.

Question 7
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What journal will you use to record the following transaction:Expiration of prepaid
insurance.
Select one:
a. Cash Payments Journal
b. Cash Receipts Journal
c. General Journal 
d. Purchases Journal

Question 8
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The discount that is not recorded in the books of the business is

Select one:
a. Sales discount
b. Purchase discount
c. Trade discount 
d. Cash Discount

Question 9
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If merchandise sells his goods on credit, his operating cycle will be a little longer than when
he sells them on ____basis.

Select one:
a. Merchandise Inventory
b. Periodic
c. Cash 
d. Sales discount

Question 10
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All cash outflows are recorded in the

Select one:
a. Cash Receipts Journal
b. Purchases Journal
c. General Journal
d. Cash Disbursement Journal 

Question 11
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Question text

It is a detailed record of individual customer's accounts.

Select one:
a. Special Journals
b. Cash Payments Journal 
c. Accounts Receivable subsidiary ledger
d. Cash Receipts Journal

Question 12
Correct
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Question text

The total of all the balances of the customers' subsidiary ledgers should be equal to the
balance of Account Receivable general ledger.

Select one:
True 
False

Question 13
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Question text

It is used to summarize the collectibles and payments from every individual or customer.

Select one:
a. Accounts Payable Subsidiary Ledger
b. Accounts Receivable Subsidiary ledger 
c. General Journal
d. Sales Journal

Question 14
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It is a business combining raw materials, labor and overhead to produce finished goods to
sell.

Select one:
a. Merchandising
b. Buy and Sell
c. Manufacturing 
d. Service Concern

Question 15
Correct
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Question text

It is a special journal used to record the business cash receipts from whatever source.

Select one:
a. Accounts Receivable subsidiary ledger
b. Special Journals
c. Cash Receipts Journal 
d. Cash Payments Journal

Question 16
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Question text

Document supporting the sales return and allowances is called a debit memo.

Select one:
True
 False 

Question 17
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Question text

Following are selected purchase transactions of Mr. Cruz, a merchandiser, during  April of
the current year:
 
April 8  Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB
Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
 
April 10  Returned defective merchandise purchased on the 8th, P 10,000.
 
April 17 Paid ABC Textile Corporation.
 
April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City.
Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The
shipment arrived at the  Port of Manila, A
 
April 25  Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point.
Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on
May 2.
The net purchases to be reported on April 30 is

Select one:
a. P140,000
b. P145, 000
c. P 155,000
d. P 220,000 
Feedback
Your answer is correct.

Question 18
Correct
Mark 1.00 out of 1.00

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Question text

Discount received by the merchandiser for paying on time

Select one:
a. Freight-in
b. Purchase Discount 
c. Periodic Inventory System
d. Trade discount

Question 19
Correct
Mark 1.00 out of 1.00

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Question text

Excess of net sales over cost of goods sold

Select one:
a. Sales
b. Merchandising
c. Gross Profit 
d. Freight-in

Question 20
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

What journal will you use to record the following transaction:Borrowing money on a long-
term note payable.

Select one:
a. Purchases Journal
b. General Journal
c. Cash Receipts Journal 
d. Cash Payments Journal

Question 21
Correct
Mark 1.00 out of 1.00

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Question text

What journal will you use to record the following transaction:Purchases of merchandise on
account.

Select one:
a. Cash Payments Journal
b. Cash Receipts Journal
c. Purchases Journal 
d. General Journal

Question 22
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

On March 1, 2017, Mr. A bought 10 units of cell phones with a listed price of P 10,000 each,
less 2%, 4%, for resale. Terms of payment: 2/10, n/30. Assuming Mr. A paid on March 8,
2017, he will be paying

Select one:
a. P100,000
b. P92,198 
c. P98,000
d. P92,000

Question 23
Correct
Mark 1.00 out of 1.00

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Question text

What journal will you use to record the following transaction:Cash purchases of
merchandise

Select one:
a. Cash Receipts Journal
b. Cash Payments Journal 
c. Purchases Journal
d. General Journal

Question 24
Incorrect
Mark 0.00 out of 1.00
 Flag question

Question text

Buy and Sell business

Select one:
a. Merchandising
b. Sales 
c. Gross Profit
d. Freight-in

Question 25
Correct
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Question text

It is an accounting journal for recording sales on account.

Select one:
a. Cash Receipts Journal
b. Purchases Journal
c. Sales Journal 
d. Subsidiary Ledger

Question 26
Correct
Mark 1.00 out of 1.00

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Question text

In the income statement of a merchandising firm, the gross profit is arrived at by

subtracting _____from net sales.

Select one:
a. Cost of goods sold or cost of sales 
b. Merchandise Inventory
c. Turnover
d. Sales discount

Question 27
Correct
Mark 1.00 out of 1.00

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Question text

Perpetual inventory system requires an actual count of the good at the end of the
accounting period to determine the

Select one:
a. Total freight-in
b. Cost of goods sold 
c. Merchandise inventory , beginning
d. Total purchases

Question 28
Correct
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Question text
Following are selected purchase transactions of Mr. Cruz, a merchandiser, during  April of
the current year:
 
April 8  Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB
Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
 
April 10  Returned defective merchandise purchased on the 8th, P 10,000.
 
April 17 Paid ABC Textile Corporation.
 
April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City.
Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The
shipment arrived at the  Port of Manila, A
 
April 25  Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point.
Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on
May 2.
The total purchases inclusive of freight during April is

Select one:
a. P231, 500 
b. P 241,500
c. P 220,000
d. P265,000
Feedback

Your answer is correct.

Question 29
Correct
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Question text
What journal will you use to record the following transaction:Collection of dividends earned
on an investment.

Select one:
a. Cash Receipts Journal
b. General Journal
c. Cash Payments Journal
d. Purchases Journal 

Question 30
Correct
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Question text

The detailed record of individual accounts is

Select one:
a. Purchases Journal
b. Special Journal
c. Sales Journal
d. Subsidiary Ledger 
4TH

Discount not recorded in the seller's books

Select one:
a. Freight-in
b. Periodic Inventory System
c. Trade discount 
d. Purchase Discount

Question 2
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

________is the cost of transporting the goods from the supplier to the merchandiser/buyer.

Select one:
a. Freight in or transportation in 
b. Cost of goods sold or cost of sales
c. Merchandising
d. Merchandiser or trader

Question 3
Correct
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Question text

In the books of seller, ____ is deducted from the invoice price when the buyer pays earlier or
on the date/term stipulated.

Select one:
a. Sales discount 
b. Merchandise Inventory
c. Cash
d. Periodic

Question 4
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

On March 1, 2017, Mr. A bought 10 units of cell phones with a listed price of P 10,000 each,
less 2%, 4%, for resale. Terms of payment: 2/10, n/30. The total sales to be recorded by the
supplier is

Select one:
a. P80,384
b. P94,000
c. P94,080 
d. P98,000

Question 5
Correct
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Question text

What journal will you use to record the following transaction:Payment of account.

Select one:
a. Cash Payments Journal 
b. General Journal
c. Cash Receipts Journal
d. Purchases Journal

Question 6
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

What journal will you use to record the following transaction:Receipt of returned
merchandise from customers.

Select one:
a. Cash Receipts Journal
b. Purchases Journal
c. General Journal 
d. Cash Payments Journal

Question 7
Correct
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Question text

_____-is the cost of the merchandise that the merchandiser has sold.

Select one:
a. Merchandising
b. Merchandiser or trader
c. Cost of goods sold or cost of sales 
d. Freight in or transportation in

Question 8
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

Sales Discount is recorded in the

Select one:
a. General Journal
b. Cash Payments Journal
c. Sales Journal
d. Cash Receipts Journal 

Question 9
Correct
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Question text

The issuance of this document results to a debit to Sales Returns and Allowances and credit
Accounts Receivable.

Select one:
a. Debit memorandum
b. Accounts Payable Subsidiary Ledger
c. Credit memorandum 
d. General Journal

Question 10
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

It is an accounting journal for recording one specific kind of business transactions.

Select one:
a. Accounts Receivable subsidiary ledger
b. Cash Receipts Journal
c. Cash Payments Journal
d. Special Journals 

Question 11
Correct
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Question text

It is the cost of transporting the goods from the merchandiser to the ultimate consumer.

Select one:
a. Delivery expense 
b. Transportation in
c. F.O.B.
d. Freight in

Question 12
Incorrect
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Question text

What journal will you use to record the following transaction:Cash sale of merchandise
inventory.

Select one:
a. Purchases Journal
b. Cash Receipts Journal
c. Cash Payments Journal
d. General Journal 

Question 13
Correct
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Question text

Purchases of merchandise under the perpetual inventory system will be recorded by

debiting _______.

Select one:
a. Sales discount
b. Cash
c. Periodic
d. Merchandise Inventory 

Question 14
Correct
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Question text

Purchases of merchandise for cash is recorded in the

Select one:
a. Cash Receipts Journal
b. Purchases Journal
c. Cash Disbursement Journal 
d. General Journal

Question 15
Correct
Mark 1.00 out of 1.00

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Question text

What journal will you use to record the following transaction:Payment of advertising.

Select one:
a. Purchases Journal
b. Cash Receipts Journal
c. Cash Payments Journal 
d. General Journal

Question 16
Correct
Mark 1.00 out of 1.00

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Question text

Term for revenue of a merchandiser

Select one:
a. Freight-in
b. Merchandising
c. Sales 
d. Gross Profit

Question 17
Correct
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Question text

It is also called check register or cash disbursements journal.

Select one:
a. Special Journals
b. Cash Receipts Journal
c. Accounts Receivable subsidiary ledger
d. Cash Payments Journal 

Question 18
Correct
Mark 1.00 out of 1.00

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Question text

The owner of a merchandising business is called

Select one:
a. All of these 
b. Buyer and/or Seller
c. Merchandiser
d. Trader

Question 19
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

Following are selected purchase transactions of Mr. Cruz, a merchandiser, during  April of
the current year:
 
April 8  Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB
Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
 
April 10  Returned defective merchandise purchased on the 8th, P 10,000.
 
April 17 Paid ABC Textile Corporation.
 
April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City.
Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The
shipment arrived at the  Port of Manila, A
 
April 25  Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point.
Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on
May 2.
The freight that will be paid by the buyer is

Select one:
a. P26,500
b. P5,000
c. P21,500
d. P11,500 
Feedback

Your answer is correct.

Question 20
Incorrect
Mark 0.00 out of 1.00

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Question text

What journal will you use to record the following transaction:Sales of merchandise inventory
on credit.

Select one:
a. Purchases Journal
b. Sales Journal
c. General Journal
d. Cash Receipts Journal 

Question 21
Correct
Mark 1.00 out of 1.00

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Question text

______is a business involving buying goods and selling it in its original form.

Select one:
a. Merchandiser or trader
b. Freight in or transportation in
c. Merchandising 
d. Cost of goods sold or cost of sales

Question 22
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

Following are selected purchase transactions of Mr. Cruz, a merchandiser, during  April of
the current year:
 
April 8  Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB
Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
 
April 10  Returned defective merchandise purchased on the 8th, P 10,000.
 
April 17 Paid ABC Textile Corporation.
 
April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City.
Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The
shipment arrived at the  Port of Manila, A
 
April 25  Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point.
Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on
May 2.
Purchase Discount availed by Mr. Cruz is

Select one:
a. P3,000
b. P 2,000
c. P1,800 
d. P4,500
Feedback

Your answer is correct.

Question 23
Incorrect
Mark 0.00 out of 1.00

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Question text

Debit memo is the document issued by the buyer for returned merchandise. Recording this
will require a credit to

Select one:
a. Purchases 
b. Accounts Receivable
c. Accounts Payable
d. Purchase Discount

Question 24
Incorrect
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Question text

The discount given by the supplier to a trader will be recorded in the latter's books as

Select one:
a. Sales discount
b. All of these 
c. Purchase discount
d. Trade discount

Question 25
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

Purchases of merchandise debited to Merchandise inventory

Select one:
a. Purchase Discount
b. Freight-in
c. Trade discount
d. Periodic Inventory System 

Question 26
Correct
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Question text

Special journals are generally used to record frequently occurring transactions.

Select one:
True 
False

Question 27
Correct
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Question text

Depreciation is recorded in the

Select one:
a. Purchases Journal
b. Special journal
c. Debit Memorandum
d. General Journal 

Question 28
Correct
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Question text

What journal will you use to record the following transaction: Prepayment of rent.

Select one:
a. Purchases Journal
b. Cash Receipts Journal
c. General Journal
d. Cash Payments Journal 

Question 29
Incorrect
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Question text

The entries of which are posted individually in the Accounts Payable Subsidiary Ledger.

Select one:
a. Cash Receipts Journal 
b. Cash Payments Journal
c. Sales Journal
d. Purchases Journal

Question 30
Correct
Mark 1.00 out of 1.00

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Question text

What journal will you use to record the following transaction:Depreciation of Equipment.

Select one:
a. Cash Receipts Journal
b. No correct answer
c. General Journal 
d. Purchases Journal
5TH

What journal will you use to record the following transaction:Expiration of prepaid
insurance.

Select one:
a. General Journal 
b. Cash Payments Journal
c. Cash Receipts Journal
d. Purchases Journal

Question 2
Correct
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________is the cost of transporting the goods from the supplier to the merchandiser/buyer.
Select one:
a. Freight in or transportation in 
b. Merchandiser or trader
c. Cost of goods sold or cost of sales
d. Merchandising

Question 3
Correct
Mark 1.00 out of 1.00

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Question text

What journal will you use to record the following transaction:Payment of advertising.

Select one:
a. General Journal
b. Cash Payments Journal 
c. Purchases Journal
d. Cash Receipts Journal

Question 4
Correct
Mark 1.00 out of 1.00

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Question text

What journal will you use to record the following transaction:Receipt of returned
merchandise from customers.

Select one:
a. Purchases Journal
b. Cash Payments Journal
c. Cash Receipts Journal
d. General Journal 

Question 5
Correct
Mark 1.00 out of 1.00

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Question text

Perpetual inventory system requires an actual count of the good at the end of the
accounting period to determine the

Select one:
a. Total purchases
b. Cost of goods sold 
c. Total freight-in
d. Merchandise inventory , beginning

Question 6
Correct
Mark 1.00 out of 1.00

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Question text

It is a special journal used to record the business cash receipts from whatever source.

Select one:
a. Special Journals
b. Cash Receipts Journal 
c. Accounts Receivable subsidiary ledger
d. Cash Payments Journal

Question 7
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Discount received by the merchandiser for paying on time

Select one:
a. Trade discount
b. Purchase Discount 
c. Periodic Inventory System
d. Freight-in

Question 8
Correct
Mark 1.00 out of 1.00

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Question text

Discount not recorded in the seller's books

Select one:
a. Freight-in
b. Periodic Inventory System
c. Trade discount 
d. Purchase Discount

Question 9
Incorrect
Mark 0.00 out of 1.00
 Flag question

Question text

Following are selected purchase transactions of Mr. Cruz, a merchandiser, during  April of
the current year:
 
April 8  Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB
Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
 
April 10  Returned defective merchandise purchased on the 8th, P 10,000.
 
April 17 Paid ABC Textile Corporation.
 
April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City.
Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The
shipment arrived at the  Port of Manila, A
 
April 25  Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point.
Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on
May 2.
The amount to be included in the merchandise inventory as of April 30 is

Select one:
a. P220,000
b. P145,000
c. P246,500
d. P170,000 
Feedback

Your answer is incorrect.

Question 10
Correct
Mark 1.00 out of 1.00

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Question text

The issuance of this document results to a debit to Sales Returns and Allowances and credit
Accounts Receivable.

Select one:
a. Credit memorandum 
b. Accounts Payable Subsidiary Ledger
c. General Journal
d. Debit memorandum

Question 11
Correct
Mark 1.00 out of 1.00

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Question text

The owner of a merchandising business is called

Select one:
a. Trader
b. Merchandiser
c. Buyer and/or Seller
d. All of these 

Question 12
Incorrect
Mark 0.00 out of 1.00
 Flag question

Question text

It is a detailed record of individual customer's accounts.

Select one:
a. Special Journals
b. Accounts Receivable subsidiary ledger
c. Cash Receipts Journal 
d. Cash Payments Journal

Question 13
Correct
Mark 1.00 out of 1.00

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Question text

What journal will you use to record the following transaction:Cash purchases of
merchandise

Select one:
a. Purchases Journal
b. General Journal
c. Cash Receipts Journal
d. Cash Payments Journal 

Question 14
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

Term for revenue of a merchandiser

Select one:
a. Gross Profit
b. Freight-in
c. Merchandising
d. Sales 

Question 15
Correct
Mark 1.00 out of 1.00

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Question text

Purchases of merchandise debited to Merchandise inventory

Select one:
a. Freight-in
b. Trade discount
c. Periodic Inventory System 
d. Purchase Discount

Question 16
Correct
Mark 1.00 out of 1.00

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Question text

The following items can be found in the income statement of a merchandising firm except

Select one:
a. Trade Discount 
b. Purchase Discount
c. Freight-out
d. Net Sales

Question 17
Correct
Mark 1.00 out of 1.00

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Question text

Credit memo is the document the issuance of which requires a debit to

Select one:
a. Sales Returns and Allowance 
b. Sales Discount
c. Accounts Receivable
d. Cash

Question 18
Correct
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Question text

What journal will you use to record the following transaction:Collection of dividends earned
on an investment.

Select one:
a. Cash Receipts Journal
b. General Journal
c. Cash Payments Journal
d. Purchases Journal 

Question 19
Correct
Mark 1.00 out of 1.00

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Question text

It is an accounting journal for recording one specific kind of business transactions.

Select one:
a. Cash Payments Journal
b. Accounts Receivable subsidiary ledger
c. Special Journals 
d. Cash Receipts Journal

Question 20
Correct
Mark 1.00 out of 1.00

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Question text

What journal will you use to record the following transaction:Purchases of merchandise on
account.

Select one:
a. Cash Receipts Journal
b. Cash Payments Journal
c. Purchases Journal 
d. General Journal

Question 21
Correct
Mark 1.00 out of 1.00

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Question text

Following are selected purchase transactions of Mr. Cruz, a merchandiser, during  April of
the current year:
 
April 8  Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB
Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
 
April 10  Returned defective merchandise purchased on the 8th, P 10,000.
 
April 17 Paid ABC Textile Corporation.
 
April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City.
Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The
shipment arrived at the  Port of Manila, A
 
April 25  Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point.
Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on
May 2.
Purchase Discount availed by Mr. Cruz is

Select one:
a. P4,500
b. P 2,000
c. P3,000
d. P1,800 
Feedback
Your answer is correct.

Question 22
Correct
Mark 1.00 out of 1.00

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Question text

Depreciation is recorded in the

Select one:
a. Purchases Journal
b. Special journal
c. General Journal 
d. Debit Memorandum

Question 23
Correct
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Question text

What journal will you use to record the following transaction:Depreciation of Equipment.

Select one:
a. Purchases Journal
b. No correct answer
c. General Journal 
d. Cash Receipts Journal

Question 24
Incorrect
Mark 0.00 out of 1.00
 Flag question

Question text

The merchandise inventory ______is the ratio of cost of goods sold to average merchandise
inventory.

Select one:
a. Sales discount 
b. Turnover
c. Merchandise Inventory
d. Cost of goods sold or cost of sales

Question 25
Correct
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Question text

On March 1, 2017, Mr. A bought 10 units of cell phones with a listed price of P 10,000 each,
less 2%, 4%, for resale. Terms of payment: 2/10, n/30. Assuming Mr. A paid on March 8,
2017, he will be paying

Select one:
a. P92,000
b. P98,000
c. P92,198 
d. P100,000

Question 26
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

In the income statement of a merchandising firm, the gross profit is arrived at by

subtracting _____from net sales.

Select one:
a. Turnover
b. Cost of goods sold or cost of sales 
c. Sales discount
d. Merchandise Inventory

Question 27
Correct
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Question text

Cost of transporting goods from supplier to the buyer

Select one:
a. Sales
b. Gross Profit
c. Merchandising
d. Freight-in 

Question 28
Incorrect
Mark 0.00 out of 1.00
 Flag question

Question text

The entries of which are posted individually in the Accounts Payable Subsidiary Ledger.

Select one:
a. Cash Payments Journal
b. Sales Journal 
c. Cash Receipts Journal
d. Purchases Journal

Question 29
Correct
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Question text

On March 1, 2017, Mr. A bought 10 units of cell phones with a listed price of P 10,000 each,
less 2%, 4%, for resale. Terms of payment: 2/10, n/30. The total trade discount to Mr. A. is

Select one:
a. P3, 920
b. P19,616
c. P5,920 
d. P2, 000

Question 30
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

Sales Discount is recorded in the

Select one:
a. Cash Receipts Journal 
b. General Journal
c. Sales Journal
d. Cash Payments Journal

6TH

______is a business involving buying goods and selling it in its original form.

Select one:
a. Freight in or transportation in
b. Merchandising 
c. Cost of goods sold or cost of sales
d. Merchandiser or trader

Question 2
Correct
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Question text

It is used to summarize the collectibles and payments from every individual or customer.

Select one:
a. Sales Journal
b. General Journal
c. Accounts Receivable Subsidiary ledger 
d. Accounts Payable Subsidiary Ledger

Question 3
Correct
Mark 1.00 out of 1.00

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Question text

Following are selected purchase transactions of Mr. Cruz, a merchandiser, during  April of
the current year:
 
April 8  Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB
Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
 
April 10  Returned defective merchandise purchased on the 8th, P 10,000.
 
April 17 Paid ABC Textile Corporation.
 
April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City.
Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The
shipment arrived at the  Port of Manila, A
 
April 25  Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point.
Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on
May 2.
The total purchases inclusive of freight during April is

Select one:
a. P231, 500 
b. P265,000
c. P 241,500
d. P 220,000
Feedback
Your answer is correct.

Question 4
Correct
Mark 1.00 out of 1.00

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Question text

It is an accounting journal for recording sales on account.

Select one:
a. Purchases Journal
b. Cash Receipts Journal
c. Subsidiary Ledger
d. Sales Journal 

Question 5
Correct
Mark 1.00 out of 1.00

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Question text

What journal will you use to record the following transaction:Payment of account.

Select one:
a. Purchases Journal
b. General Journal
c. Cash Receipts Journal
d. Cash Payments Journal 

Question 6
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

The discount given by the supplier to a trader will be recorded in the latter's books as

Select one:
a. Purchase discount 
b. Trade discount
c. Sales discount
d. All of these

Question 7
Correct
Mark 1.00 out of 1.00

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Question text

What journal will you use to record the following transaction:Cash sale of merchandise
inventory.

Select one:
a. General Journal
b. Cash Receipts Journal 
c. Cash Payments Journal
d. Purchases Journal

Question 8
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

Excess of net sales over cost of goods sold

Select one:
a. Sales
b. Freight-in
c. Gross Profit 
d. Merchandising

Question 9
Correct
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Question text

It is also called check register or cash disbursements journal.

Select one:
a. Special Journals
b. Cash Receipts Journal
c. Accounts Receivable subsidiary ledger
d. Cash Payments Journal 

Question 10
Correct
Mark 1.00 out of 1.00

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Question text

It is the cost of transporting the goods from the merchandiser to the ultimate consumer.

Select one:
a. Transportation in
b. Freight in
c. F.O.B.
d. Delivery expense 

Question 11
Correct
Mark 1.00 out of 1.00

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Question text

Following are selected purchase transactions of Mr. Cruz, a merchandiser, during  April of
the current year:
 
April 8  Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB
Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
 
April 10  Returned defective merchandise purchased on the 8th, P 10,000.
 
April 17 Paid ABC Textile Corporation.
 
April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City.
Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The
shipment arrived at the  Port of Manila, A
 
April 25  Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point.
Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on
May 2.
The net purchases to be reported on April 30 is

Select one:
a. P 220,000 
b. P140,000
c. P145, 000
d. P 155,000
Feedback

Your answer is correct.

Question 12
Correct
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Question text

What journal will you use to record the following transaction:Sales of merchandise inventory
on credit.

Select one:
a. Sales Journal 
b. Cash Receipts Journal
c. General Journal
d. Purchases Journal

Question 13
Correct
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Question text
What journal will you use to record the following transaction:Borrowing money on a long-
term note payable.

Select one:
a. Purchases Journal
b. Cash Payments Journal
c. General Journal
d. Cash Receipts Journal 

Question 14
Correct
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Question text

The detailed record of individual accounts is

Select one:
a. Sales Journal
b. Purchases Journal
c. Special Journal
d. Subsidiary Ledger 

Question 15
Correct
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Question text

On March 1, 2017, Mr. A bought 10 units of cell phones with a listed price of P 10,000 each,
less 2%, 4%, for resale. Terms of payment: 2/10, n/30. The total sales to be recorded by the
supplier is

Select one:
a. P94,000
b. P98,000
c. P80,384
d. P94,080 

Question 16
Correct
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Question text

In the books of seller, ____ is deducted from the invoice price when the buyer pays earlier or
on the date/term stipulated.

Select one:
a. Merchandise Inventory
b. Cash
c. Periodic
d. Sales discount 

Question 17
Correct
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Question text

Buy and Sell business

Select one:
a. Gross Profit
b. Sales
c. Merchandising 
d. Freight-in

Question 18
Correct
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Question text

Purchases of merchandise for cash is recorded in the

Select one:
a. Cash Disbursement Journal 
b. Cash Receipts Journal
c. Purchases Journal
d. General Journal

Question 19
Correct
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Question text

Special journals are generally used to record frequently occurring transactions.

Select one:
True 
False

Question 20
Correct
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 Flag question

Question text

Purchases of merchandise under the perpetual inventory system will be recorded by

debiting _______.

Select one:
a. Merchandise Inventory 
b. Periodic
c. Sales discount
d. Cash

Question 21
Correct
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Question text

The discount that is not recorded in the books of the business is

Select one:
a. Trade discount 
b. Sales discount
c. Cash Discount
d. Purchase discount

Question 22
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

What journal will you use to record the following transaction: Prepayment of rent.

Select one:
a. Cash Receipts Journal
b. Cash Payments Journal 
c. General Journal
d. Purchases Journal

Question 23
Correct
Mark 1.00 out of 1.00

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Question text

All cash outflows are recorded in the

Select one:
a. Cash Receipts Journal
b. Purchases Journal
c. General Journal
d. Cash Disbursement Journal 

Question 24
Correct
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Question text

The total of all the balances of the customers' subsidiary ledgers should be equal to the
balance of Account Receivable general ledger.

Select one:
True 
False

Question 25
Correct
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Question text

It is a business combining raw materials, labor and overhead to produce finished goods to
sell.

Select one:
a. Service Concern
b. Merchandising
c. Buy and Sell
d. Manufacturing 

Question 26
Incorrect
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Question text

Debit memo is the document issued by the buyer for returned merchandise. Recording this
will require a credit to

Select one:
a. Purchases
b. Accounts Receivable
c. Accounts Payable 
d. Purchase Discount

Question 27
Correct
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Question text

If merchandise sells his goods on credit, his operating cycle will be a little longer than when
he sells them on ____basis.

Select one:
a. Merchandise Inventory
b. Cash 
c. Periodic
d. Sales discount

Question 28
Correct
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Question text

_____-is the cost of the merchandise that the merchandiser has sold.

Select one:
a. Freight in or transportation in
b. Cost of goods sold or cost of sales 
c. Merchandiser or trader
d. Merchandising

Question 29
Correct
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Question text

Document supporting the sales return and allowances is called a debit memo.

Select one:
True
False 

Question 30
Correct
Mark 1.00 out of 1.00

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Question text

Following are selected purchase transactions of Mr. Cruz, a merchandiser, during  April of
the current year:
 
April 8  Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB
Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
 
April 10  Returned defective merchandise purchased on the 8th, P 10,000.
 
April 17 Paid ABC Textile Corporation.
 
April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City.
Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The
shipment arrived at the  Port of Manila, A
 
April 25  Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point.
Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on
May 2.
The freight that will be paid by the buyer is

Select one:
a. P26,500
b. P21,500
c. P11,500 
d. P5,000
Feedback

Your answer is correct.

7TH

Purchases of merchandise for cash is recorded in the

Select one:
a. Purchases Journal
b. Cash Disbursement Journal 
c. Cash Receipts Journal
d. General Journal

Question 2
Correct
Mark 1.00 out of 1.00

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Question text

What journal will you use to record the following transaction:Payment of account.
Select one:
a. Purchases Journal
b. Cash Payments Journal 
c. Cash Receipts Journal
d. General Journal

Question 3
Correct
Mark 1.00 out of 1.00

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Question text

Buy and Sell business

Select one:
a. Gross Profit
b. Freight-in
c. Merchandising 
d. Sales

Question 4
Correct
Mark 1.00 out of 1.00

Flag question

Question text

It is an accounting journal for recording sales on account.

Select one:
a. Sales Journal 
b. Subsidiary Ledger
c. Cash Receipts Journal
d. Purchases Journal

Question 5
Correct
Mark 1.00 out of 1.00

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Question text

The detailed record of individual accounts is

Select one:
a. Subsidiary Ledger 
b. Special Journal
c. Sales Journal
d. Purchases Journal

Question 6
Correct
Mark 1.00 out of 1.00

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Question text

What journal will you use to record the following transaction: Prepayment of rent.

Select one:
a. Cash Receipts Journal
b. General Journal
c. Purchases Journal
d. Cash Payments Journal 

Question 7
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

________is the cost of transporting the goods from the supplier to the merchandiser/buyer.

Select one:
a. Merchandising
b. Freight in or transportation in 
c. Cost of goods sold or cost of sales
d. Merchandiser or trader

Question 8
Correct
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Question text

Term for revenue of a merchandiser

Select one:
a. Freight-in
b. Sales 
c. Merchandising
d. Gross Profit

Question 9
Correct
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Question text

All cash outflows are recorded in the

Select one:
a. Purchases Journal
b. Cash Receipts Journal
c. General Journal
d. Cash Disbursement Journal 

Question 10
Correct
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Question text

_____-is the cost of the merchandise that the merchandiser has sold.

Select one:
a. Merchandising
b. Merchandiser or trader
c. Freight in or transportation in
d. Cost of goods sold or cost of sales 

Question 11
Correct
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Question text

It is a special journal used to record the business cash receipts from whatever source.

Select one:
a. Cash Payments Journal
b. Special Journals
c. Accounts Receivable subsidiary ledger
d. Cash Receipts Journal 

Question 12
Correct
Mark 1.00 out of 1.00

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Question text

It is the cost of transporting the goods from the merchandiser to the ultimate consumer.

Select one:
a. F.O.B.
b. Transportation in
c. Freight in
d. Delivery expense 

Question 13
Correct
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Flag question

Question text

Document supporting the sales return and allowances is called a debit memo.

Select one:
True
False 

Question 14
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

The owner of a merchandising business is called

Select one:
a. Buyer and/or Seller
b. Trader
c. All of these 
d. Merchandiser

Question 15
Correct
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Question text

Cost of transporting goods from supplier to the buyer

Select one:
a. Gross Profit
b. Merchandising
c. Sales
d. Freight-in 

Question 16
Correct
Mark 1.00 out of 1.00

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Question text

The discount given by the supplier to a trader will be recorded in the latter's books as

Select one:
a. Purchase discount 
b. Trade discount
c. All of these
d. Sales discount

Question 17
Correct
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Question text

In the books of seller, ____ is deducted from the invoice price when the buyer pays earlier or
on the date/term stipulated.

Select one:
a. Sales discount 
b. Periodic
c. Merchandise Inventory
d. Cash

Question 18
Correct
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Question text

Discount received by the merchandiser for paying on time

Select one:
a. Trade discount
b. Periodic Inventory System
c. Freight-in
d. Purchase Discount 

Question 19
Correct
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Question text

What journal will you use to record the following transaction:Cash sale of merchandise
inventory.

Select one:
a. Cash Payments Journal
b. Purchases Journal
c. General Journal
d. Cash Receipts Journal 

Question 20
Correct
Mark 1.00 out of 1.00

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Question text

Purchases of merchandise under the perpetual inventory system will be recorded by

debiting _______.

Select one:
a. Cash
b. Merchandise Inventory 
c. Periodic
d. Sales discount

Question 21
Correct
Mark 1.00 out of 1.00

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Question text

If merchandise sells his goods on credit, his operating cycle will be a little longer than when
he sells them on ____basis.

Select one:
a. Cash 
b. Periodic
c. Merchandise Inventory
d. Sales discount

Question 22
Correct
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Question text

What journal will you use to record the following transaction:Collection of dividends earned
on an investment.

Select one:
a. General Journal
b. Cash Payments Journal
c. Cash Receipts Journal
d. Purchases Journal 
Question 23
Correct
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Question text

What journal will you use to record the following transaction:Expiration of prepaid
insurance.

Select one:
a. Purchases Journal
b. Cash Receipts Journal
c. Cash Payments Journal
d. General Journal 

Question 24
Correct
Mark 1.00 out of 1.00

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Question text

On March 1, 2017, Mr. A bought 10 units of cell phones with a listed price of P 10,000 each,
less 2%, 4%, for resale. Terms of payment: 2/10, n/30. Assuming Mr. A paid on March 8,
2017, he will be paying

Select one:
a. P92,000
b. P98,000
c. P100,000
d. P92,198 

Question 25
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

Sales Discount is recorded in the

Select one:
a. Cash Receipts Journal 
b. Sales Journal
c. Cash Payments Journal
d. General Journal

Question 26
Correct
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Question text

What journal will you use to record the following transaction:Depreciation of Equipment.

Select one:
a. General Journal 
b. Purchases Journal
c. Cash Receipts Journal
d. No correct answer

Question 27
Correct
Mark 1.00 out of 1.00

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Question text

The discount that is not recorded in the books of the business is

Select one:
a. Purchase discount
b. Cash Discount
c. Trade discount 
d. Sales discount

Question 28
Correct
Mark 1.00 out of 1.00

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Question text

Following are selected purchase transactions of Mr. Cruz, a merchandiser, during  April of
the current year:
 
April 8  Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB
Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.
 
April 10  Returned defective merchandise purchased on the 8th, P 10,000.
 
April 17 Paid ABC Textile Corporation.
 
April 20 Purchased merchandise worth P 50,000 from RST Trading. Cebu City.
Transportation- in is P 5,000. Terms: FOB shipping point; Terms of payment: n/30. The
shipment arrived at the  Port of Manila, A
 
April 25  Merchandise purchased from XYZ Clothing Co., P 80,000, FOB shipping point.
Freight charges, P 6,500, Terms of payment: n/30. Shipment arrived at the Port of Manila on
May 2.
The freight that will be paid by the buyer is

Select one:
a. P5,000
b. P21,500
c. P11,500 
d. P26,500
Feedback

Your answer is correct.

Question 29
Correct
Mark 1.00 out of 1.00

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Question text

What journal will you use to record the following transaction:Borrowing money on a long-
term note payable.

Select one:
a. General Journal
b. Purchases Journal
c. Cash Payments Journal
d. Cash Receipts Journal 

Question 30
Correct
Mark 1.00 out of 1.00

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Question text
What journal will you use to record the following transaction:Sales of merchandise inventory
on credit.

Select one:
a. General Journal
b. Purchases Journal
c. Cash Receipts Journal
d. Sales Journal 

MIDTERM 50/50
In adjusting prepaid expenses using asset method, the entry is debit a(n) ____account and
credit an asset account.

Select one:

a. Matching

b. Adjusting

c. Asset

d. Expense 

Question 2
Correct

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Question text

Water in a water refilling and purifying station.

Select one:

a. Factory Overhead
b. Direct Materials 

c. Selling, General, and Administrative Expenses

d. Direct Labor

Question 3
Correct

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Question text

Payment of freight-in under perpetual inventory system is debited to ____.

Select one:

a. Sales discount

b. Merchandise inventory or Inventory 

c. 30 days or on the 30th day from date of purchase

d. Sales Returns and allowances

Question 4
Correct

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Question text

A purchase of raw materials on credit is debited to ______.

Select one:
a. Direct materials

b. Goods in Process or Work in Process

c. Raw Materials Purchases 

d. Cost of goods manufactured

Question 5
Correct

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Question text

The following selected accounts  were taken from the books  of Santos Trading on
December 31, 2016: Santos, Capital-P150,000; Loss from Operations-P1,500; Net Sales-
P120,000; total Goods Available for Sale-P103,505; Gross Profit-P60,750; Merchandise
inventory , Jan 1, 2016-P27,520.
Purchases of merchandise during the year amounted to 
Select one:

a. P59,750

b. P75,985 

c. P103,505

d. P71,275

Feedback

Your answer is correct.

Question 6
Correct

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 Flag question

Question text

Purchases of merchandise on account under periodic inventory system requires a credit to

__________.

Select one:

a. Asset or Accrued Income

b. Accounts Payable 

c. Purchases

d. Income

Question 7
Correct

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Question text

The inventories of a manufacturing business at the end of the accounting period include the
following except

Select one:

a. Unfinished products

b. Finished goods sold but unpaid 

c. Finished goods in the store room

d. Unused raw materials

Question 8
Correct

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Question text

Gross profit/Sales.

Select one:

a. Freight-out

b. Free On Board

c. Cost of goods sold

d. Gross profit ratio 

Question 9
Correct

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Question text

Excess of Assets over liabilities.

Select one:

a. Owner's Equity 

b. Revenue and Expense summary

c. Trade discount
d. Profit

Question 10
Correct

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Question text

Closing entries and ______entries are done at the end of the accounting period.

Select one:

a. Adjusting 

b. Asset

c. Matching

d. Expense

Question 11
Correct

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Question text

_____are the unfinished works or products as at the end of the accounting period.

Select one:

a. Goods in Process or Work in Process 

b. Selling expenses or distribution expenses

c. Direct materials

d. Conversion costs

Question 12
Correct

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Question text

A purchase of raw materials on credit is debited to ______.

Select one:

a. Goods in Process or Work in Process

b. Cost of goods manufactured

c. Direct materials

d. Raw Materials Purchases 

Question 13
Correct

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Question text

Which is not a prime cost?

Select one:

a. Salaries of a baker in a bakeshop

b. Salaries of the factory supervisor 

c. Salaries of the dressmaker in a garment factory

d. Salaries of a welder in the steel furniture shop.

Question 14
Correct

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Question text

Which of the following terms is not used in a purely merchandising firm?

Select one:

a. Purchase Discount

b. Cost of Sales

c. Sales

d. Overhead 

Question 15
Correct

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Question text

Manufacturing firms buy raw materials and convert them to finished goods which they will
sell to a _________.
Select one:

a. Merchandiser or trader 

b. Freight in or transportation in

c. Merchandising

d. Cost of goods sold or cost of sales

Question 16
Correct

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Question text

Reversing accrued income needs a debit to ____.

Select one:

a. Accounts Payable

b. Asset or Accrued Income

c. Income 

d. Purchases

Question 17
Correct

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Question text
Records only cash receipts and cash payments.

Select one:

a. Cash Basis of accounting 

b. Adjusting entries

c. Deferred Revenue

d. Depreciation accounting

Question 18
Correct

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Question text

Which is not a prime cost?

Select one:

a. Salaries of a baker in a bakeshop

b. Salaries of the factory supervisor 

c. Salaries of a welder in the steel furniture shop.

d. Salaries of the dressmaker in a garment factory

Question 19
Correct

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Question text

Entries at the end of the accounting period that helps in reporting the correct balances of
revenues, expenses, assets, and liabilities.

Select one:

a. Depreciation accounting

b. Deferred Revenue

c. Cash Basis of accounting

d. Adjusting entries 

Question 20
Correct

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Question text

____are the costs that are not, in one way or another, associated with the production of
finished goods or products,

Select one:

a. Manufacturing costs

b. Factory overhead or manufacturing overhead

c. Non-manufacturing costs 

d. Manufacturing

Question 21
Correct

Mark 1.00 out of 1.00

 Flag question

Question text

The following selected accounts  were taken from the books  of Santos Trading on
December 31, 2016: Santos, Capital-P150,000; Loss from Operations-P1,500; Net Sales-
P120,000; total Goods Available for Sale-P103,505; Gross Profit-P60,750; Merchandise
inventory , Jan 1, 2016-P27,520.
The total operating expenses is
Select one:

a. P 59,750

b. P62,250 

c. P 57,750

d. P61,200

Feedback

Your answer is correct.

Question 22
Correct

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Question text

Advertising expenses is a

Select one:

a. None of these
b. Selling Expense 

c. General Expense

d. Factory overhead

Question 23
Correct

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Question text

Which is the nature of a manufacturing type of business?

Select one:

a. Its finished products are sold to a merchandiser.

b. It converts raw materials to a finished product.

c. All of these. 

d. The production can be either manually or by machine.

Question 24
Correct

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Question text

The formula for Gross profit ratio is

Select one:
a. Gross Profit / Net profit

b. Gross Profit / Net Sales 

c. Cost of Sales / Gross profit

d. Net Sales / Gross Profit

Question 25
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Following are examples of non-manufacturing costs except;

Select one:

a. Storage cost

b. Salaries of accounting supervisor

c. Research and development cost

d. Depreciation of machineries 

Question 26
Correct

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_____are the unfinished works or products as at the end of the accounting period.
Select one:

a. Direct materials

b. Selling expenses or distribution expenses

c. Conversion costs

d. Goods in Process or Work in Process 

Question 27
Correct

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____inventory system requires an actual count of the good at the end of the accounting
period to determine the amount of cost of goods sold.

Select one:

a. Sales discount

b. Merchandise Inventory

c. Cash

d. Periodic 

Question 28
Correct

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Question text

Direct materials can be any of the following except

Select one:

a. Fabrics in dresses

b. Paint in houses 

c. Steel in cars

d. Wood in furniture

Question 29
Correct

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Merchandise returned by customers are debited to _______ account.

Select one:

a. Sales discount

b. Merchandise inventory or Inventory

c. 30 days or on the 30th day from date of purchase

d. Sales Returns and allowances 

Question 30
Correct

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 Flag question

Question text

Direct labor and factory overhead are categorized as ______- costs.

Select one:

a. Selling expenses or distribution expenses

b. Conversion costs 

c. Goods in Process or Work in Process

d. Direct materials

Question 31
Correct

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Question text

The following selected accounts  were taken from the books  of Santos Trading on
December 31, 2016: Santos, Capital-P150,000; Loss from Operations-P1,500; Net Sales-
P120,000; total Goods Available for Sale-P103,505; Gross Profit-P60,750; Merchandise
inventory , Jan 1, 2016-P27,520.
Cost of goods sold is
Select one:

a. P75,985

b. P 42,755

c. P 59,750 
d. P62,250

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Question 32
Correct

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Following are examples of non-manufacturing costs except

Select one:

a. Depreciation of machineries 

b. Research and development cost

c. Salaries of accounting supervisor

d. Storage cost

Question 33
Correct

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Expenses incurred but not yet paid.

Select one:
a. Nominal accounts

b. Accrued Expenses 

c. Closing the accounts.

d. Statement of Changes in Owner's Equity

Question 34
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The following selected accounts are taken from the books of RST Trading on April 30 before
adjustment. RST has a monthly accounting period:
Accounts Receivable   P5,000            Building                     P50,000
Sales                           75,000                        Service Income             10,000
Prepaid Rent              6,000             Salaries Expense          20,000
Adjustment data on April 30:
a)         2 % of sales is estimated to be uncollectible.
b)        Rent expired, P2,000.
c)         Salaries unpaid, P 1,500.
d)        Building will be depreciated at 20% per annum, with useful lie of 10 years.
e)         Income unearned , P10,000.
 
The entry to adjust rent is
Select one:

a. Prepaid Rent                                   P 2,000

Cash                                                             P2,000
b. Rent Expense                                  P2,000

Prepaid Rent                                               P2,000 

c. Rent Expense                                  P4,000

Prepaid Rent                                                         P4,000

d. Prepaid Rent                                   P2,000

Rent Expense                                              P2,000

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Question 35
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____are the costs that are not, in one way or another, associated with the production of
finished goods or products,

Select one:

a. Factory overhead or manufacturing overhead

b. Manufacturing

c. Non-manufacturing costs 

d. Manufacturing costs

Question 36
Correct
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The costs of completed or finished goods during the period are shown in the
___________section of the income statement.

Select one:

a. Cost of goods manufactured 

b. Raw Materials Purchases

c. Direct materials

d. Goods in Process or Work in Process

Question 37
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All the expenditures incurred in producing a good or a product is called ___________.

Select one:

a. Non-manufacturing costs

b. Manufacturing

c. Factory overhead or manufacturing overhead

d. Manufacturing costs 
Question 38
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Which of the following section titles shown in the income statement is common to both
manufacturing firm and merchandising?

Select one:

a. Cost of Goods Sold 

b. Raw Materials Used

c. Cost of Goods Manufactured during the period

d. Total cost in process

Question 39
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____pertains to the creation of a finished product either by hand or by machine.

Select one:

a. Non-manufacturing costs

b. Manufacturing costs
c. Manufacturing 

d. Factory overhead or manufacturing overhead

Question 40
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The following selected accounts are taken from the books of RST Trading on April 30 before
adjustment. RST has a monthly accounting period:
Accounts Receivable   P5,000            Building                     P50,000
Sales                           75,000                        Service Income             10,000
Prepaid Rent              6,000             Salaries Expense          20,000
Adjustment data on April 30:
a)         2 % of sales is estimated to be uncollectible.
b)        Rent expired, P2,000.
c)         Salaries unpaid, P 1,500.
d)        Building will be depreciated at 20% per annum, with useful lie of 10 years.
e)         Income unearned , P10,000.
 
The entry to record depreciation (d) is
Select one:

a. Depreciation Expense                   P833

Accumulated Depreciation                        P833 

b. Accumulated Depreciation            P833

 Depreciation Expense                               P833

c. Depreciation Expense                   P5,000

Accumulated Depreciation                        P5,000

d. Depreciation Expense                   P10,000

Accumulated Depreciation                        P10,000

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Question 41
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Effect of Drawings.

Select one:

a. Post-closing Trial Balance

b. Permanent accounts

c. Decreases Capital 

d. Assets, liabilities, Capital

Question 42
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Question text

It shows the changes in capital at the end of the period.

Select one:

a. Accrued Expenses

b. Closing the accounts.

c. Nominal accounts

d. Statement of Changes in Owner's Equity 

Question 43
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Conversion cost is direct materials and direct labor.

Select one:

True

False 

Question 44
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Sales less cost of goods manufactured equals gross profit.

Select one:

True

False 

Question 45
Correct

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Which of the following section titles shown in the income statement is common to both
manufacturing firm and merchandising?

Select one:

a. Cost of Goods Manufactured during the period

b. Raw Materials Used

c. Total cost in process

d. Cost of Goods Sold 

Question 46
Correct

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Question text

_____form of balance sheet reports assets on the left side and liabilities and capital on the
right side.

Select one:

a. Destination

b. Sales discount

c. Inventory

d. Account 

Question 47
Correct

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Cebu Trading sold to Manila Store goods with a listed price of P100, 000. Term of sale:
Trade discount of 3% and 2%. Payment terms: 2/10,n/30.
The total trade discount is
Select one:

a. P7,000

b. P 4,940 

c. P5,000
d. P2,000

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Question 48
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Salaries of the plant supervisor is categorized as

Select one:

a. Direct Labor

b. Selling expenses

c. General expenses

d. Factory overhead 

Question 49
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n/30 means the merchandise purchased on account has to pay in full in ____.

Select one:
a. Merchandise inventory or Inventory

b. Sales Returns and allowances

c. 30 days or on the 30th day from date of purchase 

d. Sales discount

Question 50
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Cebu Trading sold to Manila Store goods with a listed price of P100, 000. Term of sale:
Trade discount of 3% and 2%. Payment terms: 2/10,n/30.
Cebu Trading will record a sale of 
Select one:

a. P100,000

b. P95,000

c. P95,060 

d. P97,000

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2ND

Question 1
Correct

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Question text

Summarizes nominal account and their balances.

Select one:

a. Profit

b. Trade discount

c. Owner's Equity

d. Revenue and Expense summary 

Question 2
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Sales less cost of goods manufactured equals gross profit.

Select one:

True

False 

Question 3
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Question text

Effect of Drawings.

Select one:

a. Assets, liabilities, Capital

b. Post-closing Trial Balance

c. Decreases Capital 

d. Permanent accounts

Question 4
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_____are the unfinished works or products as at the end of the accounting period.

Select one:

a. Direct materials

b. Selling expenses or distribution expenses

c. Conversion costs

d. Goods in Process or Work in Process 

Question 5
Correct
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Question text

The inventories of a manufacturing business at the end of the accounting period include the
following except

Select one:

a. Unfinished products

b. Finished goods sold but unpaid 

c. Unused raw materials

d. Finished goods in the store room

Question 6
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Which of the following section titles shown in the income statement is common to both
manufacturing firm and merchandising?

Select one:

a. Total cost in process

b. Cost of Goods Manufactured during the period

c. Cost of Goods Sold 

d. Raw Materials Used

Question 7
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The nature of non-manufacturing costs include the following except

Select one:

a. These are the costs of the administration and management of the firm.

b. These are the costs other than direct materials and direct labor. 

c. These are the costs outside production.

d. These are expenses incurred in the stage of bringing the products to the ultimate
consumers.

Question 8
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Question text

Water in a water refilling and purifying station.

Select one:

a. Factory Overhead
b. Selling, General, and Administrative Expenses

c. Direct Materials 

d. Direct Labor

Question 9
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n/30 means the merchandise purchased on account has to pay in full in ____.

Select one:

a. Sales discount

b. 30 days or on the 30th day from date of purchase 

c. Sales Returns and allowances

d. Merchandise inventory or Inventory

Question 10
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Accounts not closed.

Select one:
a. Assets, liabilities, Capital

b. Post-closing Trial Balance

c. Permanent accounts 

d. Decreases Capital

Question 11
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The following selected accounts are taken from the books of RST Trading on April 30 before
adjustment. RST has a monthly accounting period:
Accounts Receivable   P5,000            Building                     P50,000
Sales                           75,000                        Service Income             10,000
Prepaid Rent              6,000             Salaries Expense          20,000
Adjustment data on April 30:
a)         2 % of sales is estimated to be uncollectible.
b)        Rent expired, P2,000.
c)         Salaries unpaid, P 1,500.
d)        Building will be depreciated at 20% per annum, with useful lie of 10 years.
e)         Income unearned , P10,000.
 
The entry to adjust rent is
Select one:

a. Prepaid Rent                                   P 2,000

Cash                                                             P2,000
b. Rent Expense                                  P4,000

Prepaid Rent                                                         P4,000

c. Prepaid Rent                                   P2,000

Rent Expense                                              P2,000

d. Rent Expense                                  P2,000

Prepaid Rent                                               P2,000 

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Question 12
Correct

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Merchandise returned by customers are debited to _______ account.

Select one:

a. Sales discount

b. Sales Returns and allowances 

c. Merchandise inventory or Inventory

d. 30 days or on the 30th day from date of purchase

Question 13
Correct

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Question text

Purchases of merchandise on account under periodic inventory system requires a credit to

__________.

Select one:

a. Asset or Accrued Income

b. Income

c. Accounts Payable 

d. Purchases

Question 14
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Salaries of the plant supervisor is categorized as

Select one:

a. Selling expenses

b. General expenses

c. Direct Labor

d. Factory overhead 
Question 15
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Question text

The following selected accounts  were taken from the books  of Santos Trading on
December 31, 2016: Santos, Capital-P150,000; Loss from Operations-P1,500; Net Sales-
P120,000; total Goods Available for Sale-P103,505; Gross Profit-P60,750; Merchandise
inventory , Jan 1, 2016-P27,520.
The total operating expenses is
Select one:

a. P61,200

b. P62,250 

c. P 59,750

d. P 57,750

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Question 16
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The following selected accounts  were taken from the books  of Santos Trading on
December 31, 2016: Santos, Capital-P150,000; Loss from Operations-P1,500; Net Sales-
P120,000; total Goods Available for Sale-P103,505; Gross Profit-P60,750; Merchandise
inventory , Jan 1, 2016-P27,520.
Cost of goods sold is
Select one:

a. P 59,750 

b. P75,985

c. P 42,755

d. P62,250

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Question 17
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Salaries of the plant supervisor is categorized as

Select one:

a. Selling expenses

b. Factory overhead 

c. Direct Labor

d. General expenses

Question 18
Correct
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Question text

Prime costs consist of direct labor and _______.

Select one:

a. Conversion costs

b. Selling expenses or distribution expenses

c. Direct materials 

d. Goods in Process or Work in Process

Question 19
Correct

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Reversing accrued income needs a debit to ____.

Select one:

a. Purchases

b. Accounts Payable

c. Asset or Accrued Income

d. Income 
Question 20
Correct

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Depreciation of office equipment.

Select one:

a. Factory Overhead 

b. Direct Materials

c. Direct Labor

d. Selling, General, and Administrative Expenses

Question 21
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Cebu Trading sold to Manila Store goods with a listed price of P100, 000. Term of sale:
Trade discount of 3% and 2%. Payment terms: 2/10,n/30.
If Manila Store paid within the discount period, it will pay
Select one:

a. P93,000

b. P 95,000
c. P93,158.80 

d. P 98,000

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Question 22
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Question text

Allocation of cost of depreciable non-cash assets over its useful life

Select one:

a. Adjusting entries

b. Depreciation accounting 

c. Cash Basis of accounting

d. Deferred Revenue

Question 23
Correct

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Question text

Cebu Trading sold to Manila Store goods with a listed price of P100, 000. Term of sale:
Trade discount of 3% and 2%. Payment terms: 2/10,n/30.
Cebu Trading will record a sale of 
Select one:

a. P95,060 

b. P95,000

c. P100,000

d. P97,000

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Question 24
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Direct labor and factory overhead are categorized as ______- costs.

Select one:

a. Direct materials

b. Goods in Process or Work in Process

c. Conversion costs 

d. Selling expenses or distribution expenses

Question 25
Correct

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Question text

Conversion cost is direct materials and direct labor.

Select one:

True

False 

Question 26
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Question text

The formula for Gross profit ratio is

Select one:

a. Cost of Sales / Gross profit

b. Gross Profit / Net profit

c. Gross Profit / Net Sales 

d. Net Sales / Gross Profit

Question 27
Correct

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Question text

A purchase of raw materials on credit is debited to ______.

Select one:

a. Direct materials

b. Raw Materials Purchases 

c. Goods in Process or Work in Process

d. Cost of goods manufactured

Question 28
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Closing entries and ______entries are done at the end of the accounting period.

Select one:

a. Matching

b. Asset

c. Expense

d. Adjusting 

Question 29
Correct
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In adjusting prepaid expenses using asset method, the entry is debit a(n) ____account and
credit an asset account.

Select one:

a. Asset

b. Expense 

c. Adjusting

d. Matching

Question 30
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Which is not a prime cost?

Select one:

a. Salaries of the factory supervisor 

b. Salaries of a welder in the steel furniture shop.

c. Salaries of a baker in a bakeshop

d. Salaries of the dressmaker in a garment factory

Question 31
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Question text

_____form of balance sheet reports assets on the left side and liabilities and capital on the
right side.

Select one:

a. Sales discount

b. Account 

c. Inventory

d. Destination

Question 32
Correct

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Question text

Prime costs consist of direct labor and _______.

Select one:

a. Selling expenses or distribution expenses

b. Direct materials 
c. Goods in Process or Work in Process

d. Conversion costs

Question 33
Correct

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Question text

The following selected accounts  were taken from the books  of Santos Trading on
December 31, 2016: Santos, Capital-P150,000; Loss from Operations-P1,500; Net Sales-
P120,000; total Goods Available for Sale-P103,505; Gross Profit-P60,750; Merchandise
inventory , Jan 1, 2016-P27,520.
Purchases of merchandise during the year amounted to 
Select one:

a. P103,505

b. P71,275

c. P75,985 

d. P59,750

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Question 34
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Question text

____-turnover indicated how past the merchandise being sold and inventory are replenished.

Select one:

a. Sales discount

b. Account

c. Destination

d. Inventory 

Question 35
Correct

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Revenue less expenses.

Select one:

a. Owner's Equity

b. Trade discount

c. Profit 

d. Revenue and Expense summary

Question 36
Correct

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Question text

____are the costs that are not, in one way or another, associated with the production of
finished goods or products,

Select one:

a. Factory overhead or manufacturing overhead

b. Manufacturing costs

c. Manufacturing

d. Non-manufacturing costs 

Question 37
Correct

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Question text

The expenditures of bringing the product to the ultimate consumers is called __________.

Select one:

a. Goods in Process or Work in Process

b. Direct materials

c. Conversion costs

d. Selling expenses or distribution expenses 

Question 38
Correct

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Question text

____inventory system requires an actual count of the good at the end of the accounting
period to determine the amount of cost of goods sold.

Select one:

a. Periodic 

b. Sales discount

c. Cash

d. Merchandise Inventory

Question 39
Correct

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Question text

Cebu Trading sold to Manila Store goods with a listed price of P100, 000. Term of sale:
Trade discount of 3% and 2%. Payment terms: 2/10,n/30.
The total trade discount is
Select one:

a. P 4,940 
b. P5,000

c. P7,000

d. P2,000

Feedback

Your answer is correct.

Question 40
Correct

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Gross profit/Sales.

Select one:

a. Cost of goods sold

b. Gross profit ratio 

c. Free On Board

d. Freight-out

Question 41
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Advertising expenses is a

Select one:

a. None of these

b. Selling Expense 

c. Factory overhead

d. General Expense

Question 42
Correct

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Income received but not yet earned.

Select one:

a. Depreciation accounting

b. Adjusting entries

c. Deferred Revenue 

d. Cash Basis of accounting

Question 43
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Question text

Manufacturing firms buy raw materials and convert them to finished goods which they will
sell to a _________.

Select one:

a. Merchandising

b. Merchandiser or trader 

c. Cost of goods sold or cost of sales

d. Freight in or transportation in

Question 44
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Returned defective raw materials purchased on credit is credited to

Select one:

a. Accounts Payable

b. None of these

c. Raw Materials Returns and Allowances 

d. Raw Materials Purchase Discount

Question 45
Correct

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Question text

Product costs consist of direct materials, direct labor, freight-in, and manufacturing
overhead.

Select one:

True 

False

Question 46
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Question text

Excess of Assets over liabilities.

Select one:

a. Profit

b. Trade discount

c. Owner's Equity 

d. Revenue and Expense summary

Question 47
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Question text

Records only cash receipts and cash payments.

Select one:

a. Adjusting entries

b. Depreciation accounting

c. Cash Basis of accounting 

d. Deferred Revenue

Question 48
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Question text

The cost that cannot be classified as direct materials or direct labor is called ____________.

Select one:

a. Manufacturing

b. Factory overhead or manufacturing overhead 

c. Manufacturing costs

d. Non-manufacturing costs

Question 49
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____are the costs that are not, in one way or another, associated with the production of
finished goods or products,

Select one:

a. Non-manufacturing costs 

b. Manufacturing costs

c. Factory overhead or manufacturing overhead

d. Manufacturing

Question 50
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It shows the changes in capital at the end of the period.

Select one:

a. Closing the accounts.

b. Nominal accounts

c. Accrued Expenses

d. Statement of Changes in Owner's Equity 

3RD

Question 1
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The inventories of a manufacturing business at the end of the accounting period include the following
except

Select one:

a. Finished goods sold but unpaid 

b. Unfinished products

c. Unused raw materials

d. Finished goods in the store room

Question 2
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The following selected accounts are taken from the books of RST Trading on April 30 before
adjustment. RST has a monthly accounting period:
Accounts Receivable   P5,000            Building                     P50,000
Sales                           75,000                        Service Income             10,000
Prepaid Rent              6,000             Salaries Expense          20,000
Adjustment data on April 30:
a)         2 % of sales is estimated to be uncollectible.
b)        Rent expired, P2,000.
c)         Salaries unpaid, P 1,500.
d)        Building will be depreciated at 20% per annum, with useful lie of 10 years.
e)         Income unearned , P10,000.
 
The entry to record depreciation (d) is
Select one:

a. Depreciation Expense                   P833

Accumulated Depreciation                        P833 

b. Depreciation Expense                   P5,000

Accumulated Depreciation                        P5,000

c. Depreciation Expense                   P10,000

Accumulated Depreciation                        P10,000

d. Accumulated Depreciation            P833

Depreciation Expense                               P833

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Question 3
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The expenditures of bringing the product to the ultimate consumers is called __________.
Select one:

a. Goods in Process or Work in Process

b. Direct materials

c. Conversion costs

d. Selling expenses or distribution expenses 

Question 4
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Direct materials can be any of the following except

Select one:

a. Paint in houses 

b. Wood in furniture

c. Fabrics in dresses

d. Steel in cars

Question 5
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Manufacturing firms buy raw materials and convert them to finished goods which they will sell to a
_________.

Select one:

a. Cost of goods sold or cost of sales

b. Merchandiser or trader 

c. Freight in or transportation in

d. Merchandising

Question 6
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____inventory system requires an actual count of the good at the end of the accounting period to
determine the amount of cost of goods sold.

Select one:

a. Cash

b. Periodic 

c. Merchandise Inventory

d. Sales discount

Question 7
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_____are the unfinished works or products as at the end of the accounting period.

Select one:

a. Selling expenses or distribution expenses

b. Goods in Process or Work in Process 

c. Direct materials

d. Conversion costs

Question 8
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All the expenditures incurred in producing a good or a product is called ___________.

Select one:

a. Factory overhead or manufacturing overhead

b. Manufacturing costs 

c. Manufacturing

d. Non-manufacturing costs

Question 9
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Net sales is gross sales less sales returns and allowances and _____.

Select one:

a. Sales discount 

b. Merchandise inventory or Inventory

c. 30 days or on the 30th day from date of purchase

d. Sales Returns and allowances

Question 10
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Cost of repairing machinery.

Select one:

a. Factory Overhead 

b. Selling, General, and Administrative Expenses

c. Direct Materials

d. Direct Labor

Question 11
Correct

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Direct materials can be any of the following except

Select one:

a. Steel in cars

b. Paint in houses 

c. Wood in furniture

d. Fabrics in dresses

Question 12
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A purchase of raw materials on credit is debited to ______.

Select one:

a. Goods in Process or Work in Process

b. Raw Materials Purchases 

c. Cost of goods manufactured

d. Direct materials
Question 13
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_____form of balance sheet reports assets on the left side and liabilities and capital on the right side.

Select one:

a. Account 

b. Sales discount

c. Destination

d. Inventory

Question 14
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Which of the following section titles shown in the income statement is common to both manufacturing
firm and merchandising?

Select one:

a. Cost of Goods Manufactured during the period

b. Cost of Goods Sold 

c. Total cost in process

d. Raw Materials Used

Question 15
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Product costs consist of direct materials, direct labor, freight-in, and manufacturing overhead.

Select one:

True 

False

Question 16
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Depreciation of office equipment.

Select one:

a. Direct Materials

b. Direct Labor

c. Selling, General, and Administrative Expenses

d. Factory Overhead 
Question 17
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Following are examples of non-manufacturing costs except;

Select one:

a. Storage cost

b. Research and development cost

c. Depreciation of machineries 

d. Salaries of accounting supervisor

Question 18
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Which is not a prime cost?

Select one:

a. Salaries of a baker in a bakeshop

b. Salaries of a welder in the steel furniture shop.

c. Salaries of the dressmaker in a garment factory

d. Salaries of the factory supervisor 

Question 19
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Salaries of the plant supervisor is categorized as

Select one:

a. Factory overhead 

b. Direct Labor

c. Selling expenses

d. General expenses

Question 20
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Advertising expenses is a

Select one:

a. General Expense

b. Factory overhead 
c. Selling Expense

d. None of these

Question 21
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The following selected accounts are taken from the books of RST Trading on April 30 before
adjustment. RST has a monthly accounting period:
Accounts Receivable   P5,000            Building                     P50,000
Sales                           75,000                        Service Income             10,000
Prepaid Rent              6,000             Salaries Expense          20,000
Adjustment data on April 30:
a)         2 % of sales is estimated to be uncollectible.
b)        Rent expired, P2,000.
c)         Salaries unpaid, P 1,500.
d)        Building will be depreciated at 20% per annum, with useful lie of 10 years.
e)         Income unearned , P10,000.
 
The entry to adjust rent is
Select one:

a. Rent Expense                                  P4,000

Prepaid Rent                                                         P4,000

b. Prepaid Rent                                   P 2,000

Cash                                                             P2,000
c. Prepaid Rent                                   P2,000

Rent Expense                                              P2,000

d. Rent Expense                                  P2,000

Prepaid Rent                                               P2,000 

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Question 22
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Accrued income is an _____account.

Select one:

a. Adjusting

b. Asset 

c. Matching

d. Expense

Question 23
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Question text

Following are examples of non-manufacturing costs except

Select one:

a. Research and development cost

b. Salaries of accounting supervisor

c. Storage cost

d. Depreciation of machineries 

Question 24
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Revenue less expenses.

Select one:

a. Profit 

b. Revenue and Expense summary

c. Owner's Equity

d. Trade discount

Question 25
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Returned defective raw materials purchased on credit is credited to

Select one:

a. Raw Materials Purchase Discount

b. Raw Materials Returns and Allowances 

c. None of these

d. Accounts Payable

Question 26
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Prime costs consist of direct labor and _______.

Select one:

a. Goods in Process or Work in Process

b. Direct materials 

c. Selling expenses or distribution expenses

d. Conversion costs

Question 27
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The costs of completed or finished goods during the period are shown in the ___________section of the
income statement.

Select one:

a. Goods in Process or Work in Process

b. Direct materials

c. Cost of goods manufactured 

d. Raw Materials Purchases

Question 28
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The following selected accounts  were taken from the books  of Santos Trading on December 31,
2016: Santos, Capital-P150,000; Loss from Operations-P1,500; Net Sales-P120,000; total Goods
Available for Sale-P103,505; Gross Profit-P60,750; Merchandise inventory , Jan 1, 2016-
P27,520.
Cost of goods sold is
Select one:

a. P 59,750 

b. P75,985
c. P62,250

d. P 42,755

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Question 29
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Effect of Drawings.

Select one:

a. Post-closing Trial Balance

b. Assets, liabilities, Capital

c. Permanent accounts 

d. Decreases Capital

Question 30
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____pertains to the creation of a finished product either by hand or by machine.

Select one:
a. Non-manufacturing costs

b. Manufacturing 

c. Factory overhead or manufacturing overhead

d. Manufacturing costs

Question 31
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Payment of freight-in under perpetual inventory system is debited to ____.

Select one:

a. Sales Returns and allowances

b. 30 days or on the 30th day from date of purchase

c. Sales discount

d. Merchandise inventory or Inventory 

Question 32
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The cost that cannot be classified as direct materials or direct labor is called ____________.
Select one:

a. Factory overhead or manufacturing overhead 

b. Manufacturing

c. Non-manufacturing costs

d. Manufacturing costs

Question 33
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Merchandise returned by customers are debited to _______ account.

Select one:

a. 30 days or on the 30th day from date of purchase

b. Merchandise inventory or Inventory

c. Sales discount

d. Sales Returns and allowances 

Question 34
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Returned defective raw materials purchased on credit is credited to

Select one:

a. Raw Materials Returns and Allowances 

b. Accounts Payable

c. Raw Materials Purchase Discount

d. None of these

Question 35
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_____are the unfinished works or products as at the end of the accounting period.

Select one:

a. Goods in Process or Work in Process 

b. Selling expenses or distribution expenses

c. Conversion costs

d. Direct materials

Question 36
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Question text

Wages of a sewer in a garment factory.

Select one:

a. Direct Materials

b. Factory Overhead

c. Selling, General, and Administrative Expenses

d. Direct Labor 

Question 37
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Closing entries and ______entries are done at the end of the accounting period.

Select one:

a. Asset

b. Matching

c. Expense 

d. Adjusting

Question 38
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Direct labor and factory overhead are categorized as ______- costs.

Select one:

a. Conversion costs 

b. Direct materials

c. Selling expenses or distribution expenses

d. Goods in Process or Work in Process

Question 39
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Expenses incurred but not yet paid.

Select one:

a. Closing the accounts.

b. Statement of Changes in Owner's Equity

c. Nominal accounts

d. Accrued Expenses 

Question 40
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Entries at the end of the accounting period that helps in reporting the correct balances of revenues,
expenses, assets, and liabilities.

Select one:

a. Cash Basis of accounting

b. Deferred Revenue

c. Adjusting entries 

d. Depreciation accounting

Question 41
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Cebu Trading sold to Manila Store goods with a listed price of P100, 000. Term of sale: Trade
discount of 3% and 2%. Payment terms: 2/10,n/30.
If Manila Store paid within the discount period, it will pay
Select one:

a. P93,000

b. P 95,000

c. P 98,000
d. P93,158.80 

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Question 42
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The expenditures of bringing the product to the ultimate consumers is called __________.

Select one:

a. Conversion costs

b. Selling expenses or distribution expenses 

c. Direct materials

d. Goods in Process or Work in Process

Question 43
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Conversion cost is direct materials and direct labor.

Select one:

True
 False 

Question 44
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Which is the nature of a manufacturing type of business?

Select one:

a. Its finished products are sold to a merchandiser.

b. All of these. 

c. It converts raw materials to a finished product.

d. The production can be either manually or by machine.

Question 45
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Which of the following terms is not used in a purely merchandising firm?

Select one:

a. Sales

b. Overhead 
c. Purchase Discount

d. Cost of Sales

Question 46
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Which of the following section titles shown in the income statement is common to both manufacturing
firm and merchandising?

Select one:

a. Cost of Goods Manufactured during the period

b. Cost of Goods Sold 

c. Raw Materials Used

d. Total cost in process

Question 47
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Accounts not closed.

Selectone:

a. Assets, liabilities, Capital

b. Permanent accounts 

c. Decreases Capital

d. Post-closing Trial Balance

Question 48
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Allocation of cost of depreciable non-cash assets over its useful life

Select one:

a. Deferred Revenue

b. Depreciation accounting 

c. Cash Basis of accounting

d. Adjusting entries

Question 49
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Cebu Trading sold to Manila Store goods with a listed price of P100, 000. Term of sale: Trade
discount of 3% and 2%. Payment terms: 2/10,n/30.
The total trade discount is
Select one:

a. P 4,940 

b. P7,000

c. P5,000

d. P2,000

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Question 50
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Sales less cost of goods manufactured equals gross profit.

Select one:

True

False 

PRE FINALS 50/50

Question 1
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Rent expense is debited for P20, 000 when payment for four months was made on July 1,
2017. At the end of the month, an adjusting entry requiring a debit to Prepaid Rent should
be made for P15, 000.

Select one:

True 

False

Question 2
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Which is out of the first four steps in the accounting cycle?

Select one:

a. Preparing the unadjusted trial balance

b. Recording or journalizing the transactions

c. Preparing and recording the adjusting entries

d. Preparing the closing entries 

Question 3
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Net sales less cost of sales will give us

Select one:

a. Gross profit ratio

b. Cost ratio

c. Gross profit 

d. Net profit ratio

Question 4
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Assets and liabilities are categorized as temporary accounts.

Select one:

True

False 

Question 5
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Assets=Equities is a valid accounting equation.

Select one:

True 

False

Question 6
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The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The days in inventory is
Select one:

a. 143.43 days

b. 57.42 days

c. 86.12 days

d. 71.71 days 

Question 7
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Debt to equity ratio is a

Select one:

a. Current ratio

b. Solvency ratio 

c. Profitability ratio

d. Market value ratio

Question 8
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Interpreting the results stage pertains to analysis of financial data to aid in decision making
of the management.

Select one:

True 

False

Question 9
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The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
If the return on equity is 32%, the average equity is
Select one:

a. P184,375 

b. P368,750

c. Answer not given

d. P18,880

Question 10
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The expanded accounting equation is Assets=Liabilities + Capital - Revenues + Expenses -

Drawing.
Select one:

True

False 
Question 11
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If total assets are P450, 000, total liabilities and equity is also P450, 000.

Select one:

True 

False

Question 12
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Which of the following statements is correct?

Select one:

a. The account number is written on the F column of the ledger to facilitate cross-
referencing.

b. Post-closing trial balance is the last step in the accounting cycle. 

c. All real accounts have debit normal balance.

d. Trial balance is the book of final entry.

Question 13
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Liquidity ratios include the following except;

Select one:

a. Receivable turnover

b. Inventory turnover

c. Times interest-earned ratio 

d. Working capital ratio

Question 14
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The following are quick assets except;

Select one:

a. Accounts Receivable

b. Short-term investments

c. Merchandise Inventory 

d. Cash
Question 15
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Nominal accounts include the following except;

Select one:

a. Prepaid Advertising Expense 

b. Rent Expense

c. Interest Expense

d. Cost of Sales

Question 16
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The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
(Ignore income tax) if the return on assets is 18%, the average total assets is
Select one:

a. P21,240
b. P655,556

c. Answer not given

d. P327,778 

Question 17
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Preparing the worksheet is an optional activity in the accounting cycle.

Select one:

True 

False

Question 18
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The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The receivable turnover is
Select one:
a. 9.17 times

b. 10.445 times

c. 8.71 times 

d. 7.46 times

Question 19
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Current liabilities is P30,000 and the current ratio is 1.9, the current assets is

Select one:

a. P57,000 

b. P27,000

c. P15,789

d. P41,211

Question 20
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Which of the following belong to the profitability ratios?

Select one:

a. Gross Profit Margin

b. Rate of return on assets

c. Rate of return on equity

d. All of the above 

Question 21
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Of the P 2,000 supplies bought and debited to Store Supplies account, P500 remains on
hand at the end of the period. A credit to Store Supplies of P500 should be made.

Select one:

True

False 

Question 22
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If the capital at the beginning of the period is P50, 000 and at the end of the period is has a
balance of P75, 000. Drawing has a balance of P5, 000; the net income for the period is P30,
000.

Select one:

True 

False

Question 23
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On the first year of operations of the partnership, an accumulated depreciation for non-
current assets was recorded at P1, 000. At the end of its second year, the amount of
depreciation to be recognized is P1, 000.

Select one:

True 

False

Question 24
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After the closing entries are posted in the ledger, all the nominal accounts will have zero
balances.

Select one:

True 

False

Question 25
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The total debits in an adjusted trial balance are P1, 500,000. Its total credits are P 1,590,000.
An expense of P215, 000 was erroneously recorded as p125, 000. The amount to be added
to the total debits is P90.

Select one:

True 

False

Question 26
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The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The cost of sales is
Select one:

a. P522,500

b. P359,000

c. P313,500 

d. P341,000

Question 27
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Quick assets equals

Select one:

a. All current assets

b. Cash and Accounts receivable only.

c. Current assets minus inventory 

d. Total assets less non-current assets

Question 28
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Total assets reported in the balance sheet are P800, 000, 40% of which is current. Land
costing P130, 000 was recorded and an accumulated depreciation for other non-current
assets of P50, 000 was recorded. The cost of the non-current assets is P350, 000.

Select one:

True

False 

Question 29
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Choose the correct accounting equation

Select one:

a. All of these 

b. Assets = Equities

c. Assets = Liabilities + Capital

d. Debit = Credit

Question 30
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Which of the following a correct statement?

Select one:

a. Day's sales in receivable is the ratio of average inventory and sales.

b. Acid test ratio includes merchandise inventory and prepaid expenses.

c. Gross profit margin is the ratio of gross profit to cost of goods sold.

d. Return on ordinary equity reveals the relationship between net income and equity. 

Question 31
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The category of ratios that shows the ability of the firm to pay its long-term obligations is

Select one:

a. Solvency ratios 

b. Liquidity Ratios

c. Profitability ratios

d. Market value ratios

Question 32
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Following are examples of asset accounts except;

Select one:

a. Supplies

b. Prepaid Insurance Expense

c. Accounts Receivable

d. Depreciation 

Question 33
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The working capital ratio is

Select one:

a. Working capital /current liabilities

b. Quick assets / current liabilities

c. Current assets/current liabilities 

d. Current assets minus current liabilities

Question 34
Correct

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Question text

The formula for Accounts Receivable turnover is

Select one:

a. Net Sales / average accounts receivable 

b. Net Sales / average merchandise inventory

c. Cost of goods sold / average accounts receivable

d. 360 days / average accounts receivable

Question 35
Correct

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Question text

The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The operating profit margin(ratio) is
Select one:

a. 40%
b. 28.23%

c. 10.72%

d. 11.29% 

Question 36
Correct

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Adjusting and closing entries are always done at the end of the accounting period.

Select one:

True 

False

Question 37
Correct

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Question text

The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The inventory turnover is
Select one:
a. 6.27 times

b. 2.51 times

c. 5.02 times 

d. 4.18 times

Question 38
Correct

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The normal balance of an account is always on its debit side.

Select one:

True

False 

Question 39
Correct

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Question text

Operating profit margin equals

Select one:

a. Gross profit / sales

b. Income from operations / sales 

c. Profit from operations / cost of sales

d. Net income / sales

Question 40
Correct

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Which is not true about the post-closing trial balance?

Select one:

a. None of these 

b. It is a balance sheet in trial balance form.

c. It contains all the real or permanent accounts with balances.

d. It is done at the end of the accounting period.

Question 41
Correct

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Increases in all accounting elements are always on the left side of a T-account.

Select one:
 True

False 

Question 42
Correct

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Question text

Earnings per share is calculated by

Select one:

a. Dividing net income by the authorized ordinary shares.

b. Dividing net income less preferred dividends by number of ordinary shares

outstanding. 

c. Dividing net income by the total number of ordinary and preferred shares issued.

d. None of the above.

Question 43
Correct

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Question text

Sorting and grouping the transactions recorded under their category or account is what
accounting phase?

Select one:
a. Recording

b. Classifying 

c. Interpreting the results

d. Summarizing

Question 44
Correct

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The following are liquidity ratios except

Select one:

a. Receivable turnover

b. Earnings per share 

c. Quick ratio

d. Working capital ratio

Question 45
Correct

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All Nominal accounts are presented in the

Select one:

a. Income Statement 

b. Statement of Financial Position

c. Statement of changes in Owners' Equity

d. Statement of Cash Flows

Question 46
Correct

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Quick ratio is .9, quick assets totaled P22,500, cash is three times the accounts receivable,
Current liabilities is

Select one:

a. P22,050

b. P25,000 

c. P20,250

d. Answer not given

Question 47
Correct

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Question text

Which among the following rules of debit and credit is valid?

Select one:

a. Increase in asset , decrease in another asset 

b. Increase in drawing, increase in liability

c. Increase in liability, increase in revenues

d. Increase in expense, increase in revenues

Question 48
Correct

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Question text

The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
If income tax rate is 35%, the net income for the period is
Select one:

a. P73,150

b. P20,650

c. P38,350 

d. P153,850

Question 49
Correct

Mark 1.00 out of 1.00

 Flag question

Question text

The journal entry to record the capital of partners A and B of P 20,000 each is debit to Cash
of P40,000 and credit to A and B Capital, P40,000.

Select one:

True

False 

Question 50
Correct

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Question text

The category of ratios that determine the economic status of publicly-traded companies is

Select one:

a. Profitability ratios

b. Liquidity Ratios

c. Market value ratios 

d. Solvency ratios
2ND

Question 1
Correct

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 Flag question

Question text

Which is out of the first four steps in the accounting cycle?

Select one:

a. Recording or journalizing the transactions

b. Preparing and recording the adjusting entries

c. Preparing the unadjusted trial balance

d. Preparing the closing entries 

Question 2
Correct

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Nominal accounts include the following except;

Select one:

a. Interest Expense

b. Prepaid Advertising Expense 

c. Rent Expense

d. Cost of Sales

Question 3
Correct
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The expanded accounting equation is Assets=Liabilities + Capital - Revenues + Expenses -

Drawing.
Select one:

True

False 

Question 4
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Choose the correct accounting equation

Select one:

a. Assets = Liabilities + Capital

b. All of these 

c. Assets = Equities

d. Debit = Credit

Question 5
Correct

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 Flag question

Question text

Preparing the worksheet is an optional activity in the accounting cycle.

Select one:

True 

False

Question 6
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Question text

The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The receivable turnover is
Select one:

a. 8.71 times 

b. 9.17 times

c. 10.445 times

d. 7.46 times

Question 7
Correct

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The formula for Accounts Receivable turnover is

Select one:

a. Net Sales / average accounts receivable 

b. 360 days / average accounts receivable

c. Cost of goods sold / average accounts receivable

d. Net Sales / average merchandise inventory

Question 8
Correct

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The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
If the return on equity is 32%, the average equity is
Select one:

a. Answer not given

b. P368,750

c. P184,375 

d. P18,880

Question 9
Correct

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Net sales less cost of sales will give us

Select one:

a. Cost ratio

b. Gross profit 

c. Gross profit ratio

d. Net profit ratio

Question 10
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Increases in all accounting elements are always on the left side of a T-account.

Select one:
 True

False 

Question 11
Correct

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Question text

The journal entry to record the capital of partners A and B of P 20,000 each is debit to Cash
of P40,000 and credit to A and B Capital, P40,000.

Select one:

True

False 

Question 12
Correct

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The following are liquidity ratios except

Select one:

a. Quick ratio

b. Receivable turnover
c. Earnings per share 

d. Working capital ratio

Question 13
Correct

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The statement of changes in owner's equity is the link between income statement and
balance sheet.

Select one:

True 

False

Question 14
Correct

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Question text

The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
(ignore income tax), if the shares outstanding is 25,000, the earnings per share is
Select one:
a. P2.36 

b. P8.36

c. Answer not given

d. P6.00

Question 15
Correct

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Quick assets equals

Select one:

a. All current assets

b. Current assets minus inventory 

c. Cash and Accounts receivable only.

d. Total assets less non-current assets

Question 16
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Assets=Equities is a valid accounting equation.

Select one:

True 

False

Question 17
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Question text

Which among the following rules of debit and credit is valid?

Select one:

a. Increase in drawing, increase in liability

b. Increase in asset , decrease in another asset 

c. Increase in expense, increase in revenues

d. Increase in liability, increase in revenues

Question 18
Correct

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Which of the following belong to the profitability ratios?

Select one:
a. Rate of return on assets

b. Gross Profit Margin

c. All of the above 

d. Rate of return on equity

Question 19
Correct

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The normal balance of an account is always on its debit side.

Select one:

True

False 

Question 20
Incorrect

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Question text

The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The days in inventory is
Select one:

a. 143.43 days 

b. 86.12 days

c. 71.71 days

d. 57.42 days

Question 21
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The total debits in an adjusted trial balance are P1, 500,000. Its total credits are P 1,590,000.
An expense of P215, 000 was erroneously recorded as p125, 000. The amount to be added
to the total debits is P90.

Select one:

True 

False

Question 22
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Rent expense is debited for P20, 000 when payment for four months was made on July 1,
2017. At the end of the month, an adjusting entry requiring a debit to Prepaid Rent should
be made for P15, 000.

Select one:

True 

False

Question 23
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Capital refers to the right of the third party over the assets of the business.

Select one:

True

False 

Question 24
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If the capital at the beginning of the period is P50, 000 and at the end of the period is has a
balance of P75, 000. Drawing has a balance of P5, 000; the net income for the period is P30,
000.
Select one:

True 

False

Question 25
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Liquidity ratios include the following except;

Select one:

a. Working capital ratio

b. Receivable turnover

c. Times interest-earned ratio 

d. Inventory turnover

Question 26
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Of the P 2,000 supplies bought and debited to Store Supplies account, P500 remains on
hand at the end of the period. A credit to Store Supplies of P500 should be made.

Select one:
 True

False 

Question 27
Correct

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Question text

The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
If income tax rate is 35%, the net income for the period is
Select one:

a. P73,150

b. P38,350 

c. P20,650

d. P153,850

Question 28
Correct

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Recording business transactions chronologically for the time involves journalizing process.
Select one:

True 

False

Question 29
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Which of the following a correct statement?

Select one:

a. Acid test ratio includes merchandise inventory and prepaid expenses.

b. Return on ordinary equity reveals the relationship between net income and equity. 

c. Gross profit margin is the ratio of gross profit to cost of goods sold.

d. Day's sales in receivable is the ratio of average inventory and sales.

Question 30
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Which is not true about adjusting entries?

Select one:
a. Adjusting entries are done at the end of the accounting period.

b. Adjusting entries can have a debit or credit to cash account. 

c. Adjusting entries requires an entry debiting or crediting a nominal account and debiting
or crediting a permanent account.

d. Adjusting entries are merged with the unadjusted trial balance account balances to arrive
at the adjusted trial balance.

Question 31
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The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The cost of sales is
Select one:

a. P341,000

b. P313,500 

c. P522,500

d. P359,000

Question 32
Correct

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 Flag question

Question text

Total assets reported in the balance sheet are P800, 000, 40% of which is current. Land
costing P130, 000 was recorded and an accumulated depreciation for other non-current
assets of P50, 000 was recorded. The cost of the non-current assets is P350, 000.

Select one:

True

False 

Question 33
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Operating profit margin equals

Select one:

a. Profit from operations / cost of sales

b. Net income / sales

c. Income from operations / sales 

d. Gross profit / sales

Question 34
Correct

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 Flag question

Question text

All Nominal accounts are presented in the

Select one:

a. Statement of Financial Position

b. Statement of changes in Owners' Equity

c. Income Statement 

d. Statement of Cash Flows

Question 35
Incorrect

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Which of the following statements is correct?

Select one:

a. Trial balance is the book of final entry. 

b. All real accounts have debit normal balance.

c. Post-closing trial balance is the last step in the accounting cycle.

d. The account number is written on the F column of the ledger to facilitate cross-
referencing.
Question 36
Correct

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The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
(Ignore income tax) if the return on assets is 18%, the average total assets is
Select one:

a. Answer not given

b. P327,778 

c. P21,240

d. P655,556

Question 37
Correct

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After the closing entries are posted in the ledger, all the nominal accounts will have zero
balances.

Select one:
 True 

False

Question 38
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Adjusting and closing entries are always done at the end of the accounting period.

Select one:

True 

False

Question 39
Correct

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Question text

If total assets are P450, 000, total liabilities and equity is also P450, 000.

Select one:

True 

False

Question 40
Correct
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Question text

Which is not true about the post-closing trial balance?

Select one:

a. It is a balance sheet in trial balance form.

b. It contains all the real or permanent accounts with balances.

c. None of these 

d. It is done at the end of the accounting period.

Question 41
Correct

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Following are examples of asset accounts except;

Select one:

a. Depreciation 

b. Accounts Receivable

c. Supplies

d. Prepaid Insurance Expense

Question 42
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The following are quick assets except;

Select one:

a. Cash

b. Short-term investments

c. Accounts Receivable

d. Merchandise Inventory 

Question 43
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The category of ratios that shows the ability of the firm to pay its long-term obligations is

Select one:

a. Liquidity Ratios

b. Market value ratios

c. Solvency ratios 
d. Profitability ratios

Question 44
Correct

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Earnings per share is calculated by

Select one:

a. None of the above.

b. Dividing net income by the authorized ordinary shares.

c. Dividing net income less preferred dividends by number of ordinary shares

outstanding. 

d. Dividing net income by the total number of ordinary and preferred shares issued.

Question 45
Correct

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Sorting and grouping the transactions recorded under their category or account is what
accounting phase?

Select one:

a. Classifying 
b. Interpreting the results

c. Recording

d. Summarizing

Question 46
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Assets and liabilities are categorized as temporary accounts.

Select one:

True

False 

Question 47
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Quick ratio is .9, quick assets totaled P22,500, cash is three times the accounts receivable,
Current liabilities is

Select one:

a. P22,050
b. P25,000 

c. Answer not given

d. P20,250

Question 48
Correct

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On the first year of operations of the partnership, an accumulated depreciation for non-
current assets was recorded at P1, 000. At the end of its second year, the amount of
depreciation to be recognized is P1, 000.

Select one:

True 

False

Question 49
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The working capital ratio is

Select one:

a. Current assets minus current liabilities

b. Quick assets / current liabilities

c. Current assets/current liabilities 

d. Working capital /current liabilities

Question 50
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Debt to equity ratio is a

Select one:

a. Solvency ratio 

b. Market value ratio

c. Current ratio

d. Profitability ratio

FINALS 50/50
Question 1
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Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Current ratio

b. Receivable turnover

c. Quick Ratio

d. Debt ratio 

Question 2
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____pertains to the creation of a finished product either by hand or by machine.

Select one:

a. Non-manufacturing costs

b. Manufacturing costs

c. Factory overhead or manufacturing overhead

d. Manufacturing 

Question 3
Correct

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 Flag question

Question text

What journal will you use to record the following transaction:Collection of Accounts
Receivable from customers

Select one:

a. Cash Receipts Journal 

b. General Journal

c. Purchases Journal

d. Cash Payments Journal

Question 4
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Sales on credit is recorded in this special journal.

Select one:

a. Accounts Receivable Subsidiary ledger

b. Accounts Payable Subsidiary Ledger

c. General Journal

d. Sales Journal 
Question 5
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Factory overhead is an inventory cost.

Select one:

True 

False

Question 6
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Question text

The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The net income before tax is
Select one:

a. P522,500

b. Answer not given

c. P209,000
d. P59,000 

Question 7
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Estimated uncollectibles is recorded in this journal.

Select one:

a. General Journal 

b. Accounts Payable Subsidiary Ledger

c. Sales Journal

d. Accounts Receivable Subsidiary ledger

Question 8
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In using special journals, purchases of merchandise for cash are recorded in the purchases
journal.

Select one:

True
 False 

Question 9
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Salaries of plant supervisor.

Select one:

a. Direct Labor

b. Selling, General, and Administrative Expenses

c. Direct Materials

d. Factory Overhead 

Question 10
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What journal will you use to record the following transaction:Purchase of building on
account.

Select one:

a. Cash Payments Journal

b. Cash Receipts Journal

c. General Journal

d. Purchases Journal 

Question 11
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The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The cost of sales ratio or cost ratio is
Select one:

a. 40%

b. 62%

c. Answer not given.

d. 60% 

Question 12
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Cebu Trading sold to Manila Store goods with a listed price of P100, 000. Term of sale:
Trade discount of 3% and 2%. Payment terms: 2/10,n/30.
If Manila Store failed to pay within the discount period, the amount due is
Select one:

a. P102,000

b. P100,000

c. P 95,060 

d. P95,000

Feedback

Your answer is correct.

Question 13
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One of the FASB statements of financial reporting objectives is that it should report the
accounting elements and the changes affecting them.

Select one:

True 

False

Question 14
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 Flag question

Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Share Premium

b. Share capital

c. Treasury Shares 

d. Retained Earnings

Question 15
Correct

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FOB destination means the ownership of merchandise passes to the buyer when it reaches
its ______.

Select one:

a. Sales discount

b. Account

c. Inventory

d. Destination 
Question 16
Correct

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The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The day's sales in receivable is
Select one:

a. 41.33 days 

b. 48.26 days

c. 34.45 days

d. 39.26 days

Question 17
Correct

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Odd-man Out.
Choose the letter that does not belong to the group.

Select one:
a. Interest Income

b. NSF check 

c. Proceeds of bank loan deposited in the account of the depositor

d. Notes Receivable collected by banks in behalf of the depositor

Question 18
Correct

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Woods in a furniture business.

Select one:

a. Selling, General, and Administrative Expenses

b. Direct Materials 

c. Direct Labor

d. Factory Overhead

Question 19
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Which is the nature of a manufacturing type of business?

Select one:

a. All of these. 

b. Its finished products are sold to a merchandiser.

c. It converts raw materials to a finished product.

d. The production can be either manually or by machine.

Question 20
Correct

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Purchases plus freight in less purchase returns less inventory end.

Select one:

a. Gross profit ratio

b. Cost of goods sold 

c. Freight-out

d. Free On Board

Question 21
Correct

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The costs of completed or finished goods during the period are shown in the
___________section of the income statement.

Select one:

a. Cost of goods manufactured 

b. Direct materials

c. Raw Materials Purchases

d. Goods in Process or Work in Process

Question 22
Correct

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All the expenditures incurred in producing a good or a product is called ___________.

Select one:

a. Manufacturing costs 

b. Factory overhead or manufacturing overhead

c. Non-manufacturing costs

d. Manufacturing

Question 23
Correct

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 Flag question

Question text

Purchases of merchandise on account under periodic inventory system requires a debit to

_____account.

Select one:

a. Purchases 

b. Income

c. Asset or Accrued Income

d. Accounts Payable

Question 24
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Revenues, Expenses.

Select one:

a. Nominal accounts 

b. Statement of Changes in Owner's Equity

c. Closing the accounts.

d. Accrued Expenses
Question 25
Correct

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Paint in an automobile.

Select one:

a. Direct Labor

b. Selling, General, and Administrative Expenses

c. Direct Materials

d. Factory Overhead 

Question 26
Correct

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Prime Cost is direct materials plus factory overhead.

Select one:

True

False 

Question 27
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Credit memo is a document that will serve as a basis for crediting a seller's account for
returned merchandise.

Select one:

True

False 

Question 28
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What journal will you use to record the following transaction:Collection of interest revenue.

Select one:

a. Purchases Journal

b. General Journal

c. Cash Payments Journal 

d. Cash Receipts Journal

Question 29
Correct

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 Flag question

Question text

An unfinished goods at the end of the accounting period is also an inventory.

Select one:

True 

False

Question 30
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The entries of which are posted individually in the Accounts Receivable Subsidiary Ledger.

Select one:

a. Cash Payments Journal

b. Purchases Journal

c. Cash Receipts Journal

d. Sales Journal 

Question 31
Correct

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 Flag question

Question text

The following selected accounts  were taken from the books  of Santos Trading on
December 31, 2016: Santos, Capital-P150,000; Loss from Operations-P1,500; Net Sales-
P120,000; total Goods Available for Sale-P103,505; Gross Profit-P60,750; Merchandise
inventory , Jan 1, 2016-P27,520.
Merchandise Inventory, Dec. 31 is
Select one:

a. P 29,020

b. P 43,755 

c. P75, 985

d. P62,250

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Question 32
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Juan earned P200, 000 in rendering services. His total expenses are 40%. His net income is
Select one:

a. P 200,000
b. P320,000

c. P120,000 

d. P80,000

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Question 33
Correct

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Current assets minus current liabilities is

Select one:

a. Working capital 

b. Current ratio

c. Short-term ratio

d. Net current assets

Question 34
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Real accounts

Select one:

a. Decreases Capital

b. Permanent accounts

c. Assets, liabilities, Capital 

d. Post-closing Trial Balance

Question 35
Correct

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Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Depreciation

b. Prepaid Insurance Expense 

c. Rent Expense

d. Uncollectible Accounts

Question 36
Correct

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 Flag question

Question text

It is where the entries in the Cash Payments Journal are individually posted.

Select one:

a. General Journal

b. Accounts Receivable Subsidiary ledger

c. Sales Journal

d. Accounts Payable Subsidiary Ledger 

Question 37
Correct

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Cost of transporting goods from seller to the customers.

Select one:

a. Cost of goods sold

b. Gross profit ratio

c. Freight-out 

d. Free On Board

Question 38
Correct
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Salaries of office staff.

Select one:

a. Factory Overhead

b. Selling, General, and Administrative Expenses 

c. Direct Labor

d. Direct Materials

Question 39
Correct

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Question text

Direct labor and factory overhead are categorized as ______- costs.

Select one:

a. Goods in Process or Work in Process

b. Conversion costs 

c. Selling expenses or distribution expenses

d. Direct materials
Question 40
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Meaning of FOB.

Select one:

a. Cost of goods sold

b. Free On Board 

c. Gross profit ratio

d. Freight-out

Question 41
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The nature of non-manufacturing costs include the following except

Select one:

a. These are expenses incurred in the stage of bringing the products to the ultimate
consumers.

b. These are the costs of the administration and management of the firm.
c. These are the costs outside production.

d. These are the costs other than direct materials and direct labor. 

Question 42
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Cost of depending a lawsuit in court.

Select one:

a. Direct Materials

b. Factory Overhead

c. Direct Labor

d. Selling, General, and Administrative Expenses 

Question 43
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The following selected accounts are taken from the books of RST Trading on April 30 before
adjustment. RST has a monthly accounting period:
Accounts Receivable   P5,000            Building                     P50,000
Sales                           75,000                        Service Income             10,000
Prepaid Rent              6,000             Salaries Expense          20,000
Adjustment data on April 30:
a)         2 % of sales is estimated to be uncollectible.
b)        Rent expired, P2,000.
c)         Salaries unpaid, P 1,500.
d)        Building will be depreciated at 20% per annum, with useful lie of 10 years.
e)         Income unearned , P10,000.
 
Income will be adjusted by
Select one:

a. Unearned Service Income             P1000

Cash                                                             P1,000

b. Service Income                               P 1,000

Unearned Service Income                         P1,000 

c. Unearned Service Income             P 1,000

Service Income                                           P1,000

d. Service Income                               P 1,000

Cash                                                             P1,000
Feedback

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Question 44
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 Flag question

Question text

This is the document issued by the buyer for returned merchandise.

Select one:

a. Debit memorandum 

b. Credit memorandum

c. Accounts Payable Subsidiary Ledger

d. General Journal

Question 45
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Trial balance consisting of all real accounts at the beginning of the next accounting period.

Select one:

a. Assets, liabilities, Capital

b. Decreases Capital

c. Post-closing Trial Balance 

d. Permanent accounts

Question 46
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The following selected accounts  were taken from the books  of Santos Trading on
December 31, 2016: Santos, Capital-P150,000; Loss from Operations-P1,500; Net Sales-
P120,000; total Goods Available for Sale-P103,505; Gross Profit-P60,750; Merchandise
inventory , Jan 1, 2016-P27,520.
Santos, Capital, December 31 is
Select one:

a. P151,500

b. P148,500 

c. P150,000

d. P210,750

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Question 47
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Water and electricity in the factory.

Select one:
a. Direct Materials

b. Selling, General, and Administrative Expenses

c. Direct Labor

d. Factory Overhead 

Question 48
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The following selected accounts are taken from the books of RST Trading on April 30 before
adjustment. RST has a monthly accounting period:
Accounts Receivable   P5,000            Building                     P50,000
Sales                           75,000                        Service Income             10,000
Prepaid Rent              6,000             Salaries Expense          20,000
Adjustment data on April 30:
a)         2 % of sales is estimated to be uncollectible.
b)        Rent expired, P2,000.
c)         Salaries unpaid, P 1,500.
d)        Building will be depreciated at 20% per annum, with useful lie of 10 years.
e)         Income unearned , P10,000.
 
The adjusting entry to record ( a) is
Select one:

a. Doubtful Accounts Expense             P 1,500

Accounts Receivable                                     P1,500

b. Doubtful Accounts Expense             P 1,500

Allowance for Doubtful Accounts               P 1, 500 

c. Doubtful Accounts Expense             P1, 500

Sales                                                               P1,500

d. Sales                                                   P1,500

Accounts Receivable                                      P1,500

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Question 49
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Zeroing the temporary accounts.

Select one:

a. Closing the accounts. 

b. Nominal accounts

c. Accrued Expenses

d. Statement of Changes in Owner's Equity

Question 50
Correct

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 Flag question

Question text

Direct reduction in the selling price of a merchandise to encourage customers to pay on

time.

Select one:

a. Profit

b. Owner's Equity

c. Revenue and Expense summary

d. Trade discount 
2ND

Question 1
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What journal will you use to record the following transaction:Purchase of building on
account.

Select one:

a. General Journal

b. Cash Payments Journal

c. Purchases Journal
d. Cash Receipts Journal 

Question 2
Correct

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____pertains to the creation of a finished product either by hand or by machine.

Select one:

a. Factory overhead or manufacturing overhead

b. Non-manufacturing costs

c. Manufacturing 

d. Manufacturing costs

Question 3
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Question text

Cebu Trading sold to Manila Store goods with a listed price of P100, 000. Term of sale:
Trade discount of 3% and 2%. Payment terms: 2/10,n/30.
If Manila Store failed to pay within the discount period, the amount due is
Select one:

a. P100,000
b. P102,000

c. P95,000

d. P 95,060 

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Question 4
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Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Current ratio

b. Receivable turnover

c. Quick Ratio

d. Debt ratio 

Question 5
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One of the FASB statements of financial reporting objectives is that it should report the
accounting elements and the changes affecting them.

Select one:

True 

False

Question 6
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Sales on credit is recorded in this special journal.

Select one:

a. Accounts Receivable Subsidiary ledger

b. Sales Journal 

c. General Journal

d. Accounts Payable Subsidiary Ledger

Question 7
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What journal will you use to record the following transaction:Collection of Accounts
Receivable from customers

Select one:

a. General Journal

b. Cash Payments Journal

c. Purchases Journal

d. Cash Receipts Journal 

Question 8
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The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The day's sales in receivable is
Select one:

a. 41.33 days

b. 48.26 days

c. 34.45 days

d. 39.26 days 

Question 9
Correct

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 Flag question

Question text

In using special journals, purchases of merchandise for cash are recorded in the purchases
journal.

Select one:

True

False 

Question 10
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Purchases plus freight in less purchase returns less inventory end.

Select one:

a. Gross profit ratio

b. Free On Board

c. Cost of goods sold 

d. Freight-out

Question 11
Correct

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 Flag question

Question text

FOB destination means the ownership of merchandise passes to the buyer when it reaches
its ______.

Select one:

a. Inventory

b. Sales discount

c. Account

d. Destination 

Question 12
Correct

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Question text

Factory overhead is an inventory cost.

Select one:

True 

False

Question 13
Incorrect

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 Flag question

Question text

The following selected accounts are taken from the ledger of  XYX Merchandising  on June
30, 2017:  Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses,
P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30,
2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The cost of sales ratio or cost ratio is
Select one:

a. Answer not given.

b. 40%

c. 62% 

d. 60%

Question 14
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Salaries of plant supervisor.

Select one:

a. Selling, General, and Administrative Expenses

b. Direct Materials

c. Direct Labor
d. Factory Overhead 

Question 15
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Estimated uncollectibles is recorded in this journal.

Select one:

a. Sales Journal

b. Accounts Payable Subsidiary Ledger

c. Accounts Receivable Subsidiary ledger

d. General Journal 

Question 16
Correct

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Question text

The following selected accounts  were taken from the books  of Santos Trading on
December 31, 2016: Santos, Capital-P150,000; Loss from Operations-P1,500; Net Sales-
P120,000; total Goods Available for Sale-P103,505; Gross Profit-P60,750; Merchandise
inventory , Jan 1, 2016-P27,520.
Merchandise Inventory, Dec. 31 is
Select one:
a. P 29,020

b. P 43,755 

c. P75, 985

d. P62,250

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Question 17
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Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Uncollectible Accounts

b. Prepaid Insurance Expense 

c. Rent Expense

d. Depreciation

Question 18
Correct

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 Flag question

Question text

The entries of which are posted individually in the Accounts Receivable Subsidiary Ledger.

Select one:

a. Cash Receipts Journal

b. Cash Payments Journal

c. Sales Journal 

d. Purchases Journal

Question 19
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Question text

The following selected accounts are taken from the books of RST Trading on April 30 before
adjustment. RST has a monthly accounting period:
Accounts Receivable   P5,000            Building                     P50,000
Sales                           75,000                        Service Income             10,000
Prepaid Rent              6,000             Salaries Expense          20,000
Adjustment data on April 30:
a)         2 % of sales is estimated to be uncollectible.
b)        Rent expired, P2,000.
c)         Salaries unpaid, P 1,500.
d)        Building will be depreciated at 20% per annum, with useful lie of 10 years.
e)         Income unearned , P10,000.
 
The adjusting entry to record ( a) is
Select one:

a. Doubtful Accounts Expense             P1, 500

Sales                                                               P1,500

b. Sales                                                   P1,500

Accounts Receivable                                      P1,500

c. Doubtful Accounts Expense             P 1,500

Allowance for Doubtful Accounts               P 1, 500 

d. Doubtful Accounts Expense             P 1,500

Accounts Receivable                                     P1,500

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Question 20
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Prime Cost is direct materials plus factory overhead.

Select one:
 True

False 

Question 21
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Question text

Real accounts

Select one:

a. Post-closing Trial Balance

b. Decreases Capital

c. Assets, liabilities, Capital 

d. Permanent accounts

Question 22
Correct

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Question text

Direct reduction in the selling price of a merchandise to encourage customers to pay on

time.

Select one:
a. Owner's Equity

b. Trade discount 

c. Revenue and Expense summary

d. Profit

Question 23
Correct

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Current assets minus current liabilities is

Select one:

a. Net current assets

b. Short-term ratio

c. Current ratio

d. Working capital 

Question 24
Correct

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Question text

Paint in an automobile.
Select one:

a. Direct Materials

b. Direct Labor

c. Factory Overhead 

d. Selling, General, and Administrative Expenses

Question 25
Correct

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Question text

Trial balance consisting of all real accounts at the beginning of the next accounting period.

Select one:

a. Post-closing Trial Balance 

b. Assets, liabilities, Capital

c. Decreases Capital

d. Permanent accounts

Question 26
Correct

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Question text
Zeroing the temporary accounts.

Select one:

a. Closing the accounts. 

b. Accrued Expenses

c. Nominal accounts

d. Statement of Changes in Owner's Equity

Question 27
Correct

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Question text

This is the document issued by the buyer for returned merchandise.

Select one:

a. Credit memorandum

b. Accounts Payable Subsidiary Ledger

c. General Journal

d. Debit memorandum 

Question 28
Correct

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Question text

The costs of completed or finished goods during the period are shown in the
___________section of the income statement.

Select one:

a. Direct materials

b. Raw Materials Purchases

c. Cost of goods manufactured 

d. Goods in Process or Work in Process

Question 29
Correct

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Reversing accrued income needs a credit to an _______ account.

Select one:

a. Asset or Accrued Income 

b. Purchases

c. Accounts Payable

d. Income

Question 30
Correct

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Question text

The following selected accounts are taken from the books of RST Trading on April 30 before
adjustment. RST has a monthly accounting period:
Accounts Receivable   P5,000            Building                     P50,000
Sales                           75,000                        Service Income             10,000
Prepaid Rent              6,000             Salaries Expense          20,000
Adjustment data on April 30:
a)         2 % of sales is estimated to be uncollectible.
b)        Rent expired, P2,000.
c)         Salaries unpaid, P 1,500.
d)        Building will be depreciated at 20% per annum, with useful lie of 10 years.
e)         Income unearned , P10,000.
 
Adjusting entry for letter(c) is
Select one:

a. Salaries Expense                            P18,500

Cash                                                             P18,500

b. Prepaid Rent                                   P 2,000

Cash                                                             P2,000 

c. Salaries Payable                             P 1,500

Cash                                                             P1,500

d. Salaries Expense                            P 18,500

 Salaries Payable                                         P 18,500
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Question 31
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Question text

Direct labor and factory overhead are categorized as ______- costs.

Select one:

a. Selling expenses or distribution expenses

b. Direct materials

c. Conversion costs 

d. Goods in Process or Work in Process

Question 32
Correct

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Question text

Juan earned P200, 000 in rendering services. His total expenses are 40%. His net income is
Select one:

a. P 200,000
b. P320,000

c. P80,000

d. P120,000 

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Your answer is correct.

Question 33
Correct

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Question text

Cost of transporting goods from seller to the customers.

Select one:

a. Free On Board

b. Freight-out 

c. Cost of goods sold

d. Gross profit ratio

Question 34
Correct

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Question text
Meaning of FOB.

Select one:

a. Freight-out

b. Free On Board 

c. Cost of goods sold

d. Gross profit ratio

Question 35
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Question text

It is where the entries in the Cash Payments Journal are individually posted.

Select one:

a. Accounts Payable Subsidiary Ledger 

b. Sales Journal

c. General Journal

d. Accounts Receivable Subsidiary ledger

Question 36
Correct

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Question text

Advertising expenses is a

Select one:

a. Selling Expense 

b. Factory overhead

c. General Expense

d. None of these

Question 37
Correct

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Question text

What journal will you use to record the following transaction:Collection of interest revenue.

Select one:

a. Cash Receipts Journal

b. General Journal

c. Cash Payments Journal 

d. Purchases Journal

Question 38
Correct

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 Flag question

Question text

Revenues, Expenses.

Select one:

a. Nominal accounts 

b. Statement of Changes in Owner's Equity

c. Closing the accounts.

d. Accrued Expenses

Question 39
Correct

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Question text

Accounting concepts related to time-period concept are revenue-recognition and

__________principles.

Select one:

a. Matching 

b. Asset

c. Expense

d. Adjusting
Question 40
Correct

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Question text

Salaries of office staff.

Select one:

a. Factory Overhead

b. Direct Materials

c. Selling, General, and Administrative Expenses 

d. Direct Labor

Question 41
Correct

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Question text

Water and electricity in the factory.

Select one:

a. Direct Labor

b. Factory Overhead 

c. Selling, General, and Administrative Expenses

d. Direct Materials

Question 42
Correct

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All the expenditures incurred in producing a good or a product is called ___________.

Select one:

a. Manufacturing

b. Manufacturing costs 

c. Non-manufacturing costs

d. Factory overhead or manufacturing overhead

Question 43
Correct

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Cost of depending a lawsuit in court.

Select one:

a. Direct Labor

b. Direct Materials
c. Factory Overhead

d. Selling, General, and Administrative Expenses 

Question 44
Correct

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The following selected accounts are taken from the books of RST Trading on April 30 before
adjustment. RST has a monthly accounting period:
Accounts Receivable   P5,000            Building                     P50,000
Sales                           75,000                        Service Income             10,000
Prepaid Rent              6,000             Salaries Expense          20,000
Adjustment data on April 30:
a)         2 % of sales is estimated to be uncollectible.
b)        Rent expired, P2,000.
c)         Salaries unpaid, P 1,500.
d)        Building will be depreciated at 20% per annum, with useful lie of 10 years.
e)         Income unearned , P10,000.
 
Income will be adjusted by
Select one:

a. Unearned Service Income             P 1,000

Service Income                                           P1,000

b. Service Income                               P 1,000

 Unearned Service Income                         P1,000 

c. Unearned Service Income             P1000

Cash                                                             P1,000

d. Service Income                               P 1,000

Cash                                                             P1,000
Feedback

Your answer is correct.

Question 45
Correct

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The following selected accounts  were taken from the books  of Santos Trading on
December 31, 2016: Santos, Capital-P150,000; Loss from Operations-P1,500; Net Sales-
P120,000; total Goods Available for Sale-P103,505; Gross Profit-P60,750; Merchandise
inventory , Jan 1, 2016-P27,520.
Santos, Capital, December 31 is
Select one:

a. P151,500

b. P210,750

c. P148,500 

d. P150,000

Feedback

Your answer is correct.

Question 46
Correct

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Credit memo is a document that will serve as a basis for crediting a seller's account for
returned merchandise.

Select one:

True

False 

Question 47
Correct

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The right side of a T-account is used to record

Select one:

a. Increase in Liability 

b. Increase in Asset

c. Decrease in liability

d. Decrease in revenue

Question 48
Correct

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Question text

The nature of non-manufacturing costs include the following except

Select one:

a. These are expenses incurred in the stage of bringing the products to the ultimate
consumers.

b. These are the costs other than direct materials and direct labor. 

c. These are the costs outside production.

d. These are the costs of the administration and management of the firm.

Question 49
Correct

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An unfinished goods at the end of the accounting period is also an inventory.

Select one:

True 

False

Question 50
Correct
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Question text

Purchases of merchandise on account under periodic inventory system requires a debit to

_____account.

Select one:

a. Accounts Payable

b. Income

c. Purchases 

d. Asset or Accrued Income

QUIZ 7 10/10
Question 1
Correct

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NSF checks are those issued by the firm as payment and are not yet presented to the banks
for encashment.

Select one:

True

False 
Question 2
Correct

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Question text

If the company incurred____, the capital beginning will be decreased by the same amount.

Select one:

a. Net loss 

b. Retained earnings

c. None of the choices

d. Revenues

Question 3
Correct

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Question text

Payment of the principal amount of loan is a ___ activity.

Select one:

a. Financing 

b. Net loss

c. None of the choices

d. Deposit in transit

Question 4
Correct

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When using the fluctuation fund system in petty cash fund accounting, disbursements out
of the fund are credited to Cash in Bank.

Select one:

True

False 

Question 5
Correct

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Question text

A disclosure on ____ shows the company's recognition policies.

Select one:

a. None of the choices

b. Revenue recognition 

c. Financing
d. Deposit in transit

Question 6
Correct

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The primary objective of financial reporting is to provide information about the firm that will
be beneficial to all stakeholders.

Select one:

True 

False

Question 7
Correct

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Question text

____are records and documents that are consolidated to determine and review the financial
status of a firm.

Select one:

a. Shareholders' Equity

b. None of the choices

c. Financial statements
d. Financial reporting 

Question 8
Correct

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Question text

Dividends declared and paid decrease ______.

Select one:

a. Revenues

b. Retained earnings 

c. None of the choices

d. Shareholders' Equity

Question 9
Correct

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Question text

The positive bottom line figure in the income statement is called ____.

Select one:

a. Financial statements

b. None of the choices

c. Net income 

d. Revenues

Question 10
Correct

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Capital is for sole proprietorship and partnership, _____is for corporation.

Select one:

a. Revenues

b. Shareholders' Equity 

c. None of the choices

d. Retained earnings

Question 1
Correct

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The adjusted trial balance is also a financial statement.

Select one:
 True

False 

Question 2
Correct

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Share Premium is the term used for the excess of issue price over the ______of shares.

Select one:

a. Par vale 

b. Revenues

c. None of the choices

d. Financing

Question 3
Correct

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The most liquid asset of a company is cash.

Select one:

True 
 False

Question 4
Correct

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Question text

Disclosures can also be presented in the face of a financial statement.

Select one:

True

False 

Question 5
Correct

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Question text

The operating section of an income statement consists of ______and expenses.

Select one:

a. None of the choices

b. Revenues 

c. Net loss

d. Retained earnings
Question 6
Correct

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Question text

The elements of an income statement include revenues and prepaid expenses.

Select one:

True

False 

Question 7
Correct

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Question text

The statement of owner's equity of a partnership includes capital reserves.

Select one:

True

False 

Question 8
Correct

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 Flag question

Question text

Purchase of plant assets is a financing activity.

Select one:

True

False 

Question 9
Correct

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Question text

The statement of financial position shows the net worth of a business.

Select one:

True 

False

Question 10
Correct

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Question text

_____are the capsulized reports that show the financial health of a business entity.

Select one:

a. Revenues

b. None of the choices

c. Financial reporting

d. Financial statements 

Question 1
Correct

Mark 1.00 out of 1.00

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Question text

The primary objective of financial reporting is to provide information about the firm that will
be beneficial to all stakeholders.

Select one:

True 

False

Question 2
Correct

Mark 1.00 out of 1.00

Flag question
Question text

The positive bottom line figure in the income statement is called ____.

Select one:

a. Financial statements

b. None of the choices

c. Revenues

d. Net income 

Question 3
Correct

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Question text

NSF checks are those issued by the firm as payment and are not yet presented to the banks
for encashment.

Select one:

True

False 

Question 4
Correct

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Question text
_____are the capsulized reports that show the financial health of a business entity.

Select one:

a. None of the choices

b. Financial reporting

c. Financial statements 

d. Revenues

Question 5
Correct

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Question text

Disclosures can also be presented in the face of a financial statement.

Select one:

True

False 

Question 6
Correct

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Question text

Purchase of plant assets is a financing activity.

Select one:

True

False 

Question 7
Correct

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Question text

The statement of owner's equity of a partnership includes capital reserves.

Select one:

True

False 

Question 8
Correct

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Question text

Payment of the principal amount of loan is a ___ activity.

Select one:

a. Deposit in transit

b. None of the choices

c. Financing 

d. Net loss

Question 9
Correct

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Question text

If the company incurred____, the capital beginning will be decreased by the same amount.

Select one:

a. Retained earnings

b. Revenues

c. None of the choices

d. Net loss 

Question 10
Correct

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Question text

The adjusted trial balance is also a financial statement.

Select one:

True
 False 

Question 1
Correct

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Question text

The elements of an income statement include revenues and prepaid expenses.

Select one:

True

False 

Question 2
Correct

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Question text

The statement of financial position shows the net worth of a business.

Select one:

True 

False

Question 3
Incorrect
Mark 0.00 out of 1.00

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Question text

Share Premium is the term used for the excess of issue price over the ______of shares.

Select one:

a. None of the choices

b. Revenues 

c. Financing

d. Par vale

Question 4
Correct

Mark 1.00 out of 1.00

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Question text

When using the fluctuation fund system in petty cash fund accounting, disbursements out
of the fund are credited to Cash in Bank.

Select one:

True

False 

Question 5
Correct

Mark 1.00 out of 1.00

 Flag question

Question text

____are records and documents that are consolidated to determine and review the financial
status of a firm.

Select one:

a. Shareholders' Equity

b. None of the choices

c. Financial statements

d. Financial reporting 

Question 6
Correct

Mark 1.00 out of 1.00

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Question text

The operating section of an income statement consists of ______and expenses.

Select one:

a. Net loss

b. None of the choices

c. Revenues 

d. Retained earnings
Question 7
Incorrect

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Question text

Dividends declared and paid decrease ______.

Select one:

a. None of the choices

b. Retained earnings

c. Revenues

d. Shareholders' Equity 

Question 8
Correct

Mark 1.00 out of 1.00

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Question text

A disclosure on ____ shows the company's recognition policies.

Select one:

a. Deposit in transit

b. None of the choices

c. Financing
d. Revenue recognition 

Question 9
Incorrect

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Question text

Capital is for sole proprietorship and partnership, _____is for corporation.

Select one:

a. Retained earnings

b. Shareholders' Equity

c. Revenues 

d. None of the choices

Question 10
Correct

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Question text

The most liquid asset of a company is cash.

Select one:

True 

False
Question 1
Correct

Mark 1.00 out of 1.00

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Question text

The primary objective of financial reporting is to provide information about the firm that will
be beneficial to all stakeholders.

Select one:

True 

False

Question 2
Correct

Mark 1.00 out of 1.00

Flag question

Question text

The elements of an income statement include revenues and prepaid expenses.

Select one:

True

False 

Question 3
Correct

Mark 1.00 out of 1.00

 Flag question

Question text

_____are the capsulized reports that show the financial health of a business entity.

Select one:

a. Financial reporting

b. Financial statements 

c. None of the choices

d. Revenues

Question 4
Correct

Mark 1.00 out of 1.00

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Question text

The statement of owner's equity of a partnership includes capital reserves.

Select one:

True

False 

Question 5
Incorrect

Mark 0.00 out of 1.00

 Flag question

Question text

Dividends declared and paid decrease ______.

Select one:

a. Retained earnings

b. Revenues

c. Shareholders' Equity

d. None of the choices 

Question 6
Correct

Mark 1.00 out of 1.00

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Question text

If the company incurred____, the capital beginning will be decreased by the same amount.

Select one:

a. Revenues

b. None of the choices

c. Retained earnings

d. Net loss 

Question 7
Correct
Mark 1.00 out of 1.00

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Question text

The positive bottom line figure in the income statement is called ____.

Select one:

a. Revenues

b. Financial statements

c. None of the choices

d. Net income 

Question 8
Incorrect

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Question text

Share Premium is the term used for the excess of issue price over the ______of shares.

Select one:

a. None of the choices 

b. Revenues

c. Par vale

d. Financing
Question 9
Correct

Mark 1.00 out of 1.00

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Question text

NSF checks are those issued by the firm as payment and are not yet presented to the banks
for encashment.

Select one:

True

False 

Question 10
Correct

Mark 1.00 out of 1.00

Flag question

Question text

When using the fluctuation fund system in petty cash fund accounting, disbursements out
of the fund are credited to Cash in Bank.

Select one:

True

False 

QUIZ 8
Question 1
Correct
Mark 1.00 out of 1.00

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Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Marketable securities

b. Merchandise inventory 

c. Cash

d. Accounts Receivable

Question 2
Correct

Mark 1.00 out of 1.00

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Question text

The total shareholders' equity is the sum of the share capital, share premium, capital
reserves, retained earnings and treasury shares.

Select one:

True

False 

Question 3
Correct
Mark 1.00 out of 1.00

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Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Receipts of dividends

b. Sale of plant assets 

c. Collection of Receivables

d. Cash Sales

Question 4
Correct

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Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. T-Accounts

b. Balance sheet 

c. Trial Balance
d. Worksheet

Question 5
Correct

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Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Accounts Receivable

b. Cash

c. Equipment 

d. Merchandise Inventory

Question 6
Correct

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Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Fluctuating fund method

b. Petty cash fund

c. Imprest system

d. Adjusted balance method 

Question 7
Incorrect

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Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Purchases 

b. Merchandise Inventory, ending

c. Freight-out

d. Merchandise Inventory, beginning

Question 8
Correct

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Question text

The direct method and indirect method of reporting cash flows are applicable to all the
three groups of activities affecting cash.
Select one:

True

False 

Question 9
Correct

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Question text

The following are real accounts except

Select one:

a. Accounts Receivable

b. Accrued Interest Expense

c. Laundry Income 

d. Accrued Interest Income

Question 10
Correct

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Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:
a. Return on equity 

b. Interest coverage ratio

c. Debt ratio

d. Time-interest earned

Operating activities or cash flows are those cash flows affecting the income producing
activities of the company.

Select one:

True 

False

Question 2
Correct

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All are nominal accounts except;

Select one:

a. Rent Expense

b. Sales

c. Service Income

d. Prepaid Insurance Expense 

Question 3
Correct

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 Flag question

Question text

Disclosures are supplemental explanations and broad descriptions of the financial position
and performance of a firm.

Select one:

True 

False

Question 4
Correct

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Question text

The elements of the income statement include revenues, expenses, drawing, and net
income.

Select one:

True

False 

Question 5
Incorrect

Mark 0.00 out of 1.00

 Flag question

Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Accounts Receivable

b. Marketable securities 

c. Merchandise inventory

d. Cash

Question 6
Correct

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Question text

The common element of change in the owners' equity of a partnership and shareholder's
equity of a corporation is net income.

Select one:

True 

False

Question 7
Correct

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 Flag question

Question text

The total shareholders' equity is the sum of the share capital, share premium, capital
reserves, retained earnings and treasury shares.

Select one:

True

False 

Question 8
Correct

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Question text

The shareholders' equity section of the balance is also called the net assets of the firm.

Select one:

True 

False

Question 9
Correct

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Question text

The total assets and the total liabilities and owner's equity should always be equal.

Select one:

True 

False

Question 10
Correct

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Question text

Treasury shares are positive elements of shareholders' equity section of the balance sheet.

Select one:

True

False 

Question 1
Correct

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Question text

The statement of owner's equity is a link between the income statement and the balance
sheet.
Select one:

True 

False

Question 2
Correct

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Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Return on sales

b. Return on assets

c. Price/earnings ratio 

d. Return on equity

Question 3
Correct

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The statement of cash flows showcases the transactions that affect the most liquid asset
only.
Select one:

True 

False

Question 4
Correct

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Question text

The four components of the financial statements are Statement of Income, statement of
financial position, statement of cash flows and post- closing trial balance.

Select one:

True

False 

Question 5
Correct

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Financial statements present the financial position and performance of the firm.

Select one:

True 

False
Question 6
Correct

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Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Merchandise Inventory

b. Accounts Receivable

c. Equipment 

d. Cash

Question 7
Correct

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Question text

Another term for income statement is revenue and expense summary.

Select one:

True

False 

Question 8
Correct

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Question text

Issuance of shares of stock and sales of treasury shares are investing cash flows.

Select one:

True

False 

Question 9
Incorrect

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Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Freight-out

b. Merchandise Inventory, ending

c. Purchases

d. Merchandise Inventory, beginning 

Question 10
Correct
Mark 1.00 out of 1.00

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Question text

In a multi-step form of income statement, the breakdown of the different key line items is
shown in the notes or footnotes.

Select one:

True

False 

Question 1
Incorrect

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Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. T-Accounts

b. Balance sheet

c. Worksheet

d. Trial Balance 
Question 2
Incorrect

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Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Notes Payable 

b. Accrued Salaries Expense

c. Accounts Payable

d. Mortgage Payable

Question 3
Incorrect

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Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Interest coverage ratio

b. Time-interest earned
c. Debt ratio 

d. Return on equity

Question 4
Correct

Mark 1.00 out of 1.00

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Question text

The direct method and indirect method of reporting cash flows are applicable to all the
three groups of activities affecting cash.

Select one:

True

False 

Question 5
Correct

Mark 1.00 out of 1.00

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Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Sale of plant assets 

b. Collection of Receivables
c. Cash Sales

d. Receipts of dividends

Question 6
Correct

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If revenue is less than expenses, the bottom line is profit.

Select one:

True

False 

Question 7
Incorrect

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Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Purchase of treasury shares 

b. Payment to suppliers
c. Payment of dividends

d. Payment of principal amount of loan

Question 8
Correct

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Question text

The normal balance of which are on the debit side except

Select one:

a. Drawing

b. Prepaid Expense

c. Rent Expense

d. Accrued Salaries Expense 

Question 9
Correct

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Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:
a. Service Income

b. Accrued Interest Income 

c. Miscellaneous Income

d. Sales

Question 10
Correct

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Question text

Capital is for sole proprietorship and partnership, _____is for corporation.

Select one:

a. Revenues

b. Retained earnings

c. None of the choices

d. Shareholders' Equity 

Question 1
Correct

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Question text
The common element of change in the owners' equity of a partnership and shareholder's
equity of a corporation is net income.

Select one:

True 

False

Question 2
Correct

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Question text

Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Adjusted balance method 

b. Fluctuating fund method

c. Imprest system

d. Petty cash fund

Question 3
Incorrect

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Question text
Odd-man Out.
Choose the letter that does not belong to the group.

Select one:

a. Merchandise inventory

b. Accounts Receivable 

c. Marketable securities

d. Cash

Question 4
Incorrect

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Question text

The total shareholders' equity is the sum of the share capital, share premium, capital
reserves, retained earnings and treasury shares.

Select one:

True 

False

Question 5
Incorrect

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Question text
The following are real accounts except

Select one:

a. Accounts Receivable

b. Laundry Income

c. Accrued Interest Expense 

d. Accrued Interest Income

Question 6
Correct

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The nature and justification in the change in the accounting principle and its effect should
be disclosed in the financial statements.
Select one:

True 

False

Question 7
Correct

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Which of the following is correct?

Select one:

a. A = L +C

b. All of the above 

c. A = E

d. A +E +D = L +C

Question 8
Correct

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All the non-current assets are subject to depreciation.

Select one:

True

False 

Question 9
Correct

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Financial statements present the financial position and performance of the firm.

Select one:
 True 

False

Question 10
Correct

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The statement of owner's equity is a link between the income statement and the balance
sheet.

Select one:

True 

False