QUALIFYING EXAMINATION: FIRST YEAR-BSA PART 1: ACCOUNTING

TERMINOLOGIES
Direction: Shade the letter of the correct answer on the answer sheet provided.
1. The report prepared to determine whether the total debits and credits in the
accounts are equal in the
a. financial statement c. ledger
b. journal d. trial balance
2. The portion of the cost of a building or equipment that has been charged as an
expense in the current accounting period.
a. Accumulated deduction c. Deduction expense
b. Accumulated depreciation d. Depreciation expense
3. A series of recurring accounting activities from the beginning to the end of a given
accounting period is called
a Accounting Cycle c. Accounting Period
b. Accounting Entries d. Accounting Time Line
4. These accounts refer to the income statement accounts and other temporary
accounts that are closed at the end of the accounting period.
a. Door accounts c. Nominal accounts
b. Mixed accounts d. Real accounts
5. It is one of the adjustments of income already earned but not yet received.
a. Accrual c. Pre collection
b. Amortization d. Prepayment
6. The source document that evidences the sale of goods is
a. Bank statement c. Official receipt
b. Check/Cheque d. Sales invoice
7. To be a partner, a member has to contribute money, property or industry to
partnership. This makes the partnership agreement
a. bilateral b. nominate c. onerous d. preparatory.
8. One who takes charge of the winding up of partnership affairs upon dissolution is
called .
a. limited partner c. ostensible partner
b. liquidating partner d. silent partner
9. The non-cash distributions of the partners to form a partnership are recorded by the
partnership at their
a. agreed value c. dissolution value
b. book value d. original cost
10. A partnership which has failed to comply with one or more of the legal requirements
for its establishment is classified as a (an)
a. de facto partnership c. open partnership
b. de jure partnership d. secret partnership
11. A partner who has no voice or participation in the management of the affairs of the
partnership is called
a. dormant partner c. secret partner
b. nominal partner d. silent partner
12. Collection of accounts receivable previously written off results in an increase in cash
and an
increase in
a. Account receivables c. Bad debts expense
b. Allowance for doubtful accounts. d. Retained earnings
13. A method of estimating bad debts that focuses on the income statement rather than
statement of financial position is the allowance method based on
a. Aging of trade receivable c. Direct write off
b. Credit sales d. Trade accounts receivable
14. A method of estimating uncollectible accounts that emphasizes asset valuation
rather income measurement is the allowance method based on
a. Aging of accounts receivable c. Net sales
b. Direct write off d. Gross sales
15. The method of which excludes residual value from base for depreciation calculation
in the
earlier years is
a. double declining balance c. straight line
b. output method d. sum of year's digits
16. The arrangements between buyer and seller as to when payments for merchandise
are to be made are called
a. cash on demands c. gross cash
b. credit terms d. net cash
17. The measurement with the least favorable effect on net income and financial
position in the current period must be selected.
a. Conservatism c. Realization
b. Consistency d. Verifiability
18. The accountant is required to adhere as closely as possible to verifiable data.
a. Conservatism c. Realization
b. Consistency d. Verifiability
19. To get revenue and expense account balances to zero requires a/an
a. adjusting entry c. operating entry
b. closing entry d. reversing entry
20. The entity must give the same treatment to comparable transactions from period to
period.
a. Conservatism c. Realization
b. Consistency d. Verifiability
21. This work in accounting is performed after the work of accountant is completed.
a. Auditing c. Recording
b. Bookkeeping d. Reporting
22. The accounting standards promulgated by the IASB called
a. IAS b. IFRS C. PAS d.
PFRS
23. It is an unrecoverable and unanticipated decrease in a resource or asset outside of
normal
business operations.
a. Expense c. Profit/Loss
b. Loss d. Revenue
24. These users are need financial information about reporting entities for the purpose of
regulating their activities.
a. Creditors c. Government Agencies
b. Employees d. Shareholders
25. The field of accounting which is directly involved in the preparation of financial
statement is
a. cost accounting c. internal auditing
b. general accounting d. managerial accounting
26. The policy-making body of the accounting profession is the
a. ASC b. BOA c. PICPA d. PRC
27. The account used under the periodic inventory system to record the transportation
cost
incurred on purchases.
a. Cost of sales c. Freight-out
b. Freight-in d. Transportation Expense
28. It is serves as evidence of the shareholder's ownership interest in a profit
corporation.
a. Share certificate c. Share warrant
b. Share of stock d. Treasure share
29. It is a structured representation of the financial performance and financial position of
a
business and changes over a period of time.
a. Balance Sheet c. internal audit
b. Financial Statement d. Profit and Loss account
30. It is not a primary source of long-term debt financing.
a. Accounts payable c. Leases
b. Bonds accounting period. d. Notes payable
31. is used to analyses the pattern of movement or activity during the period
to identify the way the enterprise has generated cash and the way they have been
used in an accounting period.
a. Balance Sheet c. Income Statement
b. Cash Flow d. Profit and Loss
32. A can also be referred to as a tangible asset.
a. current asset c. liquid asset
b. fixed asset d. other asset
33. It is a written evidence in support of a business transaction
a. Journal c. Ledger Posting
b. Ledger d.Voucher
34. The right to receive money in the future is called a(n)
a. Account payable c. liability
b. Account receivables d. revenue
35. The cost of assets consumed or services used is also known as
a. a liability c. an asset
b. a revenue d an expense
36. What is an Income?
a. A resource with economic value that an individual, corporation, or country owns or
controls with the expectation that it will provide a future benefit.
b. Obligation between one party and another not yet completed or paid for.
C. Earning from investments and other sources unrelated to employment.
d. The revenue a business earns from selling its goods and services
37. What are Drawings?
a. Accounting method used to allocate the cost of a tangible or physical asset over
its useful life or life expectancy.
b. Money that is taken from the business account for personal use.
c. The amount of cash that a business disburses.
d. An increase in the value of an asset over time.
38. What is a nominal account?
a. The account that represents a country's imports and exports of goods and
services.
b. An interest-bearing deposit account held at a bank or other financial institution.
c. The account in which accounting transactions are stored for one fiscal year.
d. None of the above
39. What is a Real Account?
a. The account in which accounting transactions are stored for one fiscal year.
b. An interest-bearing deposit account held at a bank or other financial institution.
c. An account that retains and rolls forward its ending balance at the end of the year.
d. The account that represents a country's imports and exports of goods and
services.
40. What is a compound entry?
a. An entry involving more than two accounts.
b. Accounting entry in which just one account is debited and one is credited.
c. Entry that is used to record a business transaction in the accounting records of a
business. d. An accounting entry in which there is more than one debit, more than
one credit, or more than one of both debits and credits
PART II: LAW
Direction: Shade the letter of the correct answer on the answer sheet provided.
41. As to liability of partners, a partnership can be classified as:
a. All present property and all profits c. Universal and particular
b. General and limited d. With a fixed term and at will
42. A partnership at will is:
a. One where there is no fixed term
b. One without a particular undertaking.
 c. One with a fixed term or with a particular undertaking after expiration of said term
or fulfillment of said undertaking.
d. All of the above

43. According to contributions, partners may be classified as:

a. At will and with a fixed term c. General and Limited
b. Capitalist and Industrial d. Universal and Particular
44. An industrial partner:
a. Cannot engage in business for himself of whatever industry except if with consent
of the partners
b. Can engage in business for himself of whatever industry even without the consent
of the partners
c. Cannot engage in business of the same industry as that of the partnership except
if with consent of the partners
d. Can engage in business in an industry different from that of the partnership even
without the consent of the partners
45. The change in the relations of the partners caused by any partners ceasing to be
associated
in the carrying on of the partnership.
a. Dissolution c. Termination
b. Liquidation d. Winding up
46. The distribution of assets includes the following:
I. Paying the partners other than for capital or profits.
II. Paying the creditors' other than the partners
III. Paying the partners in respect of profits
IV. Paying the partners in respect of capital
In what order?
a. I, ll, lll and IV c. II, I, lV and Ill
b. ll, l, lll and lV d. IV, II, I and lll
47. As to the right to declare and distribute dividends, corporations may be classified as:
a. Close and open c. Domestic and foreign
b. De jure and de facto d. Stöck and non-stock
48. A corporation organized for spiritual purposes or for administering properties held for
religious ones.
a. Corporation sole c. Eleemosynary corporation
b. Ecclesiastical corporation d. Lay corporation
59. The partners contribute all the property which actually belongs to them to a
common fund, with the intention of dividing the same among themselves, as well
as all the profits which they may acquire therewith.
a. Limited partnership
b. Particular partnership
c. Universal partnership of all present property
d. Universal partnership of all profits
60. A partnership is different from a corporation in all of the following, except:
a. Death of a partner dissolves the partnership.
b. It is created by the voluntary agreement of the parties.
c. It has a separate juridical personality from the partners
d. The liability of partners may extend to their personal property.
61. First statement: A partner has an equal right with his partners to possess specific
partnership property for partnership purposes.
Second statement: He can likewise possess the property for other purposes
provided there is consent from the other partners.
a Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
 d. Only the second statement is correct
62. A partner's share in the profits and surplus of the partnership is called:
a. Bonus c. Interest
b. Dividend. d. Profit-share
63. ABC is an already existing partnership. It was later on dissolved when D was
admitted as a partner. Which of the following is correct as to the liability of D?
a. D is liable for all debts contracted before and after his admission but only to
the extent of his contribution.
b. D is liable for all debts contracted before and after his admission up to his
personal properties.
c. D is liable for debts contracted before his admission but only as to his
contribution.
d. D is liable for debts contracted after his admission but only as to his
contribution
64. The shareholder's right to subscribe to all issues or disposition of shares of any
class in
proportion to his present holdings, the purpose being to enable the shareholder to
retain his proportionate control in the corporation and to retain his equity in the
surplus.
a. Appraisal Right c.Redemption Right
b. Pre-emptive Rigth d. Right of Pre-emption
65. Rules made by a corporation for its own government, to regulate the conduct and
define the duties of the stockholders or members towards the corporation and
among themselves.
a. Articles of Incorporation c. Company policies
b. By-laws d. Internal rules and regulations
66. A Corp. and B Corp. agreed to a business combination. In the agreement, A.
Corp. will absorb all the assets and liabilities of B Corp. and the latter will cease
to exist. The business combination entered into is
a Consolidation c.Merger
b. Quasi-reorganization d. Reorganization
67. A corporation where no part of the income is distributable as dividends to its
members.
a. Close corporation c. Religious corporation
b. Non-stock corporation d. Sole corporation
68. The stockholders' meeting is conducted on
a. Annually; the date indicated in the by-laws
b. Annually; on any date of April as determined by the Board
c. Monthly, on any day as determined by the Board
d. Monthly, the date indicated in the by-laws
69. An artificial being created by operation of law, having the right of succession and
the powers, attributes and properties expressly authorized by law or incident to its
existence.
a. Association c. Joint Stock
B. Corporation d. Partnership
70. The following are attributes of a corporation, except:
a. It is an artificial being
b. It has the right of succession
c. It is created by agreement of the parties
d. It has powers, attributes and properties expressly authorized by law

PART III: PARTNERSHIP AND CORPORATION (PART 1)

71. Which of the following accounts is not brought to zero balance in the closing
process for partnership?
a. Bong Bong, Capital c. Income Summary
b. Depreciation Expense d. Sales
72. The following are options available for determining the partners' share of profit,
except:
a. Capital contributions.
b. Capital contribution and service to the partnership
c. Loans to the partnership
d. Stated fraction or ratio
73. Which of the following items should be specified in the articles of co-partnership?
I. Procedures for admitting new partners
II. Profit sharing ratio
III. Taxes paid by the partnership I
IV. Withdrawal allowed to partners
a. l, II, & III c. l, ll, & IV
b. II, III & IV d. I, III, & IV
74. If the partners have not drawn up an agreement, then they must share profits and
losses
a. according to capital contributions. c. by any means that will save
taxes
b. by any appropriate ratio d. equally
75. If a new partner acquires a partnership interest directly from the partners rather
than from the partnership itself,
a. No entry is required.
b. The partnership assets should be revalued.
c. The partnership has undergone a quasi-reorganization.
d. The existing partners capital accounts should be reduced and the new
partners account increased
76. What is referred to as the legal principle that prohibits a private corporation to
distribute its legal capital to the shareholders for the protection of corporate
creditors?
a. Agreement c. Corporate policy
b. Contract d. Trust fund doctrine
77. Which of the following is formed primarily to preserve property and not for profit?
a. Cooperative c. Corporation
b. Co-ownership d. Partnership
78. Which of the following will not result to dissolution of a general partnership?
a. Death of a partner
b. Insolvency of a partner
c. Retirement of a partner
d. Assignment of a partner's interest to a third person
79. It is the maximum number of shares of stock that the government gives a
corporation
permission to issue.
a. Authorized shares c. Issued shares
b. Granted shares d. Outstanding shares
80. On June 1, authorized ordinary share capital was sold on a subscription basis at
a price in excess of par value, and 40% of the subscription price was collected.
On October 1, the remaining 60% of the subscription price was collected.
Ordinary share premium will be credited on:
a. June 1 only c. June 1 and October 1
b. October 1 only d. Neither June 1 nor October 1
81. When collectability is reasonably assured, the excess of subscription price over
the stated value of no par ordinary share subscribed shall be recorded as:
a. No par ordinary share capital
b. Share premium when the subscription is issued
c. Share premium when the subscription is collected
d. Share premium when the subscription is recorded
82. How long is the maximum life of a corporation?
 a. 15 years c. 20 years
b. 50 years old d. perpetual existence

83. Which of the following statements is not an advantage of a corporation?

a. A corporation is subject to greater governmental control, being a creation of
the law
b. There is better management as the service may be extracted from the bigger
membership of a corporation.
c. The liability of the stockholders for the debts of the corporation is limited to
their fully paid investment in the corporation.
d. The life of the corporation is continuous. There is no maximum period. The life
of the corporation even before the expiration of the agreed term of its life.
84. Which of the following is an advantage of a corporation over partnership?
a. It is subject to more government regulations.
b. It has a personal element of trust and confidence among the investors.
c. A corporation is less costly to organize and less complicated to operate.
d. It has a continuity of existence and death, incapacity, or insolvency of a
shareholder does not affect its existence.
85. Which of the following is the correct order (sequence) of the partnership
liquidation process?
a. distribute cash to partners, pay liabilities, sell assets.
b. pay liabilities, sell assets, distribute cash to partners.
c. sell assets, distribute cash to partners, pay liabilities.
d sell assets, pay liabilities, distribute cash to partners
86. Stockholders of a business enterprise are said to be the residual owners. The
term residual owner means that shareholders
a. have the rights to specific assets of the business.
b. can negotiate individual contracts on behalf of the enterprise care
c. entitled to a dividend every year in which the business earns a profit.
d. bear the ultimate risks and uncertainties and receive the benefits of enterprise
ownership
87. When a partner withdraws from the firm, which of the following reflects the
correct partnership effects?
Payment from Payment from
Partners Personal Assets Partnership
Assets
a. Total net assets decreased decreased
b. Total capital decreased decreased
c. Total net assets unchanged decreased
d. Total capital unchanged unchanged
88. Which of the following is not a necessary action that the partnership must take
upon the death of a partner?
a. Close the books.
b. Prepare financial statements
C. Discontinue business operations.
D. Determine the net income of net loss for the year to date
89. A, B, C and D contributed P25,000 each to the partnership. They agreed to
divide profits 1:1:2:2 and losses 2:2:1:1 The company earned P30,000 profit for
the year. How much would be the share of A?
a. P5,000 c. P10,000
b. P7,500 d. A share which is equitable
90. In relation to no.89 if the partnership suffered a loss of (P30,000), how much is
the share of B?
a. (P5,000) c. (P10,000)
b. (P7,500) d. A share which is equitable
91. In relation to no.90 assuming there was no profit agreement, how much is the
share of C?
a. P5,000 c P10,000
b. b P7,500 d. A share which is equitable
92. A, B, C and D contributed P25,000 each to the partnership and E was admitted
as an Industrial partner, it was agreed that 20% is the reasonable share of E in
the profits. For the year, the partnership earned P30,000. How much is the share
of A?
a. P5,000 C.P7,500
b. P6,000 d. P10,000
93. In relation to no.92 if the partnership instead, suffered a loss of (P30,000), How
much would be the share of B?
a. (P5,000) C. (P7.500)
b. (P6,000) d. (P10,000)
94. On June 1, 2022 Mickey and Minnie formed a partnership with each contributing
the following assets:
Mickey Minnie
Cash Php 300,000 700,000
Transportation & Equipment 250,000 750,000
Building 0 2,250,000
Machinery 100,000 0

The building is subject to mortgage loan of P800,000, which is to be assumed by the

partnership agreement provides that Mickey and Minnie share profits and losses
30% and 70%, respectively. On June 1, 2022 the balance in Minnie capital account
should be:
a. 2,900,000 c. 3,140,000
b. 3,700,000 d. 3,050,000
95. The same information in number 76, except that the mortgage loan is not
assumed by the partnership. On June 1, 2021 the balance of Minnie's capital
account should be:
a. 2,900,000 c. 3,140,000
b. 3,700,000 d. 3,050,000
96. As of January 1, 2022, Elena's Store had a balance in its retained earnings
account of P100,000. During the year Elena's Store had revenues of P80,000
and expenses of P45,000. In addition, the business paid cash dividends of
P20,000. What is the balance in Retained Earnings at December 31, 2022 for
Elena's Store?
a. P110,000 b. P115,000 c. P135,000 d. P155,000 RE
97. Joros Corp. was organized on January 1, 2020, at which date it issued 100,000
shares of P10 par ordinary share capital at P15 per share. For the period 2020 to
2022, the company reported profit of P450,000 and paid cash dividends of
P230,000. On January 10, 2022, the company purchased 6,000 of its own shares at
P12 per share. On November 20, 2022, Joros sold 4,000 treasury shares at PB per
share. What is the total shareholders' equity on December 31, 2022
a. P1,680,000 c . P1,704,000
b. P1,688,000 d. P1,720,000
98. At December 31, 2021 and 2022, Manila Corp. had outstanding 2,000 shares of
P100 par value 8% cumulative preferred stock and 10,000 shares of P10 par
value common stock. At December 31, 2021, dividends in arrears on the
preferred stock were {8,000. Cash dividends declared in 2022 totaled P30,000.
What amounts were payable on each class of stock?
Preferred Stock Common Stock
a. P16,000 P14,000
b. P22,000 P8,000
 c. P24,000 P6,000
d. P30,000 P0
99. Compute for the Total Liabilities of Alegre Company if its Assets totalled Php
570,000 and its Capital amounted to Php 300,000 as of December 31, 2022.
a. P270,000 b. P300,000 c. P570,000 d. P870,000
100. Compute the book value of an equipment if its cost is Php 200,000 and
accumulated depreciation amounts is Php 60,000.
a. P60,000 b. P140,000 c. P200,000 d. P260,000