Professional Documents
Culture Documents
2. A chart of accounts is a
a. subsidiary ledger c. general ledger
b. listing of all account titles d. general journal
6. The debit and credit analysis of a transaction normally takes place when the
a. entry is posted to a subsidiary ledger c. financial statements are prepared
b. trial balance is prepared d. entry is recorded in a journal
9. Which of the following is not among the first five steps in the accounting cycle?
a. Record transactions in journals c. Post entries to general ledger accounts
b. Adjust the general ledger accounts d. Record closing entries
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10. The last step in the accounting cycle is to
a. journalize and post-closing entries. c. journalize and post adjusting entries.
b. prepare financial statements. d. prepare a post-closing trial balance.
14. The following statements regarding net profit are correct except one.
a. It appears in the income statement
b. It appears in the statement of owner’s equity.
c. It appears in the statement of financial position.
d. It is the excess of revenues over expenses.
15. Which is the following will you expect to find in a statement of owner’s equity?
a. Cash balance, end of year c. Owner’s contributions and withdrawals
b. Revenues and expenses d. Liabilities due to creditors
16. Principle of recognizing expenses in the same period as the revenues they generate
a. Matching c. Immediate recognition
b. Accrual d. Cost
17. Table of contents listing the titles and numbers of the accounts found in the general ledger.
a. Chart of accounts c. Ledger
b. Journal d. Folio
18. The record processing step in accounting which consists of entering the transaction in a journal.
a. Journalizing c. Trial balance preparation
b. Posting to the ledger d. Transaction analysis
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19. The book of original entry where transactions are entered.
a. Journal c. Trial balance
b. Ledger d. T-account
20. The book of final entry which shows a compilation of all the accounts with the corresponding debit
and credit amounts and balances.
a. Ledger c. Trial balance
b. Journal d. T-account
21. The process of transferring information from the journal to the ledger.
a. Posting c. Recording
b. Journalizing d. Copying
22. A form listing the ledger accounts with their corresponding debit or credit balances.
a. Ledger c. Journal
b. Trial balance d. T-account
23. A simple accounting device showing the increase side and the decrease side of an account.
a. Ledger c. T-account
b. Journal d. Trial balance
24. Length of time it will take for cash to be used and converted back to cash.
a. Accounting cycle c. Business cycle
b. Life cycle d. Operating cycle
27. The compensation withdrawn by a worker or employee before the payroll date.
a. Salary c. Cash advance
b. Wage d. Withdrawal
28. The agency where the business-employer should remit the taxes withheld from the employees and
workers.
a. Social Security System c. Commission on Audit
b. Securities and Exchange Commission d. Bureau of Internal Revenue
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30. A listing of employees or workers with special columns for deductions and the take home pay.
a. Employee listing c. Payroll
b. Master file d. Ledger
31. This is a deduction for all salaried workers and employees payable to the government under the pay
as you earn policy.
a. Salary c. Philhealth
b. Withholding tax d. HDMF
32. Tax reform package for acceleration and inclusion approved in January 2018.
a. TRAIN Act c. Labor law
b. Customs Tariff Act d. Law on obligations and contracts
33. Urang Gurang is a martial arts instructor. He earns a taxable income of P480,000 during the year.
What is Urang Gurang’s income tax expense during the year? (Please see Annex A for the income tax
table)
a. P30,000 c. P50,000
b. P0 d. P40,000
34. Betty La Pera has a monthly gross income of P15,000. Her allowances amounted to P2,000 and
deductions (SSS/PH) amounted to P1,500 per month. Given the scenario, what is Betty’s tax expense
for the year?
a. P5,000 c. P15,000
b. P10,000 d. P0
35. Given the scenario above, how much is Betty’s net pay per month?
a. P10,000 c. P16,500
b. P17,000 d. P15,500
36. A contra asset account used to record decrease in utility value of assets.
a. Allowance c. Rebate
b. Capital Expenditures d. Accumulated depreciation
37. Expenses incurred but not yet paid.
a. Prepaid Expense c. Deferred/Unearned Income
b. Accrued Income d. Accrued Expense
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41. Pre-payments of services to be received or assets to be used.
a. Prepaid Expense c. Accrued Income
b. Accrued Expense d. Deferred/Unearned Income
43. Which of the following criteria must be met before an event should be recorded for accounting
purposes?
a. The event must be measurable in financial terms.
b. The event must be an arm's-length transaction.
c. The event must be repeatable in a future period.
d. The event must be disclosed in the reported footnotes.
46. If an expense has been incurred but not yet recorded, then the end-of-period adjusting entry would
involve
a. a liability account and an asset account.
b. a liability account and a revenue account.
c. a receivable account and a revenue account.
d. liability and an expense account.
47. Beginning and ending Accounts Receivable balances were Php28,000 and Php24,000, respectively. If
collections from clients during the period were Php80,000, then total services rendered on account
were apparently
a. Php76,000. c. Php104,000.
b. Php84,000. d. Php108,000.
48. In November and December 2018, Bee Company, a newly organized newspaper publisher, received
Php72,000 for 1,000 three-year subscriptions at Php24 each per year, starting with the January 2,
2019, issue of the newspaper. How much should Bee report in its 2018 income statement for
subscription revenue?
a. Php0 c. Php24,000
b. Php12,000 d. Php72,000
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49. Lebron received $12,000 from a tenant on December 1 for four months' rent of an office. This rent
was for December, January, February, and March. If Lebron debited Cash and credited Deferred
Rental Income for $12,000 on December 1, what necessary adjustment would be made on December
31?
a. Deferred Rental Income 3,000
Rental Income 3,000
b. Rental Income 3,000
Deferred Rental Income 3,000
c. Deferred Rental Income 9,000
Rental Income 9,000
d. Rental Income 9,000
Deferred Rental Income 9,000
50. What is the correct order of the following events in the accounting process?
I. Financial statements are prepared.
II. Adjusting entries are recorded.
III. Nominal accounts are closed.
Bonus Questions:
1. First Filipina senator to be re-elected: __________________
2. First Senate President in the Philippines: ________________
3. Oldest senator while in office with age of 92 years old when his term ended in 2016:
_______________
4. A Filipino tycoon who owns the JG Summit and Robinsons Retail Holdings who passed away
last November 9, 2019: ________________
5. The #2 Filipino billionaire based on annual assessment of wealth and assets compiled and
published by Forbes magazine in 2019 with net worth of USD6.6 billion: _______________
6. Recently appointed Anti-Drug Czar of the Philippines: _____________
7. Manny Pacquiao’s net worth according to www.celebritynetworth.com.: USD___ million
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