Fundamentals of Accountancy, Business, and Management-

MINDANAO MISSION ACADEMY

Accountancy, Business and Management
Semi-Final Examination
February 21-22, 2019

Name:_____________________________________ Section: ______________ Score:_____________________

I. Multiple Choice: Read and analyze each item. Encircle the letter of the best answer.
1. Which of the following lists the steps of the accounting process in the correct order?
a. Recording, measuring, identifying journalizing
b. Analyzing, measuring, posting to the, journalizing
c. Journalizing, posting to the ledger, preparing a trial balance, recording
d. Analyzing, Journalizing, Posting to the Ledger, Preparing a trial balance
2. When would an event qualify as a business transaction?
i. When it affects one or more elements of the accounting equation
ii. When it has a measurable monetary value assignable to it.
iii. When it results in a change in assets
iv. When the event is related to the operations of the business.
a. When I and II are satisfied
b. When I, II, and IV are satisfied
c. When III is satisfied
d. When I and IV is satisfied
3. Which of the following best describes a debit?
a. An increase in the balance of an account
b. A movement in the left side of an account
c. A change in the balance of an account
d. An unprofitable movement in an account
4. This is the process of entering information in the journals which occurs immediately after the analysis phase of the
accounting cycle.
a. Preparing the trial balance
b. Journalizing
c. Posting to the ledger
d. Analyzing
5. If the trial balance does not balance, what would the accountant least likely do?
a. Recompute the totals
b. Check for unrecorded transactions.
c. Confirm that all the figures use the same grouping (if figures are in thousands of pesos, or simply in peso)
d. Get the difference between total debits and total credits

6. John bought equipment worth 10,000.00 on account. Which of the following journal entries is valid?
a. Machinery 10,000
Cash 10,000
b. Equipment 10,000
Accounts receivable 10,000
c. Equipment 10,000
Accounts payable 10,000
d. All Journal entries are invalid

7. Kath received 3,000 cash for the service she rendered to her customers. Which of the following journal entries is valid?
a. Service revenue 3,000
Cash 3,000
b. Cash 3,000
Service Revenue 3,000
c. Both Journal entries are valid
d. Both journal entries are invalid

8. Ondie paid the various expenses for his salon services. His total expenses were Rent-300, utilities-200, salaries- 500,
and taxes and licenses-375. Which of the following journal entries is valid?
a. Other Expenses 1,000 Salaries expense 500
Cash 1,000
b. Rent expense 300 c. Both Journal entries are valid
Utilities expense 200
Fundamentals of Accountancy, Business, and Management-
d. Both journal entries are invalid
Cash 1,000

9. Which of the following is NOT to be followed in accounting transactions?

a. The accounting equation must be balance at all times
b. If measurement is not possible, the transaction is not recorded in the books
c. A debit is always on the left and a credit is always on the right.
d. All journal entries must have exactly two accounts involved.

10. Which of the following is true about the ledger?

a. Entries are produced with information from the journals
b. Transactions are grouped by month of occurrence
c. All ledger accounts follow the same rules of debit and credit
d. Economic non-events are recorded here.

II. Analyzing and Recording: Record the following transactions on the table provided after each transaction.

On November 1, 2018, Drake Thomas started his first massage therapy called Healing Therapy Company. Below are the
following transactions that occur in November.
 November 1: Drake invested P300, 000.00 cash in the company’s bank account. This will use to fund its first
operations.
DATE ACCOUNT TITLE DEBIT CREDIT

 November 10: Bought equipment for P15, 000.00 on account.

DATE ACCOUNT TITLE DEBIT CREDIT

 November 23: Borrowed 25, 500 from the bank by signing a note payable
DATE ACCOUNT TITLE DEBIT CREDIT

 November 27: Rendered services to various a customers for P63, 000.00 on account.
DATE ACCOUNT TITLE DEBIT CREDIT

 November 30: collected P2, 000.00 cash from the accounts receivable recorded in Nov. 27.
DATE ACCOUNT TITLE DEBIT CREDIT

 November 31: paid the various expenses amounting to P50, 000.00 – P20, 000.00 for salaries,
P10, 000.00 for rent, and P20, 000.00 for utilities.
DATE ACCOUNT TITLE DEBIT CREDIT

III. Posting to the ledger:: Post to the t-accounts the transactions of Drake Thomas that occurred in November, 2018.
(Refer your answers from test II)
Fundamentals of Accountancy, Business, and Management-

IV: Preparation of Trial Balance: Using your answers from test III, Prepare the trial balance of Drake Thomas
that occurs in November, 2018.

Account Titles Debit Credit

Total

“The best preparation for tomorrow is doing your best today”