1.

Defined as the process of identifying, measuring, and communicating economic information to

permit informed judgment and decision by users of the information.
2. Examples of such users are existing and potential lenders or investors.
3. A method of accounting for income and expenses emphasizing that income is recorded when
earned and expense is recorded when incurred.
4. Simplest form of Business organization
5. Book of original entry
6. Book of final entry
7. Business organization focused concerned with the planting of crops or raising animals, and
selling their products either in raw or finished form at a profit.
8. Partnerships are formed by two or more persons who contribute money, property or industry to
a common fund with the intention of dividing among themselves the __________.
9. Present economic resource controlled by the company as a result of past event.
10. Present obligation of an entity to transfer an economic resource as a result of a past event.
11. It encompasses both revenue and gains
12. Tangible assets which are held by the entity in production or supply of goods or services, for
rental to others, or for administrative purposes, and are expected to be used during more than
one accounting period.
13. Accounting device used in summarizing the changes in assets, liabilities, equity, income, and
expenses due to occurrence of a business transaction.
14. Field of accounting directly involved in the preparation of financial reports.
15. Only constraint of accounting.
16. It represents the transportation and handling expenses incurred by the seller in delivering the
goods to the buyer.
17. Inventory system which uses the account Purchases
18. Inventory system which uses stock cards.
19. Shipping term which the seller should shoulder the freight.
20. The term when seller actually paid for the freight.
21. Financial statement that is prepared for a specific date.
22. A statement showing the results of operations
23. A statement showing the flow of cash
24. A statement showing the fluctuations of owners equity.
25. A form used by the seller notifying the buyer that his account is being reduced due to error or
other factors requiring adjustments.
26. Accounts that will not be closed at the end of the year
27. Accounts that are closed at the end of the year.
28. A statement showing that the debit and credit column is mathematically correct.
29. Inventory are measured at ____________
30. Accounts receivable estimated to be uncollectible is called _____________
31. Discount that is not recorded in the books of accounts.
32. Ruby enterprise assets amount to P3,465,000. The equity of the owner is P2,150,000. How
much is the equity of the creditors.
33. Total investment of Rooby to Elm Laundry services is P867,900. Total debt of the business is
P357,895. How much is the total assets.
34. A business has total assets of P3,345,000. If 60% represents equity of creditors how much is the
equity of the owners?
35. There was a transposition error in posting the services rendered on account. A correct posting
was made to Repair Revenues account of P4,500 but Accounts receivable was debited by
P5,400.
36. There was a sliding error committed in posting cash collections from customer’s account. Cash
was correctly debited by P2,500 but Accounts receivable was credited by P25,000.
37. Rent paid in advance was initially recorded using the asset method for P12,000 for a period of 4
months. What will be the adjustment during the end of the third month.
38. Insurance paid in advance was initially recorded using the expense method for P12,000 for a
period of 4 months. What will be the adjustment during the end of the third month.
39. Unearned Service Revenue paid in advance by a customer was initially recorded using the
liability method for P12,000 for an advance payment of services to be made for 4 months. What
will be the adjustment during the end of the third month.
40. Unearned Service Revenue paid in advance by a customer was initially recorded using the
expense method for P12,000 for an advance payment of services to be made for 4 months.
What will be the adjustment during the end of the third month.
41. What is the closing entry if you have Sales of P345,000 during the year.
42. What will be your closing entry if you have Purchases during the year of P210,000.
43. Record the purchase of P2,000 worth of merchandise having a freight (not included in the
purchases price) of P1,000. The terms are FOB Destination and payment of freight was made by
the buyer.
44. Record the sale of P2,000 worth of merchandise having a freight (not included in the purchases
price) of P1,000. The terms are FOB Destination and payment of freight was made by the buyer.
45. A Company has inventory on the beginning of the month of 100 shoes worth P10,000.
The transactions made during the month are
a. Purchase 300 shoes for P20,000
b. Sale 200 shoes
c. Purchase 500 shoes for P30,000
Ending inventory amount to 600 shoes
a. Using the FIFO Method, how much is the cost of the ending inventory.
b. Using the Weighted Average Method how much is the cost of sale.
c. Using the Moving Average Method how much is unit price at the end of the month.
46. Petty cash fund was established Jan 1, 2019 with a beginning amount of P5,000
The following are the transactions made after establishment.
Jan 10, 2019
PCV #1 Office Supplies P500
#2 Transportation Supplies 200
#3 Telephone Expenses. 300
 a. Prepare the necessary entries for the establishment and replenishment during Jan 11,
2019 with a decrease in the fund of P2,500.
47. Accounts Receivable for the year amounted to P250,000 and Sales for the year ended with a
balance of P1,00,000. The Allowance for bad debts has a beginning balance of P5,000.
a. Uncollectible accounts are estimated to be at 2% of Accounts receivable what will be
the entry to record the uncollectibles.
b. Uncollectible accounts are estimated to be at 5% of Sales what will be the entry to
record the uncollectibles.
c. With the ageing of accounts receivables below:
Balance: Experience Rate:
Current P150,000 1%
1-30 days overdue 50,000 2%
31-60 days overdue 30,000 10%
more than 61 days 20,000 50%
What is the entry to record the estimated uncollectibles?
48. A note has been received from a customer with details of:
Face amount: P1,800,000
Term of the Note: 120 days
Date of the Note: 9/1/2019
Interest Rate: 12%
Date of Discounting: 11/1/2019
Rate of Discounting: 15%
a. Determine Maturity Date
b. Compute for the Maturity Value
c. Determine Discount Period
d. Compute for the Discount
e. Compute for the proceeds
f. Give the journal entry to record the receipt of the proceeds at the date of discounting.
49. A company has the following info:
Jan 1, 2019 Inventory P500,000
Purchases 200,000
Purchases Discounts 1,000
Purchase Returns 4,000
Freight In 5,000
Dec 31, 2019 200,000
a. How much is the cost of sales of the company.
b. If the Company has 1,000,000 of Net Sales how much is the Gross Profit?
c. Using the gross profit computed in b, how much is the net profit/loss of the company if
the operating expenses amounted to: P200,000 – Selling and P150,000 – Admin?

50. A company has the following data pertaining to the first year of operations:
Direct Materials P100,000
Indirect Materials P1,000
Direct Labor P200,000
Indirect Labor P2,000
Factory Overhead P102,000
a. How much is the Prime cost for the period?
b. How much is the Conversion cost for the period?
c. How much is the Total Manufacturing Cost for the period?