FABM ( 4TH QUARTER EXAM )

score 48/50

A bank statement is also referred as statement of account

ANS:True

What is the ratio to test ability to meet sudden & immediate demands on current assets?

ANS: quick assets/current liabilities

Credit is the normal balance of purchases.

ANS:True

Freight out is included in the cost of goods

ANS:False

Freight refers to costs incurred for transportation.

ANS:False

In the Philippines, Excise tax is also called as

ANS:Sin Tax

It contains accounts transferred from the general journal.

ANS:General ledger

You always pay for VAT.

ANS: True

How much is the Value-added Tax in the Philippines?

ANS: 12 %

If on the base year 2015 total assets is P200,000 and P400,000 on 2016, what is the percentage
increase(decrease

ANS: Increase by 50%

The balances between the Cash in Bank and the Current Account-Depositor accounts are always equal

ANS: True

The transactions recorded in the Cash in Bank is not reflected in the Current Account.

ANS: True

Percentage tax is the most common type of business tax

ANS: False

The liability account will increase if a credit to this account is posted as credit also to the general ledger.

ANS: Accounts payable

The bank sends a bank statement to a depositor every month.

ANS: True

All the accounts below have debit normal balance except

ANS: Salaries payable

A merchandising business has two different systems in accounting for their sales and purchases.

ANS: True

What is the effect to equity if a credit balance in the general journal is posted as debit to the general
ledger?

ANS: decrease equity

A journal is composed of a group of accounts.

ANS: False

When a depositor open an account with a bank, the relationship existing between the parties is a lender
(the bank), and a borrower (the depositor) relationship.

ANS: False

A bank statement is a document that is issued annually by the bank.

ANS: False

If the total liabilities is P200,000, it being the base item, what percent is current liabilities of 20,000?

ANS: 10%

It is the tax shouldered by the buyer when purchasing the goods.

ANS: Input Tax

A savings account is only supported by an ATM car~

ANS: False

Analysis based on the changes on the amounts from one period to another.

ANS: Horizontal analysis

Tax imposed on the privilege to sell products and services are called "sin tax".

ANS: False
This is prepared after all adjustments have been recorded and posted

ANS: Adjusted trial balance

In accounting, Value-added Tax is a common transaction.

ANS: True

Bank statement is the same as a passbook account in terms of content.

ANS: True

Output tax is the tax shouldered by the buyer when purchasing the goods.

ANS: False

Only the errors of the depositor could create differences in the Cash in Bank and Current Account.

ANS: False

The balances shown in the bank statement and in the accounting records are both adjusted for any
unrecorded transactions.

ANS: False

Business transactions affects the assets, liabilities and proprietorship of the business

ANS: True

Excise Tax are taxes on property.

ANS: True

It is the most common type of Business Tax

ANS: VAT

Banks in the Philippines usually credit the depositor's account once the check is cleare~

ANS: False

Purchases, unlike sales, does not have discounts.

ANS: True

Amusement tax is under Percentage tax.

ANS: True

The depositor should prepare a bank reconciliation each month to verify that these independent set of
records are in agreement.

ANS: False

If the total assets amounts to P100,000, which is the base item, what percent is the current assets of
P20,000?
ANS: 20%

What is the effect to cash if a debit balance in the general journal is posted as credit to the general
ledger?

ANS: decrease cash

A journal contains a list of accounts with open balances in the general ledger for a given period.

ANS: False

The transactions recorded in the Cash in Bank is not reflected in the Current Account.

ANS: False

If on the base year 2016 the current assets is P300,00 and P100,00 on 2017, how much is the
increase/decrease?

Select one:

ANS: decrease by P200,000

In the operation of law, corporations are artificial beings thus, BIR forms and taxes paid by the company
is under the Corporation's name and not under the owners'.

ANS: True

BIR Form 0605 is also known as

ANS: Payment Form

The entry to record the advance collection of service revenue is?

ANS: dr cash cr unearned service revenue

Account is used to summarize the increases and decreases in the asset, liability and proprietorship of
the business.

ANS: True

VAT are imposed on the privilege to sell products and services.

ANS: False

It means how quickly you can get your hands on your cash.

ANS: Liquidity

GOOD LUCK :)