ACCOUNTING 102

QUIZ 3

1. Following are examples of non-manufacturing costs EXCEPT: ________

A. Storage cost C. Salaries of accountin supervisor
B. Research and development cost D. Depreciation of machineries
2. The nature of non-manufactring costs inclede the following EXCEPT: _____
A. These are the costs other than direct materials and direct labor.
B. These are the costs of the adminitration and management of the firm.
C. These are the costs outside production.
D. These are expenses incurred in the stage of bringing the prodects to the ultimate consumers.
3. The inventories of a manufacturing business at the end of the accounting period included the
following EXCEPT: _____
A. Finished goods in the storeroom C. Unused raw materials
B. Unfinished products D. Finished goods sold but unpaid
4. Salaries of the plant supervisor is categorized as ______
A. Direct Labor B. Selling expenses C. General expenses D. Factory overhead
5. Which is not a prime cost?
A. Salaries of a welder in the steel furniture shop
B. Salaries of the dressm aker in a garment factory
C. Salaries of the facoty supervisor
D. Salaries of a baker in a bakeshop.
6. The nature of non-manufacturing costs included the following except.
A. These are the costs outside production
B. These are the sosts of the administration and managment of the firm
C. These are the costs other than direct materials and direct labor.
D. These are expenses incurred in the stage of bringign the products to the ultimate
consumers.
7. Which of the following action titles shown in the income statement is common to both
manufacturing firm and merchandising?
A. Cost of Goods Manufactured during the period
B. Cost of Goods sold
C. Raw Materials Used
D. Total cost in process
8. _____ pertains to the creation of a finished product either by hand or by machine.
A. Manufacturing costs
B. Non-manufacturing costs
C. Manufacturing
D. Factory overhead or manufactuing overhead
9. Which is not a prime cost?
A. Salaries of a baker in a bakeshop
B. Salaries of a welder in the steel furniture shop
C. Salaries of the dressmaker in a garment factory.
D. Salaries of the factory supervisor
10.Which is the nature of a manufacturing type of business?
A. Its finished products are sold to a merchandiser.
B. All of the these
C. The production can be either manually or by machine
D. It converts raw materials to a finished product
11. It shows the changes in capital at the end of the period
A. Statement of Changes in Owner’s Equity
B. Closing the accounts
C. Nominal accounts
D. Accrued Expenses
12. Direct materials can be any of the following EXCEPT: ____
A. Paint in houses
B. Steel in cars
C. Fabrics in dresses
D. Wood in furniture
13. ______ form of balance sheet reports assets o the left side and liabilities and capital on the right
side.
A. Sales discount
B. Account
C. Destination
D. Inventory
14. Depreciation of office equipment.
A. Direct materials
B. Selling, General, and Administrative Expenses
C. Factory Overhead
D. Direct Labor
15. All the expenditures incurred in producing a good or a product is called ___________.
A. Non-manufacturing Costs
B. Factory overhead or manufacturing overhead
C. Manufacturing
D. Manufacturing costs
16. Salaries of the plant supervisor is categorized as
A. Selling expenses
B. Factory overhead
C. Direct Labor
D. General Expenses
17. The cost that cannot be classified as direct materials or direct labor is called ____________.
A. Manufacturing
B. Factory overhead or manufacturing overhead
C. Manufacturing costs
D. Non-Manufacturing costs
18. A purchase of raw materials on credit is debited to ______.
A. Direct materials
B. Goods in Process or Work in Process
C. Cost of goods manufactured
D. Raw materials purchases
19. Advertising expenses is a
A. General Expense
B. Selling Expense
C. Factory Overhead
D. None of these
20. ____are the costs that are not, in one way or another, associated with the production of finished
goods or products,
A. Manufacturing costs
 B. Manufacturing
C. Non-manufacturing costs
D. Factory overhead or manufacturing overhead
21. Prime costs consist of direct labor and _______.
A. Conversion costs
B. Goods in Process or Work in Process
C. Selling expenses or distribution expenses
D. Direct materials
22. Revenue less expenses.
A. Revenue and expense summary
B. Ownwer’s Equity
C. Profit
D. Trade discount
23. The inventories of a manufacturing business at the end of the accounting period include the
following except
A. Unfinished products
B. Unused raw materials
C. Finished goods sold but unpaid
D. Finished goods in the store room
24. Manufacturing firms buy raw materials and convert them to finished goods which they will sell to
a _________.
A. Merchandiser or trader
B. Merchandising
C. Freight in or transportation in
D. Cost of goods sold or cost of sales
25. _____are the unfinished works or products as at the end of the accounting period.
A. Conversion costs
B. Direct materials
C. Selling expenses or distribution expenses
D. Goods in Process or Work in Process
26. The following selected accounts were taken from the books of Santos Trading on December 31,
2016: Santos, Capital-P150,000; Loss from Operations-P1,500; Net Sales-P120,000; total Goods
Available for Sale-P103,505; Gross Profit-P60,750; Merchandise inventory , Jan 1, 2016-P27,520.

The total operating expenses is

A. P61,200
B. P 57,750
C. P 59,750
D. P62,250
27. The nature of non-manufacturing costs include the following except
A. These are the costs outside production.
B. These are the costs other than direct materials and direct labor.
C. These are expenses incurred in the stage of bringing the products to the ultimate consumers.
D. These are the costs of the administration and management of the firm.
28. Income received but not yet earned.
 A. Cash Basis of accounting
B. Deferred Revenue
C. Adjusting entries
D. Depreciation accounting
29. Allocation of cost of depreciable non-cash assets over its useful life
A. Cash Basis of accounting
B. Adjusting entries
C. Deferred Revenue
D. Depreciation accounting
30. Returned defective raw materials purchased on credit is credited to
A. None of these
B. Raw Materials Returns and Allowances
C. Accounts Payable
D. Raw Materials Purchase Discount
31. Net sales is gross sales less sales returns and allowances and _____.
A. Sales Returns and allowances
B. Merchandise inventory or Inventory
C. Sales discount
D. 30 days or on the 30th day from date of purchase
32. Effect of Drawings.
A. Assets, liabilities, Capital
B. Permanent accounts
C. Post-closing Trial Balance
D. Decreases Capital
33. A purchase of raw materials on credit is debited to ______.
A. Direct materials
B. Goods in Process or Work in Process
C. Raw Materials Purchases
D. Cost of goods manufactured
 ACCOUNTING 102
QUIZ 5

1. The most liquid asset of a company is cash.

A. True B. False
2. The elements of an income statement include revenues and prepaid expenses.
A. True B. False
3. Share Premium is the term used for the excess of issue price over the ______of shares.
A. None of the choices C. Par value
B. Revenues D. Financing
4. Payment of the principal amount of loan is a ___ activity.
A. Deposit in transit C. Financing
B. Net loss D. None of the choices
5. __are records and documents that are consolidated to determine and review the financial status of a firm.
A. Financial reporting C. Shareholders' Equity
B. Financial statements D. None of the choices
6. Dividends declared and paid decrease ______.
A. Revenues C. Shareholders' Equity
B. Retained earnings D. None of the choices
7. A disclosure on ____ shows the company's recognition policies.
A. Deposit in transit C. Financing
C. Revenue recognition D. None of the choices
8. NSF checks are those issued by the firm as payment and are not yet presented to the banks for
encashment.
A. True B. False
9. _____are the capsulized reports that show the financial health of a business entity.
A. Financial statements C. Revenues
B. Financial reporting D. None of the choices
10. Capital is for sole proprietorship and partnership, _____is for corporation.
A. Revenues C. Shareholders' Equity
B. Retained earnings D. None of the choices
11. Disclosures can also be presented in the face of a financial statement.
A. True B. False
12. The positive bottom line figure in the income statement is called ___
A. Net income C. Financial statements
B. Revenues D. None of the choices
13. When using the fluctuation fund system in petty cash fund accounting, disbursements out of the fund are
credited to Cash in Bank.
A. True B. False
14. A disclosure on ____ shows the company's recognition policies.
A. Financing C. Revenue recognition
B. Deposit in transit D. None of the choices
15. Purchase of plant assets is a financing activity.
A. True B. False
16. The adjusted trial balance is also a financial statement.
A. True B. False
17. The statement of owner's equity of a partnership includes capital reserves.
A. True B. False
18. The operating section of an income statement consists of ______and expenses.
 A. Net loss C. Revenues
B. Retained earnings D. None of the choices
19. The adjusted trial balance is also a financial statement.
A. True B. False
20. If the company incurred____, the capital beginning will be decreased by the same amount.
A. Net Loss C. Retained Earnings
B. Revenues D. None of the choices
 ACCOUNTING 102
QUIZ # 6

1. The following selected accounts are taken from the ledger of XYX Merchandising on June 30, 2017:
Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses, P150,000; merchandise
inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30, 2017, P50,000; Accounts Receivable
Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The receivable turnover is
A. 10.445 times B. 9.17 times C. 7.46 times D. 8.71 times
2. The following selected accounts are taken from the ledger of XYX Merchandising on June 30, 2017:
Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses, P150,000; merchandise
inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30, 2017, P50,000; Accounts Receivable
Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The operating profit margin(ratio) is
A. 10.72% B. 28.23% C. 11.29% D. 40%
3. Net sales less cost of sales will give us
A. Gross profit ratio B. Cost ratio C. Net profit ratio D. Gross profit
4. Which of the following a correct statement?
A. Gross profit margin is the ratio of gross profit to cost of goods sold.
B. Return on ordinary equity reveals the relationship between net income and equity.
C. Acid test ratio includes merchandise inventory and prepaid expenses.
D. Day's sales in receivable is the ratio of average inventory and sales.
5. The following selected accounts are taken from the ledger of XYX Merchandising on June 30, 2017:
Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses, P150,000; merchandise
inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30, 2017, P50,000; Accounts Receivable
Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
If income tax rate is 35%, the net income for the period is
A. P73,150 B. P38,350 C. P20,650 D. P153,850
6. Operating profit margin equals
A. Profit from operations / cost of sales C. Income from operations / sales
B. Gross profit / sales D. Net income / sales
7. The category of ratios that shows the ability of the firm to pay its long-term obligations is
A. Solvency ratios C. Profitability ratios
B. Market value ratios D. Liquidity Ratios
8. The following are quick assets except;
A. Cash C. Accounts Receivable
B. Merchandise Inventory D. Short-term investments
9. The following selected accounts are taken from the ledger of XYX Merchandising on June 30, 2017:
Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses, P150,000; merchandise
inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30, 2017, P50,000; Accounts Receivable
Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
(ignore income tax), if the shares outstanding is 25,000, the earnings per share is
A. P6.00 B. P2.36 C. P8.36 D. Answer not given
10. Quick ratio is .9, quick assets totaled P22,500, cash is three times the accounts receivable,
Current liabilities is
A. P22,050 B. P20,250 C. P25,000 D. Answer not given
11. The working capital ratio is
 A. Current assets minus current liabilities C. Current assets/current liabilities
B. Working capital /current liabilities D. Quick assets / current liabilities
12. The following selected accounts are taken from the ledger of XYX Merchandising on June 30, 2017:
Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses, P150,000;
merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30, 2017, P50,000; Accounts
Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The inventory turnover is
A. 2.51 times B. 4.18 times C. 5.02 times D. 6.27 times
13. The category of ratios that determine the economic status of publicly-traded companies is
A. Liquidity Ratios C. Profitability ratios
B. Market value ratios D. Solvency ratios
14. Debt to equity ratio is a
A. Current ratio C. Market value ratio
B. Profitability ratio D. Solvency ratio
15. The following selected accounts are taken from the ledger of XYX Merchandising on June 30, 2017:
Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses, P150,000;
merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30, 2017, P50,000; Accounts
Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
If the return on equity is 32%, the average equity is
A. P184,375 B. P368,750 C. P18,880 D. Answer not given
16. The following selected accounts are taken from the ledger of XYX Merchandising on June 30, 2017:
Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses, P150,000;
merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30, 2017, P50,000; Accounts
Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The cost of sales is
A. P313,500 B. P341,000 C. P522,500 D. 359,000
17. Liquidity ratios include the following except;
A. Inventory turnover C. Receivable turnover
B. Times interest-earned ratio D. Working capital ratio
18. The following selected accounts are taken from the ledger of XYX Merchandising on June 30, 2017:
Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses, P150,000;
merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30, 2017, P50,000; Accounts
Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
(Ignore income tax) if the return on assets is 18%, the average total assets isThe following selected
accounts are taken from the ledger of XYX Merchandising on June 30, 2017: Sales, P 550,000;
Sales Discount, 5%; Gross profit, P209,000; operating expenses, P150,000; merchandise inventory,
Jan 1, 2017 , P75,000; merchandise inventory, June 30, 2017, P50,000; Accounts Receivable Jan1, P
70,000; Accounts Receivable, June 30, P50,000.
The days in inventory is
A. Answer not given B. P327,778 C. P655,556 D. P21,240
18. The formula for Accounts Receivable turnover is
A. 360 days / average accounts receivable
B. Cost of goods sold / average accounts receivable
C. Net Sales / average accounts receivable
D. Net Sales / average merchandise inventory
19. The following are liquidity ratios except
A. Quick ratio C. Working capital ratio
 B. Receivable turnover D. Earnings per share
20. The following selected accounts are taken from the ledger of XYX Merchandising on June 30, 2017:
Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses, P150,000;
merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30, 2017, P50,000; Accounts
Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
The days in inventory is
A. 143.43 days B. 71.71 days C. 86.12 days D. 57.42 days
21. Earnings per share is calculated by
A. Dividing net income by the total number of ordinary and preferred shares issued.
B. Dividing net income by the authorized ordinary shares.
C. Dividing net income less preferred dividends by number of ordinary shares outstanding.
D. None of the above.
22. Current liabilities is P30,000 and the current ratio is 1.9, the current assets is
A. P27,000 B. P41,211 C. P57,000 D. P15,789
23. Quick assets equals
A. Total assets less non-current assets C. All current assets
B. Current assets minus inventory D. Cash and Accounts receivable only
24. The following selected accounts are taken from the ledger of XYX Merchandising on June 30, 2017:
Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses, P150,000;
merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30, 2017, P50,000;
Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
(Ignore income tax) if the return on assets is 18%, the average total assets is
A. P327,778 B. P655,556 C. P21,240 D. Answer not given
25. Which of the following belong to the profitability ratios?
A. Rate of return on assets C. Gross Profit Margin5%
B. Rate of return on equity D. All of the above
26. Current liabilities is P30,000 and the current ratio is 1.9, the current assets is
A. P57,000 B. P15,789 C. P41,211 D. P27,000
27. Operating profit margin equals
A. Profit from operations / cost of sales C. Net income / sales
B. Income from operations / sales D. Gross profit / sales
28. The following selected accounts are taken from the ledger of XYX Merchandising on June 30, 2017:
Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses, P150,000;
merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30, 2017, P50,000;
Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.
A. P522,500 B. P313,500 C. P359,000 D. P341,000
29. The category of ratios that determine the economic status of publicly-traded companies is
A. Profitability ratios C. Liquidity Ratios
B. Solvency ratios
30.