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QUIZ

Quiz 1- Home Office and Branch Accounting

38%average accuracy
211 plays
University
Social Studies
a year ago by
Luzviminda Bautista
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10 questions PREVIEW SHOW ANSWERS
 Question 1
 20 seconds
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Q. 
 Transactions between a home office and its branch are accounted for in reciprocal
accounts. The reciprocal account maintained in the branch books is called
answer choices

Investment in branch
Home office
Advances from home office
Any of these
 Question 2
 20 seconds
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Q. 
For external reporting, the individual financial statements of the home office and the
branch are combined
answer choices

by using complex consolidation procedures

by recognizing the home office's own assets, liabilities, income and expenses plus its share in the
branch's assets, liabilities , income and expenses
by adding together similar items of assets, liabilities, income and expenses
by adding together similar items of assets, liabilities, income and expenses and eliminating reciprocal
accounts.
 Question 3
 45 seconds
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Q. 
The depreciation expense on equipment being used by the branch but carried in the books
of the home office is recorded in the branch's books as
answer choices

Debit to Investment in Branch and Credit to Accumulated Depreciation

Debit to Depreciation Expense and credit to Investment in Branch
Debit to Depreciation Expense and credit to Home Office account
Not recorded
 Question 4
 30 seconds
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Q. 
The freight on shipments to branch paid by the home office is recorded by the home
office as
answer choices

Debit to freight-in
Credit to freight-in
Credit to Investment Account
Credit to Cash
 Question 5
 45 seconds
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Q. 
The freight on shipments to branch paid by the branch is recorded by the home office as
answer choices

Debit to freight-in
Credit to freight-in
Credit to investment account
Not recorded
 Question 6
 45 seconds
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Q. 
A cash remittance from the branch to the home office is recorded by the home office as
answer choices

Debit to Investment account

Credit to cash
Debit to Home Office
Credit to Investment Account
 Question 7
 900 seconds
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Q. 
ABC Co. ships and bills merchandise to its provincial branch at cost. The branch carries
its own accounts receivable and makes its own collections. The branch also pays its
expenses. The transactions for 2021 are reflected in the branch trial balance that follows:
Cash (Debit) 11,900
Home Office Current (Credit) 90,000
Shipments from HO (Debit) 120,000
Accounts Receivable (Debit) 62,500
Expenses (Debit) 8,100
Sales (Credit) 112,500

Dec. 31 Inventory- 30,000

Question 1: How much is the net profit of the branch?

answer choices

22,500
14,400
21,300
14,000
 Question 8
 900 seconds
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