Republic of the Philippines

Department of Education
Region V – Bicol
SCHOOLS DIVISION OFFICE OF CAMARINES NORTE
CARINGO HIGH SCHOOL
MERCEDES DISTRICT
Barangay Caringo, Mercedes, Camarines Norte

ACCOUNTANCY, BUSINESS AND MANAGEMENT

SUMMATIVE TEST (2nd Quarter)

Name: ______________________________________________________ Rating: ___________

DIRECTION: Read the statement carefully. Choose the best answer and write the letter on the space
provided.
_______1. What kind of entry is use to correct an unrecorded amount at the end of the calendar year?
a. Adjusting Entry c. Journal Entry
b. Closing Entry d. Reversing Entry
______2. Which of the following entry is considered historical in nature?
a. Entry made c. Reversing Entry
b. Adjusting Entry d. Should be entry
______3. What king of entry is use to revert back to the old accounting practice after the preparation
of the adjusting entries?
a. Adjusting Entry c. Journal Entry
b. Closing Entry d. Reversing Entry
______4. You recorded the payment of utility expense amounting Php 1,450 in the general journal
twice. Assuming that your entries were: Debit – Utility Expense 1,450; Credit – Cash 1,450. What is
adjusting entry?
a. Utility Expense 1,450
Cash 1,450
b. Cash 1,450
Utility Expense 1,450
c. Utility Expense 2,880
Cash 2,880
d. Cash 2,880
Utility Expense 2,880
______5. What kind of entry is use to add or deduct the income (loss) to the Owner’s Equity?
a. Adjusting Entry c. Journal Entry
b. Closing Entry d. Reversing Entry
______6. What is an enterprise that buys and sells goods to earn a profit?
a. Merchandising Company b. Merchandising
c. Service Company d. Service
______7. What are these goods that are held for sale to customers in the normal course of
business?
a. Merchandising Company b. Merchandise Inventory
c. Service Company d. Service
______8. What inventory system that has detailed records of the cost of each item are
maintained, and the cost of each item sold is determined from records when the sale
occurs?
a. Periodic b. Perpetual c. Conventional d. Non-conventional
______9. What inventory system that records revenue only when the item is sold?
a. Periodic b. Perpetual c. Conventional d. Non-conventional
______10. What accounting for freight cost that the buyer pays for the freight costs?
a. Allowance for bad debts b. FOB Destination
c. FOB Shipping Point d. Prepayments
______11. What is normally based on the invoice cost less returns and allowances, if any?
a. Purchase Discounts b. Purchase Returns and allowances
c. Sales Discounts d. Sales Returns and Allowances
______12. If the buyer will pay for the freight, what will be the journal entry?
a. Debit — Accounts Receivable (if a credit sale) or Cash (if a cash sale) which increases assets for
the sales amount; Credit — Sales which increases revenues
b. Debit — Delivery Expense and credit — Cash or Accounts Payable
c. Debit — Sales Return and Allowances which decreases revenues for the amount of the sale; Credit
— Accounts Receivable (if a credit sale) or Cash (if a cash sale) which decreases assets
d. No entry is made.
______13. What is the offer of a cash discount to encourage customers to pay the balance at an earlier
date?
a. Purchase Discounts b. Purchase Returns and allowances
c. Sales Discounts d. Sales Returns and Allowances
______14. Which of the following special journals that is used to record all sales on credit (on
account)?
a. Cash Disbursements Journal c. Purchase Journal
b. Cash Receipts Journal d. Sales Journal
______15. What is Sales Revenue less Cost of Goods Sold?
a. Cost of Goods available for sale c. Income before tax
b. Gross Profit d. Net Income
______16. What type of business buys and sells goods or products online due to COVID 19?
a. Merchandising c. Online Buying and Selling
b. Online Business d. Online Marketing
______17. The arithmetical accuracy of books of accounts is verified through:
a. Journal b. Trial Balance c. Ledger d. None of these
______18. When is trial balance prepared?
a. at the end of an accounting cycle c. at the end of the year
b. at the end of fiscal year d. at the end of the month
______19. Which of the following will be placed in the debit column of a trial balance?
a. Capital c. Salaries Payable
b. Merchandise Inventory d. None of the above
______20. How would you show the finance records, journals or ledgers that compose the company’s
account?
a. Book of Accounts c. Book of Records
b. Book of Events d. Book of Transactions
______21. How the General Journal (GJ) record all financial transactions?
a. Chronological b. Interval c. Order d. Sequential
______22. Which process shows when entering transactions into Special Journals?
a. Accounting b. Bookkeeping c. Journalizing d. Posting
______23. What is considered a -sin in the whole Accounting process?
a. Abnormal Balance c. Imbalance
b. Force Balance d. Zero Balance
______24. Which one is called the book of original entry?
a. General Journal c. Subsidiary Ledger
b. General Ledger d. T-Accounts
______25. How would you show your understanding when recording transactions, such as cash
investment, loans, cash sales, collections of customers’ accounts, and cash refund?
a. Cash Receipt Journal c. Special Journal
b. General Journal d. Transaction Journal
______26. It is a bookkeeping worksheet in which the balance of all ledgers is compiled into debit
and credit account column totals that are equal.
a. Journal b. Ledger c. Trial Balance d. None of these
______27. Which of the following will be placed in the credit column of the trial balance?
a. Merchandise Inventory c. Furniture
b. Utilities Expense d. Sales
______28. Which of the following errors in the preparation of trial balance when there is an incorrect
placement of decimal points.
a. Transposition error
b. Slide error
c. Placing the amount in the correct column of the trial balance
d. All of the above
______29. A trial balance is used to check accuracy of:
 a. Balance Sheet Balances c. Cash Flow Statement Balances
b. Ledger Accounts Balances d. Income Statement Balances
______30. What is your analysis of the given statements below?
Statement 1: A balanced trial balance only implies that the total debit amount is the same as total
credit amount, that the left side is equal to the right side.
Statement 2: A trial balance is prepared after journalizing and posting have been made.
a. Both Statement are true c. Only Statement 2 is true
b. Only Statement 1 is true d. Both Statements are false
______31. Gross profit from sales is the difference between
a. net sales and operating expenses
b. net sales and cost of goods sold
c. net sales and the cost of goods sold plus all the expenses.
d. gross sales less the sales discounts and sales returns and allowances
______32. The buyer received an invoice from the seller for merchandise with a list price of P400 and
credit terms of 2/10, n/60. The number 10 in the credit terms is the
a. Credit period c. Discount Period d. Trade Discount
b. Cash discount allowed for earl payment of the invoice
______33. The records for uptown Pet Shop showed the following:
Sales P75000 Beginning Inventory P10,000
Purchases 45,000 Cost of goods sold 50,000
The ending merchandise inventory must have been
a. P5,000 b. P15,000 c. P25,000 d. P40,000
______34. Under the periodic inventory system, the Purchases account is used to record
a. only cash purchases of merchandise inventory
b. purchases of any asset on account or note payable
c. only purchases of merchandise inventory on account
d. purchases of merchandise inventory for cash or on account
______35. Which of the following is used to determine the cost of goods available for sale (periodic
inventory)?
a. beginning merchandise inventory + purchase + ending merchandise inventory
b. ending merchandise inventory + purchase – freight charges
c. beginning merchandise inventory + purchase - freight charges
d. beginning merchandise inventory + purchase – purchases discount - freight charges
______36. If gross sales is P40,000, sales returns and allowances P1,000, sales discounts P400, and
delivery expenses P100, the net sales of the business will total
a. P38,500 b. P38,600 c. P40,000 d. P39,000
______37. The Sun Set Shade Company purchased three pieces of office equipment for a total price
of P2,100. One piece of equipment costing P800 was damaged on delivery and was returned to the
vendor. The invoice has not been paid. The proper journal entry for the return is?
a. Merchandise Inventory, debit, P800; Accounts Payable, credit P800
b. Acc. Payable, debit, P800; Merchandise Inventory, credit, P800
c. Accounts Payable, debit, P800; Office Equipment, credit, P800
d. accounts Payable, debit, P2,100; Purchases, credit, P2,100
______38. Under the periodic inventory system, which of the following is a correct closing entry?
a. Income Summary, debit; Sales, credit
b. Income Summary, credit; Sales Returns and Allowances, debit
c. Income Summary, debit; Merchandise Inventory (beginning), credit
d. Purchases, debit; Income Summary, credit
______39. When __________________, the cost of goods sold will be the same as the cost of
purchases.
a. there is no beginning merchandise inventory (fiscal year of business)
b. there is no ending merchandise inventory
c. purchases are equal to net sales
d. the beginning and ending merchandise inventory values are the same
______40. Cost of goods sold is classified as which type of account?
a. Asset b. Expense c. Liability d. Revenue