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Business and marketing (AMA Computer University)

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FABM WEEK 11-19

It highlights computations that allow the reader to understand how the company performs
and positions itself financially.

Select one:
a.
Vertical Analysis
b.
Horizontal Analysis
c.
Ratio Analysis
d.
None of the choices

Posting is the step in the accounting process.

Select one:
a.
3rd
b.
2nd
c.
4th
d.
1st

Internal and external users depend on the in order to make sound decisions
for the business.

Select one:
a.
Net Loss

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 b.
Net Profit
c.
Financial statements
d.
Investments

What should be done first?

Select one:
a.
Foot the accounts
b.
Prepare the trial balance
c.
Prepare the unadjusted trial balance
d.
Take the difference between the totals of the debits and credits.

Which is written first?

Select one:
a.
Either A or B
b.
Account to be debited
c.
Account to be credited
d.
No order is followed

Debit is on which side of the ledger?

Select one:
a.

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Bottom
b.
Right
c.
Center
d.
Left

This type of analytical technique is considered "static".

Select one:
a.
All of the choices
b.
Vertical Analysis
c.
Ratio Analysis
d.
Horizontal Analysis

book of orignial en
1. All transactions are initially recorded in this document. Answer

Asset
2. Equities (Liability + Equity) = Answer

Journalizing
3. Answer is the second step in the accounting cycle.

journal
4. It is the book of original entry. Answer

debit
5. Answer in liabilities is an account to be credited.

debit
6. Answer is on the left side of the T-account.

refer
7. Folio is also known as the Answer or DR.

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8 .How many columns does a General Journal have? 5

9 .Answ Equ
comprises the claims of the owners on the assets of the firm
deducting the claims of the creditors, known as their liabilities.

credited
10.Are increase in asset debited or credited? Answer

Another term for foot is :

Select one:
a.
Net
b.
Gross
c.
Sum
d.
Total

is the comparison of a company's financial statements from one period

to another.

Select one:
a.
Ratio Analysis
b.
Analytical techniques
c.
Horizontal Analysis
d.
Vertical Analysis

The normal balance of accounts receivable is credit.

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Select one:
True
False

General journal is the book where transactions are recorded? What book do we use to post
the transactions?

Select one:
a.
balance sheet
b.
General ledger
c.
trial balance
d.
Worksheet

What do you call the process of getting the difference between the totals of the debits and
credits?

Select one:
a.
summing
b.
Debiting
c.
crediting
d.
Footing

Journalizing is the step in the accounting cycle.

Select one:
a.
2nd

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 b.
1st
c.
3rd
d.
Last

The following accounts have a debit normal balance except:

Select one:
a.
service income
b.
Land
c.
Accounts receivable
d.
Building

Vertical analysis is also known as static analysis as it only looks at financial statement
information one period at a time.

Select one:
True
False

These are used to asses' financial information.

Select one:
a.
Financial information
b.
Financial statement
c.
All of the choices

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 d.
Analytical techniques

When office supplies are purchased on credit, a liability account is increase~

Select one:
True
False
To know if the company is capable to pay its expenses when it becomes due.

Select one:
a.
stability
b.
profitability
c.
growth
d.
liquidity
Financial statements are used by the investment community, lenders, creditors, and
management to evaluate an entity.

Select one:
True
False
is done after analyzing the business transaction.

Select one:
a.
Writing in the General Ledger
b.
Preparing financial statements
c.
Preparing an Income statement
d.
Journalizing

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Ratio analysis is the method of financial evaluation that interprets the relationship among
the different accounts found in the financial statements. is the method of financial
evaluation that interprets the relationship among the different accounts found in the
financial statements.

Select one:
True
False
The balance of Liability, Equity, or Income Account increases when the amount is entered in
the credit or Right Side Column.

Select one:
True
False
Bank statement shares the same content with:

Select one:
a.
Passbook
b.
Income Statement
c.
Financial Statement
d.
Statement of Financial Position
Debit is on which side of the ledger?

Select one:
a.
Left
b.
Center
c.
Right
d.
Bottom
The entry to record the 1 month expired portion of the insurance paid in advance is?

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Select one:
a.
dr insurance expense cr prepaid insurance
b.
dr prepaid insurance cr cash
c.
dr cash cr insurance
Check is also a form of cash because .

Select one:
a.
They share the same function
b.
It is mandated by law
c.
All of the choices
d.
Can be deposited and encashed
The entry to record the advance collection of service revenue is?

Select one:
a.
dr unearned service revenue cr cash
b.
dr cash cr unearned service revenue
c.
dr unearned service revenue cr service revenue
A general ledger contains a page number, columns for the date, explanation, folio, debit
and credit.

Select one:
True
False
Decrease in liabilities falls under:

Select one:
a.
None of the choices

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 b.
Accounts debited
c.
Accounts credited
d.
Equities
It is done after analyzing the business transaction.

Select one:
a.
Preparing financial statements
b.
Preparing an Income statement
c.
Journalizing
d.
Writing in the General Ledger
To effect increase in equity we credit capital and post to what side of the ledger?

Select one:
a.
Right
b.
Middle
c.
left
The page number of the journal in which the information was taken from is placed in the
folio of the ledger. The page number of the ledger where the information was posted is
placed in the folio of the trial balance.

Select one:
a.
Both statements are false
b.
The 1st statement is true. The 2nd statement is false.
c.
Both statements are true

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 d.
The 1st statement is false. The 2nd statement is true.
To apply the concepts of Vertical and Horizontal analysis on the given financial data.
Horizontal analysis confines itself in a period of time and compares its components with a
base item in the financial statement.

Select one:
a.
Vertical Analysis
b.
Ratio Analysis
c.
All of the choices
d.
Horizontal Analysis
A journal is the book of final entry.

Select one:
True
False
To total is to .

Select one:
a.
Gross
b.
Summarize
c.
Foot
d.
Net
To apply the concepts of Vertical and Horizontal analysis on the given financial data.
makes use of common size financial statements to convert each
financial statement item to its base year.

Select one:
a.
Both B and C

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 b.
Vertical Analysis
c.
Ratio Analysis
d.
Horizontal Analysis
The following are the common types of transactions that may conduct in the bank except:

Select one:
a.
Deposit
b.
Withdrawal
c.
Both B and C
d.
Investing
Decrease in liabilities falls under:

Select one:
a.
Equities
b.
Accounts debited
c.
None of the choices
d.
Accounts credited
To record the purchase of office equipment for cash, we debit cash and credit office
equipment.

Select one:
True
False
What is the ratio to test ability to meet sudden & immediate demands on current assets?

Select one:

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 a.
current assets/current liabilities
b.
Working capital/total assets
c.
quick assets/current liabilities
d.
Current assets-current liabilities
Credit is on the side of the T-account.

Select one:
a.
Right
b.
Bottom
c.
Left
d.
Center
Checking account is also known as:

Select one:
a.
Deposit account
b.
None of the choices
c.
Current account.
d.
Savings account
The financial analysis is the comparison of a company's financial statements from one
period to another.

Select one:
a.
Ratio analysis
b.

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vertical analysis
c.
none of the choices
d.
Horizontal analysis
What is the accounting equation?

Select one:
a.
Asset
b.
Asset
c.
None of the choices
d.
Asset
e.
Liability + Equity + Income - Expense
f.
Equities (Liability - Equity)
g.
Liability - Equity
It is considered as the key in the preparation of financial statements.

Select one:
a.
Trial balance
b.
General Journal
c.
Balance Sheet
d.
General Ledger
pre-numbered to ensure that they can easily be accounted for and what is lost
can easily be identified.

Select one:

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 a.
Cash
b.
Bank Statement
c.
Withdrawal and Deposit Slips
d.
Checks
Aside from equity, what other account also has a normal credit balance?

Select one:
a.
Unearned revenue
b.
Repair tools
c.
machineries
What is true about Ratio analysis?

Select one:
a.
It highlights computations that allow the reader to understand how the company performs
and positions itself financially.
b.
It is the method of financial evaluation that interprets the relationship among the different
accounts found in the financial statements.
c.
The most widely used basis of fully understanding a company's financial statements
d.
All of the choices
Freight in is included as part of the total cost of inventory purchased.

Select one:
True
False
It is an internal control tool that helps the company identify and check for irregularities in
their cash in bank.

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Select
a.
None of the choices
b.
Bank reconciliation
c.
Bank statement
d.
Income Statement
Income from a merchandising business is entered in the journal entries as revenues.

Select one:
True
False
The bank on the other hand keeps record of the depositor's transactions in a .

Select one:
a.
Savings Account
b.
Current Account
c.
Deposit Account
d.
Cash in a Bank Account
The depositor keeps record of bank transactions in a

Select one:
a.
Deposit Account
b.
Saving Account
c.
Current Account
d.
Cash in a Bank Account
Freight in refers to costs incurred in transporting inventory that are sold.

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Select
True
False
A merchandising business uses periodic inventory system for their sales and purchases.

Select one:
True
False
The balances shown in the bank statement and in the accounting records are
.

Select one:
a.
Unadjusted and uncorrected
b.
Adjusted and uncorrected
c.
Adjusted and corrected
d.
Unadjusted and corrected
Other miscellaneous bank charges like fees for printing checks, handling collections of notes
receivable, and processing NSF checks falls under .

Select one:
a.
Charges for NSF check
b.
Outstanding checks
c.
Service chargers
d.
Deposits in transit
FOB destination retains the ownership with the seller until the goods reach the destination.

Select one:
True
False

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A type of tax system wherein the government imposes higher taxes on higher earnings.

Select one:
a.
Proportionate
b.
Progressive
c.
Regressive
d.
None of the choices
Service business have tangible products.

Select one:
True
False
The balances between the Cash in Bank and the Current Account-Depositor accounts are
always

Select one:
a.
Either A or C
b.
Equal
c.
Undetermined
d.
Unequal
These are taxes on property.

Select one:
a.
Output Tax
b.
Excise Tax
c.
Input Tax

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 d.
Percentage Tax
Purchases, unlike sales, does not have discounts.

Select one:
True
False
The most common tax rate system is .

Select one:
a.
Proportionate
b.
Progressive
c.
All of the choices
d.
Regressive
These are adjustments in the unadjusted bank balance.

Select one:
a.
Deposits and Outstanding checks
b.
Credit and Debit Memoranda
c.
None of the choices
d.
All of the choices
The depositor will keep .

Select one:
a.
Both A and B
b.
None of the choices
c.

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Liability
d.
An asset
FOB shipping point means that if the good is lost or damaged while in transit, such shall be
borne by the buyer.

Select one:
True
False
These are taxes imposed on the earnings of businesses deriving income in the country.

Select one:
a.
Excise Tax
b.
Business Tax
c.
Percentage Tax
d.
Value-Added Tax
VAT in the Philippines is set to how many percent?

Select one:
a.
7
b.
15
c.
12
d.
10
Credit is the normal balance of purchases.

Select one:
True
False

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Other miscellaneous bank charges like fees for printing checks, handling collections of
notes receivable, and processing NSF checks falls under .

Select one:
a.
Outstanding checks
b.
Deposits in transit
c.
Charges for NSF check
d.
Service chargers
These are imposed on the privilege to sell products and services.

Select one:
a.
Excise Tax
b.
Percentage tax
c.
Business Tax
d.
Value-Added Tax
Freight out is included in the cost of goods.

Select one:
True
False
Estate tax falls .

Select one:
a.
Income Tax
b.
Transfer Tax
c.

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None of the choices

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 d.
Business Tax
The balances shown in the bank statement and in the accounting records are:

Select one:
a.
Unadjusted and uncorrected
b.
Adjusted and uncorrected
c.
Unadjusted and corrected
d.
Adjusted and corrected
These are applied only on certain businesses and transactions

Select one:
a.
Business Tax
b.
Value-Added Tax
c.
Excise Tax
d.
Percentage Tax
In a proportionate tax system, when an individual earns more, the taxable income
.

Select one:
a.
Decreases
b.
Increases
c.
Same
d.
Depending on the situation
These are taxes imposed on specified goods manufactured or produced in the Philippines.

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Select one:
a.
Percentage Tax
b.
Value-Added Tax
c.
Business Tax
d.
Excise Tax
Debit is on which side of the ledger?

Select one:
a.
Left
b.
Right
c.
Bottom
d.
Center
To enumerate the different categories of financial information. There are main
categories of financial information.

Select one:
a.
3
b.
2
c.
5
d.
7
Comprises the claims of the owners on the assets of the firm after deducting the claims of
the creditors.

Select one:
a.

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Liability
b.
Asset
c.
Equity
d.
Expense
The General Ledger is known for:

Select one:
a.
Consolidating daily transactions into different individual account titles.
b.
Used in journalizing
c.
"Book of original entry"
d.
All of the choices
What should be done first?

Select one:
a.
Foot the accounts
b.
Prepare the unadjusted trial balance
c.
Prepare the trial balance
d.
Take the difference between the totals of the debits and credits.
Increase in asset is considered as:

Select one:
a.
Equities
b.
Account Credited
c.

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None of the choices
d.
Account Debited
What is the accounting equation?

Select one:
a.
Liability - Equity
b.
None of the choices
c.
Equities (Liability - Equity)
d.
Liability + Equity + Income - Expense
e.
Asset
f.
Asset
g.
Asset
highlights computations that allow the reader to understand how the company
performs and positions itself financially.

Select one:
a.
Vertical Analysis
b.
Ratio Analysis
c.
Horizontal Analysis
d.
All of the choices
is used to interpret the relationship among the different accounts found in
the financial statements.

Select one:
a.

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All of the choices
b.
Horizontal Analysis
c.
Vertical Analysis
d.
Ratio Analysis
To differentiate the different techniques of financial analysis. Analysis based on the
changes on the amounts from one period to another are usually expressed .

Select one:
a.
Either absolute numbers or percentages
b.
Neither absolute nor percentages
c.
Both absolute numbers and percentages
d.
Only in absolute numbers but not in percentages
The page number of the ledger where the information was posted is placed in what column
of the journal?

Select one:
a.
Date
b.
Credit
c.
Folio
d.
Debit
Credit is the normal balance of the office supplies, rent expense and drawing accounts.

Select one:
True
False

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This is where we write the page number of the journal in which the information is taken
from.

Select one:
a.
Folio
b.
Explanation
c.
Date
d.
Account No.
What is true about the general journal?

Select one:
a.
Book of original entry
b.
Used in journalizing
c.
Contains 5 columns
d.
All of the choices
It shows the fair measure of assets, liabilities and owner's equity.

Select one:
a.
None of the choices
b.
Unadjusted Trial Balance
c.
Adjusting Entries
d.
Posting
What is the accounting equation?

Select one:
a.

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Liability + Equity + Income - Expense
b.
Equities (Liability - Equity)
c.
Asset
d.
Asset
e.
Liability - Equity
f.
None of the choices
g.
Asset
It means how quickly you can get your hands on your cash.

Select one:
a.
profitability
b.
growth
c.
Liquidity
d.
Stability
The liability account will increase if a credit to this account is posted as credit also to the
general ledger.

Select one:
a.
Office supplies
b.
Accounts payable
c.
prepaid insurance
d.
cash
Analysis based on the changes on the amounts from one period to another.

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Select one:
a.
Ratio analysis
b.
none of the choices
c.
Horizontal analysis
d.
vertical analysis
It is a booklet that shows you the details of your bank transactions.

Select one:
a.
Ledger
b.
Check
c.
Passbook
d.
Journal
Increase in asset is considered as:

Select one:
a.
None of the choices
b.
Account Debited
c.
Equities
d.
Account Credited
The entry to record the advance collection of service revenue is?

Select one:
a.
dr unearned service revenue cr cash
b.

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dr unearned service revenue cr service revenue
c.
dr cash cr unearned service revenue
What is needed to be able to prepare financial statements?

Select one:
a.
Trial Balance
b.
Journal
c.
Ledger
d.
Statement of Income
Aside from equity, what other account also has a normal credit balance?

Select one:
a.
machineries
b.
Repair tools
c.
Unearned revenue
Posting is the step in the accounting process.

Select one:
a.
4th
b.
3rd
c.
2nd
d.
1st
These are used to asses' financial information.

Select one:
a.

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Analytical techniques
b.
All of the choices
c.
Financial statement
d.
Financial information
An analysis which compares the components of the base item for a particular period of
time.

Select one:
a.
Ratio
b.
horizontal
c.
none of the choices
d.
Vertical
It contains accounts transferred from the general journal.

Select one:
a.
trial balance
b.
General ledger
c.
worksheet
d.
Balance sheet
Comprises the claims of the owners on the assets of the firm after deducting the claims of
the creditors.

Select one:
a.
Expense
b.

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Asset
c.
Equity
d.
Liability
In preparing the trial balance, the account should be arranged according to .

Select one:
a.
Liquidity
b.
None of the choices
c.
Stability
d.
Profitability
These are receipts by the depositor that reached the bank too late to appear in the bank
statement for the current month.

Select one:
a.
None of the Above
b.
Service Charges
c.
Outstanding Checks
d.
Deposits in transit
These are adjustments in the unadjusted book balance.

Select one:
a.
Service Charges
b.
Outstanding checks
c.
Credit and Debit memoranda

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 d.
Deposits in transit
It helps to determine transactions that must be recorded to update or correct the
depositor's accounting records and to determine the actual amount of the cash deposit
balance at the end of the month.

Select one:
a.
Financial Report
b.
Bank Statement
c.
Bank Reconciliation Statement
d.
Financial Statement
A manufacturing business does not need to alter completely the materials they purchased
before selling it to the public.

Select one:
True
False
The balances between the Cash in Bank and the Current Account-Depositor accounts
.

Select one:
a.
Seldom equal
b.
Equal
c.
Undetermined
d.
Unequal
A merchandising business needs to alter completely the materials they purchased before
selling it to the public.

Select one:
True

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 False
The bank on the other hand keeps record of the depositor's transactions in a .

Select one:
a.
Deposit Account
b.
Cash in a Bank Account
c.
Savings Account
d.
Current Account
When should depositors prepare a bank reconciliation?

Select one:
a.
Everyday
b.
Every month
c.
Anytime
d.
Every year
Inventory is a tangible product.

Select one:
True
False
A merchandising business has two different systems in accounting for their sales and
purchases.

Select one:
True
False
These are adjustments in the unadjusted book balance.

Select one:

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 a.
Service Charges
b.
Credit and Debit memoranda
c.
Deposits in transit
d.
Outstanding checks
Freight in refers to costs incurred in transporting inventory that are sold.

Select one:
True
False
FOB shipping point means that if the good is lost or damaged while in transit, such shall be
borne by the buyer.

Select one:
True
False
The balances shown in the bank statement and in the accounting records are
.

Select one:
a.
Unadjusted and uncorrected
b.
Adjusted and corrected
c.
Unadjusted and corrected
d.
Adjusted and uncorrected
These are imposed on the privilege to sell products and services.

Select one:
a.
Value-Added Tax
b.

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Excise Tax
c.
Luxury Tax
d.
Percentage Tax
The depositor will record bank transactions in a .

Select one:
a.
Current account
b.
Deposit account
c.
Cash in a bank account
d.
Savings account
These are receipts by the depositor that reached the bank too late to appear in the bank
statement for the current month.

Select one:
a.
Deposits in transit
b.
Outstanding Checks
c.
None of the Above
d.
Service Charges
The balances between the Cash in Bank and the Current Account-Depositor accounts
.

Select one:
a.
Unequal
b.
Undetermined
c.

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Equal
d.
Seldom equal
These are imposed on properties or rights transferred by one entity to another entity.

Select one:
a.
Sin Tax
b.
Business Tax
c.
Income Tax
d.
Transfer Tax
Tax imposed on the privilege to sell products and services are called

Select one:
a.
Luxury Tax
b.
Sin Tax
c.
Value-Added Tax
d.
Percentage Tax
Dealers of cars, retail shops, and sari-sari stores are examples of manufacturing business.

Select one:
True
False
In a proportionate tax system, when an individual earns more, the taxable income
.

Select one:
a.
Increases
b.

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Same

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 c
Depending on the situation
d.
Decreases
This kind of tax system is the easiest to compute.

Select one:
a.
Income Tax
b.
Regressive Tax
c.
Progressive Tax
d.
Proportionate Tax
This account shows the cash balance at the beginning of the month, cash receipts and
deposits (debits), cash payments and withdrawals (credits), and the new balance at the end
of the month.

Select one:
a.
Savings Account
b.
Deposit Account
c.
Cash in a Bank
d.
Current Account
The government agency assigned to collect taxes from the people.

Select one:
a.
DBM
b.
BoC
c.
SEC

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 d.
BIR
Freight refers to costs incurred for transportation.

Select one:
True
False
Who should prepare a bank reconciliation?

Select one:
a.
Neither A nor B
b.
Bank
c.
Depositor
d.
Both A and B
It is the most common business tax in the country.

Select one:
a.
Percentage Tax
b.
Donor's Tax
c.
Excise Tax
d.
Value-Added Tax
Purchase discounts are present on goods purchased on credit account.

Select one:
True
False
Credit is the normal balance of purchases.

Select one:

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True
False

CREATED BY: SOUICHI CUTIE

PIE

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