VILLAGERS MONTESSORI COLLEGE

Senior High School Department

nd
2 Semester – Mid Term Examination

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT

I. Direction: Read each item carefully and choose the best answer. Write the letter of
your choice in the blue book.

1. After journalizing, the next step in accounting cycle is

a. Preparation of T-accounts.
b. Preparation of adjusting entries.
c. Preparation of the unadjusted trial balance.
d. Posting to the ledger.
2. The term “posting” as used in accounting means
a. Recording an accountable event in debit-credit format.
b. Transferring the debits and credits of journal entries from the journal to the affected
accounts in the ledger.
c. Checking the equality of the monetary totals of debits and credits of accounts in the ledger.
d. Uploading photographs to the internet.
3. Which of the following accounting terms connotes posting to the ledger?
a. Recording c. Classifying
b. Ledgering d. Summarizing
4. The collection of an account receivable is posted as
a. A debit to the accounts receivable ledger account .
b. A credit to the cash ledger account.
c. A credit to the accounts receivable ledger account.
d. Public, with tag to friends.
5. The journal entry to record the revenue earned from rendering of services on cash basis is
posted to the ledger as
a. Credit to cash. c. Debit to cash.
b. Credit to service fees. d. c and d.
6. The report prepared to determine whether the totals of debits and credits in the accounts are
equal is the
a. Journal. c. Trial balance.
b. Ledger. d. Financial statements.
7. The main purpose of preparing a trial balance is
a. To determine whether erroneous recordings have occurred.
b. To determine whether the total of debits and credits in the ledger accounts are equal.
c. To determine whether the debits and credits in the journal are equal.
d. To bring the accounts into justice.
8. Entity a recorded a P2,000 amount as P200. This error is called
a. Transplacement error c. Transportation error
b. Transposition error d. Transformer error
9. Entity a recorded a P1,546 amount as P1,456. This error is called
a. Transplacement error c. Transgender error
b. Transposition error d. Translocation error
10. The heading of a trial balance does not necessarily indicate which of the following?
a. Name of the business c. Date of the report
b. Title of the report d. Name of the business owner

11. Accounts appear on the trial balance in what order or sequence?

a. Assets, Expenses, Liabilities, Equity, and Income
b. Assets, Liabilities, Equity, Income, and Expenses
c. Assets, Liabilities, Equity, Expenses ,and Income
d. Alphabetically
12. The amounts in the trial balance are derived directly from the balances in the
a. Source documents. c. Ledger.
b. Journal. d. accountant’s mind.
13. Which of the following is a correct sequence of the steps in the accounting cycle?
a. Journalizing, Identifying, and analyzing , Trial balance, Posting
b. Posting, Journalizing, Identifying and analyzing, Trial balance
c. Identifying and analyzing, Journalizing, Posting, Trial balance
d. Toes, head, shoulders, and knees
14. Accounts receivable is presented in the trial balance under the
a. Debit column. c. Tree.
b. Credit column. d. Not presented.
15. Accumulated depreciation appears on the trial balance under the
a. Debit column. c. Bridge.
b. Credit column. d. Not presented.
II. Problem: The following transaction has been made in January.
1. Ivan opened an electronic repair shop, invested Php 200 000.00
2. Purchased electronic supplies worth Php 15 000.00 with a promised to pay after 1 month
3. Owner contributed additional Php 100 000 to the business.
4. Purchased office supplies worth Php 3 000 on account
5. Rendered services worth Php 5 000 on cash basis.
6. Rendered services worth Php 8 000 on account.
7. Paid P15 000 accounts payable.
8. Collected Php 7 000 accounts receivable.
9. Purchased equipment worth Php 5 000.
10. Drawings of owner amounted to Php 10 000.
11. Paid salaries expense of P7 000.
12. Paid utility expenses of P5 000.
Requirements:

a. Provide the journal entries.

b. Post the entries to the ledger.
c. Prepare an Income statement and Balance Sheet

Omniuum Rerum Principia Parva Sunt – “The beginnings of all things are small”.

God bless you all!

Mr. Raymund M. Gubat