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FABM 121 Week 11-20 (I think)

Science Technology & Society (AMA Computer Learning Center)

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FABM 121 (WAG NIYO NA

ISAMA YUNG TULDOK SA
IBANG TANONG)
- Basug
A merchandising business needs to alter completely the materials they purchased before selling it to the
public.

- False

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

- Cash in a Bank

Dealers of cars, retail shops, and sari-sari stores are examples of manufacturing business.

- false

The balances between the Cash in Bank and the Current Account-Depositor accounts _____________

- Seldom equal

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

- Service chargers

These are receipts by the depositor that reached the bank too late to appear in the bank statement for
the current month

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- Deposits in transit

These are adjustments in the unadjusted book balance

- Credit and Debit memoranda

Freight out is included in the cost of goods.

- False

Purchase discounts are present on goods purchased on credit account.

- True

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

- True

In the operation of law, corporations are artificial beings thus, BIR forms and taxes paid by the company is
under the Corporation's name and not under the owners'.

- True

If the total liabilities is P200,000, it being the base item, what percent is current liabilities of 20,000?

- 10%

The entry to record the advance collection of service revenue is?

- dr cash cr unearned service revenue

GIVE THE CORRECT ANSWER.ACRONYMS ONLY. It is the most common type of Business Tax._____

- part 1: VAT

In accounting, Value-added Tax is a common transaction.

- True

Bank statement is the same as a passbook account in terms of content.

- True

Purchases, unlike sales, does not have discounts.

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- True

When a depositor open an account with a bank, the relationship existing between the parties is a lender
(the bank), and a borrower (the depositor) relationship.

- False

Tax imposed on the privilege to sell products and services are called "sin tax".

- False

GIVE THE CORRECT ANSWER. NUMBERS ONLY. How much is the Value-added Tax in the
Philippines? _____%

- part 1: 12

If on the base year 2016 the current assets is P300,00 and P100,00 on 2017, how much is the
increase/decrease?: decrease by P200,000; decrease by P100,000; Increase by P200,000; Increase by
P100,000

- decrease by P200,000

This is prepared after all adjustments have been recorded and posted.: unadjusted trial balance;
worksheet; Adjusted trial balance; Financial statement

- Adjusted trial balance

It means how quickly you can get your hands on your cash.: growth; profitability; Liquidity; Stability

- Liquidity

Checks are not considered as cash.

- False

Account is used to summarize the increases and decreases in the asset, liability and proprietorship of the
business.

- True

If on the base year 2015 total assets is P200,000 and P400,000 on 2016, what is the percentage
increase(decrease)?: decrease by 50%; Increase by 100%; decrease by 100%; Increase by 50%

- Increase by 50%

GIVE THE CORRECT ANSWER. In the Philippines, Excise tax is also called as _____.

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- part 1: Sin Tax

Certificate of Final Income Tax Withheld and Payment Form are kinds of BIR Forms.

- True

GIVE THE CORRECT ANSWER. It is the tax shouldered by the buyer when purchasing the goods. _____

- part 1: Input Tax

VAT are imposed on the privilege to sell products and services.

- False

A journal is composed of a group of accounts.

- False

A journal contains a list of accounts with open balances in the general ledger for a given period.

- False

The liability account will increase if a credit to this account is posted as credit also to the general ledger.:
Office supplies; Accounts payable; Cash; Prepaid insurance

- Accounts payable

Business transactions affects the assets, liabilities and proprietorship of the business

- True

What is the ratio to test ability to meet sudden & immediate demands on current assets?: Working
capital/total assets; current assets/current liabilities; quick assets/current liabilities; Current assets -
current liabilities

- quick assets/current liabilities

Output tax is the tax shouldered by the buyer when purchasing the goods.

- False

If the total assets amounts to P100,000, which is the base item, what percent is the current assets of
P20,000?: 20%; 5%; 80%; 50%

- 20%

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Only the errors of the depositor could create differences in the Cash in Bank and Current Account.

- False

It is necessary to understand the normal balances of accounts to know if they shall be debited or credited

- True

Credit is the normal balance of purchases.

- True

All the accounts below have debit normal balance except: Salaries payable; Miscellaneous expense;
prepaid rent; Tools

- Salaries payable

Amusement tax is under Percentage tax.

- True

Freight out is included in the cost of goods.

- False

The adjusted trial balance is the last report prepared before the ____________ is made.: General journal;
financial statement; Worksheet; General ledger

- financial statement

It contains accounts transferred from the general journal.: Balance sheet; worksheet; trial balance;
General ledger

- General ledger

A bank statement is a document that is issued annually by the bank.

- False

What is the effect to equity if a credit balance in the general journal is posted as debit to the general
ledger?: No effect; Zero Balance; Increase equity; decrease equity

- decrease equity

You always pay for VAT.

- True

GIVE THE CORRECT ANSWER. BIR Form 0605 is also known as ______________. _____

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- part 1: Payment Form

A savings account is only supported by an ATM car~

- False

What is the effect to cash if a debit balance in the general journal is posted as credit to the general
ledger?: Zero Balance; decrease cash; Increase cash; No effect

- decrease cash

A merchandising business has two different systems in accounting for their sales and purchases.

- True

Analysis based on the changes on the amounts from one period to another.: none of the above;
Horizontal analysis; vertical analysis; Ratio analysis

- Horizontal analysis

The transactions recorded in the Cash in Bank is not reflected in the Current Account.

- True

Percentage tax is the most common type of business tax.

- False

A bank statement is also referred as statement of account.

- True

The bank sends a bank statement to a depositor every month.

- True

Freight refers to costs incurred for transportation.

- False

The balances between the Cash in Bank and the Current Account-Depositor accounts are always equal

- True

Excise tax is a form of Business Tax.

- True

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Journalizing is the ___________ step in the accounting cycle.: 2nd; 1st; 3rd; Last

- 2nd

When do we prepare the unadjusted trial balance?: Before posting; Either A or B; After Journalizing; After
posting

- After posting

The General Ledger is known as the: "Book of original entry"; "Book of final entry"; "Book of third cycle";
None of the choices

- "Book of final entry"

Another term for foot is

- Total

The heading of the trial consists of the following except

- Period covered by the statement

This type of analytical technique is considered "static".

- Vertical Analysis

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.

- Vertical Analysis

The following consists a journal except

- Business name

The dates of the transactions could be

- Written in a chronological order

To differentiate the different techniques of financial analysis. It highlights computations that allow the
reader to understand how the company performs and positions itself financially

- Ratio Analysis

To know if the company is capable to pay its expenses when it becomes due

- liquidity

Decrease in liabilities falls under

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- Accounts debited

The General Ledger is known as the:

- "Book of final entry"

To differentiate the different techniques of financial analysis. __________________- is also known as

static analysis.

- Vertical Analysis

In vertical analysis, if the base item is total assets, we compute how each of its components composes
the base item.

- True

The following accounts have a debit normal balance except

- service income

What is true about Ratio analysis?: All of the choices; The most widely used basis of fully understanding a
company's financial statements; It is the method of financial evaluation that interprets the relationship
among the different accounts found in the financial statements

- All of the choices

Formula for changes in the company's financial amounts would be

- The Amount in the New Year minus the Amount in the base year.

When do we prepare the unadjusted trial balance?

- After posting

The page number of the ledger where the information was posted is placed in what column of the journal?

- Folio

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

- Folio

How many types does a deposit account have?

-2

The ratio analysis is the most commonly- used technique among all three is the analysis.

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- True

What is the accounting equation?

- Equities (Liability - Equity)

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

- Ratio Analysis

A credit account in the general journal should be posted to the general ledger as credit also.

- True

The general journal is used in recording business transaction, while general ledger is used in

- Posting

If the debit total is more than the credit total, the difference is placed on the __________________.:
Explanation

- Debit Side

What is the ratio to test ability to meet sudden & immediate demands on current assets?

- quick assets/current liabilities

A general ledger contains a page number, columns for the date, explanation, folio, debit and credit.

- True

It is the one recorded by the seller upon the sale of the good or service

- Output Tax

Purchases are assets that shall produce income for the benefit of the seller.

- True

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

- Bank reconciliation

The leading country in Asia who has the highest percentage of income tax

- Philippines

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These are taxes imposed on specified goods manufactured or produced in the Philippines.: Business Tax;
Percentage Tax; Excise Tax; Value-Added Tax

- Excise Tax

Purchases account is only seen in the periodic inventory system.

- True

Dealers of cars, retail shops, and sari-sari stores are examples of manufacturing business.

- False

Excise Tax is also called as _______________.

- Sin Tax

The balances between the Cash in Bank and the Current Account-Depositor accounts _______________.

- Seldom equal

A merchandising business needs to alter completely the materials they purchased before selling it to the
public.

- False

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

- Bank reconciliation

The inherent power to tax brought about by the government's law

- Taxation

Who should prepare a bank reconciliation?

- Depositor

When should depositors prepare a bank reconciliation?

- Every month

Freight in refers to costs incurred in transporting inventory that are sold.

- False

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Income from a merchandising business is entered in the journal entries as revenues.

- False

A reconciliation statement is prepared __________.

- Monthly

Donor's Tax and Estate Tax are types of _______________.

- Transfer Tax

These are issued and recorded by the depositor but not yet presented to the bank for encashment.

- Outstanding checks

You always pay for it.

- Value-Added Text

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