FAR- MAJOR QUIZ

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FOR YOUR NAME, FOLLOW THIS FORMAT: LAST NAME, FIRST NAME, MIDDLE
INITIAL (EX. GUINUCUD, RACHELLE ANNE, D.)*

Your answer

INDICATE YOUR SECTION, FOLLOW THIS FORMAT: (EX: BSACC 1A/ BSACC 1B/
BSLM 1A)*

Your answer

1. At the beginning of the period, the owner’s capital account of a business has a
balance of ₱220,000. During the period, the total debits and credits to that account were
₱60,000 and ₱70,000, respectively. How much is the ending balance of the owner’s
capital account?*
1 point

A. P230,000
B. P210,000
C. P350,000
D. P90,000

2. At the beginning of the period, a business has accounts payable of ₱200,000.

During the period, the total debits and credits to the accounts payable account were
₱100,000 and ₱70,000, respectively. How much is the ending balance of accounts
payable?*
1 point

A. P230,000
B. P170,000
C. P370,000
D. P30,000

3. If the ending balance of accounts receivable is ₱100,000 and the total debits and
credits to that account during period were ₱60,000 and ₱40,000, respectively, the
beginning balance must be*
1 point

A. P140,000
B. P20,000
C. P80,000
D. P120,000

4. Entity A received a 12%, ₱200,000, one-year, note receivable on October 1, 20x1.

Entity A uses a calendar year period. The principal and interest on the note are due on
October 1, 20x2. How much is the interest income to be accrued on December 31,
20x1?*
1 point

A. P24,000
B. P12,000
C. P6,000
D. P2,000

5. The balance of accumulated depreciation in Entity A’s unadjusted trial balance is

₱100,000. If the adjustments columns in the worksheet show a debit adjustment of
₱20,000, how much is the balance of accumulated depreciation that is extended to the
adjusted trial balance columns of the worksheet?*
1 point

A. P100,000
B. P120,000
C. P20,000
D. P80,000

6.*
1 point
A. P4,320,000
B. P3,840,000
C. P3,420,000
D. P2,980,000

7. How much is the total liabilities at the end of the period?*

1 point

A. P1,500,000
B. P1,700,000
C. P2,000,000
D. P2,200,000

8. How much is the equity at the end of the period after taking into account income and
expenses?*
1 point

A. P2,920,000
B. P2,820,000
C. P3,120,000
D. P3,280,000

9. Which of the following is not an adjusting entry?*

1 point

A. An entry to take up bad debts expense at the end of the period.

B. An entry to take up depreciation expense for the period.
C. An entry to recognize interest expense for the period.
D. An entry to record the cash acquisition of equipment.

10. Which of the following adjustments can be reversed in the next accounting period?*
1 point
A. Adjusting entry to take up depreciation expense
B. Adjusting entry to record bad debts expense
C. Adjusting entry to record accrued interest income
D. Adjusting entry to record acquisition of equipment

11. When property other than cash is invested in a partnership, at what amount should
the noncash property be credited to the contributing partner’s capital account?*
1 point

A. Fair value at the date of contribution.

B. Contributing partner’s original cost.
C. Assessed valuation for property tax purposes.
D. Contributing partner’s tax basis.

12. Mr. A and Ms. B formed a partnership and agreed to divide the initial capital equally
even though Mr. A contributed ₱120,000 and Ms. B contributed ₱50,000 in identifiable
assets. The partners agree that the difference in the amount of contribution and the
amount of credit to the partner’s capital shall be treated as compensation for the
expertise that the partner will be bringing to the partnership. How much is the correct
valuation of A’s capital immediately after the partnership formation?*
1 point

A. P85,000
B. P50,000
C. P120,000
D. P170,000

13.*
1 point
A. P460,000
B. P580,000
C. P650,000
D. P720,000

14. Mr. A and Ms. B formed a partnership and agreed to divide the initial capital equally
even though Mr. A contributed ₱120,000 and Ms. B contributed ₱50,000 in identifiable
assets. The partners agree that the difference in the amount of contribution and the
amount of credit to the partner’s capital shall be treated as cash settlement between the
partners. The compound entry to record the partners’ contributions includes a credit to
B’s capital account in the amount of*
1 point

A. P85,000
B. P50,000
C. P120,000
D. P170,000

15. If the partnership agreement does not specify how income is to be allocated, profits
and loss should be allocated*
1 point

A. Equally.
B. In proportion to the weighted average of capital invested during the period.
C. Equitably so that partners are compensated for the time and effort expended on behalf of the
partnership.
D. In accordance with their capital contributions.

16. A and B share in partnership profits and losses on a 40:60 ratio. During the year, A’s
capital account has a net increase of ₱100,000. Partner A made contributions of
₱10,000 and capital withdrawals of ₱60,000 during the year. How much was the share
of B in the partnership profit for the year?*
1 point

A. P100,000
B. P150,000
C. P225,000
D. P375,000

17.*
1 point

A. P47,600
B. P32,200
C. P19,200
D. P33,200

18.*
1 point
A. P15,250
B. P15,375
C. P36,500
D. P30,750

19.*
1 point

A. Fox P84,000; Grimm P56,000

B. Fox P102,000; Grimm P68,000
C. Fox P108,000; Grimm P72,000
D. Fox P120,000; Grimm P80,000

20. Assume instead that Eddy remains in the partnership and that Hamm is admitted as
a new partner with a 25% interest in the capital of the new partnership for a cash
payment of ₱140,000. The bonus method shall be used to record the admission of
Hamm.  Immediately after admission of Hamm, Eddy’s capital account balance should
be*
1 point

A. P280,000
B. P172,500
C. P160,000
D. P140,000

21. Under this concept, some costs are initially recognized as assets and recognized
only as expenses when the related revenue is recognized.*
1 point

A. Separate entity concept

B. Historical cost concept
C. Going concern
D. Matching principle

22. Financial accounting applies to which of the following:*

1 point

A. Businesses
B. Non-profit organizations
C. Governments
D. All of the above

23. Which of the following adjustments cannot be reversed in the next accounting
period?*
1 point

A. Accruals for income or expense

B. Prepayments initially recorded using the expense method
C. Advanced collections initially recorded using the income method
D. Prepayments initially recorded using the asset method

24. If debits do not equal credits, the first step to find the error is to  *
1 point

A. call your manager and ask for advice.

B. add the debit and credit columns again.
C. review the journal entries for errors.
D. make correcting entries rather than adjusting entries.

25. The balance of an accounts receivable from a certain customer at any given point of
time can be determined by referring to the*
1 point

A. general journal.
B. general ledger.
C. subsidiary ledger.
D. financial statements.

26. Legal capital is the portion of contributed capital that cannot be distributed to the
owners during the lifetime of the corporation unless the corporation is dissolved and all
of its liabilities are settled first. For no-par value shares, legal capital is*
1 point

A. the aggregate par value of shares issued and subscribed.

B. the total consideration received or receivable from shares issued or subscribed.
C. the aggregate stated value of shares issued and subscribed.
D. the aggregate market value of shares issued and subscribed.

27. One of the following is not a characteristic of contract of partnership.*

1 point

A. Real, in that the partners must deliver their contributions in order for the partnership contract
to be perfected.
B. Principal, because it can stand by itself
C. Preparatory, because it is a means by which other contracts will be entered into
D. Onerous, because the parties contribute money, property, or industry to the common fund

28. The entry to record the issuance of ordinary shares for fully paid share subscriptions
is*
1 point

A. a memorandum entry.
B. Dr. Common Stock Subscribed; Cr. Common Stock; Cr. Additional Paid-In Capital
C. Dr. Subscribed Share Capital; Cr. Subscriptions Receivable
D. Dr. Subscribed Share Capital; Cr. Share Capital

29. The issuance of shares of preferred stock to shareholders*

1 point

A. increases preferred stock outstanding.

B. has no effect on preferred stock outstanding.
C. increases preferred stock authorized.
D. decreases preferred stock authorized.

30. The Flat and Iron partnership agreement provides for Flat to receive a 20%
bonus on profits before bonus. Remaining profits and losses are divided between Flat
and Iron in the ratio of 2:3. Which partner has a greater advantage when the partnership
has a profit or when it has a loss?*
1 point
A. PROFIT Flat; LOSS Iron
B. PROFIT Flat; LOSS Flat
C. PROFIT Iron; LOSS Flat
D. PROFIT Iron; LOSS Iron

31. Gains and losses on the purchase and resale of treasury stock may be reflected
only in*
1 point

A. share premium account.

B. share premium and retained earnings accounts.
C. income, paid-in capital, and retaining earnings accounts.
D. income and paid-in capital accounts.

32.*
1 point

A. P101,000
B. P102,000
C. P107,000
D. P108,000

33.*
1 point
A. P110,000
B. P116,000
C. P140,000
D. P145,000

34. Instead of admitting a new partner, Alfa and Beda decide to liquidate the
partnership. If the other assets are sold for ₱500,000, what amount of the available
cash should be distributed to Alfa?*
1 point

A. P255,000
B. P273,000
C. P327,000
D. P348,000

35.*
1 point
A. P20,000
B. P30,000
C. P40,000
D. P50,000

36.*
1 point

A. P40,000
B. P38,400
C. P28,200
D. P32,000

37.*
1 point
A. The petty cash balance of ₱500 has been omitted from the trial balance.
B. ₱4,000 received for rent of part of the office has been correctly recorded in the cash book and
debited to Rent expense account.
C. No entry has been made in the records for a cash sale of ₱2,500.
D. ₱3,000 paid for repairs to plant has been debited to the plant asset account.

38. A company paid its property taxes on October 1 for the period October 1, year 1 to
September 30, year 2. When the payment was made the company debited property
taxes expense and credited cash for ₱8,000. The adjusting entry at December 31, year
1 would include which of the following:*
1 point

A. debit prepaid property taxes, ₱6,000.

B. credit prepaid property taxes, ₱6,000.
C. credit property tax expense, ₱2,000.
D. debit property tax expense, ₱6,000.

39. At the end of the current year, the prepaid insurance account showed a debit the
balance of ₱5,000; the balance at the beginning of the year was ₱6,000, and during the
year the insurance premiums paid amounted to ₱8,000. Assuming insurance premium
payments are initially entered  in the prepaid insurance account ,the adjusting entry at
the end of the year would include:*
1 point

A. debit prepaid insurance ₱9,000

B. credit prepaid insurance ₱1,000
C. debit insurance expense ₱7,000
D. debit insurance expense ₱9,000

40. Before year-end adjusting entries, Bass Company's account balances at December
31, 2004 for accounts receivable and the related allowance for uncollectible accounts
were ₱700,000 and ₱45,000, respectively.  An aging of accounts receivable indicated
that ₱62,500 of the December 31 receivables are expected to be uncollectible.  The net
realizable value of accounts receivable after adjustment is*
1 point

A. ₱682,500
B. ₱637,500
C. ₱592,500
D. ₱655,000

41. A trial balance*

1 point

A. proves that debits and credits are equal in the ledger.

B. supplies a listing of open accounts and their balances that are used in preparing financial
statements.
C. is normally prepared three times in the accounting cycle.
D. all of these.

42.*
1 point
A. 614, 476; 683, 052
B. 615, 942; 717, 894
C. 640, 876; 712, 345
D. 613,576; 683, 350

43. Based on No. 42, how much assets does the partnership have?*
1 point

A. P2, 317, 918

B. P2, 237, 918
C. P2, 265, 118
D. P2, 365, 218

44. Fox, Greg and Howe are partners with average capital balances during 2021 of
120 000, 60 000 and 40 000, respectively. Partners receive 10% interest on their
average capital balances. After deducting salaries of 30 000 to Fox, and 20 000 to
Howe, the residual P/L is divided equally. In 2021, the partnership sustained a 33 000
loss before interest and salaries to partners. By what amount should Fox’s capital
change?*
1 point

A. P7,000 increase
B. P11,000 increase
C. P35,000 decrease
D. P42,000 increase

45. If a partnership has net income of 44 000 and partner X is to be allocated bonus
of 10% of income after the bonus. What is the amount of bonus?*
1 point

A. P3,000
B. P3,300
C. P4,000
D. P4,400

46. As of December 31,2008, the books of XYZ Partnership showed capital balance
of: X P60,000; Y P45,000; Z P15,000. They share profits and losses in the ratio of 4:4:2,
respectively. After some time, they decided to liquidate sold all non-cash assets of
P41,000. Liabilities were paid amounting to P16,000 and P33,000 is available for
distribution. Assuming that any capital debit balance is uncollectible, the share of each
partner in the cash distribution would be:*
1 point
A. X-P24,000 ; Y-P9,000 ; Z-NONE
B. X-P25,200 ; Y-P10,200; Z-P2,400
C. X-P34,800 ; Y-P34,800; Z-NONE
D. X-P17,400 ; Y-P10,200; Z-P1,200

47. Kit and Kat are partners sharing profits and losses equally. Their books of the
partnership showed capital balances of: Kit-P42,000 and Kat-P64,000. Cash, liabilities
and non-cash assets amounted to P16,000, P20,000 and P110,000, respectively. On
December 31,2008, the partnership is dissolved and liquidated of installments, and the
first realization of P30,000 cash is on the sale of non-cash asset of book value of
P60,000. After payment of liabilities, the available and shall be distributed to Kit and Kat
as follows:*
1 point

A. Kit-P6,000 ; Kat-P22,000
B. Kit-P25,000; Kat-P25,000
C. Kit-P22,000; Kat-P 6,000
D. Kit-P2,000 ; Kat-P24,000

48.*
1 point

A. P103,000
B. P100,000
C. P110,000
D. P113,000

49. Ding and Dong are partners who share profits and losses in the ratio of 60:40,
respectively. They decided to liquidate and accordingly sold the non-cash assets with a
realization of P10,000 cash. Liabilities were paid for P3,000 and available cash is
P9,000. Their capital balance is Ding P3,000 and Dong P12,000. After the P9,000 was
divided, the capital balance of Dong is:*
1 point

A. P450
B. P9,600
C. P9,000
D. P600

50. R, S, and T are partners sharing profit and losses in the ratio of 2/6, 3/6 and 1/6,
respectively. The partners’ capital balances are: R-P25,800, S-P24,000, and T-P16,200.
The liabilities amount to P36,000 including a loan of 16,000 from S. The cash balance is
8,000. All partners are personally solvent. The partners plan to sell the assets by
installment. If T received 3,000 from the 1st distribution of each, how much did R and S
receive that time?*
1 point

A. R P9,800; S P3,300
B. R P3,300; S None
C. R None; S P3,300
D. R None; S None

51. The partner most available to partnership losses on liquidation is:*

1 point

A. R
B. R & S equally
C. S
D. T

52. D, E, and F, partners have capital balances of P9,800, P12,000 and P5,200 and
respectively and share profits in the ratio of 4:2:1. Prepare a schedule showing how
avail cash will be given to the partners as it becomes available. Who among the
partners shall be paid first with an available cash of P1,200?*
1 point

A. D
B. E
C. F
D. D & F

53.*
1 point

A. Gig-P20,000 ; Goy-P50,000
B. Gig-P42,850 ; Goy-P58,250
C. Gig-P96,400 ; Goy-P71,000
D. Gig-P91,450 ; Goy-P69,700

54.*
1 point
A. J-P22, 235; K-P18,941; L-P28, 824
B. J-P10,800; K-NONE; L-P24,200
C. J-P4,765; K-P4,059; L-P6, 176
D. J-P6,353; K-P5,412; L-P8,236

55.  If P1,800 cash is withheld for possible liquidation expenses, how much cash
should L receive?*
1 point

A. P741
B. P7,495
C. P487
D. P4,925

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