A bank statement is also referred as statement of account

ANS:True
What is the ratio to test ability to meet sudden & immediate demands on current assets?
ANS: quick assets/current liabilities
Credit is the normal balance of purchases.
ANS:True
Freight out is included in the cost of goods
ANS:False
Freight refers to costs incurred for transportation.
ANS:False
In the Philippines, Excise tax is also called as
ANS:Sin Tax
It contains accounts transferred from the general journal.
ANS:General ledger
You always pay for VAT.
ANS: True
How much is the Value-added Tax in the Philippines?
ANS: 12 %
If on the base year 2015 total assets is P200,000 and P400,000 on 2016, what is the percentage
increase(decrease
ANS: Increase by 50%
The balances between the Cash in Bank and the Current Account-Depositor accounts are always
equal
ANS: True
The transactions recorded in the Cash in Bank is not reflected in the Current Account.
ANS: True
Percentage tax is the most common type of business tax
ANS: False
The liability account will increase if a credit to this account is posted as credit also to the general
ledger.
ANS: Accounts payable
The bank sends a bank statement to a depositor every month.
ANS: True
All the accounts below have debit normal balance except
ANS: Salaries payable
A merchandising business has two different systems in accounting for their sales and purchases.
ANS: True
What is the effect to equity if a credit balance in the general journal is posted as debit to the general
ledger?
ANS: decrease equity
A journal is composed of a group of accounts.
ANS: False
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.
ANS: False
A bank statement is a document that is issued annually by the bank.
ANS: False
If the total liabilities is P200,000, it being the base item, what percent is current liabilities of 20,000?
ANS: 10%
It is the tax shouldered by the buyer when purchasing the goods.
ANS: Input Tax
A savings account is only supported by an ATM car~
ANS: False

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 Analysis based on the changes on the amounts from one period to another.
ANS: Horizontal analysis
Tax imposed on the privilege to sell products and services are called "sin tax".
ANS: False
This is prepared after all adjustments have been recorded and posted
ANS: Adjusted trial balance
In accounting, Value-added Tax is a common transaction.
ANS: True
Bank statement is the same as a passbook account in terms of content.
ANS: True
Output tax is the tax shouldered by the buyer when purchasing the goods.
ANS: False
Only the errors of the depositor could create differences in the Cash in Bank and Current Account.
ANS: False
The balances shown in the bank statement and in the accounting records are both adjusted for any
unrecorded transactions.
ANS: False
Business transactions affects the assets, liabilities and proprietorship of the business
ANS: True
Excise Tax are taxes on property.
ANS: True
It is the most common type of Business Tax
ANS: VAT
Banks in the Philippines usually credit the depositor's account once the check is cleare~
ANS: False
Purchases, unlike sales, does not have discounts.
ANS: True
Amusement tax is under Percentage tax.
ANS: True
The depositor should prepare a bank reconciliation each month to verify that these independent set
of records are in agreement.
ANS: False
If the total assets amounts to P100,000, which is the base item, what percent is the current assets of
P20,000?
ANS: 20%
What is the effect to cash if a debit balance in the general journal is posted as credit to the general
ledger?
ANS: decrease cash
A journal contains a list of accounts with open balances in the general ledger for a given period.
ANS: False
The transactions recorded in the Cash in Bank is not reflected in the Current Account.
ANS: False
If on the base year 2016 the current assets is P300,00 and P100,00 on 2017, how much is the
increase/decrease?
Select one:
ANS: decrease by P200,000
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'.
ANS: True
BIR Form 0605 is also known as
ANS: Payment Form
The entry to record the advance collection of service revenue is?
ANS: dr cash cr unearned service revenue

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 Account is used to summarize the increases and decreases in the asset, liability and proprietorship
of the business.
ANS: True
VAT are imposed on the privilege to sell products and services.
ANS: False
It means how quickly you can get your hands on your cash.
ANS: Liquidity
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