Republic of the Philippines

Department of Education
REGION III – CENTRAL LUZON
SAN ISIDRO HIGH SCHOOL
SAN ISIDRO, BACOLOR, PAMPANGA

SECOND QUARTER EXAM

Fundamentals of Accountancy, Business, & Management 2

NAME: _______________________________________
GRADE AND SECTION: _________________________ PARENTS SIGNATURE: ________________

DIRECTIONS: Read and analyze the following questions and shade the corresponding circle in your answer sheet.
ERASURES ARE WRONG.

1. What do you call a record of the bank’s client set up by the bank?
A. Bank Statement C. Payment Slip
B. Deposit Slip D. Withdrawal Slip
2. Which instrument is used for payment of goods and services as a substitute for cash?
A. check C. payment slip
B. deposit slip D. withdrawal slip
3. What kind of account carries the convenience of withdrawing by check?
A. checking account C. savings account.
B. recurring deposit D. time deposit
4. What happens when a check was failed to be claimed after six months?
A. It becomes an investment. C. It becomes a postdated check.
B. It becomes a receivable. D. It becomes a stale check.
5. It is a generally accepted medium of financial exchange, a legal tender used to pay debts.
A. check C. note
B. money D. voucher
6. Which account provides clients with passbook for money placed in the bank for safekeeping?
A. current account C. savings account
B. recurring deposit D. time deposit
7. PDIC is an institution that insures bank deposits. What does it stand for?
A. Philippine Dangerous Income Check
B. Philippine Depository Insurance Company
C. Philippine Deposit Insurance Corporation
D. Philippine International Insurance Check
8. How many reciprocal accounts should be reconciled in a bank reconciliation?
A. 1 B. 2 C. 3 D. 4
9. Which bank document is used by clients to get money from the banks?
A. bank statement C. payment slip
B. deposit slip D. withdrawal slip
10. A cash or check deposit recorded by the company but not recorded by the bank that deposited after the cut-off.
A. Credit memo C. Deposit in transits
B. Debit memo D. NSF checks
11. Which document is used by clients to put money in the bank?
A. bank statement C. payment slip
B. deposit slip D. withdrawal slip
12. It is a statement prepared to reconcile the difference between cash book and bank balance.
A. Bank Statement C. Financial Statement
B. Bank Reconciliation Statement D. Income Statement
13. What kind of account has a fixed maturity date and higher interest rate?
A. checking account C. savings account
B. recurring deposit D. time deposit
14. Bank reconciliations statement prepared _________ to show that the cash balance per book and bank records has
no discrepancy.
A. annually C. monthly
B. daily D. quarterly
15. After all the adjustments made, what should be the result of the reciprocal accounts have?
A. different balance C. unpredicted balance
B. same balance D. zero balance
16. These are items added made by the bank but not yet recorded by the depositor.
A. Credit memo C. Deposit in transits
B. Debit memo D. NSF checks

Quarter 2 Exam: Fundamentals of Accountancy, Business, & Management 2

 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SAN ISIDRO HIGH SCHOOL
SAN ISIDRO, BACOLOR, PAMPANGA
17. Which is not a book reconciling items?
A. Bank errors C. NSF checks
B. Deposit in transits D. Outstanding checks
18. Which is not a bank reconciling items?
A. Bank errors C. NSF checks
B. Deposit in transits D. Outstanding checks
19. Which is a book reconciling items?
A. Auto debit C. Deposit in transits
B. Bank errors D. Outstanding checks
20. These are items deducted made by the bank but not yet recorded by the depositor.
A. Credit memo C. Deposit in transits
B. Debit memo D. NSF checks
21. Interest charged to the bank account
A. Add to BOOK Balance C. Deduct from BANK Balance
B. Add to BANK Balance D. Deduct from BOOK Balance
22. Mapalad Company issued a check for Ᵽ56, and it cleared the bank for Ᵽ56. However, the company recorded the
check on its cash ledger as Ᵽ66. How the difference of Ᵽ10 is to be treated on the bank reconciliation?
A. Add to BOOK Balance C. Deduct from BANK Balance
B. Add to BANK Balance D. Deduct from BOOK Balance
23. Derby Company has a ₱1,860,000 balance per book, a ₱311,000 deposit in transit, ₱53,000 outstanding checks, a
₱56,000 credit memo, and a ₱129,000 NSF check. What is the adjusted cash balance?
A. ₱1,585,000 C. ₱1,787,000
B. ₱1,722,000 D. ₱1,975,000
24. Bank mistakenly post Masipag Company's credit memo to Masigasig Company bank account.
A. Add to BOOK Balance C. Deduct from BANK Balance
B. Add to BANK Balance D. Deduct from BOOK Balance
25. The government's power to collect taxes which used to finance the different projects needed by the people.
A. Administrative Feasibility C. People Power
B. Eminent Domain D. Police Power
26. Taxation is the process by which our government raises income to pay its necessary
A. assets C. income
B. expenses D. taxes
27. The primary purpose of taxation is to provide the proper _________needed to run the government.
A. assets C. expense
B. compensation D. funding
28. If an employed salary individual only resource is compensation. Which of the following taxes is imposed on the
employee?
A. Business and Income Tax C. Excise Tax
B. Business tax D. Income tax
29. He or she is a citizen of a foreign country but resides here in the Philippines during the taxable year.
A. Non- resident alien C. Resident alien
B. Non- resident citizen D. Resident Citizen
30. He or she is a citizen of a foreign country but resides here in the Philippines during the taxable year.
A. Non- resident alien C. Resident alien
B. Non- resident citizen D. Resident Citizen
31. It is a kind of income received by employees working in different companies. It is often in the form of salaries,
bonuses, and allowances.
A. Compensation Income C. Passive Income
B. Gross Income D. Police Power
32. Bren is self-employed with a business deficit during the period. Bren will be required to pay which of the following
taxes?
A. Business and Income Tax C. Income Tax
B. Business tax D. Percentage tax
33. Simon is self-employed and has a business that gained profit during the period. Simon is subject to which of the
following taxes?
A. Business and Income Tax C. Income Tax
B. Business tax D. Value-added tax
34. A citizen of a foreign country and does not reside here in the Philippines.
A. Non- resident alien C. Resident alien
B. Non- resident citizen D. Resident Citizen
35. The following are nature of taxation EXCEPT:
A. It is inherent to sovereignty.
C. It is legislative.
B. It is can be evaded.
D. It is subject to constitutional and inherent limitations.

Quarter 2 Exam: Fundamentals of Accountancy, Business, & Management 2

 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SAN ISIDRO HIGH SCHOOL
SAN ISIDRO, BACOLOR, PAMPANGA
36. Which of the following is taxed on all income earned from sources within the Philippines and without outside the
Philippines?
A. Non- resident alien C. Resident alien
B. Non- resident citizen D. Resident Citizen
37. The following are given purposes of taxation EXCEPT:
A. to earn revenue C. to make local products more competitive
B. to discourage vices D. to promote foreign goods
38. It is the process by which the sovereign, through its law-making body, raises income to defray the necessary of
expenses of the government.
A. Taxation C. Laxative
B. Relaxation D. Risk
39. It is the government agency in charge of tax collection in the Philippines.
A. DENR C. BFAR
B. BIR D. DepEd
40. It is a general pardon of the State by intentionally overlooking the authority to impose penalties on persons guilty of
tax evasion or violation of a particular revenue or tax law.
A. Tax Pity C. Tax Amnesty
B. Tax Amnesia D. Tax Earnings
41. Which best describes Compensation Income?
A. Income derived by an employee
B. Income deriving from mixed incomes
C. Money given to parents by their children
D. Taxpayers’ income derived from business
42. VAT is an example of what kind of TAX?
A. Property tax C. Direct tax
B. Personal tax D. Indirect tax
43. Why does a person applying for a job need to accomplish BIR form 1902? It is the ____________.
A. Payment form
B. Monthly value-added Tax Declaration
C. Application for Registration for Self-Employed and mixed Income Individuals
D. Application for Registration for Individuals Earning Purely Compensation Income
44. What practice involves the use of fraudulent means to escape or lessen taxes?
A. Tax amnesty C. Tax exemption
B. Tax evasion D. Tax transformation
45. Why does the government impose tax?
A. For public purpose
B. To earn revenue for the president
C. To grow big corporations
D. For private use

46-47. If there is no tax on income up to ₱ 10,000; after that, a tax of 50% applies:
46. How much will be the tax on an income of ₱ 20,000?
A. ₱ 5,000 C. ₱ 3,000
B. ₱ 4,000 D. ₱ 2,000
47. What will be the average tax rate of the amount to be taxed?
A. 20% C. 30%
B. 25% D. 40%
48. Can the Bureau of Internal Revenue (BIR) stop its operations to help the people?
A. Yes, to lighten the loads of individuals
B. Yes because it is not helpful to the country
C. No because money collected will be used for public service.
D. No because money people rely on BIR for work
49. What is the process by which the sovereign through its law-making body, raises income to defray the expenses of
the government?
A. Consortium
B. Donation
C. Valuation
D. Taxation
50. Which of the following statements is correct?
A. Tax avoidance is illegal and is punishable by law through monetary fines and/or imprisonment.
B. Monetary fines or penalties consist of a 20% or 50% surcharge and an interest twice the legal interest rate.
C. Filing with the wrong RD0 is penalized with a 50% surcharge.
D. Unauthorized printing of BIR receipts is punishable by monetary sanction and imprisonment.

Quarter 2 Exam: Fundamentals of Accountancy, Business, & Management 2