Adventist University of the Philippines

COLLEGE OF BUSINESS
Business Cup Accounting Quiz Bee
April 26, 2019
 TIME ALLOTMENT AND POINTING SYSTEM

EASY AVERAGE DIFFICULT CLINCHER

Theory Question 20 seconds 30 seconds 30 seconds -

Word Problem 45 seconds 1 min. & 15 secs. 1 min. & 45 secs. -

Number of Items 7 5 3 -

Corresponding
Points
2 4 7 -
 Seating Arrangement
Table

Ayore, Ruffelle Mae Cayetano, Andrea Joy Fornoles, Merelle Rose Fugoso, Nimfa

Herbolario, Aaron Marv Manalo, Abimelech Maniquis, Ronna Mia Miralles, Marie Antoinette

Morada, Daryl Ann Palentinos, Pamje Anne Rae Paragas, Aira Ruzzelle Patricio, Alma Jane

Reginio, Lorry May Sariola, Erica Coreen Talam, Lena Marise Vidad, Arlene Joy
Level 1
BSA/BSAIS
EASY
Easy

1. When an item of revenue is collected and

recorded in advance, it is normally called
a. Accrued revenue
b. Unrealized revenue
c. Unearned revenue
d. Cash
Easy
2. At any balance sheet date, ordinary shares issued
would exceed ordinary shares outstanding as a result of
the

a. Payment in full of the subscribed shares

b. Declaration of a share capital dividends
c. Declaration of cash dividend
d. Purchase of treasury shares
Easy
Roxy Company provided the following information relating to accounts receivable for the
current year.
Accounts Receivable P 1,300,000
Credit sales 5,400,000
Collections from customers excluding recovery 4,750,000
Accounts written off 125,000
Collection of accounts written off in prior year
(customer credit was not reestablished) 25,000
Estimated uncollectible accounts per aging of
receivables at December 31 165,000

3. What is the balance of accounts receivable before allowance for doubtful accounts?

a. 1,825,000 c. 1,950,000
b. 1,850,000 d. 1,990,000
Easy
Manoling Company had the following account balances at December 31,
2016:
Cash in Banks P 2,250,000
Cash on Hand 125,000
Cash legally restricted for additions to plant
(expected to be disbursed in 2017) 1,600,000
Cash in banks included P 600,000 of compensating
balances against short-term borrowing arrangements.
The compensating balances are not legally restricted
as to withdrawal by Manoling.
4. In the current asset section of Manoling’s December 31, 2016 statement
of financial position, total cash should be reported at

a. 1,775,000 c. 2,375,000
b. 2,250,000 d. 3,975,000
Easy
5. All of the following may be included under the heading of
“Cash” except

a. Currency c. checking account balance

b. Money market funds d. savings account balance
Easy
6. Partner X contributed equipment to the XYZ partnership.
The equipment cost, P60,000 with accumulated depreciation
of P10,000 but had a fair value of P70,000 at the date the
partnership received it. At what amount should the
equipment be reported?

a. 70,000 c. 10,000
b. 60,000 d. 50,000
Easy
7. Prepaid expenses were not recorded on December 31,
2017. The effect of this unadjusted transaction for the
company is

a. Overstated assets and overstated capital

b. Overstated expenses and overstated capital
c. Understated assets and understated capital
d. None of the above
AVERAGE
Average
8. On June 9, Yejorym Corporation sold merchandise with a list
price of P5,000 to Gurl on account. Yejorym allowed trade
discounts of 30% and 20%. Credit terms were 2/15, n/40 and
the sale was made FOB shipping point. Yejorym prepaid P300
of delivery costs for Gurl as an accommodation. On June 25,
Yejorym received from Gurl a remittance in full payment
amounting to

a. 2,844 c. 3,100
b. 3,040 d. 3,044
Average

9. Under the accrual method of accounting, expenses

are recorded:

a. When they are paid.

b. When invoices for expense items are received.
c. When they are incurred.
d. When they are received.
Average

10. The use of reversing entries

a. is a required step in the accounting cycle.

b. changes the amounts reported in the financial
statements.
c. simplifies the recording the subsequent transactions.
d. is required for all adjusting entries.
Average
11. In preparing its August 31, 2017 bank reconciliation, Apex Corp. has
available the following information:
Balance per bank statement, 8/31/2017 P18,050
Deposit in transit, 8/31/2017 3,250
Return of customer’s check for
insufficient funds, 8/31/2017 600
Outstanding checks, 8/31/Y2 2,750
Bank service charges for August 100
At August 31, year 2, Apex’s correct cash balance is

a. 18,550 c. 17,850
b. 17,950 d. 17,550
Average
Hope Company established a P3,000 petty cash fund. The following items
were found in the fund:

Cash and currency P1,683.80

Expense vouchers 829.80
Advance to salesman 200.00
IOU from employee 300.00

12. In the entry to replenish the fund, what amount should be debited to
Cash Short or Over?
a. 500 c. 13.60
b. 300 d. 0
Difficult
Difficult
13. Honduras Company revealed a balance of P8,200,000 in the accounts receivable control account at yearend. An
analysis of accounts receivable showed the following:
Accounts known to be worthless. P100,000
Advance payment to creditors on purchase orders. 400,000
Advances to affliated entities. 1,000,000
Customers’ accounts with credit balances arising from sales returns. (600,000)
Interest receivable on bonds. 400,000
Trade accounts receivable-unassigned. 2,000,000
Subscription receivable due in 30 days. 2,200,000
Trade accounts receivable-assigned
(Finance Company’s equity in assigned accounts is P500,000) 1,500,000
Trade installment receivable due 1-18 months, including unearned finance charge of P50,000. 850,000
Trade accounts receivable from officers, due currently. 150,000
Trade accounts receivable on which postdated checks are held and no entries were
made on receipt of checks 200,000
Total 8,200,000

What amount should be reported as trade accounts receivable at yearend?

Difficult
14. Based on the following information, the causes of the discrepancies between the book credits
and bank debits are ascertained:
Book credits in May. P85,800
Bank debits in May. 97,650

• Check issued on May 29 for P5,700 erroneously

recorded in the books of the depositor as. 7,500
• Customer’s DAIF check, returned by the bank in May 2,300
• April bank service charges, taken up in the books in
May 30 Payment of VISA credit card automatically debited by
the bank on May 25, as per ADA (Automatic Debit Arrangement),
but taken up in the books of the depositor in June. 3,000
• Outstanding checks as of May 31. 4,500

How much is the outstanding checks at the beginning of the period?

Difficult
15. The statement of financial position of PPP Partnership, just before
liquidation, is as follows:
Cash 40,000 Liabilities 70,000
Non Cash Assets 140,000 Ping, Capital (60%) 50,000
Pang, Capital (20%) 50,000
Pong, Capital 10,000
TOTAL 180,000 TOTAL 180,000

If the non cash assets are sold for P150,000 and the liabilities are paid,
the remaining cash should be distributed to the Ping should be –
Clincher
Clincher
16. Bear Company purchased P500,000 of bonds at par.
Bear management has an active trading business model
for this investment. At December 31, Bear received
annual interest of P20,00, and the fair value of the
bonds was P470,400.

In Bear Company’s yearend statement of financial

position what amount will be the amount that will be
reported for the bond investment?
Clincher
17. At the beginning of 2017, Lucky Company had retained
earnings of P3,000,000. Throughout the year, the company
had 20,000 shares of P100 par value ordinary shares that are
issued and outstanding. During the year 2017, Lucky Company
reported profit of P5,000,000, purchased treasury shares for
P580,000, declared cash dividends of P1,500,000, reissued all
treasury shares at a gain of P180,000 and declared and issued
5,000 ordinary shares as bonus issue when the market value
was P150 per share.

What is the retained earnings balance at December 31, 2017?

Clincher
18. On June 1, 2018, Schrouck Company purchased debt investments at
amortized cost, P8,000 of 1,000 face value, 8% bonds of Spark
Company for P7,383,000. The bonds were purchased to yield 10%
interest. Interest is payable semiannually on December 1 and June 1.
The bonds mature on June 1, 2019, Schrouck sold the bonds for
P7,850,000. This amount includes appropriate accrued interest.
If Shrouck’s accounting year is the calendar year (ending on December
31), how much is the interest revenue for the year ended December
31, 2015?

a. P320,000 c. P371,608
b. P431,085 d. P369,150
Clincher
19. Meki, Beki, Leki decided to form a partnership and agree to divide
profits in the ratio 4:3:1. It is agreed, however, that Meki and Beki shall
guarantee fees from their own clients of P80,000 and P50,000,
respectively, that any deficiency is to be charged directly against the
account of the partner failing to meet his guarantee and that any
excess is to be credited directly to the account of the partner exceeding
his guarantee. Fees earned by the partnership during the first year of
operation were P200,000 which included fees from clients of Meki,
P95,000, and fees from clients of Beki,P40,000. Operating expenses for
the year were P100,000.

By what amount should be Meki’s capital account increase?

Clincher
20. Perez, Reyes, and Suarez were partners with capital balances
on January 2, 2018 of P100,000, P150,000, and P200,000,
respectively. Their profit and loss ratio is 5:3:2. On July 1, 2018,
Perez retires from the partnership. On the date of retirement the
partnership net income is P140,000 and the partners agreed that
inventories are to be revalued at P70,000 from its original cost of
P50,000.
The partners agreed further to pay Perez P195,000 in the
settlement of his interest.

What is the capital balance of Reyes after the retirement of Perez?