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GENERAL INSTRUCTIONS:
1. Write ALL your answers in clear and legible CAPITAL LETTERS.
2. Avoid copying the answer of your seatmate.
3. Do not cheat. Anyone caught cheating will be automatically given a 5.0 in the final term
exam.
4. Provide only what is asked. Do not write anything on the paper, unless required.
5. Wrong spelling is considered wrong.
I hereby affix my signature as a sign of adherence to the above-mentioned general instructions.
____________________________
SIGNATURE OVER PRINTED NAME
Date: _______________________
I.
TRUE or FALSE. Write VEN if the statement is true, otherwise write PARSNIP.
1. Revenue is equal to the cash received by a company during an accounting
period.
2. Applying accrual accounting results in a more accurate measurement of profit
for the period than does the cash basis of accounting.
4. A deferral is the recognition of an expense that has arisen but has not yet been
recorded.
5. An adjusting entry includes at least one balance sheet account and at least one
income statement account.
7. When a reduction in prepaid insurance is not properly recorded, this causes the
asset accounts and expense accounts to be understated.
9. The amount of accrued revenues is recorded by debiting an asset account and
crediting an income account.
11.The adjusting entry to recognize earned commission revenues not previously
recorded or billed will cause total assets to increase.
13.The adjusting entry to recognize an expense which is unrecorded and unpaid will
cause total assets to increase.
15.Business activities are said to be accountable when they affect the accounting
elements.
16.Omission in posting in either debit or credit entry in the journal will affect the
total of a trial
balance.
II. Classify each item as Asset, Liability, Owners Equity, Revenue, or Expenses. Write your answer
before the number.
11.Prepaid Insurance
16.Accrued Rent Expense
12.Furniture and Fixtures
17.Prepaid Insurance
13.Bonds Payable
18.Unearned Service
Revenues
14.Retained Earnings
19.Service Revenue
15.Accrued Rent Income
20.Salaries and Wages
III. MULTIPLE CHOICE. Write the letter of your answer before the number.
For questions 21 to 23, use the following data.
Brytko Diri made the following investment:
Cash
Equipment
TOTAL
P90,000
100,000
P190,000
At the end of the month, the total income earned and total expenses incurred and paid by
the business were P70,000 and P40,000 respectively. If all income and expenses are all
accounted for cash and there is no liability incurred, answer the following questions:
Use the following information to answer questions 19 to 23 below. The trial balance
for
Matt Damon Company appears as
follows:
Matt Damon Company
Trial Balance
December 31, 2016
Cash
Accounts Receivable
Prepaid
Insurance
Suppli
es
Office
Equipment
Accumulated
Depreciation
Accounts
Payable
Damon,
Company
Service
Revenue
Salaries
Expense
Rent Expense
P20,00
0
50,000
5,000
15,000
40,000
P20,00
0
30,000
60,000
50,000
10,000
20,000
P160,
000
P160,
000
39. If on December 31, 2016, supplies on hand were P2,000, the adjusting entry
would contain
a. debit to supplies for P2,000
b. credit to supplies for P2,000
c. debit to supplies for
P13,000
d. Debit to supplies expense for
P13,000
40. If on December 31, 2016, the unexpired insurance amounted to P2,000, the
adjusting
entry would contain a
a. debit to prepaid insurance for
P3,000
b. credit to prepaid insurance for
P3,000
c. debit to insurance expense for
P2,000
d. credit to prepaid insurance for
P2,000
41. If the estimated depreciation for the office equipment were P20,000, the
adjusting
entry would contain a
a. credit to Accumulated Depreciation for
P20,000
b. credit to Depreciation Expense for P20,000
c. debit to Accumulated Depreciation for
P20,000
d. credit to office Equipment for
P20,000
42. If as of December 31, 2016, the rent of P10,000 for December had not
been
recorded or paid, the adjusting entry would include a
a. credit to Accumulated Rent for
P10,000
b. debit to Rent Payable for P10,000
c. debit to Rent Expense for P10,000
d. credit to Cash for P10,000
43. If services totaling P12,500 had been performed but not yet billed, the adjusting
entry to record this would include a
a. debit to Service Revenues for
P12,500
b. debit to Unearned Service Revenues for
P12,500
c. credit to Service Revenues for
P62,500
d. credit to Service Revenues for
P12,500
44. Wages Payable were P3,500 at the end of September and P2,00 at the end of
October.
Wages Expense for October was P18,000. How much cash was paid for
wages
during October?
a. P18,700
c. P17,300
b. P24,100
d. P11,700
45. Unearned Revenue was P6,000 at the end of February and P7,500 at the end of
October.
Wages Expense for October was P18,000. How much cash was received for
services
provided during March?
a. P2,400
c. P17,400
b. P14,400
d. P5,400
46. If the business is not being sold or closed, the amounts reported in the
accounts
for assets used in the business operations are based on the cost of the
assets.
This practice is justified by
c. Going
a. Accrual
Period
b. Time-period
d. Accounting Period
47. It is the quality of the information that assures readers that the
information is
free from bias or error and faithfully represents what it purports to show.
a. Relevance
b. Reliability
c. Understandability
d.
Comparability
Use the following information to answer the questions below. The following
is the trial balance of CENBSIT3 Company:
CENBSIT3 Company
Trial Balance
January 31, 2016
Cash
Accounts Receivable
Art Supplies
Office Supplies
Prepaid Rent
Prepaid Insurance
Art Equipment
Office Equipment
Accounts Payable
CENBSIT3, Capital
CENBSIT3, Withdrawals
Advertising Revenues
Wages Expense
Utilities Expense
Telephone Expense
P30,000
20,000
30,000
50,000
70,000
50,000
50,000
30,000
P50,000
150,000
?
?
?
50,000
30,000
A
61. If the balance of the CENBSIT3, Withdrawals account were P120,000 and the
balance of the Wages Expense account was P50,000, what would be
the amount of B?
a. P180,000
c. P370,000
b. P580,000
d. P380,000
62. If the trial balance showed a balance of P70,000 in the CENBSIT3, Withdrawals
account and a balance of P50,000 in the Wages Expense account, what would
be the amount of Advertising Revenues for the period?
a. P330,000
c. P180,000
b. P480,000
d. P430,000
63. In the trial balance, total assets equal
a. P330,000
c. P430,000
b. P230,000
d. P410,000
64. If the trial balance showed a balance of P40,000 in the Wages Expense
account
and a balance of P300,000 in the Advertising Revenues account, what would be
the amount of the CENBSIT3, Withdrawals account?
a. P250,000
c. P140,000
b. P190,00
d. P50,000
65.How much is the working capital (Current Asset less Current Liabilities)?
Provide the answer only.
The assets, liabilities, and owners equity of Newt Scamander who operates a Witchcraft
and Sorcery Academy (WS&A) are expressed in the equation form below. Scamander completed
the following transactions: (Complete the table by filling the amount in its appropriate column.)
ASSETS
Cash
+ Suppli
es
+ Land
LIABILI
OE
TIES
= Accounts + Scamand
Payable
er,
Capital
Prepared by:
ERWIN DAVE DAHAO, CPA