Beruflich Dokumente
Kultur Dokumente
Department of Education
Region III- Central Luzon
Schools Division of Tarlac Province
TARLAC NATIONAL HIGH SHOOL
SENIOR HIGH SCHOOL
Macabulos Drive, San Roque, Tarlac City
_________1) A device for organizing all the data needed at the end of the period to prepare financial statements and to make entries to
adjust and close the accounts.
a) Worksheet b) Journal c) Ledger d) Income Statement e) Balance Sheet
_________3) A means of accumulating in one place all the information about changes in an asset, liability, equity, income and expense
accounts.
a) Worksheet b) Journal c) Ledger d) Income Statement e) Balance Sheet
_________4) Contains the results of the company’s operations for a specific period of time called net income if it is a net positive result and a
net loss if it is a net negative result. .
a) Worksheet b) Journal c) Ledger d) Income Statement e) Balance Sheet
_________5) This statement includes the amounts of the company’s total assets, liabilities, and owner’s equity which in totality provides the
condition of the company on a specific date.
a) Worksheet b) Journal c) Ledger d) Income Statement e) Balance Sheet
_________6) Revenue earned during the current accounting period but not yet recorded or billed, which requires an adjusting entry at the
end of the period.
a) Unrecorded revenue b) Unearned revenue c) Prepaid expenses d) Journal entry e) Adjusting entries
_________7) A balance sheet category used for reporting advance payments of such items as insurance, rent, and office supplies.
a) Unrecorded revenue b) Unearned revenue c) Prepaid expenses d) Journal entry e) Adjusting entries
_________8) Entries made at the end of the period to achieve the goals of accrual accounting by recording revenue when it is earned and by
recording expenses when the related goods and services are used.
a) Unrecorded revenue b) Unearned revenue c) Prepaid expenses d) Journal entry e) Adjusting entries
_________9) A type of account credited when customers pay in advance for services to be rendered in the future.
a) Unrecorded revenue b) Unearned revenue c) Prepaid expenses d) Journal entry e) Adjusting entries
_________10) It is a tool for analyzing and describing the impact of various transactions upon a business entity.
a) Unrecorded revenue b) Unearned revenue c) Prepaid expenses d) Journal entry e) Adjusting entries
_________11) The CPA firm auditing Euler’s Company found that owner’s equity was understated and liabilities were overstated. Which of
the following errors could have been the cause?
a) Making the adjusting entry for depreciation expense twice.
b) Failure to record depreciation expense.
c) Failure to record the earned portion of fees received in advance.
d) Failure to make the adjusting entry to record revenue which had been earned but not yet billed to cutomers.
e) Failure to record interest accrued on a note payable.
_________12) Before month-end adjustments are made, the January 31 Trial Balance of Descartes Company contains revenue of P9,300 and
expenses of P5,780. Adjustments are necessary for the following items:
--- portion of prepaid rent applicable to January, P900
--- depreciation for January, P480
--- portion of fees collected in advance earned in January, P1,100
--- fees earned in January not yet billed to customers, P650
Net income in Descartes Company’s January income statement is:
a) P3,240 b) P3,520 c) P3,890 d) P4,790 e) P5,690
1
_________14) The objective of financial statements is
a) To summarize cash receipts and cash payments.
b) To provide information that can be used in evaluating management performance.
c) To support the application of a bank loan.
d) To provide information about financial position, performance and cash flows of an enterprise that is useful to a wide range of
users in making economic decisions.
e) a, b, c and d.
_________15) Total assets amounted to P575,000. Total equity amounted to P250,000. Accounts Payable amounted to P50,000 while
Unearned Revenue totaled P85,000. Assuming there are no other current liabilities, compute for the company’s noncurrent
liabilities.
a) P440,000 b) P325,000 c) P275,000 d) P240,000 e) P190,000
_________17) The procedures for transferring the balances of the Revenue, Expense, Income Summary, and Owner’s Drawing accounts into
the Owner’s Capital account.
a) Accrual basis of accounting c) Adjusting entries e) Journalizing
b) Cash basis accounting d) Closing entries
_________18) The generally accepted accounting principle used in determining when to recognize revenue.
a) Accrual basis of accounting c) Matching principle e) a and d
b) Cash basis accounting d) Realization principle
_________19) Recognizing revenue when it is earned and expenses when the related goods or services are used in the effort to obtain
revenue.
a) Accrual basis of accounting c) Matching principle e) a and d
b) Cash basis accounting d) Realization principle
_________20) The systematic allocation of the long-lived asset, such as building or equipment, to expense over the
useful life of the asset.
a) Depreciation c) Matching principle e) a and b
b) Unrecorded expense d) Realization principle
_________22) In the Philippines, the common practice is to present in the balance sheet
a) Current assets before noncurrent assets, current liabilities before noncurrent liabilities, and equity after liabilities.
b) Noncurrent assets before current assets, noncurrent liabilities before current liabilities, and equity after liabilities.
c) Current assets before noncurrent assets, noncurrent liabilities before current liabilities, and equity after liabilities.
d) Noncurrent assets before current assets, current liabilities before noncurrent liabilities, and equity after liabilities.
e) Either a and c
For items 24 - 30
Pertinent accounts gathered from the records of AGH Company for the year 2016 are given below:
Purchases P 2,250,000.00
Purchase returns and allowances 250,000.00
Purchase discount 5,000.00
Freight-In 50,000.00
Service revenue 150,000.00
Salesmen's commission 45,000.00
Depreciation-Office equipment 5,000.00
Depreciation-Office building 10,000.00
Inventory, Beginning January 1 1,500,000.00
Inventory, Ending December 31 1,000,000.00
Sales 6,850,000.00
Sales returns and allowances 150,000.00
Sales discount 50,000.00
Officer's salaries 350,000.00
Advertising expense 1,000,000.00
Interest expense 50,000.00
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_________24) The amount of NET SALES is
a) P6,700,000 b) P6,650,000 c) P6,560,000 d) P5,660,000 e) P5,060,000
For items 31 - 50
Village Theater closes its accounts each month. At July 31, the trial balance and other information given below were available
for adjusting and closing the accounts.
VILLAGE THEATER
Trial Balance
July 31, 20xx
Cash P 20,000.00
Prepaid film rental 31,200.00
Land 80,000.00
Building 168,000.00
Accumulated depreciation-building P 10,500.00
Projection equipment 36,000.00
Accumulated depreciation-projection equipment 3,000.00
Notes payable 190,000.00
Accounts payable 4,400.00
Unearned admissions revenue (YMCA) 1,000.00
Li Strong, capital 103,400.00
Li Strong, drawing 3,500.00
Admissions revenue 36,900.00
Salaries expense 8,700.00
Light and power expense 1,800.00
TOTAL>>> P 349,200.00 P 349,200.00
Other data:
a) Film rental expense for July amounts to P21,050. However, the film rental expense for several months had been
paid in advance.
b) The building is being depreciated over a period of 20 years (240 months).
c) The projection equipment is being depreciated over 5 years (60 months).
d) At July 31, accrued interest payable on the note payable amounts to P1,650. No entry has yet been made to record
interest expense for the month of July.
e) Village Theater allows the local YMCA to bring children attending summer camp to the movies on any weekday
afternoon for a fixed fee of P500 per month. On May 28, the YMCA made a P1,500 advance payment covering the
months of June, July, and August.
f) Village Theater receives a percentage of the revenue earned by Tastie Corporation, the concessionaire operating
the snack bar. For snack bar sales in July, Tastie owes Village Theater P2,250, payable on August 10. No entry has
yet been made to record this revenue. (Credit Concessions Revenue)
g) Salaries earned by employees but not recorded or paid as of July 31 amount to P1,500. No entry has yet been made
to record this liability and expense.
_________32) The amount of Depreciation expense – Building to be recorded for the month of July is
a) P8,400 b) P7,200 c) P2,800 d) P700 e) P600
3
_________33) The amount Depreciation expense – Projection equipment to be recorded for the month of July is
a) P8,400 b) P7,200 c) P2,800 d) P700 e) P600
_________36) The balance of Salaries payable for the month of July after adjustment is
a) P2,500 b) P2,250 c) P1,500 d) P1,000 e) P500
_________37) The balance of Unearned admissions revenue for the month of July after adjustment is
a) P2,500 b) P2,250 c) P1,500 d) P1,000 e) P500
_________38) The balance of Concessions revenue for the month of July after adjustment is
a) P2,500 b) P2,250 c) P1,500 d) P1,000 e) P500
_________39) The balance of Admissions revenue for the month of July after adjustment is
a) P37,500 b) P37,400 c) P36,900 d) P36,400 e) P36,000
_________40) The amount of Total revenues for the month of July before closing entries is
a) P40,000 b) P39,650 c) P38,400 d) P37,400 e) P36,000
_________41) The amount of Total expenses for the month of July before closing entries is
a) P40,000 b) P39,650 c) P38,400 d) P37,400 e) P36,000
_________46) The amount of the Income Summary account after closing entries is
a) P3,850 b) P3,750 c) P3,650 d) P3,550 e) P0.00
For items 48 - 50
Prepare the Financial Statements of Village Theater after closing its accounts at the end of the month, July 31.
48) Statement of Financial Position (SFP)
49) Statement of Comprehensive Income (SCI)
50) Statement of Cash Flows (SCF)