Philippke School of'Businxs A&ninistration - Manila

Final Departmental Exarnination

Accounting I $ummer 2009

. PART -

I.

MUL'TIPLE c_HoICE - select the best answer and write the conespoudiqg CAPITAL LET'TER ort the answer sheet provicled, STRtrCTLY NO'iRa.SttngS

t.

Tlte account that appears in the chart of accounts for a merchandising entity but not for a service entity is A. accounts receivable C, sales rcturns & allowancei B. ac{verlising expense f). accumulated depreciation When a sbller of nrercirandise allorved a custorncr a iecluction tiorn the original price for dsfective goods, the seller rvill issue to the customer a. A. ciebit nternorandum C, sales inrrsiot B. credit memorandum D. ofticial receipt

2.

h
3.

k
4.
.,n I

MDR'Co" uses the. gyoss methgcl of ry9grding purchases and the periodic inventory s{slem. MPR irought nrerchanrlise for P8,000 6r*r Zllo, n/30, p;,il6 of the goods to thc vendor, the entry to record the retum should inclucle a A. debit to accounrs payal:le oip2,OO0 B. debit to discount iosr.of p40 C. credit 'ro purchase rer.rm and allowance of p I .960 D. delit to pr:rchase return and allorlrance of pt,9O0

fiftrbn,il*,

'employeci by a particular business firm or not-for,profit organization,. llountants as chief acccuntant, controller , or. a nnun.i"] lrice presiaent, are said to be -pdup*- in -engaged

D
5.

A.

general accounting public B. acccrunting

I

C.

indeprsaclent accounting

D. private accounting

W,i&gj*.folltrwing r,vili not enhance reiiability of financial information?

*4. Ialtntul representation C. understandabilityz

B.

prudence

.:i'vlvr'vsr

D. completerles.s

6.

A
7.
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when an entiti pays ernproyees for their sprvic.es. the effect is an i,crease in A,. C. ihcorne

B.

as.,,ets

expenses

D. ti;biilii.,

When an entity rer:eives gElE for services perfclrrned,

[ _p

'

ltr owner's equity is increased !. C. the

D. tothl

E.

owncrrs equity is decreased assets relnain unchanged none ofthe above

Pose I of