OSMENA COLLEGES OSMENA ST.

Masbate City ELEMENTARY DEPARTMENT FIRST PERIODIC TEST

I. MULTIPLE CHOICE Directions: Encircle the letter that corresponds to the best answer. 1. Adjusting entries are necessary. A. To measure properly the income for the period B. To update the balances of asset accounts C. To update the balances of hability accounts D. All the above 2. Which of the following is distinguishing characteristic of a contra account? A. It always has a credit balance B. Its normal balance matches that of its companion account C. It always increases the balance of its companion account D. It always decrease the balance of its companion account 3. The carrying amount (book value) of an item of property, plant and equipment is determined by_____ A. Deducting depreciation expense during the period from the original balance of the asset account B. Adding the contra account balance to the original balance of the asset accounts C. Deducting the contra account balance from the original balance of the asset account D. An independent appraiser 4. Recording the expiration of a prepaid expense that was originally recorded in an asset accounts would require_____ A. A debit to the appropriate asset accounts B. A debit to the appropriate expense account C. A credit to cash D. A credit to accounts payable 5. An adjusting entry for unearned revenue is required because_____

A. Cash is received before the revenue is earned B. Cash is received after the revenue is earned C. Cash is received as revenue is earned D. non-cash consideration is received as revenue is earned 6. An adjusting entry for accrued expense is required because_____ A. Cash is paid before the expense is incurred B. Cash is paid after the expense is incurred C. Cash is paid as the expense is incurred D. Office supplies were acquired on account 7. An entry requiring debit to an expense account and a credit to an asset account is an example of an adjusting entry classified as_____ A. Accrued expense B. Depreciation C. Prepaid expense D. Uncollectible accounts 8. The post-closing trial balance is prepared_____ A. After preparing the financial statements B. After completing the work sheet C. After preparing the closing entries D. At any time in the accounting cycle 9. Depreciation is the process of_____ A. Saving money to purchase new assets B. Systematically allocating the cost of plant assets over their useful life C. Systematically recording the current market value plant assets D. Recording the physical deterioration of plan assets 10. Which of the following account would not be used in an adjusting entry? A. Accounts receivable B. Accumulated depreciation C. Interest expense D. Salaries payable II. TRUE-FALSE Directions: Write the letter T if the statement is true and letter F if the statement is false _____1. Accounting is the service activity whose function is to provide quantitative

Information about economic entities. _____2. The records used for the initial classifying and recording of business transactionare journals. _____3. Information recorded in the journal is transferred to appropriate accounts in the ledger by a process known as posting. _____4. Special journals are used to record unusual and infuequent transaction. _____5. The preparation of work sheet eliminates the need to journalize and post adjusting entries. _____6. The accounting process consists of the recording phase and the summarizing phase. _____7. The purpose of the trial balance is to reconale subsidiary ledger balance withgeneral ledger balance. _____8. Accumulated depreciation is an example of an adjunct account. _____9. The general ledger includes all accounts appearing in the financial statement, while subsidiary ledgers provide details in support of certain general ledger balances. _____10. Entering a debit balance in an account as a credit will cause the trial balance to be out of balance by an amount that is divisible by?

III. SHORT ANSWER/FILL IN THE BLANKS Directions: Fill in the blanks with the appropriate coordinators. Write your answer on the space provided. _____1. Come with us_____enjoy the sights. _____2. Shall we go ahead_____shall we wait for them? _____3. Some like to be alone_____others like to be with friends. _____4.Those flowers are beautiful _____ you are not allowed to pick them. _____5. Mother nature is generous _____ man should be grateful. . _____6. Illegal loggers have been warned _____ they continue violating the law.

_____7. The sea breeze is medicinal _____ he is advised to go to the seaside often. _____8.There are trees in our school grounds _____ move bird songs are heard here. _____9. Miss Barreto is a psychologist _____ she cares a lot about our environment. _____10. Our farmers should not use too much pestecides _____ many will die from poisoning. IV. MATCHING TYPE Directions: Write letter that corresponds to the best answer. Column A _____1. The end products of the accounting process. _____2.Expenses already incurred but not yet paid and recorded at the end of the accounting period. _____3. An account with credit balance which Is deducted from an asset account. _____4. Systematic allocation of cost of an item of property, plant and equipment over periods benefited by the use of the asset. _____5.An entry on the right side of an account. enterprises _____6. Economic entities organized for frofit. documents _____7. The original source materials evidencing business transaction. _____8. Span of time covered by the income statement.account _____9. Merchandise inventory beginning plus purchase.available for sale _____10. Journals designed in a tabular fashion to accommodate the the recording of specific types of similar transactions. Column B A. Accounting period

B.Accrued expenses

C. Adjunct account

D. Book value

E. Business

F. Business

G. Closing entries

H. Contra asset

I. Cost of goods

J. Cost of goods sold

K. Credit L. Debit M. Deferral

V. ESSAY Direction: Answer the following question. A. Discuss the closing entries in a partnership and differentiate them from the closing in a sole proprietorship. (5pts) ________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ___________________________________________________

B. Identify and discuss the different methods and rules of dividing partnership profits and losses among partners. (5pts)

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Prepared by GLENDEL-LOU DAVID Teacher