ROUND 1

Q1. It shows the number of a Journal where entries are taken.

Folio / posting reference

Q2. What do you call the listing of all accounts used in recording the economic
activities of the business?
Chart of Accounts

Q3. The value of peso remains steady regardless of inflation rates.

Unit of measure

Q4. The skeleton form of a ledger.

T- Account

Q5. The process of adding each of the two amount columns of an account or item in
the general ledger and finding their balances thereof.
Footing

Q6. This is an income that is already collected but not yet earned.
Pre-collected Income

Q7. Retirement of assets because of wear and tear.

Physical Depreciation

Q8. (T/F) If depreciation expense is not recorded or understated, Profit is understated.

F / Overstated

Q9. On July. 31, 20A, Metro Davao Commercial acquired air conditioning unit for office
use costing P80,000. Freight paid was P5,000 and cost of installation was P15,000.
The estimated useful life is 5 years and a residual value of P10,000. What will be the
adjusting entry on Dec. 31, 20A?
Dr. Depreciation Expense P7,500
Cr. Accumulated Depreciation P7,500

Q10. This is the deposit made by the depositor which did not appear in the deposit
column of the bank statement.
Deposit in Transit

Q11. ________ is the ability of cash over the longer-term to meet maturing obligations.
Solvency

Q12. A man earns P3000 in his present job and receives an offer for P4000 from
another firm. He resigns from his current job and takes up the offer for P4000. From
the man’s point of view, what is his opportunity cost?
P3000 (Reminder: Opportunity cost is the next best foregone alternative.)

Q13. What is another name for outstanding expenses?

Accruals
Q14. A business has the following items in it:
-Land P1,000,000
-Machinery P20,000
-Debt P15,000
-CashP10,000
-Owner’s Equity ____?

What is the value of the owner’s Equity?

P1,015,000

Q15. On October 1, 20A, Cordillera Realty Co. collected P12,000 from a tenant
representing an advance collection from building rental for one year. The accounting
period ends on December 31, 20A. What is the adjusting entry using liability method?
Dr. Unearned Rent Income P3,000
Cr. Rent Income P3,000

Round 2

Q1. Under this method, uncollectible account is being recognized in anticipation that
“what if the whole amount of Accounts Receivable cannot be collected?
Times Up!
CA: Allowance Method

Q2. Assume:
The business has a computer which it acquired a year ago. Per record, the
acquisition cost was P35,000 and its accumulated depreciation was P7,000 as of
the date of sale. The computer was sold for P30,000. How much is the gain on
disposal of office equipment?
Times Up!
CA: P2,000
Sol’n: P30,000 - (P35,000-P7,000)

Q3. It is a measurement of enterprise’s efficiency in using its assets to earn profit.

Times Up!
CA: Rate of Return on Total Assets

Q4. A machine is acquired on account costing P100,000. If paid within 20 days from
date of purchase, a 10% discount can be availed. Assuming that the business incurs
incidental costs of P20,000. At this point, how much is the depreciable value of the
machine?
Times Up!
CA: P110,000
Sol’n: P100,000 - 10% discount = P90,000 + P20,000 = P110,000

Q5. It is a measurement that will answer how long can the enterprise survive.
Times Up!
CA: Solvency Ratio or Stability Ratio
Q6. This is only an accounting assumption which is not true in real situation.
Times Up!
CA: Business Entity concept or separate-entity assumption or Economic
Entity

Q7. Define/Describe Accounting in the world of business in one (1) word that start with
letter L.
Times Up!
CA: Language
Remember: Accounting is considered the LANGUAGE OF BUSINESS.

Q8. Locating errors in the trial balance: If the amount of difference is 9 or a multiple of
9, the orders of figures written are reversed. This error is called____.
Times Up!
CA: Transposition error

Q9. It is prepared for the following reasons: (1) to bring records or balances of
accounts updated, (2) to properly match revenues against expenses during the period.
Times Up!
CA: Adjusting Entries

Q10. An account which contains nominal and real accounts.

Times Up!
CA: Mixed Account

Let us assume the following data:

Accounts Receivable, Jan. 1 - P30,000
Accounts Receivable, Dec. 31 - P10,000
Cash Sales - P50,000
Credit Sales - P160,000

Q11. Get the ACCOUNTS RECEIVABLE TURN-OVER.

Times Up!
CA: 8 times
Sol’n: P160,000÷｛(P30,000+P10,000)÷2｝= 8 times

Q12. (T/F) Failure to record Accrued Income will overstate assets in the statement of
financial position.
Times Up!
CA: False / understate

Q13. The name of the customer written-off must be transferred to dead accounts
ledger.
Times Up!
CA: True

Q14. On September 1, 20A, Maria Theresa C. Apostol, owner of Cateel Fitness Centre
paid an advance rental on a space building it occupies in the amount of P84,000. This
covers the period from Sept. 1, 20A to Sept. 1, 20B. If Real Approach is used in
recording the prepayment, what is your adjusting journal entry on December 31, 20A?
Times Up!
CA: Dr. Rent Expense P28,000
Cr. Prepaid Rent P28,000
Q15. What is the account title for income earned by the business which is not the main
line of its activity and could not be clearly classified?
Times Up!
CA: Miscellaneous Income

Round 3

Q1. The allowance for Bad debts has a P10,000 starting balance. P3,000 worth of
receivables was recovered during the year. Bad debts expense amounted to P15,000.
Accounts receivable at year end is P670,000 and its net realizable value is P662,000.
What is the amount of receivables written off during the year?
Times Up!
CA: P20,000.00
Sol’n: [(10,000 + 3,000 + 15,000) – (670,000 – 662,000)]

Q2. An equipment was purchased on Jan. 1, 2008 for P600,000 less a 10% trade
discount. The company paid freight of P5,000 and insurance of P10,000 to transport
the equipment to its place. It also paid P16,000 for the yearly insurance of the
equipment. It was to be depreciated for P50,000 a year. What was the cost price of the
equipment as of Jan. 1, 2008?
Times Up!
CA: P571,000.00
Sol’n: [600,000 - (600,000 x 0.1) + 5,000 + 10,000 + 16,000]

Q3. Mendez Company received P96,000 on April 1, 2020 for one year's rent in
advance and recorded the transaction with a credit to a nominal account. The balance
of Unearned revenue at the end of Dec. 31, 2020 is?
Times Up!
CA: P24,000.00
Sol’n: P96,000 x 3/12 = P24,000.00

Q4. The Prepaid Insurance account of Mabuhay Company was decreased by 4,500. It
also recognized 6,750 insurance expense during the current year after all adjustments
were made. How much cash was paid for the insurance during the year?
Times Up!
CA: P2,250.00

Q5. The following information pertains to Ash Co., which prepares its statement of cash
flows using the indirect method: Interest payable at beginning of year P15,000 Interest
expense during the year 20,000 Interest payable at end of year 5,000 What amount of
interest was paid by Ash during the year?
Times Up!
CA: P30,000.00
Q6. Money Company started business at the beginning of the current year. The entity
established an allowance for doubtful accounts estimated at 5% of credit sales. During
the year, the entity wrote off P50,000 of uncollectible accounts.
Further analysis showed that merchandise purchased amounted to P9,000,000 and
ending merchandise inventory was P1,500,000. Goods were sold at 40% above cost.
The total sales is 80% sales on account and 20% cash sales. Total collections from
customers, including cash sales, amounted to P6,000,000. What is the net amount of
accounts receivables?
Times Up!
CA: P14.3M

Q7. In today's market, suppliers are willing to sell 59 pieces of Product A if bought at
P3 per unit while 99 pieces at P8. Consumers are willing to buy 96 pieces if sold at P2
per unit while 82 pieces at P9. What is the equilibrium price and demand/supply at
equilibrium price?
Times Up!
CA: P5.00 and 75 pieces

Q8. Aron purchased merchandise on credit from Aeron for Php. 80,000 list price,
subject to a trade discount of 30%. The goods were purchased on terms of 2/10, n/30,
FOB Shipping Pt. Aeron paid Php. 3,500 transportation costs. Aron returned Php.
10,000 (list price) of the merchandise to Aeron and later paid the amount due within
the discount period.

The amount paid is _______

Times Up!
✔Correct Answer: 51,520

Q9.

2020
April 4 ---
Mary purchased merchandise on account with a list price of Php. 220,000 subject to
trade discount series of 10%, 8% and 5%, respectively.

Terms: 2/10, n/30, FOB Destination, Freight Collect.

Freight costs amounted to Php. 5,000.

April 8 ---
returns, at invoice price of Php. 23,052.

April 13 ----payment

Journalize the payment on April 13 using the periodic inventory system

Times Up!
✔Correct Answer:
Dr. Accounts Pay------145K
Cr. Purchases Discount--3K
Cr. Cash --------------------142K
Q10. A sale on February 25, 2020 with terms 3/15, n/30 is due to be collected on
___________

Times Up!
✔Correct Answer: March 26, 2020

Q11. On February 1,2020, Jessica sold merchandise on credit to Jessamae amounting

to Php. 200,000. Terms: 2/10, n/30, FOB Destination.

On February 3, Jessamae paid freight amounting to Php. 5,000.

Journalize the transaction on February 3 using periodic inventory system

Times Up!
✔Correct Answer:
Dr. Freight Out ------5K
Cr. Accounts Receivable---5K

Q12.

Merchandise Inventory,
Beginning ----------------350,000
Freight In --------------------41,500
Freight Out ------------------30,800
Purchases -------------------500,000
Purchases Returns--------50,000
Purchases Discounts----45,000
Merchandise Inventory,
Ending-----------------------275,000

Compute the Cost of Goods Sold ________

Times Up!
✔Correct Answer: P521,500

Q13. If the beginning and ending inventories are overstated by 20,000 and 30,000,
respectively, what would be the net effect on income?

Indicate whether the net effect is overstated or understated

Times Up!
✔Correct Answer: P10,000 overstated