LONG QUIZ - Fundamentals of Accounting, Business and Management 2

NAME: _____________________________________ DATE:____________ SCORE: __________

Select the letter of the best answer and write it besides each number.
1. Which of the following is NOT a cash item?
a. Saving account c. Cash on hand
b. Checking account d. None of the above
2. These are deposits already recorded in the company’s book balance but not
yet recorded in the bank records.
a. Deposit in transit c. Outstanding checks
b. Bank errors d. None of the above
3. These are items mistakenly recorded by the bank to the company’s account.
a. Bank error c. Bank checks
b. Book error d. None of the above
4. These are items erroneously recorded in the company’s books.
a. Bank error c. Bank deposits
b. Book error d. None of the above
5. These are deposits made by the bank to the company’s account but not yet
reflected in the company’s books.
a. Bank credits c. Bank checks
b. Bank debits d. None of the above
6. On Jan 31, Mr. Ahn deposits P100,000 in his checking account. The deposit
was reflected on Feb 2. The P100,000 is the __________.
a. Deposit in transit, beginning of the month
b. Outstanding check, beginning of the month
c. Deposits made per book
d. Checks issued per book
7. Upon checking the books, all deposits for the month amounted to P10,000,
P12,000 and P23,000, respectively. How much are the deposits made per book?
a. P46,000 b. P23,000 c. P45,000 d. P12,000
8. Checks issued on Jan 24 was paid by the bank on Feb 12. The checks cleared
on Feb 12 is called __________.
a. Outstanding check, end of the month c. Checks that should have been cleared
b. Outstanding check, beginning of the month d. Deposit in transit
9. WWW Bank recorded a P34,000 deposit as P43,000. What do you call this error?
a. Book error b. Bank error c. NSF d. Bank debit
10. Super Bank returned an NSF check and collected charge for it. What is the entry for
the bank charge for the NSF?
a. Debit: Bank charge | Credit: Cash in bank
b. Debit: Miscellaneous expense | Credit: Cash in bank
c. Debit: Accounts Receivable | Credit: Cash in bank
d. Debit: Loans Payable | Credit: Cash in bank
11. Makabayan School Supplies registered its business and applied for a loan in
Makatao Bank amounting to P2,000,000. The bank approves the loan and deposited
it in Makabayan’s checking account.
The transaction is called _______.
a. Bank Credits c. Bank Charges
b. Bank Debits d. Checking account
12. On item #6, what is the journal entry to update the books?
a. Debit: Bank charge | Credit: Cash in bank
b. Debit: Cash in bank | Credit: Accounts payable
c. Debit: Cash in bank | Credit: Loans payable
d. Debit: Miscellaneous expense | Credit: Cash in bank
13. A deposit of P67,897 is recorded in the book as P67,789. What do you call this
error?
a. Book error b. Bank error c. NSF d. Bank debit
14. On item #13, what is the journal entry to correct the cash account?
a. Debit: Cash in bank P108 | Credit: Sales P108
b. Debit: Sales P108 | Credit: Cash in bank P108
c. Debit: Cash in bank P67,897 | Credit: Sales P67,897
d. No entry
15.Malikhain Bank collects notes receivable for ABM Merchandise. The note amounted
to P55,000 and the bank charges P300 for the collection. What is the entry to update
the books? a. Debit: Bank charge P300 | Credit: Cash in bank P300
b. Debit: Cash in bank P55,000 | Credit: Notes receivable P55,000
c. Debit: Cash in bank P55,000 and Miscellaneous expense P300 |
Credit:
Notes receivable P55,300
d. Debit: Cash in bank P54,700 and Miscellaneous expense P300 |
Credit:
Notes receivable P55,000
16. It is the process by which the government, through our lawmakers raises
income to pay its necessary expenses.
a. Tax b. Taxation c. Tax due d. Taxable income
17. What is the primary purpose of taxation?
a. To impose taxation to rich people c. To fund the government projects
b. To mitigate the impending inflation d. To impose higher tax on imported goods.
18. Which of the following is the basic principle of taxation?
a. Fiscal adequacy c. Administrative feasibility
b. Theoretical justice d. All of the above
19. What are the inherent powers of the government?
a. Eminent Domain and Taxation c. Eminent Domain, Taxation and Police Power
b. Taxation and Police Power d. Taxation only
20. Which is a true about tax?
a. It is an enforced contribution. c. Tax makes people poorer.
b. Rich and poor pay same amount of tax. d. None of the above.
21. Which of the following is computed as gross income by a resident alien?
a. Compensation income from Philippines c. Business income from foreign country
b. Compensation income from foreign country d. None of the above
22. A classification of individual who is a Filipino citizen and lives or resides in another
country. a. Resident citizen c. Resident alien
b. Non-resident citizen d. Non-resident alien
23. How much is the tax equivalent and tax rate of a business with net income of P250,000.
a. 0% c. P30,000 + 25% in excess of P400,000
b. 20% in excess of P250,000 d. P130,000 + 30% in excess of P800,000
24. A non-resident citizen has the following sources of income:
Compensation income – Philippines P30,000 monthly
Business income – China P200,000
Allowable deductions – Philippines P2,000 monthly
Business expenses – China P10,000
How much is tax due?
a. P17,000 b. P17,100 c. P17,200 d. P17,300
25. In the same sources of income as above, how much is tax due of a non resident
alien not engage in trade or business?
a. P93,000 b. P152,000 c. P141,000 d. P140,000
26. It is a kind of income received by the employees working in different companies. It is
often in the form of salaries, bonuses, and allowances.
a. Police power b. Passive income c. Compensation income d. Gross income
27. A classification of individual who is a Filipino citizen and lives or resides in
the Philippines. a. Resident citizen c. Resident alien
b. Non-resident citizen d. Non-resident alien
28. It is the income generated by the entrepreneur or by professionals.
a. Compensation income c. Passive income
b. Business income d. All of the above
29. TRAIN Law is a comprehensive tax reform program signed by Pres. Rodrigo R.
Duterte on December 19, 2017. What does TRAIN means?
a. Tax Reform for Acceleration and Inclusion c. Tax Refund Activity of Individual
b. Tax Related Accounts and Inclusion d. Tax Reform for Allowed Individual
30. Which is an allowable deduction to the gross income of an individual?
a. SSS b. PhilHealth c. Pag-IBIG d. All of the above