FABM

1. It is a negotiable instrument signed by the depositor 9. A form used by the bank notifying the depositor that
ordering the bank to pay a sum of money to a person or his account cash balance is increased which may due to
entity interest earned on the depositor or collection made by
the bank in favor of the depositor.
A. Payee B. Drawer
A. Error B. Bank Debit Memo
C. Promissory Note D. Check
C. Bank Credit Memo D. Bank Serv Charge
2. Checks paid by the bank that were deducted from the
depositor's account and returned together with the 10. A form used by the bank notifying the depositor
monthly bank statement. that his account cash balance is decreased due to bank
service charge balance.
A. Crossed check B. Stale check
A. Error B. Bank Debit Memo
C. Certified check D. Cancelled check
C. Bank Credit Memo D. Bank Serv Charge
3. A check not accepted for deposit or not honored for
payment due to some defects in the check (e.g. no 11. This refer to the mistake committed by one or both
signature, with erasures, the words do not tally with the parties (the bank and the depositor)
figure, unauthorized signature/s etc.)
A. Error B. Bank Debit Memo
A. Post Dated check B. Dishonored check
C. Bank Credit Memo D. Bank Serv Charge
C. Cancelled check D. Crossed Check
4. A Check which cannot be encashed by the payee and 12. The burden of taxation should be proportionate to
can only be deposited in his account. the ability of the taxpayer to pay it.

A. Manager's check B. NSF check A. Fiscal adequacy B. Theoretical justice

C. Cancelled check D. Crossed check C. Administrative feasibility

5. These are checks issued by the depositor but not yet 13. The government should make sure that the amount
paid by the bank or presented for payment (opposite of of revenue collected is enough to shoulder its different
cancelled checks)
expenses. Proper planning and budgeting of our
A. Certified check B. Outstanding check government.

C. Cancelled check D. Traveler's check A. Fiscal adequacy B. Theoretical justice

6. This refers to the one who signs the check ordering C. Administrative feasibility
the bank to make payment.
FOR QUESTION NOS. 14-22
A. Payee B. Drawer
Given the following item in preparing the bank
C. Drawee D. Depositor
reconciliation, choose the correct procedure for each
7. These are checks issued by the depositor but not yet item: 14-22);
paid by the bank or presented for payment (opposite of
cancelled checks)  Add to cash balance per books
 Deduct from cash bal. per books
A. Stale Check B. Outstanding Check
 Add to cash balance per bank
C. Drawn Against Insufficient Fund Check  Deduct from cash bal. per Bank
D. Post Dated Check 14. NSF checks returned by bank -Deduct from cash
balance per books

15. Outstanding Checks -Deduct from cash balance

per bank
8. This is a deposit made by the depositor usually at the
end of the month, which is received by the bank but too 16. Deposit in Transit - Add to cash balance per bank
late to be included in the bank statement.
17. Bank Service Charge -Deduct from cash balance
A. Bank Credit Mero B. Bank Debit Memo
per books
C. Error D. Deposit in Transit
 FABM
18. Interest income -Add to cash balance per books
19. Withholding -Deduct from cash balance per
books
20. Bank Debit Memo -Deduct from cash balance per
books
21 Bank Credit Memo -Add to cash balance per
books
22. Bank collection of notes receivable -Add to cash
balance per books
Question Nos. 23-29, Write Taxable if the given
income is subject to tax in the Philippines and write
Exempt if the given income is not taxable in the
Philippines.
23. Income derived within the Philippines by Resident
Alien. TAXABLE
24. Income derived without the Philippines by resident
Alien. EXEMPT
25. income derived without the Philippines by Non-
resident citizen. EXEMPT
or both including gain derived from sale or exchange of
personal or real property either ordinary or capital
asset. INCOME
34. What kind of income are royalties on books,
literary works, and musical compositions? PASSIVE
INCOME
35. What kind income are winnings and prizes?
PASSIVE INCOME
36. What kind of income are salaries, bonuses, and
allowances? COMPENSATION INCOME
37. What kind of income are patents? PASSIVE
INCOME
38. According to TRAIN LAW, starting January 1,
2018 how much annual taxable income of
compensation income earners and self- employed
taxpayers are exempt from personal income tax.
₱250,000.00 & below
39. According to TRAIN LAW, starting January 1,
2018, how much 13 month pay and other benefits are
tax-exempt. ₱ 90,000.00 & below

26. Income derived within the Philippines by
nonresident citizen. TAXABLE
27. Income derived within the Philippines by Resident
Foreign Corporation. TAXABLE
40. What is the primary purpose of taxation?
 To collect revenues (tax) that will
be use by the government to pay its
expenses/projects.

28. Income derived without the Philippines by Resident

Citizen. TAXABLE

29. Income derived within the Philippines by Domestic

Corporation. TAXABLE

QUESTION NOS. 30-40. IDENTIFICATION

30. The power of the government to take private

property upon payment of just compensation, to be
used for a public purpose. EMINENT DOMAIN

31. The power of the government to collect that will be

used to finance the different projects needed by the
people. TAXATION

32. The power of the government to make laws that

will promote public health, morals, safety, and welfare
of the people: It can prohibit certain activities and
products if they feel that is detrimental to the people.
POLICE POWER

33. It refers to all earnings derived from service

rendered (labor), from capital (business or investment)