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ACCTG. 101 End - Term Examination
ACCTG. 101 End - Term Examination
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II.MULTIPLE CHOICE THEORY – Choose the best answer and write SMALL LETTER
to the answer sheet provided. ERASURES ARE NOT ALLOWED.
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11. Which of the following could be declared as stock dividend?
a. Issued and outstanding shares
b. Treasury shares
c. Subscribed but not fully paid shares
d. Retired shares
12. Which of the following prior year errors if corrected this year will decrease retained
earnings?
a. Unrecorded credits sales
b. Overpayment of accounts payable
c. Understated depreciation expense
d. Unrecorded rent income
13. Which of the following is reported in the equity section of the statement of financial
position?
a. stock dividend distributable
B. Unearned income
c. Subscription receivable within 3 months
d. Investment in stocks
14. Of the following errors, the one that will cause an inequality in the trial balance totals is
a. Failure to record a transaction
b. Recording the same transaction more than once
c. Posting a transaction to the wrong account
d. Incorrectly computing an account balance
15. The amount cash received or paid during a period is not an adequate measure of the
economic consequences of an organization’s activities because
a. Many activities may not involve the use of cash
b. Cash inflows may represent the result of activities completed in a previous
period.
c. Cash outflows may precede or follow the activities with which they are
associated
d. All of the above reasons are correct.
16. When the rent for the business firm is paid with a check.
a. Cash is decreased and Rent Expense is decreased.
b. Cash is decreased and Rent Income is increased.
c. Cash is decreased and Rent Expense is increased.
d. Cash is decreased and Accounts Payable is decreased.
17. The future economic benefits embodied in an asset may flow to the enterprise in a
number of ways. Which is the exception?
a. An asset may be used singly or in combination with other assets in the
production of goods or services to be sold by the enterprise.
b. An asset may be exchanged for other assets.
c. An asset may be distributed to the owners of the enterprise.
d. An asset may be used to convert an obligation to equity.
18. The expectation of a future payment from a customer for goods sold is
a. A prepaid expense c. An accounts receivable
b A notes receivable d. All of the above
.
19. A current asset which includes coins, currencies and bank deposits is called
a. Cash equivalents c. Accounts receivable
b Noted receivable d. Cash
.
20. To find an explanation for a transaction, one should look at the
a. Chart of accounts c. Journal
b Ledger d. Trial balance
.
21. Which of the following is not equal to the total stockholders’ equity?
a. Net assets of the corporation
b. Book value of corporation
c. Net worth of the corporation
d. Capital stock
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22. Which of the following will not require journal entry under the memo entry method?
a. Authorization of shares to be issued
b. Subscription received
c. Shared issued
d. Re acquisition of previously issued shares
23. The shares of stock available and can be purchased in the stock market is
a. Issued shares c. Treasury shares
b Outstanding shares d. Authorized shares
.
24. Which of the following dates pertaining to dividend will not require any journal
entry?
a. Date of declaration c. Date of payment
b Date of records d. Date of distribution
.
25. Upon declaration and after final distribution to stockholders, which of the following
dividends will not reduce the corporation’s assets?
a. Cash dividend c. Stock dividend
b Property dividend d. Liquidating dividend
.
26. What is the most likely effect of a stock split on?
Par value share Shares outstanding
a. Decrease Increase
b Decrease No effect
.
c. No effect Decrease
d No effect No effect
.
27. A deferred revenue should be recorded by a
a. Buyer when a service is received on payment of cash.
b. Seller when a customer pays for a service before the service is rendered.
c. Seller when a service is rendered on receipt of cash.
d. Seller when a service is rendered before receipt of cash.
28. If total credits exceed total debits in the Balance Sheet columns of a worksheet
a. A mistake as been made
b. A profit has occurred
c. A loss has occurred
d. Assets exceed liabilities
29. If the amount of profit for the current period is less than the amount of the owner’s
withdrawals, there will be a (an)
a. Decrease in the cash account
b. Increase in the owner’s Capital Account
c. Decrease in the owner’s Capital Account
d. Increase in the Cash account.
30. In the adjusted trial balance, the owner’s equity account reflects
a. The results of adjusting entries
b. The beginning-of-the-period balance
c. The increase to income and expense
d. The period ending balance.
III. Multiple choice problems: Choose the best answer and write the letter (SMALL)
in the Answer Sheet provided. ERASURES ARE NOT ALLOWED.
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price) of the merchandise to Andrade and later paid the amount due within the discount
period. The amount paid is
a. ₱4,492 b. ₱4,504 c ₱4,508 d. ₱4,704
.
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3. Sweet April Company made an adjusting entry for accrued salaries of ₱10,000 as of
December 31, 2020. Sweet April made a reversing entry on January 1, 2021. The next
payroll day will be on January 4, 2021 (including the accrued salaries of ₱10,000).
What would be the journal entry on January 4, 2021?
a. Dr. Salaries Expense 26,000
Cr Cash 26,000
b. Dr. Salaries Payable 10,000
Dr. Salaries Expense 16,000
Cr Cash 26,000
c. Dr. Salaries Expense 10,000
Cr Cash 10,000
d. Dr. Salaries Expense 16,000
Cr Cash 16,000
4. (Refer to data no. 3), what is the balance of Salaries Expense after the reversing entry
on January 1, 2021?
A. Salaries expense account has a debit balance of ₱10,000.
b. Salaries expense account has a credit balance of ₱10,000.
c. Salaries expense account has a zero balance.
d. It cannot be determined from the information given.
Item 5 through 7 is based on the following data:
Corporate data of Patricia Ong Jewelry Corporation are as follows:
Ordinary Share:
Authorized ordinary shares, 20,000 shares at ₱100 per share ₱?
Less: Unissued Ordinary shares 1,010,000
Issued Ordinary Shares ₱
Subscribed ordinary share ₱510,000
Less: Subscription Receivable 300,000 210,000
Issued and Subscribed ₱1,200,000
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a. 80 shares b. 100 shares c. 200 shares d. 300 shares
12. How much amount of Retained Earnings account will be capitalized on 10% stock
dividends declared?
a. ₱8,000 b ₱8,800 c ₱10,000 d. ₱80,000
. .
13. After the declaration of stock dividends, the total shareholders’ equity will show an
amount of:
a. ₱151,200 b. ₱152,000 c. ₱160,000 d. ₱168,000
14. Assuming that the 200 shares in the treasury will be sold at ₱105 per share, how
much amount will be credited to “Additional Paid In-Treasury Shares account”?
a. ₱-0- b. ₱1,000 c ₱20,000 d ₱21,000
. .
15. Assuming that a 20% cash dividend is declared instead of a 10% stock dividend, how
much is the amount of cash dividends payable to shareholders on record?
a. ₱16,000 b ₱17,600 c. ₱20,000 d. ₱60,000
.
16. (Refer to data no. 15), after the declaration of 20% cash dividend, how much is the
balance of the Retained Earnings account?
a. ₱20,000 b ₱60,000 c. ₱62,400 d. ₱64,000
.
17. Unearned Rental was ₱24,000 at the end of June and ₱30,000 at the end of July. Cash
received from rental for the month of July is ₱174,000. How much Rental Revenue
for the month of July?
a. ₱114,000 b. ₱162,000 c. ₱168,000 d. ₱180,000
18. Razel Lajo Corporation had purchases of ₱500,000 with a purchase discount of
₱3,000 and paid freight charges (F.O.B Destination) for the year 2021. The
merchandise inventory as of January 1, 2021 is ₱119,000. The cost of goods sold is
75% of the total goods available for sale. What is the balance of merchandise
inventory as of December 31, 2021?
a. ₱153,000 b. ₱154,000 c. ₱155,000 d. ₱155,750
19. Jezyl Manalo Corporation has incurred an insurance expense of ₱170,000 in year
2021. The beginning prepaid insurance has no balance and ending prepaid insurance
is ₱24,000. How much is the cash payments made for insurance for 2021?
a. ₱146,000 b. ₱170,000 c. ₱194,000 d. ₱-0-
20. Eula Gene Company pays commission to its sales agents at the rate of 3% of net
sales. The sales agents do not have salaries but are given monthly advance of
₱30,000. Advances are changeable to commission expense. Reconciliations of
advances and commission are made quarterly. Net sales for the year ended December
31, 2021 were ₱30,000,000. On December 31, 2021, the unadjusted balance in the
commission expense account was ₱800,000. December 2021 advances were paid on
January 5, 2022.
In its income statement for the year ended December 31, 2021, what amount should
Eula Gene report as commission expense?
a. ₱800,000 b. ₱830,000 c. ₱900,000 d. ₱930,000
21. What amount of income will be recognized for the year ending December 31, 2021?
a. ₱-0- b. ₱72,000 c ₱80,000 d. ₱96,000
.
22. What is the effect of the adjusting entry on the accounting equation?
ASSETS LIABILITIES OWNER’S EQUITY
a. Increase Increase No effect
b. No effect Increase Decrease
c. Increase No effect Increase
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d. Decrease No effect Decrease
23. What amount of cash will be collected for interest revenue in 2021?
a. ₱-0- b. ₱64,000 c ₱72,000 d. ₱80,000
.
24. What is the amount of interest receivable as of December 31, 2021?
a. ₱-0- b. ₱8,000 c ₱16,000 d ₱72,000
. .
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25. What amount of cash will be collected for interest revenue in 2022?
a. ₱-0- b. ₱16,000 c ₱24,000 d. ₱32,000
.
26. What amount of interest revenue will be recognized in 2022?
a. ₱-0- b. ₱16,000 c ₱24,000 d. ₱32,000
.
27. What is the amount of interest receivable as of December 31, 2022?
a. ₱-0- b. ₱16,000 c ₱24,000 d. ₱32,000
.
28. Assuming that the net purchases of Nomessa Corporation was ₱1,800,000 in 2021
and that ending merchandise inventory was ₱40,000 less than the beginning
merchandise inventory of ₱500,000. How much was cost of goods sold?
a. ₱1,340,000 b. ₱1,840,000 c ₱2,260,000 d ₱2,340,000
. .
29. Miyuki purchased goods totaling ₱100,000 were purchased August 2 with terms of
2/10, n/30. Returns of ₱20,000 were made on August 10. What discounts, if any, can
be availed of if the invoice was paid on August 13?
a. None b. ₱400 c ₱1,600 d. ₱2,000
.
30. Trisha Braza Corporation issued 1,000 of its ordinary share with ₱10 par for an
equipment with carrying amount of ₱11,000 and market value of ₱12,000. Trisha’s
ordinary shares was selling at ₱15 per share at the date of issuance. The amount to be
credited to Premium on Ordinary Shares should be
a. ₱1,000 b. ₱2,000 c ₱5,000 d. ₱-0-
.
-END-
ACCT. 101
END TERM EXAMINATION
1ST SEMESTER AY 2022 - 2023