Republic of the Philippines

DEPARTMENT OF EDUCATION
National Capital Region
SCHOOLS DIVISION OFFICE, QUEZON CITY
www.depedqc.ph

FIRST SEMESTER FINAL EXAM IN

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2
S.Y. 2022-2023

DIRECTIONS: Choose and write the letter of the correct answer on your answer sheet.
1. Transactions are initially recorded in the ______________.
A. trial balance C. ledger
B. journal D. T account
2. A revenue account is ______________.
A. decreased by credits C. a normal balance of debit
B. increased by credits D. increased by debits
3. Which of the following accounts have normal debit balances?
A. assets, expenses, and revenues C. assets, owner’s drawings, and expenses
B. assets, expenses, and owner’s capital D. assets, liabilities, and owner’s drawings
4. Which of the following accounts has a normal debit balance?
A. Owner’s Capital C. Owner’s Withdrawals
B. Unearned Revenues D. Salaries Payable
5. The trial balance shows supplies of P1,350. If P350 worth of supplies is on hand at the end of the
accounting period, the adjusting entry will be ______________.
A. Supplies 350 C. Supplies 1000
Supplies Expense 350 Supplies Expense 1000
B. Supplies Expense 350 D. Supplies Expense 1000
Supplies 350 Supplies 1000
6. Atty. Patrick incurred a P25,000 salary for the last week of December 2020, which will be paid on January
2021. The adjustment on December 31, 2020, is
A. Salaries Expense 25000 C. Salaries Expense 25000
Salaries Payable 25000 Cash 25000
B. Salaries Payable 25000 D. No adjustment is needed.
Cash 25000
7. Which of the following pertains to a ledger?
A. It contains only asset and liability accounts.
B. It is a book of original entry.
C. It should show accounts in alphabetical order.
D. It is a collection of a company’s entire group of accounts.
8. These are cash items deposited in foreign countries and are denominated in different foreign currencies.
A. stale check C. foreign currency bank account
B. customer check D. savings deposit
9. These are checks issued by bank cashiers
A. cashier’s check C. savings check
B. traveler’s check D. manager’s check
10. These are checks issued by the company to suppliers and creditors and not encashed on time.
A. stale check C. foreign currency bank account
B. customer check D. savings deposit
11. These are company checks already delivered to the payee, but they cannot be encashed or deposited
because the date indicated in the check has yet to arrive.
A. stale check C. canceled check
B. undelivered check D. post-dated check
12. These are checks received from customers
A. stale check C. foreign currency bank account
B. customer check D. savings deposit
13. These are checks issued by bank managers
A. cashier’s check C. savings check
B. traveler’s check D. manager’s check
14. These checks prepared by the company will be delivered to corporate creditors or suppliers.
A. stale check C. foreign currency bank account
B. undelivered check D. savings deposit
15. Statement 1: Bank reconciliation statement is prepared to reconcile the difference between the cash book
and bank balance.
Statement 2: Bank reconciliation statement is prepared in the middle of a month.
A. true, true C. true, false
B. false, true D. false, false
16. Statement 1: Debit memos are items already added by the bank but have yet to be added by the book as
of the cut-off date.
Statement 2: Credit memos are amounts that have been deducted by the bank but have not been deducted
per book.
A. true, true C. true, false
B. false, true D. false, false
17. This is a statement issued by the bank to explain why there is a deduction in the depositor’s account.
A. bank statement C. bank debit memo
B. bank reconciliation statement D. bank credit memo
18. An internal control system where obligations by the company should be liquidated only by checks is
____________.
A. voucher system C. current account
B. check system D. outstanding check
19. Customer check deposited but later returned by the bank for having insufficient cash to cover the check is
___________.
A. certified check C. customer’s check
B. cashier’s check D. NSF check
20. Deposits made and recorded by the company in one period and recorded by the bank in the next period is
called ______________.
A. transfer bank account C. time deposit
B. deposit in transit D. deposit slip

For nos. 21-24, refer to the problem below.

ABC Company received the September Bank Statement that showed a balance of Php38,810 as of Sept.30.
Other information is as follows:
Balance per checkbook, Php38,120.00
Check Outstanding:
No. 750150 Php 438.70 No. 750159 Php 6,508.00
No. 750152 681.30 No. 750160 732.50
No. 750157 1,404.50 No. 750162 495.00
The customer’s check returned NSF, Php 680.00
September 30 deposit not recorded in the bank statement, P8,430.00
Check No. 750153 for Php 2,120.00 returned with the statement had been recorded in the books as
Php2,210
Bank service charges, Php 550.00
21. How much is the deposit in transit for the month?
A. Php 8,430.00 C. Php 10,260.00
B. Php 10,620.00 D. Php 10,602.00
22. What is the adjusted balance per book as of Sept. 30?
A. Php 47,240.00 C. Php 36,980.00
B. Php 36,890.00 D. Php 36,809.00
23. What is the adjusting entry for the customer’s check returned NSF?
A. Cash in Bank 680 C. Cash in Bank 680
Accounts Payable 680 Accounts Receivable 680
B. Accounts Payable 680 D. Accounts Receivable 680
Cash in Bank 680 Cash in Bank 680
24. What is the adjusting entry for the book error?
A. Cash in Bank 90 C. Cash in Bank 90
Accounts Payable 90 Accounts Receivable 90
B. Accounts Payable 90 D. Accounts Receivable 90
Cash in Bank 00 Cash in Bank 90
25. Under the periodic inventory system, the account debited to record the cost of merchandise purchased is
A. Merchandise Inventory C. Purchase returns and allowances
B. Purchases D. Purchase Discount
26. The following are contra accounts EXCEPT
A. Sales discount C. Purchase returns and allowances
B. Allowance for bad debts D. Sales
27. If merchandise is sold on account to a customer for P10,000, terms FOD shipping point, 1/10,n/30, and the
seller prepays the transportation costs of P500, the amount of the discount for early payment would be
____________.
A. P0 B. P50 C. P100 D. P105
28. An agreement to advertise the company next month requires ________.
A. a debit to advertising expense C. no entry
B. a credit to advertising payable D. credit to cash
29. This is prepared after making the closing entries to prove the equality of the debits and credits.
A. Adjusted Trial Balance C. Financial Statements
B. Post-Closing Trial Balance D. Accounting Equation
30. These are the accounts that must be closed every accounting period.
A. Revenues C. Owner’s Drawing
B. Expenses D. All of the above
31. Revenue account that normally has a debit balance is (are) __________.
A. Sales C. Sales Discounts
B. Sales Returns and Allowances D. both b and c
32. On October 1, 2018, Ace Company purchased P6,000 worth of goods on terms of 2/15, n/30. Goods worth
P1,000 were returned, and the account was paid on October 3. Discount received from the seller was _______
A. P100 B. P110 C. P90 D. P120
33. Income from operations is gross profit less _____________.
A. administrative expenses C. losses
B. operating expenses D. selling expense
34. The following expressions are correct, EXCEPT
A. Gross profit – Operating expenses = Net Income
B. Sales - Cost of Goods Sold – Operating Expenses = Net Income
C. Net Income + Operating Expenses = Gross Profit
D. Operating Expenses – Cost of Goods Sold = Gross Profit
35. Under a perpetual inventory system, the acquisition of merchandise for resale is debited to the _________.
A. Merchandise Inventory account C. Supplies account
B. Purchase account D. Cost of Goods Sold account
36. Sales revenue is usually considered earned when __________
A. cash is received from credit sales. C. goods have been transferred from the seller to the buyer
B. an order is received D. adjusting entries are made
37. The respective normal account balances of Sales, Sales Returns and Allowances, and Sales Discounts are
____________.
A. credit, credit, credit C. credit, debit, debit
B. debit, credit, debit D. credit, debit, credit
38 . On a classified balance sheet, merchandise inventory is classified as __________.
A. intangible asset C. a current asset
B. property, plant, and equipment D. a long-term investment
39. During the year, Rex Store purchased goods worth P150,000. There were P40,000 unsold goods at the
end of the year but old stock brought forward from last year’s purchases was P10,000. Cost of sales was
__________.
A. P140,000 C. P110,000
B. P120,000 D. P180,000
40. The journal entry to record a credit sale is ______________.
A. Cash C. Cash
Sales Service Revenue
B. Accounts Receivable D. Accounts Receivable
Service Revenue Sales
41. Taxation is the process by which our government raises income to pay its necessary; the company should
treat this as _____________.
A. taxes B. expenses C. income D. assets
42. Maria is a Filipino citizen living in the Philippines. Under taxation, she is a ___________.
A. resident alien C. non-resident alien
B. resident citizen D. non-resident citizen
43. The power of the government to collect taxes that will be used to finance the different projects needed by
the people is called _____________.
A. police power C. administrative feasibility
B. eminent domain D. people power
44. The power of our government to make laws that will promote public health, morals, safety, and welfare of
the people is called ______________.
A. police power C. administrative feasibility
B. eminent domain D. people power
45. The income generated by entrepreneurs (business) or by different professionals like lawyers, doctors, and
accountants (professional income) is called ____________.
A. compensation income C. passive income
B. business or professional income D. administrative feasibility
46. The kind of income received by employees working in different companies. This is often in the form of
salaries, bonuses, and allowances. This refers to ____________.
A. police power C. compensation income
B. passive income D. gross income
47. The power of the government to take private property, upon payment of just compensation, to be used for a
public purpose. This is called ____________.
A. police power C. administrative feasibility
B. eminent domain D. people power
48. The burden of taxation should be proportionate to the ability of the taxpayer to pay it. What principle is this?
A. administrative feasibility C. theoretical justice
B. fiscal adequacy D. none of the above
49. Johnny is a citizen of a foreign country but resides here in the Philippines during the taxable year. He is a
_________.
A. resident alien C. non-resident alien
B. resident citizen D. non-resident citizen
50. Juan is a Filipino citizen living in Malaysia. He is a ___________.
A. resident alien C. non-resident alien
B. resident citizen D. non-resident citizen