CARMEN A. MUTIA 507-Financial-Management-Midterm-Exam

BOHOL ISLAND STATE UNIVERSITY
Candijay Campus
Instruction Office
Vision: A premier Science and Technology university for the formation of world class and virtuous human resource for sustainable
development in Bohol and the country.
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the professional and technological
fields; undertake research and development and extension services for the sustainable development of Bohol and the country.
TEST QUESTIONNAIRE
CARMEN A. MUTIA - Masterand
College of Advanced Studies
First Semester, A.Y.2023-2024
Midterm Examination MAEd-EdMa

Ed 24 – Personnel and Financial Management in Education Ma. Magdalena J. Bernales, EdD
1. When a company receives cash for providing services, which type of journal entry is made?
a. Debit Cash, Credit Accounts Receivable
b. Debit Cash, Credit Service Revenue
c. Debit Accounts Receivable, Credit Cash
d. Debit Service Revenue, Credit Cash
2. What type of journal entry is made to record the purchase of inventory on credit?
a. Debit Inventory, Credit Cash
b. Debit Inventory, Credit Accounts Payable
c. Debit Accounts Payable, Credit Inventory
d. Debit Cash, Credit Inventory
3. A journal entry to record the depreciation of equipment is:
a. Debit Equipment, Credit Accumulated Depreciation
b. Debit Depreciation Expense, Credit Equipment
c. Debit Accumulated Depreciation, Credit Equipment
d. Debit Equipment, Credit Depreciation Expense
4. In a ledger, which account will typically have a credit balance?
a. Accounts Receivable
b. Accumulated Depreciation
c. Salaries Expense
d. Inventory
F-AQA-INS-001 | Rev. 1 | 09/18/23 | Page 1 of 14
Candijay Campus
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TEST QUESTIONNAIRE
5. When a company makes a sale on credit, which accounts are updated in the ledger?
a. Accounts Receivable and Sales Revenue
b. Cash and Accounts Payable
c. Inventory and Cost of Goods Sold
d. Equipment and Depreciation Expense
6. In a ledger, which account is considered a contra account to an asset?
a. Prepaid Expenses
b. Accounts Receivable
c. Accumulated Depreciation
d. Retained Earnings
7. In a Profit and Loss Statement, which of the following would be considered an operating expense?
a. Cost of Goods Sold
b. Interest Income
c. Dividend Revenue
d. Gain on Sale of Assets
8. In a Profit and Loss Statement, net income is calculated as:
a. Total Revenues - Total Expenses
b. Gross Profit - Operating Expenses
c. Total Assets - Total Liabilities
d. Total Liabilities - Total Equity
9. On a Balance Sheet, Total Assets should equal:
a. Total Liabilities
b. Total Equity
c. Total Liabilities + Total Equity
d. Total Liabilities - Total Equity

Candijay Campus
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TEST QUESTIONNAIRE
10. Which of the following is a liability typically found on a Balance Sheet?
a. Common Stock
b. Retained Earnings
c. Accounts Payable
d. Equipment
11. A company received $5,000 in cash for services provided. Which journal entry is correct?
a. Debit Cash $5,000, Credit Service Revenue $5,000
b. Debit Cash $5,000, Credit Accounts Payable $5,000
c. Debit Accounts Receivable $5,000, Credit Cash $5,000
d. Debit Service Revenue $5,000, Credit Cash $5,000
12. A business purchased office supplies for $800 on credit. What is the correct journal entry?
a. Debit Office Supplies $800, Credit Cash $800
b. Debit Accounts Payable $800, Credit Office Supplies $800
c. Debit Cash $800, Credit Office Supplies $800
d. Debit Office Supplies Expense $800, Credit Cash $800
13. A company paid $2,500 for rent for the month. What is the correct journal entry?
a. Debit Rent Expense $2,500, Credit Cash $2,500
b. Debit Cash $2,500, Credit Rent Expense $2,500
c. Debit Accounts Payable $2,500, Credit Rent Expense $2,500
d. Debit Prepaid Rent $2,500, Credit Cash $2,500
14. If a company records a purchase of equipment for $10,000 and pays $4,000 in cash, what is the correct
journal entry for the purchase?
a. Debit Equipment $10,000, Credit Cash $4,000, Credit Accounts Payable $6,000
b. Debit Equipment $4,000, Credit Cash $4,000, Credit Accounts Payable $2,000
c. Debit Equipment $10,000, Credit Cash $10,000
d. Debit Equipment $6,000, Credit Cash $6,000

Candijay Campus
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TEST QUESTIONNAIRE
15. A business provided services to a customer on account for $1,200. What is the correct journal entry?
a. Debit Accounts Receivable $1,200, Credit Service Revenue $1,200
b. Debit Cash $1,200, Credit Accounts Receivable $1,200
c. Debit Service Revenue $1,200, Credit Accounts Payable $1,200
d. Debit Accounts Payable $1,200, Credit Service Revenue $1,200
16. In the accounting equation (Assets = Liabilities + Equity), an increase in assets is recorded as:
a. A debit
b. A credit
c. Both a debit and a credit
d. Neither a debit nor a credit
17. The left side of a T-account is typically used for recording:
a. Debits
b. Credits
c. Both debits and credits
d. Neither debits nor credits
18. In the double-entry accounting system, the total of debits should always equal the total of:
a. Credits
b. Expenses
c. Assets
d. Liabilities
19. When a liability increases, which of the following is true regarding its accounting entry?
a. Credit
b. Debit
c. Expense
d. Revenue

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TEST QUESTIONNAIRE
20. An increase in equity is recorded as a:
a. Credit
b. Debit
c. Liability
d. Expense
21. What is the main purpose of a ledger in accounting?
a. To record all financial transactions in a chronological order
b. To summarize the financial transactions of a business in one place
c. To prepare financial statements directly
d. To record transactions in a general journal
22. In a ledger, what does a "T-account" represent?
a. A graphical representation of an account
b. A summary of all financial transactions
c. A record of all journal entries
d. A detailed statement of financial position
23. Which of the following best describes a general ledger?
a. A collection of all the accounts of a business
b. A record of daily transactions
c. A financial statement summarizing revenues and expenses
d. A record of all financial transactions for a specific month
24. What does the term "posting" refer to in the context of accounting and ledgers?
a. Transferring information from a journal to a ledger
b. Analyzing financial data for decision-making
c. Creating financial statements
d. Auditing financial records

Candijay Campus
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TEST QUESTIONNAIRE
25. In the context of a ledger, what is the purpose of balancing an account?
a. To verify that total debits equal total credits
b. To close the account at the end of the month
c. To calculate the net income of a business
d. To determine the closing balance of a bank account
26. When a business receives cash for services rendered, which accounts are typically affected?
a. Cash and Revenue
b. Cash and Accounts Payable
c. Accounts Receivable and Cash
d. Accounts Receivable and Revenue
27. If a business purchases inventory on credit, which accounts are affected by the transaction?
a. Inventory and Accounts Payable
b. Inventory and Cash
c. Accounts Receivable and Inventory
d. Accounts Payable and Cash
28. When a business pays off a loan installment, which accounts are involved in the journal entry?
a. Loan Payable and Cash
b. Loan Payable and Accounts Receivable
c. Loan Payable and Revenue
d. Loan Payable and Inventory
29. If a business records depreciation on equipment, which accounts are impacted?
a. Depreciation Expense and Accumulated Depreciation
b. Depreciation Expense and Equipment
c. Equipment and Cash

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d. Depreciation Expense and Accounts Payable
30. When a business records the receipt of a utility bill, which accounts are involved in the journal entry?
a. Utility Expense and Accounts Payable
b. Utility Expense and Cash
c. Utility Expense and Revenue
d. Utility Expense and Equipment
31. What is the primary purpose of a Profit and Loss Statement in financial reporting?
a. To calculate a business's net worth
b. To summarize the revenue, costs, and expenses of a business during a specific period
c. To record daily sales transactions
d. To track changes in equity over time
32. Which section of the Profit and Loss Statement typically includes revenue from sales of goods or
services?
b. Operating Expenses
c. Gross Profit
d. Net Income
33. In a Profit and Loss Statement, what does "EBIT" stand for?
a. Earnings Before Interest and Taxes
b. Expenses Beyond Income and Taxes
c. Earnings Before Income and Taxes
d. Expenses Before Income and Taxes
34. In a Profit and Loss Statement, what represents the final profitability of a business for a given period?
a. Gross Profit
b. Net Loss
c. Net Income
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TEST QUESTIONNAIRE
d. Operating Income
35. Which of the following is considered an operating expense in a Profit and Loss Statement?
b. Interest Expense
c. Depreciation Expense
d. Other Income
36. In a Profit and Loss Statement, the formula for calculating Gross Profit is:
a. Revenue - Operating Expenses
b. Revenue - Cost of Goods Sold
c. Revenue - Total Expenses
d. Revenue - Net Income
37. Which of the following statements about the structure of a Profit and Loss Statement is true?
a. Total expenses are subtracted from revenue to calculate net profit.
b. Cost of Goods Sold is added to revenue to calculate net profit.
c. Gross profit is calculated by subtracting operating expenses from revenue.
d. Revenue is calculated by adding net income to total expenses.
38. In a Profit and Loss Statement, which of the following is typically deducted from Gross Profit to
calculate Operating Income?
a. Other Income
b. Interest Expense
c. Depreciation Expense
d. Cost of Goods Sold
39. In a Profit and Loss Statement, net income is calculated by:
a. Subtracting total expenses from total revenue
b. Adding total expenses to gross profit
c. Subtracting cost of goods sold from total revenue

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d. Adding operating expenses to other income
40. Which section of the Profit and Loss Statement includes non-operating items such as interest income
and gains from the sale of assets?
a. Other Income
b. Cost of Goods Sold
c. Gross Profit
d. Net Income
41. What is the primary purpose of a Balance Sheet in financial reporting?
a. To calculate a business's net income
b. To provide a snapshot of a company's financial position at a specific point in time
c. To summarize the revenue, costs, and expenses of a business during a specific period
d. To track changes in equity over time
42. In a Balance Sheet, assets are typically listed in order of:
a. Liquidity (most liquid to least liquid)
b. Perceived value (lowest to highest)
c. Age (oldest to newest)
d. Size (smallest to largest)
43. What is the accounting equation that underlines the preparation of a Balance Sheet?
a. Assets = Liabilities - Equity
b. Assets = Liabilities + Equity
c. Assets - Liabilities = Equity
d. Assets + Liabilities = Equity
44. In a Balance Sheet, liabilities represent:
a. Claims of outsiders against the assets of the business
b. Claims of the business owners against the assets of the business
c. Assets acquired through borrowing

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d. Operating costs of the business
45. Which of the following is considered a long-term liability on a Balance Sheet?
a. Accounts Payable
b. Short-term loans
c. Long-term loans
d. Accrued Expenses
46. The formula for calculating total assets on a Balance Sheet is:
a. Total Assets = Total Liabilities + Total Equity
b. Total Assets = Total Liabilities - Total Equity
c. Total Assets = Total Equity - Total Liabilities
d. Total Assets = Total Liabilities / Total Equity
47. Which of the following represents shareholders' equity on a Balance Sheet?
a. Common Stock + Retained Earnings
b. Total Liabilities - Total Assets
c. Current Assets - Current Liabilities
d. Total Assets - Total Liabilities
48. What does the term "intangible assets" refer to on a Balance Sheet?
a. Non-physical assets with no monetary value
b. Assets that have physical substance and can be touched
c. Assets that lack physical substance but have value
d. Assets that are easily converted to cash
49. In a Balance Sheet, which section typically includes accounts such as cash, accounts receivable, and
inventory?
a. Current Assets
b. Non-Current Assets
c. Current Liabilities
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TEST QUESTIONNAIRE
d. Non-Current Liabilities
50. On a Balance Sheet, which section includes long-term debt, bonds payable, and mortgages?
a. Non-Current Liabilities
b. Current Liabilities
c. Current Assets
d. Non-Current Assets
51. Which of the following represents the highest-ranking official in the Department of Education in many
countries?
a. Secretary of Education
b. Minister of Education
c. Director of Education
d. Commissioner of Education
52. In the context of the Department of Education, what is the primary function of the Bureau of Human
Resource and Organizational Development (BHROD)?
a. Personnel recruitment and management
b. Curriculum development
c. Infrastructure planning and management
d. Financial planning and budgeting
53. The role of the Division Office in the Department of Education is primarily to:
a. Oversee and manage multiple schools within a geographical area
b. Develop national education policies and programs
c. Conduct research and data analysis on education trends
d. Manage the central administrative functions of the department
54. Which unit within the Department of Education is responsible for overseeing the implementation of
educational policies and programs at the regional level?
a. Regional Office
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b. Division Office
c. Central Office
d. Bureau of Curriculum Development
55. What is the function of the Bureau of Learning Delivery in the Department of Education?
a. Develop and implement teaching and learning materials and methodologies
b. Manage human resources and organizational development
c. Oversee budget allocations and financial planning
d. Coordinate with external organizations for educational partnerships
56. Which of the following is a key responsibility of the Department of Education's HR unit (e.g., BHROD)?
a. Recruitment and hiring of educational personnel
b. Approval of curriculum changes
c. Allocation of funds for school construction
d. Setting educational standards and policies
57. In the context of personnel management, what does "staff development" refer to within the Department
of Education?
a. Training and enhancing the skills and knowledge of education personnel
b. Recruitment and hiring of new staff members
c. Performance evaluation of teachers and administrators
d. Allocation of staff to different schools
58. A performance appraisal system in the Department of Education is designed to:
a. Evaluate an employee's job performance and contributions
b. Determine the employee's salary and benefits
c. Recruit new personnel effectively
d. Ensure compliance with government regulations
59. What does the term "teacher deployment" mean in the context of personnel management in the
Department of Education?

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a. Allocating teachers to specific schools or regions based on need
b. Terminating teachers due to performance issues
c. Promoting teachers to higher positions
d. Providing additional training and resources to teachers
60. Which of the following is a primary objective of the Department of Education's compensation and
benefits system?
a. Attracting and retaining qualified education professionals
b. Streamlining administrative processes
c. Reducing the department's budget
d. Increasing the workload of teaching staff
61. What legislation or regulation primarily governs labor and personnel management practices in the
Department of Education in many countries?
a. Labor Code
b. Education Act
c. Civil Service Law
d. Public Administration Act
62. Which of the following is a key ethical consideration for personnel management in the Department of
Education?
a. Providing equal opportunities for career advancement
b. Prioritizing the interests of senior staff over junior staff
c. Exercising favoritism in hiring and promotions
d. Encouraging a culture of non-disclosure and secrecy
63. In the context of personnel management, what does "fair treatment" entail within the Department of
Education?
a. Treating all employees with respect and without discrimination
b. Providing additional privileges to high-performing staff
c. Fostering a competitive work environment

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d. Showing leniency towards underperforming staff
64. What does the term "whistleblower protection" mean in the context of personnel management within the
Department of Education?
a. Providing legal safeguards for employees reporting misconduct or unethical behavior
b. Encouraging employees to engage in unfair practices
c. Punishing employees for reporting issues within the organization
d. Exempting specific employees from the rules and regulations
65. Which of the following is a critical aspect of ensuring confidentiality and privacy in personnel
management within the Department of Education?
a. Safeguarding personal information of employees
b. Publicly disclosing all employee records
c. Sharing employee performance data without consent
d. Ignoring data protection laws

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BOHOL ISLAND STATE UNIVERSITY

Midterm Examination MAEd-EdMa

a. Debit Cash, Credit Accounts Receivable

b. Debit Cash, Credit Service Revenue

c. Debit Accounts Receivable, Credit Cash

d. Debit Service Revenue, Credit Cash

a. Debit Inventory, Credit Cash

b. Debit Inventory, Credit Accounts Payable

c. Debit Accounts Payable, Credit Inventory

d. Debit Cash, Credit Inventory

3. A journal entry to record the depreciation of equipment is:

a. Debit Equipment, Credit Accumulated Depreciation

b. Debit Depreciation Expense, Credit Equipment

c. Debit Accumulated Depreciation, Credit Equipment

d. Debit Equipment, Credit Depreciation Expense

4. In a ledger, which account will typically have a credit balance?

a. Accounts Receivable and Sales Revenue

b. Cash and Accounts Payable

c. Inventory and Cost of Goods Sold

d. Equipment and Depreciation Expense

6. In a ledger, which account is considered a contra account to an asset?

a. Cost of Goods Sold

d. Gain on Sale of Assets

8. In a Profit and Loss Statement, net income is calculated as:

a. Total Revenues - Total Expenses

b. Gross Profit - Operating Expenses

c. Total Assets - Total Liabilities

d. Total Liabilities - Total Equity

9. On a Balance Sheet, Total Assets should equal:

c. Total Liabilities + Total Equity

d. Total Liabilities - Total Equity

F-AQA-INS-001 | Rev. 1 | 09/18/23 | Page 2 of 14

a. Debit Cash $5,000, Credit Service Revenue $5,000

b. Debit Cash $5,000, Credit Accounts Payable $5,000

c. Debit Accounts Receivable $5,000, Credit Cash $5,000

d. Debit Service Revenue $5,000, Credit Cash $5,000

a. Debit Office Supplies $800, Credit Cash $800

b. Debit Accounts Payable $800, Credit Office Supplies $800

c. Debit Cash $800, Credit Office Supplies $800

d. Debit Office Supplies Expense $800, Credit Cash $800

a. Debit Rent Expense $2,500, Credit Cash $2,500

b. Debit Cash $2,500, Credit Rent Expense $2,500

c. Debit Accounts Payable $2,500, Credit Rent Expense $2,500

d. Debit Prepaid Rent $2,500, Credit Cash $2,500

c. Debit Equipment $10,000, Credit Cash $10,000

d. Debit Equipment $6,000, Credit Cash $6,000

a. Debit Accounts Receivable $1,200, Credit Service Revenue $1,200

b. Debit Cash $1,200, Credit Accounts Receivable $1,200

c. Debit Service Revenue $1,200, Credit Accounts Payable $1,200

d. Debit Accounts Payable $1,200, Credit Service Revenue $1,200

c. Both a debit and a credit

d. Neither a debit nor a credit

17. The left side of a T-account is typically used for recording:

c. Both debits and credits

d. Neither debits nor credits

F-AQA-INS-001 | Rev. 1 | 09/18/23 | Page 4 of 14

21. What is the main purpose of a ledger in accounting?

a. To record all financial transactions in a chronological order

b. To summarize the financial transactions of a business in one place

c. To prepare financial statements directly

d. To record transactions in a general journal

22. In a ledger, what does a "T-account" represent?

a. A graphical representation of an account