Integrated Accounting Fundamentals

BAINTE1L 1AY 2022-2023

THIRD QUIZ - FINAL PERIOD
NOVEMBER 11, 2022
PREPARED BY DAISY B. MEDINA-CRUZ, CPA, MBA

1. Which of the following are considered special journals?

a. General journal and general ledger
b. Subsidiary ledger and general ledger
c. Sales journal and cash receipts journal
d. Purchases journal and cash disbursements journal
e. Both c and d only.
2. Purchase of land for cash is recorded in the
Purchase journal
Cash disbursements journal
Cash receipts journal
Sales journal
General journal
3. Which of the following statements is TRUE?
With the use of special journals, there is no need for the general journal.
Financial statements will be the same regardless of the processing
systems used.
A retailer is a merchandiser, while a wholesaler is a manufacturer.
The use of special journals, just like a columnar journal, facilitates division of
labor.
4. A customer issued a note for an overdue account. Which of the following
procedures is correct?
The note is credited in the general journal by a debit to accounts receivable.
The amount will be posted to the credit side of the customer’s card.
The amount will be posted to the debit side of the customer’s card.
This will be posted in the accounts receivable general ledger on the debit side.
5. Sold goods to a customer has made a down payment. This is recorded in the
Sales journal
General journal
 Cash receipts journal
Both a and c
6. A refund is given to a customer should be recorded in the
Sales journal
General journal
Cash receipts journal
Cash disbursements journal
7. Debit to Sales Discount is a column heading found in the
Cash receipts journal
Sales journal
Purchases journal
Cash disbursements journal
8. The business is using special journals aside from the general journal. The
general journal is used to record
Cash refund for goods returned.
Purchases of supplies for cash
Cash withdrawal of the owner.
Credit memo for goods returned by customers.
9. Freight paid by the buyer under the term FOB shipping point is recorded in the
Cash receipts journal
Sales journal
Purchases journal
Cash disbursements journal
10. The ability of the business to manage all its resources and pay for its long term
obligations.
Profitability
Liquidity
Solvency
None of the choices given
11. A comparative analysis which shows the increase and decrease of each item in
the financial statements.
Vertical analysis
Horizontal analysis
Benchmarking
Stability
12. Each time a sale of goods or services is made by a VAT registered company a
12% VAT is charged to the customer or client increasing the amount to be
collected. This is known as
Percentage tax
Input tax
 Income tax
Output tax
13. If the input tax is higher than the output tax, the difference should be debited to
Income tax
Deferred tax
Output tax
Percentage tax
14. Tax levied to a business whose gross annual gross revenue does not exceed
P3,000,000.
Income tax
Deferred tax
Output tax
Percentage tax
15. Employees are paid ______________ based on a monthly or semi-monthly rate
while workers are paid _________ based on a daily, hourly or piece rate.
Wages, salaries
Salaries, wages
Take home pay, wages
Salaries, allowances
16. _______________ is a deduction remitted to the BIR, while as members of
___________ a worker or employee enjoys sickness and hospitalization benefits.
Withholding tax, HDMF
Withholding tax, SSS
Philhealth, withholding tax
Withholding tax, Philhealth
17. Corresponding contributions required by the business for SSS, Philhealth,
Pag-ibig or HDMF and EC premiums for and on behalf of their employees and
workers.
Deductions
Salaries and wages
Employers’ contributions
Employees’ contributions
18. This is a listing of employees beside which special column are provided for gross
earnings, deductions and net earnings.
Payroll sheet
Payroll accounting
Payroll record
Payroll file
19. Records pertaining to the employee's personal information, employment contract,
duties, salary, performance and employment history, among others, and is
 established and maintained by an employer for specific purposes relating to the
employee's employment.
Payroll sheet
201 file
Payroll record
Payroll file
20. Gross pay minus deductions
Take home pay
Net Taxable income
Withholding tax
Employer’s share
21. The current SS contribution rate is _____ of the monthly salary credit not
exceeding P20,000 and this is being shared by the employee ______ and the
employer _______.
12%, 8 %, 4%
12%, 4%, 8%
13%, 8.5%, 4.5%
13%, 4.5%, 8.5%

22. ____________ represents the material needed to make a product in a

manufacturing business, and ___________ consists of materials use in a factory
but not necessarily forming an integral part of the finished product.
Finished goods, raw materials
Raw materials, factory supplies
Work in process, factory supplies
Raw materials, work in process
23. Product cost are the following except
Direct materials
Office supplies
Direct labor
Factory overhead
24. Sales price computed based on total cost is called
Mark up
Full cost pricing
Gross profit percentage
Absorption pricing
25. Costs that cannot be identified or traced to a particular department
Direct costs
Period costs
Common costs
Product costs
26. Total manufacturing costs plus beginning work in process less ending work in
process is
Cost of goods sold
Cost of goods manufactured
Cost of goods put into production
Total product costs
27. Statement 1: Cost of goods sold is only based on the number of units sold.
Statement 2: Period costs are reported in total as these are based on time period
rather than on production volume.
Both statements are true.
Both statements are false.
Statement 1 is true, Statement 2 is false.
Statement 1 is false, Statement 2 is true.
28. Direct materials and direct labor are called
Conversion costs
Prime costs
Period costs
Common costs
29. All manufacturing costs are closed and posted to the manufacturing summary.
Adjustments to ____________ and ___________ are also credited to the
manufacturing summary.
Raw materials inventory, beginning and work in process inventory, beginning.
Raw materials inventory, end and work in process inventory, end
Finished goods inventory, end and work in process inventory, end.
Raw materials inventory, beginning and finished goods inventory, beginning.
30. In a manufacturing business, the formula for cost of goods sold is
Total goods available for sale add finished goods inventory, end
Total goods available for sale less finished goods inventory, end
Total goods available for sale less finished goods inventory, beginning
Total goods available for sale less work in process, end less finished goods
inventory, end
31. A trial balance is out of balance. This may be due to
A cash collection of P1,000 was not recorded.
Sales posted as P4,000 should be P4,500
Cash collection of P4,000 was recorded twice.
Unpaid bill is credited to cash.
32. The adjusting entry required when amounts previously recorded as unearned
revenues are earned includes:
A debit to a liability
A debit to an asset
A credit to a liability
 A credit to an asset
33. An example of contra account is:
a. Depreciation Expense
b. Accounts Receivable
c. Sales Revenue
d. Accumulated Depreciation
34. On Nov. 15, 2022, cash is received in advance of rendering services. Assuming
that the services have been performed by December 31, 2022, the adjusting
entry would be a debit to
a. Service revenues and a credit to Accounts Receivable
b. Unearned revenues and a credit Cash
c. Unearned revenues and a credit to Service Revenues
d. Cash and credit to service revenues
35. Failure to record the adjusting entry related to depreciation of an equipment
would result to an
a. Overstatement of Assets & Understatement of Equity Account
b. Understatement of Assets & Overstatement of Equity Account
c. Understatement of both Assets and Equity account
d. Overstatement of both Assets and Equity account
36. Failure to record the adjusting entry related to prepaid expense, which was
previously recorded under asset method, would result to an
a. Overstatement of Assets & Understatement of Equity Account
b. Understatement of Assets & Overstatement of Equity Account
c. Understatement of both Assets and Equity account
d. Overstatement of both Assets and Equity account
37. 1st Statement: Depreciation Expense and Accumulated Depreciation are treated
and reported the same. These accounts can be used interchangeably.
2nd statement: Bad debts expense account is recorded in income statement,
whereas Allowance for Bad debts account is recorded in Balance Sheet as a
contra asset account in Accounts Receivable.
a. True, True
b. True, False
c. False, True
d. False, False

38. A debit to P1,000 accounts receivable posted to the debit side of the general
ledger as P100 will
a. Understate the accounts receivable by P900
b. Overstate the accounts receivable by P900
c. Understate the accounts receivable by P1,100
d. Overstate the accounts receivable by P1,100
39. An adjusting entry made to record accrued interest on a note payable due next
year consist of a debit to
a. Interest expense and credit to cash
b. Interest expense and credit to interest payable
c. Interest expense and credit to notes payable
d. Interest receivable and a credit to interest earned
40. The company computes for uncollectible accounts based on estimation. This is
called
Conservatism
Allowance method
Direct-write off method
Accrual method
Matching method
41. Ganda Mo Manufacturing Corp. is a producer of beauty products. The following
relates to the costing of their goods for sale.
Product cost = 450,000, Selling expenses = 125,000, Administrative expenses =
75,538.57. They are planning a mark-up of 40%. If the number of units
manufactured is 2,000 units, how much should be the selling price per unit?
P 475
P 456
P 460
P 445
42. Questions Numbers 42 - 48 pertains to the following information.
The Big Integrated Manufacturing Company has the following data in their
statement of financial position. 2021 Raw materials = 33,700, Work in process =
74,450, Finished goods = 21,900; 2020 Raw materials = 35,500, Work in
process = 80,500, Finished goods = 25,450.
Additional information for the year 2021 shows that: Sales = 395,000, Direct labor
= 45,000, Total manufacturing costs incurred = 241,300, Raw materials
purchases = 45,000, Operating expenses = 14,600.

How much is the cost of direct materials used in 2021?

P52,800
P51,800
P46,800
P48,800
43. How much is the total manufacturing costs?
P 333,100
P 339,100
P 335,100
 P 330,100
44. How much is the total cost of goods manufactured?
P 348,400
P 340,500
P 339,150
P 345,150
45. How much is the goods available for sale?
P 373,850
P 364,600
P 364,800
P 375,900
46. How much is the total cost of goods sold?
P 351,950
P 352,750
P 342,900
P 342,700
47. How much is the gross profit?
P 28,050
P 52,300
P 35,300
P 25,300
48. How much is the net income?
P 37,700
P 39,450
P 17,700
P 13,450
49. If the total production cost is P1,500,000 and the number of units produced are
5,000 units, how much is the cost per unit?
P250
P275
P300
P350
50. A factory hired 50 workers at a per day rate of P300 to work six days a week.
The total monthly salaries will amount to
P 360,000
P 380,000
P 465,000
P 450,000
51. If the cost of building maintenance for a manufacturing company is P30,000 and
this is considered a common cost to be shared by the Factory, Sales Dept. and
 Admin. respectively using the size of each department, how much is the share of
the Factory if the size of the department is 300 square foot out of the total area
of 600 square foot?
P 10,000
P 5,000
P15,000
P 30,000
52. What about the Admin Department if its area is 200 square feet?
P 10,000
P 5,000
P15,000
P 30,000
53. If the total cost to produce 3,500 is P962,500 what should be the selling price
per unit if the entity wants to have a 65% markup on cost?
357.50
330.00
495.00
453.75
54. Patricio Alburoto is a messenger earning a monthly salary of P18,000. How
much Pagibig contribution should be deducted from him semi-monthly?
P 100
P 50
P 180
P 90
55. An employee earning P28,000 monthly will have a monthly Philhealth
contribution of
P 280
P 1,120
P 560
P 580
56. Lorna Chavez is a line manager of Sunday Machine Works and is receiving a
monthly salary of P33,000.
How much is her total monthly SSS, Philhealth and Pagibig contributions?
P 1,600
P 1,700
P 1,660
P 1,680
57. How much is her Taxable income?
P31,340
P31,400
P30,400
 P28,400
58. Her semi-monthly withholding tax is (use this Tax Table P250,000 but not over
P400,000 20% of excess over P250,000)
P2,521,60
P2,101.33
P1,050.67
P 1,100
59. An employee with a monthly taxable income of P30,000 will have a monthly
withholding of (Tax Table P250,000 but not over P400,000 20% of excess over
P250,000)
P1,835.00
P1,833.33
P 666.67
P1,850
60. If Maritess Pacino has a total monthly taxable income of P56,275 how much is
her annual income?
P1,350,600
P675,300
P619,025
P672,000
61. Rose Santos, secretary, has semi-monthly salary of P10,000. She has a cash
advance of 500 on July 19 of the month. How much is her deduction for a
semi-monthly payroll?
SSS 450, Philhealth 200, Pagibig 50
P 650
P 700
P 750
P 800
62. How much is her taxable income for the month?
P20,000
P18,600
P10,000
P 9,300
63. How much is her take home pay on Jul 30, 2022 payroll?
P 9,300
P 8,800
P 10,000
P 9,000
64. Sales of Malaya Industry for the month of October are as follows: October 5 =
30,240, October 13 = 39,200, October 20 = 21,280 and October 28 = 73,920.
 On the other hand, purchases are as follows: October 2 = 20,160, October 11 =
50,400, October 18 = 9,968, October 26 = 42,560. How much will be the VAT
payable for the month of Malaya Industry if the entity is a VAT registered
company?
P3,900
P4,452
P4,492
P3,992
65. If Malaya is not a VAT-registered company, how much percentage tax will the
entity pay?
P4,410.00
P4,939.20
P3,297.00
P3,692.64
66. If the purchases on Oct 18, 2022 is P88,900 and not P9,968, how much is the
VAT payable?
P -0-
P4,005
P4,452
P4,552
67. If the output tax of a business is P3,600 and the input tax is P5,400, how much is
the difference and where should the entity charge this?
P 800, output tax
P 1,800 output tax
P1,800, deferred tax
P 1,600, deferred tax
The following transactions should be recorded on special journals. Indicate the special
journal e.g. PJ (Purchases Journal), SJ (Sales Journal), CRJ ( Cash Receipts Journal),
CDJ (Cash Disbursements Journal) and GJ (General Journal) to be used and the
related entry. All entities are VAT - registered unless otherwise specified.
68. Dizon Fruits of Mindanao has cash purchases from San Pedro Orchard, P8,960
on Dec. 2, Invoice 472.
PJ Dr. Purchases 8,960; Credit Cash 8,960
PJ Dr. Purchases 8,000 Input tax 960; Credit Cash 8,960
CRJ Dr. Purchases 8,000 Input tax 960; Credit Cash 8,960
GJ Dr. Purchases 8,000 Input tax 960; Credit Cash 8,960
69. On Dec. 4, Dizon Fruits purchased goods from Mrs. Cojuangco P5,600 2/10,
n/30
PJ Dr. Purchases 5,600; Cr. Accounts Payable 5,600
SJ Dr. Purchases 5,000 Input tax 600; Cr. Accounts Payable 5,600
 PJ Dr. Purchases 5,000 Input tax 600; Cr. Accounts Payable 5,600
GJ Dr. Purchases 5,600; Cr. Accounts Payable 5,600
70. On Dec. 7, Dizon Fruits purchased store furniture from Ideas for P16,800, terms
2/15, n/30 Invoice 711.
PJ Dr. Furniture & Fixtures 15,000 Input Tax 1,800; Cr. Accounts Payable 16,800
CDJ Dr. Furniture & Fixtures 15,000 Input Tax 1,800; Cr. Accounts Payable
16,800
CRJ Dr. Furniture & Fixtures 15,000 Input Tax 1,800; Cr. Accounts Payable
16,800
GJ Dr. Furniture & Fixtures 15,000 Input Tax 1,800; Cr. Accounts Payable
16,800
71. On Dec. 14, Cojuangco credited Dizon Fruits for 560 worth of goods returned for
being spoiled CM 248
GJ Dr. Accounts Payable 560; Cr. Purchases Returns 560
CDJ Dr. Accounts Payable 560; Cr. Purchases Returns 500 Input tax 60
GJ Dr. Accounts Payable 560; Cr. Purchases Returns 500 Input tax 60
GJ Dr. Accounts Payable 560; Cr. Purchases 500 Input tax 60
72. On Dec. 17, Dizon Fruits paid Ideas in full account.
CRJ Dr. Accounts Payable 16,800; Cr. Cash 16,464, Input Tax 36, Furniture &
Fixtures 300
CDJ Dr. Accounts Payable 16,800; Cr. Cash 16,800
CDJ Dr. Accounts Payable 16,800; Cr. Cash 16,464, Input Tax 36, Furniture
& Fixtures 300
GJ Dr. Accounts Payable 16,800; Cr. Cash 16,464, Input Tax 36, Furniture &
Fixtures 300
73. Tirso Trading is a distributor of beauty products. It offers its goods on credit terms
of 2/10, n/30. On May 1, 2022 Tirso Trading sold merchandise to David’s Salon
on account of P8,960, Inv, 428.
SJ Dr. Accounts Receivable 8,960; Cr. Sales 8,960
GJ Dr. Accounts Receivable 8,960; Cr. Sales 8,960
SJ Dr. Accounts Receivable 8,960; Cr. Sales 8,000 Input tax 960
SJ Dr. Accounts Receivable 8,960; Cr. Sales 8,000 Output tax 960
74. Transaction on May 3, 2022 of Tirso Trading, sold merchandise to Jessie
Mendez on account, P3,920 should be recorded
GJ Accounts receivable 3,920 Cr. Sales 3,500 Vat output 420
SJ Accounts receivable 3,920 Cr. Sales 3,920
SJ Accounts receivable 3,920 Cr. Sales 3,500 Vat output 420
PJ Accounts receivable 3,920 Cr. Sales 3,500 Vat output 420
75. Tirso Trading authorized an allowance of P560 to be credited to the account of
David’s salon who reported that merchandise from the sale of December 1, was
defective.
GJ Sales Returns 500 Output tax 60; Accounts receivable 560
GJ Sales Returns 560; Accounts receivable 560
SJ Sales Returns 500 Output tax 60; Accounts receivable 560
SJ Sales Returns 560; Accounts receivable 560
76. On Dec. 10, David’s Salon made a partial payment. No discount on partial
payment
CRJ Dr. Cash 4,116 Sales Discount 75 Output tax 9; Cr. Accounts Receivable
4,200
CRJ Dr. Cash 4,200; Cr. Accounts Receivable 4,200
GJ Dr. Cash 4,200; Cr. Accounts Receivable 4,200
CDJ Dr. Cash 4,200; Cr. Accounts Receivable 4,200
77. David’s Salon issued a 15-day, 12% note for the overdue account on May 30.
CRJ Dr. Notes Receivable 4,200; Cr. Accounts Receivable 4,200
SJ Dr. Notes Receivable 4,200; Cr. Accounts Receivable 4,200
PJ Dr. Notes Receivable 4,200; Cr. Accounts Receivable 4,200
GJ Dr. Notes Receivable 4,200; Cr. Accounts Receivable 4,200
78. Pepot Trading received a 6% 30-day note for P8,000 from a customer dated
December 12, 2021. What is the adjusting journal entry on December 31, 2021.
Dr. Accrued interest income 25.33 Cr. Interest income 25.33
Dr. Interest expense 25.33 Cr. Interest payable 25.33
Dr. Accrued interest income 24.00 Cr. Interest income 24.00
Dr. Interest expense 24.00 Cr. Interest payable 24.00
79. A note for P250,000 was discounted with BPI at 18% for 60 days on December
16 which was debited to Interest Expense. What adjusting entry should be
prepared on December 31, 2021.
Dr. Interest Expense 5,625 Cr. Prepaid interest 5,625
Dr. Prepaid interest 5,625 Cr. Interest Expense 5,625
Dr. Prepaid interest 7,500 Cr. Interest Expense 7,500
Dr. Interest Expense 7,500 Cr. Prepaid interest 7,500
80. The storekeeper who made the inventory count at the end of the year failed to
include P10,000 goods. What will be the effect on cost of sales and merchandise
inventory, end?
Merchandise inventory understated, cost of sales understated
Merchandise inventory overstated, cost of sales understated
Merchandise inventory overstated, cost of sales overstated
Merchandise inventory understated, cost of sale overstated