Use the following given to answer the next 3 question

The following are the transactions of Ekiz Ka Sakin Company during the year 2022
 Purchased land on cash 200,000
 Purchased building on account 500,000
 Payment of accounts payable 300,000
 Investment from the owner 1,000,000
 Payment of loans payable 400,000
 Receipt of loans from bank 700,000
 Payment of salaries expense 200,000
 Receipt from selling equipment 300,000
 Receipt from rendering service to customers 600,000
 Advance payment for rent expense 300,000
Additional info:
Cash balance from last year is 300,000

1. How much is the cash from operating activities?

a. 100,000
b. 200,000
c. (200,000)
d. (100,000)

2. How much is the total cashflow during the year?

a. 1,000,000
b. 1,100,000
c. 1,200,000
d. 1,300,000

3. How much is the ending balance of cash?

a. 1,500,000
b. 1,300,000
c. 1,400,000
d. 1,600,000

Use the following data to answer the next 2 questions

The following are the data of Yanut??? Company
Some items in the Balance sheet of 2019 and 2020 respectively
Cash 300,000
Accounts Receivable 600,000 200,000
Notes receivable 700,000 1,000,000
Long term investment 300,000 400,000
Accounts Payable 300,000 100,000
Notes Payable 100,000 150,000
Additional information: The entity already computed the Investing and Financing activities
Cashflow from Investing activities: P150,000
Cashflow from Financing activities: P200,000
Net income during 2020: P150,000
Depreciation expense: P200,000
4. How much is the cashflow from operating activities?
a. 200,000
b. 300,000
c. 100,000
d. 400,000
5. How much is the ending balance of cash?
a. 850,000
b. 950,000
c. 750,000
d. 1,050,000
6. Unearned income of QE Enjoyer was P4,000 at the end of September and P9,500 at the end of
October, Service Income was P30,000 for the Month of October. How much cash was received
for services provided during October?
a. 24,500
b. 33,500
c. 35,500
d. 30,000
7. Which of the following is true regarding the worksheet?
a. The trial balance may not be equal
b. The income statement may not be equal
c. The balance sheet must be equal
d. All of these is true when it comes to worksheet
8. Which of the following will increase the total asset of the entity?
a. Purchased of equipment on cash
b. Purchased of land on cash
c. Payment of Accounts payable
d. Purchased of land on account
9. Which of the following is a purpose of providing Deferral Adjusting entries?
a. To comply with the Accrual basis of accounting
b. To comply with cash basis or deferral accounting
c. To comply with both the cash basis and accrual basis of accounting
d. None of the choices
10. If the income statement of the entity in the worksheet had P500,000 in the debit and P300,000
in the credit. It means
a. The income statement is wrong because it must be equal
b. There is net income of 200,000
c. There is net loss of 200,000
d. There is unrecorded expense or income
11. If the balance sheet of the entity in the worksheet had P1,000,000 in the debit and P600,000 In
the credit, it means
a. The balance sheet is wrong because it must be equal
b. There is net income of 400,000
c. There is net loss of 400,000
d. There is unrecorded asset, liability, or equity
12. If the adjusted trial balance of the entity in the worksheet had P700,000 in the debit and
P400,000 in the credit, it means
a. The trial balance is wrong because it must be equal
b. There is net income of 300,000
 c. There is net loss of 300,000
d. There is no error
Use the following given to answer the next 3 questions
On October 1,2022 Greatest White If Company made an advance payment for rent amounting
to P600,000 covering the 2-year rent. The entity recorded an expense on the start of the rent.
13. How much is the rent expense for the year ended December 31, 2022?
a. 75,000
b. 525,000
c. 50,000
d. 550,000
14. How much is the prepaid rent as of December 31,2023?
a. 375,000
b. 225,000
c. 300,000
d. 325,000
15. How much is the rent expense for the year ended December 31,2024
a. 300,000
b. 375,000
c. 225,000
d. 200,000
16. Which of the following is false regarding perpetual inventory system?
a. It is used by entity with low quantity and high value inventory
b. It is used by entity with high quantity and low value inventory
c. It doesn’t use purchase related account
d. The inventory account is always updated
17. Which of the following is true regarding discount?
a. Trade discounts are recorded in the book
b. Cash discounts are not recorded in the book
c. Example of trade discounts are sales discount and purchase discount
d. The customer must pay within the discount period to get the cash discount
18. Don’t Do tHaT to Me or Else Company purchased an inventory on January 14 with invoice price
amounting to P500,000 3/10 n/30. Trade discount is 30% and 20%. How much is the payment if
the entity pays on January 24
a. 500,000
b. 271,600
c. 485,000
d. 280,000
19. Which of the following account will not be found in the worksheet of perpetual inventory
system?
a. Merchandise Inventory
b. Sales
c. Sales Discount
d. Purchases
20. Which of the following account will not be found in the worksheet of periodic inventory system?
a. Merchandise inventory
b. Purchase discount
c. Cost of goods sold
d. Purchases
21. Tito Dennis Company sold an inventory on January 5 with a list price of 400,000 with a trade
discount of 10%, 20%, and a cash discount 2/10 n/45. If the customer returned goods amounting
to 50,000 on January 8 and received an allowance amounting to 20,000 on January 10. If the
customer pays on January 15, how much is the payment?
a. 213,640
b. 274,400
c. 282,240
d. 212,240
22. Using the same given, how much will the entity receive if the customer pays on January 16?
a. 218,000
b. 280,000
c. 288,000
d. 282,240
23. Which of the following is true?
a. Freight collect means the seller is the one actually paid the freight
b. Freight prepaid means the buyer is the one actually paid the freight
c. FOB Seller means the seller is the one required to pay the freight
d. FOB Buyer means the seller is the one required to pay the freight
24. Which of the following is true?
a. In FOB destination, the owner of the goods in transit is the seller
b. In FOB shipping point, the owner of the goods in transit is the buyer
c. FOB Destination and FOB Shipping point dictates who is the owner of the goods in
transit
d. All of the choices are true
Happy New Year Ebriwan Company has the following data during the year 2022
Purchases 400,000 Freight out 50,000
Purchase returns and allowances 30,000 Freight in 20,000
Depreciation Expense 50,000 Sales 1,200,000
Sales returns and allowances 20,000 Insurance expense 60,000
Beginning Inventory 40,000 Ending Inventory 100,000
Advertising Expense 80,000 Sales discount 80,000
25. How much is the Cost of goods sold?
a. 300,000
b. 330,000
c. 270,000
d. 360,000
26. How much is the gross profit?
a. 800,000
b. 850,000
c. 770,000
d. 700,000
27. How much is the net income/profit?
a. 530,000
b. 560,000
c. 610,000
d. 460,000
 Use the following given to answer the next 3 questions
Poser Company purchased an inventory on January 13,2022. The following are the data
regarding the purchased
List price – P1,000,000
Trade discount – 10%,20%,30%
Cash discount – 3/10, 2/15, 1/20, n/45
Shipping term – Freight cost of P100,000, FOB Shipping point, freight prepaid
28. If Poser pays on January 23, how much is the payment?
a. 585,880
b. 588,880
c. 537,768
d. 504,000
29. Using the same given if Poser pays on January 28, how much is the payment?
a. 593,920
b. 543,312
c. 504,000
d. 590,320
30. Using the same given if Poser pays on February 10, how much is the payment?
a. 604,000
b. 504,000
c. 598,960
d. 600,000

Use the following date to answer the next 4 questions

I. Sale of inventory on account
II. Purchase of inventory on cash
III. Sale of land on cash
IV. Purchase of inventory on account
V. Purchase of supplies on cash
VI. Collection of receivables
VII. Payment of payable
VIII. Sale of inventory on cash
IX. Sale of equipment on account
X. Purchased of equipment on account
XI. Closing entries
31. Which of the following is recorded in the cash receipt journal?
a. III, VI, VIII, IX
b. III, VI, VIII
c. I, II, VI, VIII
d. VI, VIII
32. Which of the following is recorded in the cash disbursement journal?
a. II, V, VII
b. II, V, VII, X
c. II, IV, V, VII
d. II, V
33. Which of the following is recorded in the purchase journal?
a. I, IV, X,
b. IV, X, XI
c. IV, X
d. IV
34. Which of the following is recorded in the general journal?
a. IX, XI
b. I, IX, X, XI
c. XI
d. IV, IX, XI
35. Ayoko Na Mabohai Company purchased an inventory. The invoice price is P1,000,000, including
in that price is the refundable tax amounting to P100,000. Additional cost to the inventory are as
follows: P30,000 is necessary to bring the inventory to the Mabohai Warehouse, P50,000 was
incurred as insurance while in transit and P70,000 was incurred as storage cost of the inventory
upon arrival. How much is the inventory to be recorded?
a. 1,000,000
b. 980,000
c. 1,080,000
d. 1,050,000
36. Kabit Pa Din Sa 2023 Company conducted a physical count amounting to P1,000,000. The
following are the data of the entity regarding inventory
a. Goods out of consignment P200,000
b. Goods held on consignment P100,000
c. Purchased goods in transit, FOB Destination amounting to P100,000. Freight cost is
P20,000
d. Sold goods in transit, FOB Shipping point amounting to P200,000. Freight cost is P30,000
How much is the ending inventory of the entity?
a. 1,100,000
b. 1,400,000
c. 800,000
d. 1,000,000
37. Which of the following is not part of inventory?
a. Raw materials
b. Finished goods
c. Work in process
d. None of the choices
38. Which of the following is true?
a. FIFO Perpetual and FIFO periodic will result in the same ending inventory and cost of
goods sold
b. Weighted average is used in perpetual inventory system
c. Moving average is used in periodic inventory system
d. All of the choices
 39. Which of the following is true?
a. When price is decreasing, the FIFO will yield the lowest cost of goods sold
b. When price is increasing, the FIFO will yield the lowest ending inventory
c. When price is decreasing, the FIFO will yield the highest ending inventory
d. When price is increasing, the FIFO will yield the lowest cost of goods sold

Use the following information to answer the questions below

The following are the information of Allen D. Pinili Company regarding its inventory
Beginning inventory: 5,000 units, P2,000 each
January 5: Purchased 3,000 units P1,000 each
7: Sold 6,000 units
8: Purchased return 1,000 units
10: Purchased 2,000 units P1,500 each
15: Sold 2,000 units
18: Sales return 500 units
20: Purchased 1,500 units P3,000 each
40. How much is the ending inventory if the entity uses FIFO – Perpetual?
a. 7,000,000
b. 6,750,000
c. 6,675,000
d. 6,800,000
41. How much is the cost of goods sold if the entity uses FIFO – Perpetual?
a. 12,500,000
b. 12,750,000
c. 12,825,000
d. 12,700,000
42. How much is the ending inventory if the entity uses Weighted average? (Round off using 2
decimal places)
a. 5,500,000
b. 5,878,990
c. 5,571,420
d. 5,356,870
43. How much is the cost of goods sold if the entity uses Weighted average? (Round off using 2
decimal places)
a. 13,999,970
b. 13,620,980
c. 13,928,550
d. 14,143,100
44. How much is the ending inventory if the entity uses Moving average? (Round off using 2 decimal
places)
a. 7,125,000
b. 6,575,000
c. 8,245,000
d. 7,425,000
45. How much is the cost of goods sold if the entity uses Moving average? (Round off using 2
decimal places)
a. 12,375,000
 b. 12,925,000
c. 11,255,000
d. 12,075,000

46. Which of the following would not be separately accounted for in the computation of cost of
goods sold?
a. Cost of transportation for merchandise purchased
b. Purchase returns and allowances
c. Cash discount taken during the period
d. Trade discount applicable to purchase
47. ABC Company provided the following information for the current year:

Net sales 1,800,000

Freight in 45,000
Purchase discounts 25,000
Ending inventory 120,000
Gross Margin on sales 40%

What is the cost of goods available for sale?

a. 840,000
b. 960,000
c. 1,200,000
d. 1,220,000

48. Failure to adjust for accrued salaries at the end of the period will result in an:
a. Overstatement of assets
b. Overstatement of liabilities
c. Overstatement of profit for the period
d. Understatement of profit for the period

49. Which of the following transactions is the most difficult to assign to specific time periods:
a. The accrual of interest
b. The expiration of insurance
c. The incurrence of salaries
d. The use of equipment

50. Radeon Corp. received cash of P40,000 in advance for revenue that will be earned later. The
cash receipt entry debited cash and credited unearned revenues for P40,000. At the end of the
period, P21,000 is still unearned. The adjusting entry for this situation will:
a. Debit revenues and credit unearned revenues for P19,000
b. Debit revenues and credit unearned revenues for P21,000
c. Debit unearned revenues and credit revenues P19,000
d. Debit unearned revenue and credit revenues P21,000
51. Arisu Company provided the following inventory card during February:

Purchase Units Balance

Price Units Used Units
Jan. 10 100 20,000 20,000
31 10,000 10,000
Feb. 8 110 30,000 40,000
9 Returns from factory (Jan. 10 lot) (1,000) 41,000
28 11,000 30,000

Using the weighted average method, what is the cost of inventory on February 28?

a. 3,180,000
b. 3,150,000
c. 3,120,000
d. 3,300,000

52. If an entity incorrectly includes goods held on consignment in the ending inventory, the effect
on the next period’s cost of goods sold and net income respectively is
a. Understatement and overstatement
b. Overstatement and understatement
c. Overstatement and overstatement
d. Understatement and understatement.

e. A credit sale of $800 is made

on April 25, terms 2/10, n/30,
on which a return of $50 is
f. granted on April 28. What
amount is received as payment
in full on May 4?
g. a. $735
 h. b. $784
i.c. $800
j.d $750
53. The collection of a 9,000 account after a 2% discount period will result in a
a. Debit to Cash for 8,820
b. Debit to Accounts receivable for 9,000
c. Debit to cash for 9,000
d. Debit to Sales discounts for 180

54. Kundiman Tayo Company sells merchandise on account for 2,000 Listing price with 25% trade
discount to Zarzuela Company with credit terms of 2/10, n/30. Zarzuela Company returns P300
of merchandise that was damaged, alongside with a check to settle the account within the
discount period. What is the amount of the check?
a. 1,470
b. 1,476
c. 1,200
d. 1,176
55. LCNRV of Inventory
a. Is always either the net realizable value or cost
b. Should always be equal to net realizable value
c. May sometimes be less than net realizable value
d. Should always be equal to estimated selling price less than cost to complete
56. Melon Lord Company reported during the current year beginning inventory P500,000, net
purchases P2,500,000 and net sales P3,200,000. A physical inventory at year end resulted in an
inventory of P575,000. The gross profit on sales has remained constant at 25%. The entity
suspected that some of the inventory may have been taken by new employee. What is the
estimated cost of missing inventory at year-end?
a. 25,000
b. 100,000
c. 175,000
d. 225,000

JP Batumbakal Security completed the following transactions:

 Batumbakal transferred cash from a personal account to an account to be used in business, 210,000
and invested a personal weapon to the business, 35,000 fair value
 Bought a communication equipment from Bidam Company for P110,000, paying 25% in cash and
placing the balance on account.
 Paid rent for the month, P5,000 and salaries for P 13,000.
 Performed security services to Silla and JB Galleries and Billed Silla for 20,000 and JB for 15,000
 Received invoice and paid insurance premium to Fidelity Company for bonding employees, 6,000-
recorded as insurance expense
 Received 90% payment from Silla and full payment from JB Galleries

57. What is the total cash?

a. 194,000
b. 191,500
c. 193,500
d. 197,500

58. Total assets will increase by:

a. 338,500
b. 336,000
c. 342,000
d. 336,000

59. What is the total liability and owner’s capital before profit ?
a. 75,500 and 245,000
b. 82,500 and 210,000
c. 75,000 and 210,000
d. 82,500 and 245,000

60. The cost of inventories does not include

a. Salaries of factory staff.
b. Storage costs necessary in the production process before a further production stage.
c. Abnormal amounts of wasted materials and distribution costs.
d. Irrecoverable purchase taxes.

61. Daniel Company reported inventory on December 31, 2022 at P1,500,000 based on a physical
count period at cost and before any necessary adjustment for the following:

 Merchandise costing P90,000, shipped FOB shipping point from a vendor on December 30,
2022 was received and recorded on January 5, 2023.
 Goods in the shipping area were excluded from inventory although shipment was not
made until January 4, 2023. The goods billed to the customer FOB shipping point on
December 30, 2022, had a cost of P120,000.

What amount should be reported as inventory on December 31, 2022?

a. 1,500,000
b. 1,590,000
c. 1,620,000
d. 1,710,000
 62. Which of the following inventory method reports most closely to the current cost of Inventory
a. FIFO
b. Specific Identification
c. Weighted average
d. LIFO

63. Myla Company used the average cost retail inventory method to account for inventory. The
following information related to operations for the current year:

Cost Retail
Beginning inventory and purchases 6,000,000 9,200,000
Net markups 400,000
Net markdowns 600,000
Sales 7,800,000

What amount should be reported as cost of goods sold for the current year?

a. 4,800,000
b. 4,875,000
c. 5,200,000
d. 5,250,000
64. Si Idol Pala To Company determined the following information for the inventory at year-end:

Historical cost 100,000

Current replacement cost 70,000
Net realizable value 90,000
Net realizable value less a normal profit margin 85,000
Fair value 95,000

What amount should be reported as inventory at year-end?

a. 70,000
b. 85,000
c. 90,000
d. 95,000

65. Which statement is incorrect?

a. Purchase order is a written request to the supplier of an entity from an employee or user
department of the same entity that goods be purchased.
b. The statement of account is a formal notice to the debtor detailing the accounts already due
c. A credit memorandum is a form used by the seller to notify the buyer that his account is being
decreased due to errors or other factors requiring adjustments.
d. The official receipt evidences the receipt of cash by the seller or the authorized representative.

The following are the data of Kaya Pa? Company

 Cost Retail
Beginning inventory 400,000 500,000
Purchases 1,000,000 1,200,000
Purchase return 50,000 80,000
Departmental Transfer in 40,000 60,000
Mark up 300,000
Markdown 100,000
Markdown cancellation 50,000
Sales 1,200,000
Sales return 30,000
Sales allowances 5,000
Sales discount 15,000
Employee discount 20,000
Spoilage and breakage 10,000

66. What is the cost ratio if the entity used conservative method?
a. 70.80%
b. 72.45%
c. 73.50%
d. 70.20%
67. What is the cost ratio if the entity used average method?
a. 73.04%
b. 73.20%
c. 72.02%
d. 72.20%
68. What is the cost ratio of the entity used FIFO method?
a. 69.23%
b. 68.75%
c. 66.55%
d. 70.24%

69. If the entity has 25% gross profit based on cost. What is the entity’s gross profit based on sales?
a. 25%
b. 20%
c. 30%
d. 35%
70. 1 + 1 = ?
a. 3, really?
b. 4, OMG you want to pick this one?
c. 1, go ahead do not pick me, I’m used to it
d. 2