Reference no: EM133081720

Questions -

Q1. Assuming that net purchases was P900,000 during the year and that ending merchandise inventory was P20,000 less than beginning merchandise inventory of P250,000, how much was the cost of goods sold?

a. P920,000

b. P670,000

c. P1,130,000

d. P1,170,000

Q2. JAW Company has a beginning inventory of P55,000 and ending inventory of P35,000. Assuming, these beginning and ending merchandise inventories were ignored in computing profit, then profit would be ____________.

a. understated by P20,000.

b. overstated by P20,000.

c. understated by P35,000.

d. understated by P55,000.

Q3. A cash deposit made by business appears on the bank statement as a ____________ balance.

a. Debit

b. Credit

c. Expenses

d. Liabilities

Q4. The following totals for the month of June were taken from the payroll register of Alpha Company. The entry to record the payment of accrued net payroll would include a ________________.

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a. debit to Cash for P132,670.

b. debit to Salaries Payable for P132,670.

c. credit to Cash for P200,000.

d. debit to Salaries Payable for P121,070.

Q5. The December 31, 2020 trial balance for KMI Company include the following: Purchases P40,000; Purchase Returns and Allowances, P2,000: Freight-in P3,000; Ending inventory was P8,000. What was the cost of goods sold for 2020?

a. P38,000

b. P30,000

c. P39,000

d. P33,000

Q6. Under perpetual inventory system, freight-in is debited to _______________.

a. freight-out

b. freight-in.

c. purchases.

d. merchandise Inventory

Q7. Which of the following is not considered an account title under periodic inventory system?

a. Sales

b. Freight-in

c. Purchases

d. Cost of Sales

Q8. Which inventory system records inventory at specific points in time?

a. Perpetual

b. FIFO

c. Periodic

d. Specific Identification

Q9. Which of the following does not form part of Special Journals?

a. Sales Journal

b. Purchase Journal

c. General Journal

d. Cash Payments Journal

Q10. Which of the following should be charged to the manufacturing overhead?

a. Cost of raw materials

b. Factory supplies

c. Office salaries

d. Managing Director's salary

Q11. Good totaling 50,000 were purchased February 2 with terms 2/10, n/30. Returns of P10,000 ere made on February 10. What discounts, if any, can be availed of if the invoice was paid on February 12?

a. P800

b. P0

c. P200

d. P1,000

Q12. When there is a sale of merchandise on account, the entry in the Sales Journal will require a debit to ______________.

a. Purchases

b. Sales

c. Accounts Payable

d. Accounts Receivable

Q13. Gross profit equals the difference between net sales and _____________.

a. Purchases

b. Profit

c. Operating expenses

d. Cost of Goods Sold

Q14. Which of the following goods would not be included in merchandise inventory for a purchasing company?

a. Goods ordered and received from the supplier.

b. Goods in transit shipped FOB shipping point.

c. Goods in transit shipped FOB destination.

d. Goods on hand in the showroom

Q15. Merchandise inventory becomes part of cost of goods sold when a company __________.

a. receives payment from the customer.

b. sells the inventory.

c. purchases the inventory.

d. pays for the inventory.

Q16. How do you determine the value of the Work in Progress?

a. Sales less cost of goods sold

b. Value of partly finished goods

c. Sales plus cost of goods sold

d. Value of finished goods on hand

Q17. Which of the following items would be added to the book balance on a bank reconciliation?

a. Deposits in transit

b. Service charge

c. Interest income credited by the bank

d. Outstanding checks

Q18. Where do we present prepaid tax in the financial statements?

a. Balance Sheet

b. Income Statement

c. Statement of Changes in Equity

d. Statement of Cash Flow

Q19. When special journal is used, cash discounts when availed on your purchases is recorded in the ____________.

a. Purchase Journal

b. General Journal

c. Cash Receipts Journal

d. Cash Disbursements Journal

Q20. Which of the following is a direct cost?

a. Factory machine maintenance

b. Factory supervisor's salary

c. Factory rent

d. Production workers' wages

Q21. The entry to record a payment on a P15,000 account within the 2% discount period would include a ___________.

a. debit to accounts payable for 14,700.

b. credit to cash for P15,000.

c. credit to purchase discount for P300.

d. debit to purchases discount for P300.

Q22. Which of the following is not one of the components of a Manufacturing Income Statement?

a. Ending finished goods

b. Cost of goods purchased

c. Goods available

d. Cost of goods sold

Q23. Assume the following facts for KM Company: The month-end bank statement shows a balance of P400,000; outstanding checks total P20,000; a deposit of P80,000 is in transit at month-end; and a check for P4,000 was erroneously charged against the account by the bank. What is the adjusted bank balance at the end of the month?

a. P336,000

b. P456,000

c. P464,000

d. P344,000

Q24. In preparing a monthly bank reconciliation, which of the following items would be added to the balance reported on the bank statement to arrive at the correct cash balance?

a. Customer's note collected by the bank on behalf of the depositor

b. Outstanding checks

c. Deposits in transit

d. Bank service charge depositor

Q25. In a sales journal used to record VATable sales, the total of the Accounts Receivable column should equal to ____________.

a. the total of the Output Tax column

b. the difference between the total of the Output Tax column and the total of the Sales column

c. the total of the Sales Column

d. the sum of the totals of the Output Tax Column and the Sales Column.

Q26. The items, raw materials inventory, work in progress inventory and finished goods inventory are MOST like seen together on the balance sheet of a _________________.

a. bus company.

b. garage.

c. supermarket.

d. shoe factory.

Q27. When we buy goods, what do you call the tax that is included in the purchase price passed on or shifted to us by the seller?

a. Input tax

b. Sales tax

c. Percentage tax

d. Output tax

Q28. What do you call a form of bank account which allows you to deposit money at a bank for safekeeping and the depositor is given a passbook?

a. Current Account

b. Checking Account

c. Bill Account

d. Savings Account

Q29. What is the shipping term if the buyer shoulders the shipping costs?

a. FOB shipping point

b. Credit memorandum

c. FOB destination

d. Debit memorandum

Q30. Each of the following businesses is a type of merchandising concern, except _____________.

a. Grocery store

b. Beauty Salon

c. Retail clothing

d. Bookstore

Q31. Which of the following is required when calculating prime cost?

a. Office wages

b. Manufacturing wages

c. Factory water bill

d. Depreciation of machinery

Q32. What do you call form of bank account which allows you withdraw money, pay a bill, or make purchases easily through checks issuance?

a. Bill Account

b. Savings Account

c. Market Money Account

d. Current Account

Q33. What do you call the schedule or statement which summarizes all the cost elements of the goods produced during the period?

a. Statement of Production Report

b. Statement of Comprehensive Income

c. Statement of Cost of Goods Manufactured

d. Statement of Cost of Goods Sold

Q34. Which of the following items is not considered "indirect materials"?

a. Sandpaper used in the factory

b. Cost of lumber on making chairs

c. Cost of nails on making chairs

d. Glue used in production of books

Q35. Ysabelle Company which uses the periodic inventory system, bought merchandise for P8,000, terms 2/10, n/30. If Cheska returns 2,000 of the goods to the vendor, Cheska records the return which should include a ______________.

a. credit to purchase returns and allowance 1,960.

b. debit to Accounts Payable P2,000.

c. debit to purchase returns and allowance, 2,000.

d. debit to discount loss of 40

Q36. Which of the following accounts would be credited to set up a petty cash fund?

a. Withdrawals

b. Petty cash

c. Miscellaneous expense

d. Cash

Q37. The entry to record a payment on a P15,000 account within the 2% discount period would include a ___________.

a. debit to accounts payable for 14,700.

b. credit to cash for P15,000.

c. credit to purchase discount for P300.

d. debit to purchases discount for P300.