Republic of the Philippines

Province of Bohol
NORTH COAST BOHOL INSTITUTE INC.
San Francisco, Talibon, Bohol

3RD QUARTER EXAMINATION

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT - 11

Name: __________________________ Grade & Section: _______________ Date: _______________ Score: _______

TEST I. IDENTIFICATION: Identify the following. Choose your answers from the box. Write only the letter of your choice.

a. Financial Accounting i. Stock Certificate q. GENERAL LEDGER

b. Manufacturing Cost j. Coop. Dev’t. Authority r. SUBSIDIARY LEDGER
c. Internal Audit k. Security and Exchange Commission
d. Cost Accounting. l. Cash Receipts Journal
e. Internal Users m. Purchase Journal
f. External Audit n. Sales Invoice Number
g. Articles of Partnership o. Voucher Number
h. Cooperatives p. Cash Disbursements Journal

_________ 1. What branch of accounting focuses on the needs of external users?

_________ 2. What branch of accounting help the owner set the selling price of his/her products?
_________ 3. What audit category examines financial statement done by an independent CPA?
_________ 4. The basis of recording, presentation and analysis in cost accounting.
_________ 5. An audit that determines the operational efficiency of the company.
_________ 6. A type of business organization that promotes the concept of sharing resources.
_________ 7. Government agency regulating cooperatives.
_________ 8. Legal document that contains the details of the arrangement between the partners.
_________ 9. The document that serve as proof of ownership in cooperatives.
_________ 10. Used to record all cash that has been received
_________ 11. Identifying number of the source document issued to the customer when the sale was made.
_________ 12. It is used to record all transactions involving cash payments.

TEST II. MULTIPLE CHOICE: Read each questions carefully. Choose the letter of the BEST answer.

1. The accounting guideline that requires financial statement information to be supported by independent, unbiased evidence
other than someone's belief or opinion is the:
a. Business entity principle c. Going-concern principle
b. Monetary unit principle d. Objectivity principle
2. The principle that requires every business to be accounted for separately and distinctly from its owner or owners is known
as the:
a. Objectivity principle c. Revenue recognition principle
b. Business entity principle d. Cost principle
3. Marian Mosely is the owner of Mosely Accounting Services. Which accounting principle requires Marian to keep her
personal financial information separate from the financial information of Mosely Accounting Services?
a. Business entity principle c. Going-concern principle
b. Monetary unit principle d. Objectivity principle
4. The rule that requires financial statements to reflect the assumption that the business will continue operating instead of
being closed or sold, unless evidence shows that it will not continue, is the:
a. Going-concern principle c. Monetary unit principle
b. Business entity principle d. Objectivity principle

5. Which of these are amounts due, or payable to, suppliers for goods purchased on account or for services received on
account?
a. Accounts Payable b. Accounts Receivable c. Credits Payable d. Notes Payable
6. What do you call the amounts due from customers arising from credit sales or credit services?
a. Accounts Payable b. Accounts Receivable c. Accrued Income d. Mortgage Payable
7. These are items purchased by an enterprise which are unused as of the reporting date.
a. Inventories b. Office Equipment c. Supplies d. Auxiliaries

8. What special journal is applicable for this transaction: Paid PHP20, 000 monthly rental?
a. CASH DISBURSEMENT JOURNAL
b. PURCHASE JOURNAL
c. CAH RECEIPTS JOURNAL
d. SALES JOURNAL
 9. Identify the appropriate special journal to be used for this source document: Official Receipt issued by the company.
a. Purchase Journal b. Cash Receipts c. Sales Journal d. Sales Invoice
10. Which of the following points to an account debited for assets withdrawn by the owner for personal use from the business?
a. Liabilities b. Accounts Payable c. Drawing d. Expenditures
11. Which is a method of allocating the cost of an asset to an expense over the accounting periods that make up the asset’s
useful life.
a. Residual Value b. Salvage Value c. Depreciation d. Acquisition Cost
12. The income, expense, withdrawal (equity) accounts are called __________ because they accumulate the
transactions of only one accounting period.
a. personal accounts b. real accounts c. outstanding accounts d. nominal accounts

Test III. Compute the depreciation expense for the following independent cases. Show your solutions. (5 pts. each)

1. Pedro Reyes purchased a delivery vehicle on January 1, 2016 amounting to PHP250,000. It is estimated that the vehicle will be
useful for 10 years. The vehicle can be sold for PHP10,000 at the end of its useful life. If the accounting period being reported by
Pedro is one (1) month (January 2016), how much is the depreciation expense for the month?

2. Pedro Reyes purchased a delivery vehicle on January 1, 2016 amounting to PHP250,000. It is estimated that the vehicle will be
useful for 10 years. The vehicle can be sold for PHP10,000 at the end of its useful life. If the accounting period being reported by
Pedro is one (1) year from January – December 2016, how much is the depreciation expense?

Test IV. Show the accounting cycle indicated by each empty fields in order. (2 pts. each)

1 2 3 4

8 7 6 5

“We don’t grow when something is easy! We grow when something is challenging!”
-Sir Lhoy ‘19
 Republic of the Philippines
Province of Bohol
NORTH COAST BOHOL INSTITUTE INC.
San Francisco, Talibon, Bohol

3RD QUARTER EXAMINATION

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT - 11

Situation:
Pedro Matapang started his Matapang Computer Repairs business on February 14, 2016. The following transactions transpired in February 2016:

1. February 14, 2016 - Pedro Matapang invested PHP200,000 into his Matapang Computer Repair business.
2. February 15, 2016 - Pedro purchased one computer unit from XY Computer Store to be used for his business. He issued check number 001
amounting to PHP25,000.
3. February 16, 2016 - Pedro hired Juana Magaling, an experienced secretary.
4. February 17, 2016 – Repaired the computer of Jean and collected PHP10,000.
5. February 18, 2016 – Repaired the computer of Mike; however, Mike will pay PHP15,000 only on March 18, 2016.
6. February 19, 2016 – Pedro purchased Office Supplies from MM Merchandise amounting to PHP5,000 on account. Pedro will pay this on March
30, 2016.
7. February 25, 2016 – Paid the salary of Juana amounting to PHP4, 000.

Directions: Create an entry to record the above transactions.

GENERAL JOURNAL
____________________________________
______________________

No. Date Account Title and Explanation Ref Debit Credit

*Cash, Salaries Expense, Accounts Receivable, Office Equipment, Supplies Expense, Service Revenue, Cash
* payment of salary of Juana, initial investment of owner P. Matapang, purchase of 1 computer unit, services rendered to a customer on account, receipt of cash from customer, purchase of
office supplies on account

“We don’t grow when something is easy! We grow when something is challenging!”
-Sir Lhoy ‘19