Republic of the Philippines
Department of Education
REGION IV-A – CALABARZON
SCHOOLS DIVISION OF CAVITE
EMILIA AMBALADA POBLETE NATIONAL HIGH SCHOOL
CAMIA ST., Mary Ann Village, Pob. 5, Silang, Cavite
Fundamentals of Accountancy, Business and Management 1
ABM 11
Quarter 2 – 2nd Semester
Summative Test #2
Week 3 -4
Direction: Select the best answer for each questions.
1. The source document for purchase of merchandise.
A. debit memorandum
C. Sales Invoice
B. Purchase Invoice
D. Credit Memorandum
2. The source document for sale of merchandise.
A. debit memorandum
C. Sales Invoice
B. Purchase Invoice
D. Credit Memorandum
3. Merchandise business means
A. one that creates and produces physical goods
C. one that render services
B. one that buys and sells goods in order to make a profit D. A, B, C are correct
4. The following are scenario of how goods are consume. Which of the following best defines
merchandise?
A. The goods costumer buy
C. The goods that company buys in order to resell
B. The goods that company manufactures
D. Choices A, B, and C
5. Base on the definition on number 4. Which of the following is an example of merchandise
business?
A. supermarket
B. banking
C. Consulting
D. Hotel
6. Special journal is a journal other than a general journal that records types of transactions
which occur frequently. Which of the following is the types of special journals?
A. Sales journal
C. Cash receipt journal
B. Purchase journal
D. all of the above
7. Which of the following is an advantage of a special journal?
A. Accounts forwarded to the income statement column
B. Accounts that need to be closed
C. Both A and B
8. Which of the following describe permanent accounts?
A. Accounts that are extended to the statement of financial position.
B. Accounts become the beginning balances for the next accounting period.
C. Both A and B
9. In a service business, revenues is concerned earned _________________.
A. at the end of the month
C. at the beginning of the accounting period
B. at the end of the year
D. and recorded directly in the ledger
10. Adjusting entries are prepared
A. always at the end of the accounting period
C. Stable monetary unit
B. anytime during the accounting period
D. Ignoring concept
Address: Camia St., Mary Ann Village, Pob. 5, Silang, Cavite
Telephone No.: (046) 413-0381
Republic of the Philippines
Department of Education
REGION IV-A – CALABARZON
SCHOOLS DIVISION OF CAVITE
EMILIA AMBALADA POBLETE NATIONAL HIGH SCHOOL
CAMIA ST., Mary Ann Village, Pob. 5, Silang, Cavite
11. Adjusting journal entries are formally recorded in the ______________.
A. trial balance
B. worksheet
C. journal
D. ledger
12. Recording: writing the effects of the transaction ; Summarizing: ________________
A. final function of accounting process
B. Process of groupings various accounts
C. Sorting and or grouping similar transactions
D. preparation of financial statements
13. Which of the following is incorrect?
A. accrual means to accumulate over a period of time
B. deferral means to postpone until some future time.
C. accrual is a record of income earned regardless of collection.
D. deferral is a record of expense incurred regardless of when it is paid.
14. The total sales were P1, 000,000. The sales on a cash basis amounted to P300, 000. The
policy of the business is to provide 2% of credit sales as bad debt expense. How much is the bad
debt expenses?
A. P20, 000
B. P14, 000
C. P6, 000
D. P4, 000
15. Which of the following state the correct step-by-step procedures for accomplishing the
worksheet.
I.
Account title
II.
Unadjusted trial balance
III.
Adjustments
IV.
Adjusted trial balance
V.
Income statement
VI.
Statement of Financial Position
A. VI, V, IV, III, II, I
B. IV, V, VI, III, II, I
C. I, II, III, IV, V, VI
D. II, I, IV, III, VI, V
Address: Camia St., Mary Ann Village, Pob. 5, Silang, Cavite
Telephone No.: (046) 413-0381