ACC101: Financial Accounting and Reporting
1stSemester: 2022 Preliminary Examination
Name: _______________________________
Date: ___________________
Section: ______________________________
Part 1. Multiple Choice
1)
2)
3)
4)
The process of IDENTIFYING, RECORDING, and COMMUNICATING economic
events of an organization to interested users
a. Bookkeeping
c. Purchasing
b. Accounting
d. Engineering
The basic storage of information in accounting
a. Account Title
c. Trial Balance
b. Normal Balance
d. Account
Events that affect the asset, liabilities, equity, income or expenses of a
business when identifying transactions
a. Journal Entries
c. Accountable Event
b. Communicating
d. Bookkeeping
The process of recording accounts or transactions of an entity and normally
ends with the preparation of the trial balance.
a. Journal Entries
b. Communicating
5)
6)
7)
c. Accountable Event
d. Bookkeeping
Information is selected or presented without bias and is not manipulated to
increase favorability.
a. Completeness
c. Verifiability
b. Neutrality
d. Timeliness
Economic resources you control that can provide economic benefits.
a. Liabilities
c. Equity
b. Asset
d. Income
Increases in assets, or decreases in liabilities, that result in increases in
equity.
a. Liabilities
c. Equity
b. Asset
d. Income
8)
Defined as the difference between assets and liabilities.
a. Liabilities
c. Net Worth
b. Expenses
d. Income
9)
The concept that views each transaction as having two-fold effect on values.
a. Duality
c. Journalizing
b. Equilibrium
d. Posting
10) Represents the reduction of the value of a related account
a. Credit
c. Contra-account
b. Debit
d. Depreciation
The concept of observing a degree of caution when exercising judgements
11) needed in making accounting estimates.
a. Time Period
c. Matching
b. Prudence
d. Separate entity
The concept of the business is viewed as a separate person, distinct from its
12) owners.
a. Time Period
c. Matching
b. Prudence
d. Separate entity
The concept that guides the accountant when applying accounting
13) principles
a. Materiality
c. Prudence
b. Matching
d. Separate entity
14) Represents the goods that are held for sale by a business
a. Bad debts
c. Office supplies
b. Inventory
d. Equipment
15) Interest incurred but not yet paid.
a. Interest expense
c. Interest payable
b. Prepaid interest
d. Interest receivable
Part 2. ACCOUNTING EQUATION
ASSETS = LIABILITIES + EQUITY
1
370,000.00
70,000.00
?
2
270,000.00
?
130,000.00
3
?
180,000.00
330,000.00
4
330,000.00
?
120,000.00
5
130,000.00
80,000.00
?
6
780,000.00
150,000.00
?
7
1,000,000.00
?
580,000.00
8
?
330,000.00
170,000.00
9
920,000.00
?
560,000.00
10
760,000.00
240,000.00
?
ASSETS = LIABILITIES + EQUITY + INCOME - EXPENSES
11
690,000.00
130,000.00
320,000.00
270,000.00
?
12
940,000.00
127,000.00
300,000.00
?
180,000.00
13
750,000.00
360,000.00
?
200,000.00
80,000.00
14
680,000.00
?
300,000.00
210,000.00
70,000.00
15
?
410,000.00
170,000.00
480,000.00
190,000.00
16
360,000.00
100,000.00
200,000.00
85,000.00
?
17
1,250,000.00
250,000.00
500,000.00
?
150,000.00
18
359,000.00
160,000.00
?
70,000.00
50,000.00
19
697,000.00
?
200,000.00
300,000.00
600,000.00
20
?
780,000.00
470,000.00
680,000.00
490,000.00
PART3-Journal Entries:
A business had the following transactions during the month.
Provide the journal entries to record the transactions.
Aug
Transaction
1
The owner contributed P500,000 cash to the business.
3
The business purchased inventory worth P150,000 on account.
4
The business purchased office supplies worth P40,000 on account.
The business purchased additional inventory worth P200,000 on cash
5
basis.
The business purchased an equipment worth P50,000 and paid 50%
6
down payment and the balance due in 30days
The business sold goods for P10,000 cash. The cost of the goods sold is
7
P5,000.
The business sold goods for P5,000 on account. The cost of goods sold is
8
P2,500.
9
The business paid P40,000 accounts payable.
10 The business collected P5,000 receivable from Aug. 8 transaction
12 The business paid for the balance of the equipment purchased.
The business sold goods for P20,000 on a promissory note. The cost of
13
goods sold is P10,000.
The business sold goods for P30,000 with 90% down payment and the
14 balance on account with a 10% interest. The cost of goods sold is
P15,000.
15 The business paid salaries of P20,000
17 The business was paid P10,000 for an order to be delivered in 3 days.
18 The business collected the receivable from Aug. 13
The business collected the balance from Aug. 14 transaction with the
19
interest.
The business delivers the order from Aug. 17 and incurs a delivery fee of
20
P100. The cost of goods sold is P5,000.
25 The business paid utilities for P10,000
27 The business paid the purchased inventory from Aug. 3 transaction
31 The business paid salaries expense of P20,000.