quiz

PICPA Mobile Quiz Bee Legends

EASY

Multiple Choice

A professional accountant should act in a manner consistent with the good reputation of the profession. What ethical principle is this?

• Objectivity

• Integrity

• Professional behavior

• None of the above

Multiple Choice

Which of the following is not subject to depreciation?

• Equipment

• Machinery

• Building

• Land

Multiple Choice

Salaries and wages that are recorded as expenses at year end but remain unpaid are an example of a/an

• deferred expense

• accrued expense

• deferred revenue

• accrued revenue

Multiple Choice

Which of the following transactions does not affect the owner’s capital account?

• withdrawals by the owner

• incurring of expenses

• paying an accounts payable

• earning of revenues

Multiple Choice

This principle states that information is based on actual costs incurred in transactions

• Business Entity Concept

• Historical Cost Principle

• Matching Principle

• Full Disclosure

Multiple Choice

___________ requires that revenue and expenses be recorded in the period it is earned and incurred regardless of when collected and paid, respectively.

• Going Concern Assumption

• Economic Entity Assumption

• Accrual Basis Assumption

Multiple Choice

Which is not a service company?

• Car dealer

• Law firm

• Stock brokerage

• Recruitment agency

Multiple Choice

Revenues: Earnings; Expenses: _______

• Costs Incurred

• Debts Paid

• Assets Purchased

• Capital Investment

Multiple Choice

___________ is the quality of information that assures readers that the information is free from bias or error and faithfully represents what it purports to represent.

• Understandability

• Comparability

• Relevance

• Reliability

Multiple Choice

PAS is an accounting standard adopted in the Philippines. What does it stand for?

• Philippine Accepted Standards

• Philippine Accounting Standards

• Philippine Accounting System

AVERAGE

Multiple Choice

It is the Philippines’ version of the IFRS

• Generally Accepted Accounting Principles

• Philippine Financial Reporting Standards

• Philippine Accounting Standards

Multiple Choice

If you want to verify the equality of debits and credits in the ledger, what will you do?

• prepare a trial balance

• record to the journal

• post to the ledger

• correct entries

Multiple Choice

Which item is not a current liability?

• Unearned revenue

• Share dividend payable

• The currently maturing portion of long-term debt

• Trade accounts payable

Multiple Choice

Socrates Co. reported average assets of P250,000, net income of P200,000, and net sales of P1,000,000 for 2021. What is the net profit margin for 2021?

• 45%

• 5%

• 25%

• 20%

Multiple Choice

What is the other term for the net assets of a corporation?

• Shareholders' Equity

• Legal Capital

• Retained earnings

• Contributed Capital

Multiple Select

The amount of goods available for sale during the year depends on the amounts of __________________ and __________________

• Beginning merchandise inventory

• ending merchandise inventory

• cost of goods sold

• net purchases

• net sales

Multiple Choice

Betty Pooh Doll House bought merchandise from Barbie Toy Supply worth P100,000 on Aug.16. Terms: 2/20, n/60. What is the last day of payment of the account to avail the cash discount?

• September 5

• October 15

• August 31

• September 1

Multiple Choice

Which ratio determines a company’s ability to pay interest from loan?

• Debt Ratio

• Equity ratio

• Debt-to-Equity ratio

• Times Interest Earned

Multiple Choice

Which of the following principles is also known as the prudence principle?

• Conservatism Principle

• Materiality Principle

• Objectivity Principle

Multiple Choice

Seth and Anna run a small business as partners. In the previous week, their company bought a computer set for P25,000. The same computer set can be purchased at only P20,000 from the same vendor this week. At what amount should the computer set be recorded by the accountant of Seth and Anna’s business?

• Php25,000.00

• Php20,000.00

• Php0.00

DIFFICULT

Multiple Choice

A business enterprise pays weekly salaries of P45,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Thursday would include a debit to

• Salaries Payable Php36,000

• Salary Expense Php45,000

• Cash, P36,000

• Salary Expense Php36,000

Multiple Choice

Emily, the accountant of Z Enterprise, recorded sales of P300,000 in January. Corresponding to this sale are the salaries of employees amounting to P20,000. What amount of expense should Emily record?

• Php 300,000

• Php20,000

• Php280,000

• Php320,000

Multiple Choice

If an Office Equipment costs P135,000 and Accumulated Depreciation amounts to P45,000, the book value of the Office Equipment is

• Php90,000.00

• Php100,000.00

• Php0.00

• Php180,000.00

Multiple Choice

A business’s beginning inventory is P150,000. During the year the purchases amounted to P250,000 wherein P5,000 was returned to the seller. How much is the total goods available for sale?

• Php405,000.00

• Php400,000.00

• Php155,000.00

• Php395,000.00

Multiple Choice

If cash is received in advance from a customer, then

• Assets will decrease

• Retained earnings will increase

• Liabilities will increase

• Owner's equity will decrease

Multiple Choice

G Company received P30,000 cash on October 1 which represents a one-year advance payment of rent on an office it rents to a client. Unearned Rental Revenue was credited for the full P30,000. Financial statements are prepared on December 31. The appropriate adjusting journal entry to make on December 31 would be

• Debit Unearned Rental Revenue P22,500.00; credit Rental Revenue P22,500.00

• Debit Rental Revenue P2,500.00; credit Unearned Rental Revenue P2,500.00

• Debit Unearned Rental Revenue Php7,500.00; credit Rental Revenue P7,500.00

• Debit Rental Revenue P22,500.00; credit Unearned Rental Revenue P22,500.00

Multiple Choice

The payment of P25,000 purchase on account within the 3% discount period would include a journal entry with a credit to

• Accounts Payable for Php25,000.00

• Accounts Payable for Php24,250.00

• Purchase Discount for Php750.00

• Cash for Php25,000.00

Multiple Choice

In a manufacturing entity’s income statement, the Cost of Goods Manufactured plus Work in Process, Ending less Work in Process, Beginning is the

• Total Manufacturing Cost

• Total Raw Materials Used

• Cost of Goods Available for Sale

• Cost of Goods Sold

Multiple Choice

PSJ & PMY Merchandising sold merchandise to Yellow Ribbon worth P200,000. Terms: 3/15; n/30. But the business received return merchandise due incorrect brand and sizes of items worth P5,000. They also received damaged items due to customer’s negligence worth P1,000. How much is the sales return of PCJ & PMY Merchandising

• Php5,000.00

• Php1,000.00

• Php4,000.00

• Php6,000.00

Multiple Choice

Yuno decided to give Asta handkerchiefs on Christmas Day. He went to a nearby mall, and bought 15 pieces of handkerchief, each priced at P30. The shop offers 8% discount for purchases of 12-23 handkerchiefs. Since Christmas is approaching, the shop generously adds a 5% holiday discount for the entire month. The owner recognized Yuno as a patron and decided to give him another 10% discount on his purchase. How much is the total trade discount of Yuno?

• Php103.50

• Php96.03

• Php353.97

• Php450.00

THE QUIZ IS FINISHED

CONGRATULATIONS AND THANK YOU FOR YOUR PARTICIPATION!