1st Quiz

BASIC ACCOUNTING - EASY LEVEL

1. Insurance expense account has a balance of ₱108,000 before adjustment. This amount represents insurance premium for three months beginning December 1, 2021. Based on these data, the prepaid insurance that should be reported in the December 31, 2021 statement of financial position is

• a. 0

• b. 36,000

• c. 72,000

• d. 108,000

BASIC ACCOUNTING - EASY LEVEL

2. Assuming that ending merchandise inventory was ₱10,000 less than the beginning merchandise inventory of ₱125,000 and that the net purchases was ₱450,000, how much was the cost of goods sold?

• a. 0

• b. 335,000

• c. 460,000

• d. 565,000

BASIC ACCOUNTING - EASY LEVEL

3. First statement: On the income statement, debits are used to increase account balances, whereas on the statement of financial position, credits are used to increase account balances.

Second statement: The rules for debit and credit and the normal balance for Capital are the same for liabilities

• a. True, True

• b. True, False

• c. False, True

• d. False, False

INTERMEDIATE ACCOUNTING 1 - EASY LEVEL

4. XYZ Co. acquired land with a fair value of ₱900,000 by issuing 10,000 shares with par value of ₱9 per share and quoted price of ₱81 per share. What is the initial cost of land?

• a. 810,000

• b. 900,000

• c. 90,000

• d. 0

INTERMEDIATE ACCOUNTING 1 - EASY LEVEL

5. In the statement of cash flows of a non-financial institution, interest income received is presented under

• a. Operating activities

• b. Financing activities

• c. Investing activities

• d. A or C

INTERMEDIATE ACCOUNTING 1 - EASY LEVEL

6. This refers to the comparability of financial statements of the same entity but in different period?

• a. Inter-comparability

• b. Extra-comparability

• c. Intra-comparability

• d. Intro-comparability

LAW ON OBLIGATIONS AND CONTRACTS - EASY LEVEL

7.

• a.

• b.

• c.

• d.

LAW ON OBLIGATIONS AND CONTRACTS - EASY LEVEL

8.

• a.

• b.

• c.

• d.

INCOME TAXATION - EASY LEVEL

9. It literally means "place of taxation" the country that has the power and jurisdiction to levy and collect the tax

• a. Basis of taxation

• b. Situs of taxation

• c. Scope of taxation

• d. Theory of taxation

INCOME TAXATION - EASY LEVEL

10. Tax which is demanded from the persons whom the law intends or desires to pay it

• a. Direct

• b. Indirect

• c. Excise

• d. Income