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Accounting Quiz Bee-Review #6

Total questions: 30

Worksheet time: 18mins

Name
Class
Date
1.

The Philippine Institute of Certified Public Accountants of PICPA is a non-stock, non-profit organization duly recognized by the Professional Regulation Commission (PRC) as the accredited Integrated Professional Organization (AIPO) for accountancy in the Philippines.

a)

True

b)

False

2.

The financial statements that reports the revenues and expenses for a period of time such as a year or a month is the ___.

a)

Balance sheet

b)

Income statement

c)

Statement of cash flows

d)

Bank reconciliation

3.

Under the accrual basis of accounting, expenses are reported in the accounting period when the ___.

a)

cash is paid

b)

expense matches the revenues or is used up

4.

The accounting profession was recognized in 1896 with the establishment of the professional title of certified public accountant (CPA)

a)

True

b)

False

5.

Whi published the textbook called Summa de Arithmetica, Geometria, Proportioni et Proportionalita and also known as the Father of Accounting?

a)

Leonardo da Vinci

b)

Isaac Newton

c)

Luca Pacioli

d)

Johannes Kepler

6.

Which of the following is an agricultural product?

a)

Tea

b)

Milk

c)

Coffee

d)

Fruit Juice

7.

The value-added tax (VAT) accrues on the sale of service upon the occurence of ___.

a)

completion of the sevice by the supplier to the customer

b)

payment by the customer of the complete price of the service

c)

payment by the customer of any part of the service

d)

Issuance of a statement of account by the supplier to the customer

8.

If the uncertain tax treatment must be measured, then it should be measured using...

a)

the most likely amount

b)

the expected value

c)

either the most likely amount or the expected value

d)

both the most likely amount and the unexpected value

9.

Which of the following is nota value-added tax (VAT) exempt transactions?

a)

Services non-bank financial intermediaries performing quasi-banking functions, and other non-bank financial intermediaries

b)

sale of real property not primarily held for lease in the ordinary course of trade or business but used in the business of the seller

c)

Membership fees collected on a purely reimbursement basis by homeowners' associations

d)

sale of gold to the Banko Sentral ng Pilipinas

10.

Which term below means "applying a new accounting policy to transactions, other events, and conditions as if that policy had always been applied?

a)

Retrospective application

b)

Retrospective restatement

c)

Prospective application

d)

Prospective restatement

11.

What are the four phases of accounting?

a)

Recording-summarizing-classifying-interpreting

b)

Recording-classifying-summarizing-interpreting

c)

Recording-interpreting-summarizing-classifying

d)

Recording-classifying-interpreting-summarizing

12.

It is the ability to quantify assets, liabilities, and the equity in terms of a unit measure. It also assumes the stability of pesos.

a)

Materiality

b)

cost principle/historical cost

c)

monetary unit assumption

d)

accrual basis

13.

In accounting the term debit is used to indicate:

a)

increase in liability and equity

b)

decrease in liability and equity

c)

increase in asset and liability

d)

ecrease in asset and liability

14.

Branch of accounting that focused on the allocation of the resources and funds of the national government

a)

Government accounting

b)

tax accounting

c)

management accounting

d)

auditing

15.

Which of the following items has no effects in owner's equity/capital?

a)

incurring expenses

b)

withdrawals of owners

c)

acquisition of land

d)

earning revenues

16.

A revenue or income____.

a)

increases asset and equity/capital

b)

increases assets and liabilities

c)

increases assets and decreases equity/capital

d)

no effects

17.

This is prepared to check the equality of debits and credits

a)

T-account

b)

balance sheet

c)

ledger

d)

trial balance

18.

An investment by the owner in the business increases the ___

a)

asset and equity/capital

b)

assets and liabilities

c)

Liabi and equity/capitallities

d)

assets only

19.

The decrease in the usefulness of property and equipment as time passes is called___.

a)

contra-assets

b)

consumption

c)

deterioration

d)

depreciation

20.

What type of account is prepaid expense?

a)

expense

b)

current assets

c)

non-current assets

d)

property, plant and equipment

21.

ABM Company has current assets of P120,000 and non current assets of 75,000. Total liabilities of 110,000. What is the amount of ABM's owners equity?

a)

P75,000

b)

P85,000

c)

P95,000

d)

P125,000

22.

It shows the financial performanc of the business for a period.e and the results of operation

a)

Balance sheet/statement of financial position

b)

Profit or loss statement/income statement

c)

statement of changes in owner's equity

d)

Notes to financial statement

23.

Last year, the owner's equity amount was P85,000 as of January 1. during the year, the owner has a total expenses of P265,000 and owner's withdrawal of P20,000. How much is the owner's equity/capital at the end of the year?

a)

P40,000

b)

P80,000

c)

P120,000

d)

P200,000

24.

The following are the data from XYZ co.

Cash P72,400; Furniture & fixtures P84,700; Accounts receivable P6,800; accounts payable P15,900; supplies on hand P16,200; Loans payable P24,100; building P800,000; Notes payable(short term) P20,000. How much is the total current assets?

a)

P180,100

b)

P115,400

c)

P79,200

d)

P95,400

25.

The following are the data from XYZ co.

Cash P72,400; Furniture & Fixtures P84,700; Accounts Receivable P6,800; Accounts payable P15,900; supplies on hand P16,200; Loans payable P24,100; Building P800,000; Notes payable (short term) P20,000

How much is the total current liabilities

a)

P60,000

b)

P15,900

c)

P35,900

d)

P20,000

26.

What is the effect of this transaction?

Acquisition of machineries and equipment on account.

a)

increase in assets, increase in capital

b)

increase in assets, increase in liabilities

c)

increase in assets

d)

decrease in assets, decrease in capital

27.

What is the effect of this transaction?

a)

increase in assets, increase in capital

b)

increase in assets, increase in liability

c)

increase in assets, decrease in liabilities

d)

decrease in assets, decrease in capital

28.

What is the journal entry of this transaction?

Performed services to customers on account/credit for P42,000 and received a promissory notes from them.

a)

Debit: accounts payable, P42,000

Credit: service revenue P42,000

b)

Debit: accounts receivable P42,000

Credit: Service Revenue P42,000

c)

Debit: Notes payable P42,000

Credit: Service revenue P42,000

d)

Debit: Notes receivable P42,000

Credit: Service Revenue P42,000

29.

What is the journal entry when the company makes sales of P500,000 of which P300,000 is paid in cash and P200,000 was sold on credit?

a)

P300,000 debit in cash; P200,000 debit in accounts receivable; P500,000 credit in sales revenue

b)

P300,000 credit in cash; P200,000 credit in accounts receivable; P500,000 debit in sales revenue

c)

P300,000 debit in cash; P200,000 debit in accounts payable; P500,000 credit in sales revenue

d)

P300,000 credit in cash P200,000 credit in accounts payable; P500,000 debit in sales revenue

30.

Company A used P3,000 worth of office supplies this year but the costs were not paid until next year. which of the following would result of this transaction?

a)

an expense of P3,000 recorded on next year's income statement

b)

there is P3,000 credit in cash on the balance sheet

c)

an accrued expense of P3,000 is recorded as current liabilities on the balance sheet

d)

none of these