WorksheetsFABM! 4Q
Total questions: 33
Worksheet time: 17mins
A type of business that engage in buying and selling of goods or merchandise.
service
merchandise
selling
franchising
This transaction assumes that the business has a remaining unpaid liability to its supplier after the purchase transaction has been made.
Partial payment of account with supplier
Sale of merchandise on account
Full account with supplier and continue transacting with them
Cash sales of merchandise
What is meant by Freight?
It is a reduction in the price of a product or service that is offered by the seller, in exchange for early payment by the buyer.
It is a deduction that a payer can take from an invoice amount if payment is made by a certain date.
It is the transportation cost associated with the delivery of goods from a supplier to the receiving products or goods.
It is the estimated reduction in value of a fixed assets within a fiscal year.
What is meant by Freight?
It is a reduction in the price of a product or service that is offered by the seller, in exchange for early payment by the buyer.
It is a deduction that a payer can take from an invoice amount if payment is made by a certain date.
It is the transportation cost associated with the delivery of goods from a supplier to the receiving products or goods.
It is the estimated reduction in value of a fixed assets within a fiscal year.
Distinguish purchase discount from purchase return
A purchase discount is a deduction that a buyer can take from purchase of merchandise while purchase return is when the buyer returns merchandise bought to the seller.
A purchase discount when the buyer return merchandise bought from the seller is while purchase return is a deduction that a buyer can take from purchase of merchandise.
A purchase discount is a credit because it serves to reduce the total amount of accounts receivable while purchase return is the reduction of purchase price due to early payment.
A purchase discount is the reduction of purchase price due to early payment while purchase return a credit because it serves to reduce the total amount of accounts receivable.
Annie imports her beauty product in Hongkong. The total cost of the product is P12,345 and the freight incurred is P2,324. How should freight – in be treated in this transaction?
A deduction to the cost of purchases
A deduction to the operating expenses
An addition to the cost of purchases
An addition to the operating expenses
Annie sells her product on cash and on account basis. Terms applied are cash: 5%, 2/10, n/30. Decide the best scheme of payment if cash purchase is not possible.
Pay the product on or before the 10th day to avail the 2% discount.
Pay the product after 30 days, invest first your money in other businesses.
Pay the product on the 11th day since cash purchases is not possible.
Pay the product on or before the 30th day to avoid additional payment of interest.
It provides evidence that a business transaction has occurred.
Business letter
Business documents
Credit memo
Debit memo
A document that is issued by the seller to the buyer to indicate that the merchandise has been delivered and the buyer is requested to pay the amount due.
Sales Invoice
Official receipt
Notes
Waybill
How does delivery receipt differs from an invoice?
Delivery receipt triggers the preparation of sales invoice
Delivery receipt notify the seller that there is a deduction in the accounts receivable
Delivery receipt notify the seller that there is a deduction in the accounts payable
Delivery receipt confirms the receipt of merchandise by the buyer
Which of the following should not be included in the Official Receipt?
Name and contact details of the seller
Tax details of the seller
Receipt number
Tax details of the buyer
In making journal entries for purchase return, what should be the written on the CREDIT part?
Accounts Payable
Accounts Receivable
Purchase Return
Cash
It is the process of transferring information from the journal to the ledger.
Journalizing
Ledgering
Analyzing
Posting
It provides running balance type of ledger because it adds a column to determine the account balance after posting each transaction.
General Ledger
General Journal
Subsidiary Ledger
Subsidiary Journal
This ledger gives details on the transactions of the business with each account supplier and provides information on which suppliers owe the business and how much.
Accounts Receivable Subsidiary Ledger
Accounts Payable Subsidiary Ledger
Cash Disbursement Ledger
Cash Receipts Ledger
What accounts normally has subsidiary ledger?
Sundry Accounts
Payables and Receivables
Cash Receipts
Returns and allowances
Analyze the effect of sales return and allowances in books of a merchandising business.
Increase assets
Decrease liabilities
Decrease assets
Increase owner’s equity
What is the normal balance of cash?
Debit
Credit
May be debit or credit
Neutral
What is the normal balance of capital or owner’s equity?
Debit
Credit
May be debit or credit
Neutral
In business, it is prepared to check the equality of accounts in the debit and credit.
Journal entry
Ledger
Official receipt
Trial Balance
Which of the following accounting records are prepared first?
Journal
Ledger
Worksheet
Trial Balance
What is the reason why there the trial balance is unbalanced?
Failure to record a business transaction in the general and subsidiary journal
Failure to post journal entries in the ledger and their corresponding subsidiary accounts
Ledger account balance is incorrectly recorded on the trial balance
Incorrect amounts recorded on both general journal and their corresponding ledger counterparts.
Based on the trial balance of Annie Beauty Supplies, they have a negative cash balance. The owner found put that there are unrecorded receipts and cash she unintentionally kept. Recommend the best action that Annie should do to make her trial balance a reliable one.
Just add the cash in cash balances in the trial balance
Prepare adjusting entries for the unrecorded transactions
Just let the trial balance be and include the transaction in the next month.
Add the amount needed to make the cash balance positive.
These are journal entries recorded at the end of an accounting period to alter the ending balances in various general ledger accounts.
Journal entry
Posting
Trial balance
Adjusting entries
In accounting cycle, when do adjusting entries done?
At the beginning of each period
At the end of each period
At the middle of each period
fter every transaction
What is the first step in the accounting cycle of a merchandising business?
Analyzing business transactions
Journalizing
Posting to the ledger
Preparation of trial balance
Which of the following is an example of a non-current assets?
Cash
Accounts receivable
Inventory
Garden tools and equipment
How would you get the net sales?
Compute for the amount of all the sales from the problem
Compute for the amount of cash sales from the problem
Deduct the sales discount and sales return from the total sales
Add the sales discount and sales return to the total sales
It is the costs that go into creating the products that a company sells; therefore, the only costs included in the measure are those that are directly tied to the production of the products.
Cost of goods sold
Cost of goods available for sale
Cost of goods manufactured
Cost of producing goods
It is the sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer to those employees whose work can be identified directly with the product manufacture.
Direct materials
Direct labor
Factory overhead
Direct cost
Which of the following is not a component of direct materials?
Beginning Inventory
Purchases
Work in Process Inventory
Supplies
Which of the following may be consider as Factory overhead?
Cost of purchasing the plants
Salaries of the gardener
Payment to technician who repaired the garden tools
Cost of tarpaulin and flyers in promoting and publicity of the business
In determining the cost of goods sold, the beginning inventory of the month should be:
The figure obtained by adding up the amounts from each invoice for products received during the month
This includes the cost of all raw materials purchased for manufacture into a finished product, during this recording period
This value will depend upon the inventory tracking method used by your business
The ending inventory value from the previous reporting period
