WorksheetsSecond Grading FABM 2 Long Quiz
Total questions: 63
Worksheet time: 32mins
Name
Class
Date
1.
Last Name, First Name , MI
4 lines
2.
Section
a)
G12 ABM 2
b)
G12 ABM 3
c)
G12 ABM 4
d)
G12 ABM 5
e)
G12 ABM 10
3.
Gender
a)
Male
b)
Female
4.
What is considered as the book of original entry?
a)
ledger
b)
t-account
c)
accounting books
d)
journal
5.
What is an accounting book that contains a group of T-accounts?
a)
ledger
b)
sales journal
c)
cash receipts journal
d)
general journal
6.
Which of the following describes the sales journal?
a)
It is used to record credit sales transactions.
b)
It is used to record credit purchase transactions.
c)
It is used to record cash collections.
d)
It is used to record cash payments.
7.
Which of the following describes a T-account?
a)
One T-account is equivalent to the ledger.
b)
One T-account acts like a financial statement.
c)
A T-account has only one side, which is debit.
d)
It is a representation of a specific ledger account.
8.
Which of the following describes the general journal?
a)
It is used to record transactions not recorded in special journals.
b)
It is used to record credit sales activities.
c)
It is used as a tool for generating other business transactions.
d)
It is used to collect money from customers.
9.
Which of the following accounts has debit as its normal balance?
a)
accounts payable
b)
office supplies
c)
sales revenue
d)
notes payable
10.
Company A purchased inventory amounting to ₱100,000 on credit and paid its monthly amortization of ₱35,000 relating to a loan for the month. What effect will the purchase of inventories have on the company?
a)
decrease in total credits amounting to ₱65,000
b)
increase in owner’s equity
c)
increase in the debit side of accounts
d)
decrease in the inventory of ₱35,000
11.
Which of the following accounts has credit as its normal balance?
a)
notes payable
b)
cash
c)
accounts receivable
d)
advertising expense
12.
Which of the following is correct?
a)
Accounting books are always automated.
b)
Accounting books help attain an effective financial reporting process.
c)
The company uses ledgers and journals to earn profit.
d)
Accounting books are used for advertising the company's products and services.
13.
Which of the following is correct?
a)
In a T-account, the number of transactions on the debit side must equal the number of transactions on the credit side.
b)
The beginning balance must always be higher than the ending balance in a T-account.
c)
In a T-account, the total debits may not always be the same as the total credits.
d)
The beginning balance must be roughly the same as the ending balance in a T-account.
14.
In a journal entry, the _____________________ explains what the transaction is all about. For example, sale of merchandise, rendering or services, purchase of supplies, etc. Which of the following will make the statement correct?
a)
date
b)
description
c)
account name
d)
amount
15.
What do you call the process of adding all the amounts under the debit side and those under the credit side, then getting their net amount?
a)
footing
b)
balancing
c)
summarizing
d)
grossing
16.
The following items signify a debit. Which among those listed is not included?
a)
increase in Accounts Payable account
b)
increase in Cash account
c)
decrease in Unearned Revenue account
d)
additional rent expense incurred
17.
The following items signify a credit. Which among those listed is not included?
a)
increase in Prepaid Expense account
b)
decrease in Property and Equipment account
c)
increase in Mortgage Payable account
d)
additional service income earned
18.
When the total of the debits is greater than the total credits, the result is a ____________________. Which of the following will make the statement correct?
a)
net debit
b)
net credit
c)
gross credit
d)
deduction
19.
The transaction “₱5,000 was paid in exchange of Prepaid Insurance” involves a credit to _______________________. Which of the following will make the statement correct?
a)
Accounts Payable
b)
Cash
c)
Prepaid Insurance
d)
Insurance Expense
20.
The transaction “₱20,000 salaries were paid to the employees” involves a debit to _______________________. Which of the following will make the statement correct?
a)
Salaries Expense
b)
Salaries Payable
c)
Service Revenue
d)
Cash
21.
Normally, the beginning balance of Accounts Payable shall be listed under the ____________. Which of the following will make the statement correct?
a)
debit column
b)
credit column
c)
ending balance
d)
both sides of the T-account
22.
What shall be the correct journal entry for the following transaction?
“Paid cash to creditors on account, ₱ 10,000.”
a)
A
b)
B
c)
C
d)
D
23.
Which of the following would not contribute to the following T-account?
a)
₱23,781 collection from a customer on January 17
b)
₱10,215 services rendered to customers on account on January 22
c)
₱12,008 collection from a customer on January 2
d)
₱65,213 accounts receivables remained from the last day of the previous month.
24.
Which bank account is ideal for keeping funds meant for contingency and emergency use?
a)
checking account
b)
money market account
c)
savings account
d)
certificate of deposit account
25.
Which of the following is considered a low-risk investment where the bank holds your money for a fixed period?
a)
certificate of deposit account
b)
savings account
c)
checking account
d)
money market account
26.
Which of the following is true about a checking account?
a)
It earns higher interest than savings accounts.
b)
It has an unlimited number of deposits and withdrawals.
c)
It requires higher initial deposits and higher minimum balance requirements.
d)
It is a great place to start keeping cash for long-term spending.
27.
Which of the following is true about a money market account?
a)
It has the features of a savings account and a checking account.
b)
There is no limitation regarding the number of check-writing privileges.
c)
It collects higher interest rates than that of a certificate of deposit account.
d)
It comes with lower minimum balance requirements.
28.
Which of the following is an advantage of opening a bank account?
a)
It guarantees that your money is well-kept and protected from calamity and theft.
b)
It guarantees that your money will earn high interest.
c)
Your account is insured for up to ₱1,000,000.
d)
Customers can buy from your business on credit.
29.
Joanna wants to open a bank account that she can use for emergency cases. Which type of bank account is the best option?
a)
checking account
b)
savings account
c)
money market account
d)
certificate of deposit account
30.
Leo has excess cash that he earns from working overtime. He would like to use it as a down payment for the house he plans to buy after three months. Which type of bank account should he open?
a)
checking account
b)
savings account
c)
money market account
d)
certificate of deposit account
31.
If Kathy wants to set up a travel fund she intends to use in three years, which type of bank account is the most suitable?
a)
checking account
b)
savings account
c)
money market account
d)
certificate of deposit account
32.
You started your own business recently and opened an account with a bank that would enable you to do unlimited check issuance for the regular payments of your business’s expenses. What type of bank account did you apply for?
a)
checking account
b)
savings account
c)
money market account
d)
certificate of deposit account
33.
Max is receiving income from his repair services and earning money from selling home appliances, all of which are deposited in just one bank account. However, he seems to be having difficulty knowing which business is more liquid than the other. What advice would you give him?
a)
Consider having separate bank accounts for each business.
b)
Request the clients to pay in cash only.
c)
Ask the bank to increase the business credit line.
d)
Let it be and do nothing.
34.
Which of the following is defined as an arrangement that allows you to store your deposits in the bank?
a)
Bank account
b)
Bank deposit
c)
Automated Teller Machine
d)
Passbook
35.
What type of bank account is also known as a current account?
a)
Checking account
b)
Business savings account
c)
Interest-bearing deposit account
d)
Money market account
36.
Which of the following is an advantage of opening a bank account?
a)
Banks are not required to impose security measures to ensure on behalf of their customers.
b)
A bank account will enable a business to transact conveniently.
c)
It will increase the available cash of the company.
d)
It will enable customers to buy on credit.
37.
Which of the following is a disadvantage of a savings account?
a)
It is an interest-bearing bank account.
b)
Some banks may impose withdrawal restrictions.
c)
It helps build emergency funds.
d)
Some transactions can be done online.
38.
Why is it important to write the date on the deposit slip?
a)
To be convenient during bank transactions
b)
To serve as a reminder of the current date
c)
To be used as a reference for the date of transaction
d)
To enable the payee to know the actual date
39.
Mr. Q has been operating his custom furniture shop for over a year. If he wants to use ₱5,000 from the business's bank account as a petty cash fund, what bank document will he use for this transaction?
a)
Withdrawal slip
b)
Deposit slip
c)
Bank statement
d)
Debit/credit advice
40.
EFG company issued a check amounting to ₱40,000; the check has been released and given to payee JKL company. The issued check does not have any signature on it, will the bank honor the encashment or deposit of the check?
a)
Yes. The signatures are optional.
b)
Yes. The bank has absolutely no reason to refuse its encashment.
c)
No. The payee did not endorse the check yet.
d)
No. A bank check must be signed by authorized signatories to be honored by the bank.
41.
ABC company wants to know what transactions involving its bank account with account number 12345 has for May 2022. What course of action should ABC take?
a)
Ask the bank for a booklet of bank checks.
b)
Call the bank and ask for the total debits and credits for May 2022.
c)
Request the bank for a bank statement for May for account number 12345.
d)
Email the bank regarding the ending balance of account number 12345.
42.
Mr. C recently opened his fitness gym and has decided to open his business's first bank account. He uses this bank account for business transactions only, and the usual activity of this account is issuing checks for the business's expenses. What type of bank account did Mr. C open?
a)
a passbook
b)
a savings account
c)
a current account
d)
a checkbook
43.
You recently decided that opening a bank account for the business would be more convenient. You have consulted your finance manager regarding your decision, and he agreed. What considerations should you and your finance manager discuss regarding what type of bank account to open?
a)
the amount of initial deposit to be made
b)
the purpose of opening the bank account
c)
the required maintaining balance to be secured
d)
the closest bank to the company premises
44.
A bank reconciliation statement has two sections. Which among those listed is not included?
a)
Cashier’s Section
b)
Bank Section
c)
Book Section
d)
Company’s Section
45.
The ________ reconciling items are those that are already recorded by the company but are yet to be recorded by the bank. Which of the following will make the statement correct?
a)
owner
b)
bank
c)
book
d)
company
46.
When the balance per book _____ the balance per bank, a bank reconciliation statement should be prepared by the accountant. Which of the following words will make the statement true?
a)
is equal to
b)
is the same as
c)
also reflects
d)
differs from
47.
Book records and bank statements may have discrepancies in the reported cash balances. Which of the following is not a cause for such discrepancies?
a)
Timing differences
b)
Erroneous credits by the bank
c)
Erroneous recording of receipts by the company
d)
Changes in interest rates
48.
Credit memos are the ____________ recorded by the bank but not yet by the company. Which of the following will make the statement correct?
a)
disbursements
b)
deductions
c)
irrelevant items
d)
additions
49.
Debit memos cause the cash per book to be __________ the cash per bank. Which of the following will make the statement correct?
a)
greater than
b)
less than
c)
the same as
d)
equal to
50.
Customer W paid ₱10,000 to the company. However, it was recorded by the accountant twice. How should it be adjusted to arrive at the correct balance per book?
a)
Deduct ₱10,000.
b)
Deduct ₱20,000.
c)
Add ₱20,000.
d)
Add ₱10,000.
51.
The company recorded a ₱6,000 check payment as ₱6,600. What shall be the adjustment to arrive at the correct cash balance?
a)
Add ₱6,000.
b)
Add ₱600.
c)
Deduct ₱600.
d)
Deduct ₱6,000.
52.
Gina, the accountant, is preparing the bank reconciliation statement for the month of May. Upon comparing her records with the bank statement, she noticed a check payment of ₱10,000. However, she did not record this check in the company books. Thus, she inspected the vouchers and confirmed that she forgot to record the transaction. What should Gina do?
a)
Adjust the balance by deducting ₱10,000.
b)
Ignore it and record it in the following month.
c)
Request the bank to adjust its record to equal the cash balance per book.
d)
Adjust the balance by adding ₱10,000.
53.
The accountant is preparing a bank reconciliation as of May 31. Included in the disbursements is a ₱25,000 check dated June 24. The accountant was surprised because it was not yet reflected in the bank statement. What could be the bank’s valid reason for not recording the postdated check?
a)
There may have been a problem with the bank’s system. The bank should apologize and record the ₱10,000 disbursement.
b)
The bank is wrong for not recording the said disbursement. It shall deduct it from the cash per bank.
c)
The bank did not disburse it because it is a post-dated check, which is earlier than the reporting date.
d)
It is a postdated check that should be considered part of the company’s cash. Therefore, it should not be deducted until it is presented by the payee and approved for payment.
54.
There are three forms of bank reconciliation statements. Which among those listed is not included?
a)
Adjusted Balance Method
b)
Bank-to-Bank Method
c)
Bank-to-Book Method
d)
Book-to-Bank Method
55.
Under the bank section in the adjusted balance method, what other item is considered aside from the deposits in transit and outstanding checks?
a)
Debit memo
b)
Credit memo
c)
Errors committed by the bank
d)
Errors committed in the book
56.
In reconciling the bank balance to the book balance, what is the treatment for outstanding checks?
a)
Addition to the balance per bank statement
b)
Addition to the balance per books
c)
Deduction from balance per bank statement
d)
Not included in the formula
57.
A ₱10,000 check deposited by the company but not yet reflected in the bank statement is an example of _______. Which of the following will make the statement correct?
a)
Deposit in transit
b)
Outstanding check
c)
Unreleased check
d)
Postdated check
58.
What is the effect of understated receipts and overstated disbursements recorded in the books?
a)
Overstatement in cash
b)
No effect on cash
c)
Understatement in cash
d)
Either overstate or understate, depending on the nature of the transaction
59.
In the computation of deposit in transit at the end of the month, bank credit memos in the previous month are ____________ the cash receipts reflected in the books. Which of the following will make the statement correct?
a)
added to
b)
not considered in
c)
deducted from
d)
included in
60.
A restricted compensating balance shall be ______________ the cash of the company. Which of the following will make the statement correct?
a)
excluded from
b)
included in
c)
added to
d)
considered as part of
61.
The outstanding checks amounting to ₱53,000 includes a ₱6,000 company’s certified check. How much should be considered an overstatement in cash?
a)
₱53,000
b)
₱47,000
c)
₱59,000
d)
₱6,000
62.
Paz, the accountant, is reconciling the book balance with the bank statement for the month of June. After reviewing her records and the bank statement, she took note of the following observations:
Balance per book = ₱87,925Credit memo = ₱9,526NSF check returned by the bank = ₱34,677Paz erroneously deducted the company’s post-dated check amounting to ₱12,892
Assuming no other bank reconciling items are present, how much cash is reported in the bank statement?
a)
₱49,882
b)
₱145,020
c)
₱75,666
d)
₱56,614
63.
Jesse wants to understand why the bank statement differs from the cash per accounting records despite ensuring that all transactions were recorded correctly. Thus, he started preparing a bank reconciliation statement using the bank-to-book method. He took note of the following:
Balance per bank = ₱197,552P21,887 check payment to the supplier is still outstandingThe bank statement showed a ₱200 bank service charge.There was a note collected by the bank amounting to ₱31,000 plus ₱189 interest.
Based on the information given above, how much cash is reported in the book?
a)
₱144,476
b)
₱188,450
c)
₱207,054
d)
₱144,676
100 %
