SENIOR HIGH SCHOOL

nd
2 QUARTER EXAMINATION
FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT II

Name:__________________________________________________Strand:________Yr. &Section______

STRICTLY NO CELLPHONES ALLOWED:

Multiple Choice: Write the letter of the correct answer before each number.

1. It is where transactions are recorded chronologically.

A. Ledger C. T-account
B. Journal D. Trial Balance
2. The act of recording each transaction in the journals called:
A. Posting C. Journal folio
B. Ledger D. Journalizing
3. Which is not true concerning a Journal?
A. Recording is done chronologically
B. Journal is a book of original entry
C. A journal is a similar to ledger
D. A journal entry may be single or compound
4. A general journal has provided columns for-
A. Date C. Description
B. Folio D. All of these are correct
5. Which of the following is a special journal?
A. Sales journal C. All of these are correct
B. Cash receipts journal D. Cash Disbursement Journal
6. The phase of accounting, which involve the routine and mechanical process of writing down the business
transactions and events in a chronological manner in the book of accounts.
A. Recording C. Classifying
B. Interpreting D. Summarizing
7. Which the following is not correct?
A. Decrease in Expenses will be credit C. Decrease in Liabilities will be credit
B. Decrease in Revenue will be debit D. Decrease in Assets will be credit
8. Real accounts have ________balances.
A. Debit C. Credit
B. Either debit or credit D. No normal balance
9. Nominal accounts have _______normal balances.
A. No normal balance C. Either debit or credit
B. Debit D. Credit

For (10-16) Journalize the following business transactions

10. Feb 2 Rendered service to Bean Co for Php15,000 and received cash payment on same date
11. Feb 4 Paid Rental for the month amounting to Php3,500.00
12. Feb 5 Collected accounts receivable from Mr. Ben amounting to Php 30,000.
The amount was included in the beginning balance as of February 1, 2016 stated above.

13. Feb 10 Rendered service to Mr. X on account, P18, 000 to be collected on March 2016.
14. Feb 15 Paid salaries of employees, Php 7,000
15. Feb 18 Paid accounts payable to Y Company amounting to P5,000.
The amount was included in the beginning balance as of February 1, 2016.
16. Feb 20 Rendered service to Mr. See for P23,000, cash

17. A graphic representation of a general ledger account

 A. L Account C. T- Account
B. G Account D. G-L Account
18. Which of the following is correct regarding posting on the T-Accounts?
A. T accounts are used after financial statements are prepared
B. All T-accounts fall under the trial balance
C. Each journal entry is transferred from the general journal to the corresponding T-account
D. All of these are correct
19. If debit balance is greater than credit balance then the account balance will be:
A. Debit and Credit balance C. Debit balance
B. Credit balance D. Cash balance
20. On January 1, 2017 a company borrows 5,000 from its bank. Then on January 5, 2017 the company repaid
2,000 of the bank loan. Assuming no other transactions occurred within the month. How much will be the
total credits of the Loans payable as of January 31, 2017?
A. 2,000 C. 5,000
B. 3,000 D. 7,000
21. January 1, 2017 a company borrows 5,000 from its bank. Then on January 5, 2017 the company repaid 2,000
of the bank loan. How much is the total debits of the Loans payable?
A. 2,000 C. 7,000
B. 3,000 D. 5,000
22. January 1, 2017 a company borrows 5,000 from its bank. Then on January 5, 2017 the company repaid 2,000
of the bank loan. How much is the debit or credit balance of the Loans Payable account?
A. 3,000 debit balance C. 3,000 credit balance
B. 2,000 debit balance D. 5,000 credit balance
23. These accounts invest your balance in short-term debt such as commercial paper, Treasury Bills, or Certificate
of Deposits.
A. Money Market account C. Certificate of Deposit
B. Checking D. Savings
24. This type of account is also known as “time deposit”.
A. Certificate of deposit C. Checking
B. Savings D. Money Market account
25. This type of account offers a quick and convenient way for people to access their money as often as they
need.
A. Certificate of Deposit C. Money Market Account
B. Savings D. Checking
26. Which of the following is true regarding checking accounts?
A. They have limited withdrawals
B. None of these is correct
C. They are also known as current accounts
D. The earn a higher interest rate than savings account
27. As to purpose, which of the following is true?
A. Checking account is ideal for business person
B. Savings account are basically set-up to encourage saving
C. Savings account is ideal for salaried person
D. All of these are correct
28. Which of the following statement is incorrect regarding savings and checking accounts?
A. They are both liquid
B. None of these is incorrect
C. They are both use by business
D. They do not earn high interests rates like those of money market accounts and certificates of deposit
29. These consist of money placed into banking institutions for safekeeping.
A. Bank deposits C. Bank safekeeping
B. Bank transfers D. Bank withdrawals
30. A form used when a person would want to deposit money into an account?
 A. Deposit slip C. Payment slip
B. Owner slip D. Withdrawal slip

31. It is a characteristic of check wherein the amount written must be paid by the bank as soon as it is presented
as its counter.
A. Amount in Figures C. Payable on Demand
B. Signed by the Maker D. All of the above
32. It is a characteristic of check wherein it should be signed by the account holder.
A. Payable on Demand C. Amount in Words and Figures
B. Signed by the Maker D. Drawn upon a specified banker
33. Who are the parties involved in the check?
I. Drawee
II. Drawer
III. Payee
A. I and III only C. I, II and III
B. I and II only D. II and III only
34. Which of the following is the party who issues check directing the bank to pay a certain sum of money to a
certain person or to the bearer?
A. Payee C. Drawer
B. Drawee D. None of these is correct
35. Who is a party to a check who receives money from the bank?
A. Drawee C. Drawer
B. Payee D. Receiver
36. This is a record, typically sent to the account holder every month, summarizing all the transactions in an
account throughout the time from the previous statement to the current statement.
A. Billing Statement C. Bank Reconciliation Statement
B. Bank Statement D. Bank Reconciliation
37. What amounts are shown in the bank statement?
A. Closing Balance C. All of these are correct
B. All bank debits and credits D. Opening Balance
38. What are the two main parts of the statement?
A. Account Summary and Ending Balance C. Account Summary and Transaction
B. Opening Balance and Transaction Details
Details D. Opening and Ending Balance
39. What are bank credits?
A. Deposits C. Loans
B. Withdrawals D. Charges
40. In the bank statement, interests earned are considered as?
A. Bank Debits C. Book Credits
B. Bank Credits D. Book Debits
41. A bank reconciliation statement is:
A. Part of Bank Account C. None of these is correct
B. Part of Cash Book D. Part of financial statements
42. Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _______
(prepared by business).
A. Cash receipt journal C. Financial Statements
B. Cash Book D. Cash payment journal
43. A check payment that is recorded in the cash book but is not in the bank statement is called:
A. Outstanding Check C. Stale Check
B. Bearer Check D. Order Check
44. A check returned by bank marked “NSF” means that _________ .
A. There are no sufficient funds in your C. Check can’t be cashed being illegal
account D. Bank can’t verify your identity
B. Check has been forged
45. ___________ are checks that are issued by the business but not yet presented to the bank.
A. Outstanding Check B. Uncollected Checks
 C. Uncredited Checks D. Bounced Checks
46. The accounting entry to record bank charges deducted from the Bank account of the business:
A. Debit Bank Charges Account, Credit Cash Account
B. Debit Interest Account, Credit Cash in Bank Account
C. Debit Cash Account, Credit Bank Charges Account
D. Debit Bank Charges Account, Credit Cash in Bank Account
47. The proper treatment of outstanding checks is to report them in the bank reconciliation as which of the
following?
A. A deduction from the balance per depositor’s records
B. An addition to the balance per bank statement
C. An addition to the balance per depositor’s records
D. A deduction from the balance per bank statement
48. Balance as per cash book (adjusted) = P1000, Unpresented Checks = P2000, Uncredited Checks = P500.
Compute the balance as per bank statement.
A. 3,000 C. 2,500
B. 2,000 D. Zero
49. In preparing the September 30, 2017 bank reconciliation, Lovable Company has made available the following
information:
Balance per Bank Statement P1,805,000
Deposit in Transit 325,000
Return of customer’s check for Not Sufficient Fund 60,000
Outstanding Checks 275,000
Bank Charges charge for September 10,000

On September 30, what is the adjusted Cash in Bank?

A. 1,785,000 C. 1,855,000
B. 1,795,000 D. 1,755,000

50. Sapphire Company provided the following information for the month of December: The entity discovered
that it had drawn and erroneously recorded a check for P46,000 that should have been recorded for
P64,000.
Balance per bank statement December 31 2,800,000
Bank service charge for December 12,000
Interest paid by bank to Sapphire Company for December 10,000
Deposits made but not yet recorded by the bank 350,000
Checks written but not yet recorded by the bank 650,000

What is the cash balance per ledger on December 31?

A. 2,500,000 C. 2,520,000
B. 2,800,000 D. 2,540,000

Good luck & GOD BLESS 

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