Question #1

The accounting clerk purposely recorded a charge sale as a cash sale. Which of the statement is wrong, assuming that the business uses perpetual system??
a. The cash balance is overstated b. The cost of goods sold is not affected c. Net working capital is not affected d. The total of the current asset is understated

Question #2

Which of the following events would not require a journal entry??

a. Purchase a one-year insurance policy b. Agreement to perform a service at a future date c. Performance of a service agreed to at a past date d. Payment for a service performed previously

Question #3

An adjusting entry will not take the format of which one of the following entries?
a. A debit to an expense account and a credit to an asset account
b. A debit to an expense account and a credit to a revenue account c. A debit to an asset account and a credit to a revenue account

d. A debit to a liability account and a credit to a revenue account

Question #4

As independent (or external) auditors, CPAs are primarily responsible for

a. Preparing financial statements in conformity with GAAP
b. Certifying the accuracy of financial statements

c. Expressing an opinion as to the fairness of financial statements d. Filing financial statements with the SEC

Question #5

It focuses on general purposes reports on financial position, performance and cash flows.
a. Auditing b. Managerial Accounting c. Bookkeeping d. Financial Accounting

Question #6

Which of the following is an internal user of a companys financial information

a. Members of the board of directors

b. Creditors with long-term contract with the company c. Holders of the companys bonds
d. Stockholders in the company

Question #7

A businessman owns an advertising company and a printing business. Based on this given situation, which concept supports the idea that there are three separate persons with separate assets, liabilities, income, and expenses??
a. Periodicity Concept b. Business Entity Principle c. Matching Concept d. Concept of equality of value received and vale given up

Question #8

They are the attributes that make the information provided in financial statements useful to users a. Basic Features b. Basic Elements c. Basic Assumptions d. Qualitative Characteristics

Question #9

Which of the following transaction does not affect the balance sheet total?
a. Withdrawal of P5,000 by the firms owner b. Collecting P2,000 from customers on account c. Purchasing P300 supplies on account d. Paying P1,500 Notes Payable

Question #10

Which of the following errors will be detected when a trial balance is properly prepared?
a. Amount that was entered in the wrong account b. A transaction that was entered twice c. A transaction that had been ommitted d. None of the Above

Question #1

Sometimes termed dormant partner: a. Limited Partner c. Capitalist Partner b. Secret Partner d. None of the Above

Question #2

A partner whose connection is concealed and has no voice nor say in the management of the affair of the partnership is called

a. Nominal Partner b. Secret Partner c. Silent Partner d. Dormant Partner

Question #3

Who has a priority over partnership assets: a. Debtors c. Creditors b. Partners d. All of the Above

Question #4

A person who, although not actually a partner, is made liable for the debts of the partnership to third person by reason of his acts or omissions is called:

a. Ostensible Partner b. Nominal Partner c. Silent Partner d. None of the above

Question #5

The required minimum authorized capital stock for stock corporation is: a. Not less than P5,000

b. 25% must be subscribed and 25% must be paid c.At least 25% must be subscribed and at least 25% must be paid and in no case shall it be less than P5,000 d. None

Question #6

When shares with par value are sold, the proceeds shall be credited to the
a. Share capital account b. Share premium c. Retained Earnings d. Share capital account to the extent of the par of the shares issued with any excess being reflected in share premium

Question #7

When shares without par value are sold, the excess proceeds over stated value shall be credited to a. Income c. Share Premium b. Retained Earnings d. Share Capital

Question #8

The total cost of treasury shares shall be reported as a. Deduction from shareholders equity b. Asset c. Deduction from retained earnings d. Deduction from share premium

Question #9

An ordinary shareholder does not possess which of the following?

a. The right to share in the earnings of the corporation b. The right to vote in the election of the board of directors of the corporation c. The right to direct ownership of the corporate assets. d. The right to share proportionately in corporate assets in case of liquidation if such assets exceed the claims of creditors

Question #10

Which of the following is not one of the basic rights of a shareholder?

a. The right to participate in earnings b. The right to maintain ones proportional interest in the corporation c. The right to participate in the proceeds of the sale of corporate assets upon liquidation of the corporation. d. The right to inspect the accounting records of the corporation

Question #1

Red, White and Blue form a partnership on May 1, 2008. They agreed that Red will contribute office equipment with a total fair value of P90,000; White will contribute delivery equipment with a fair value of P60,000; and Blue will contribute cash. If Blue wants a one-third interest in the capital and profits, he should contibute cash of: a. P50,000 b. P150, 000 d. P225, 000 c. P75,000

Question #2
ABCs Partnership provided for the following distribution of profits and losses; First A to received 10% of the net income up to P1,000,000 and 20% on the amount of excess thereof; Second B & C each, are to receive 5% of the remaining income in excess of P1,500,000 after As share as per above and; The balance to be divided equally among the partners. For the year just ended, the partnership realized a net income of P2,500,000 before distribution to partners. The share of A is:

a. P1,300,000 c. P1,080,000

b. P1,000,000 d. P1,100,000

Question #3

The partners, A and B share profits 3:2. However, A is to receive yearly bonus of 20% of the profits, in addition to his profit share. The partnership made a net income for the year of P36,000 before the bonus. Assuming As bonus is computed on profit after deducting said bonus, how much profit share will B receive? a. P 24, 800 c. P12,000 b. P14, 400 d. P13,500

Question #4

Michelle, an active partner in the Michelle-Esme Parnership receive an annual bonus of 25% of the partnership income after deducting the bonus. For the year-ended, December 31, 2008, partnership income before the bonus amounted to P360,000. The bonus of Michelle for the year 2008 is: a. P67,500 c. P120,000 b. P72,000 d. P90,000

Question #5 Arthuro Perez, a partner in the AP Partnership, has a 25% participation in partnership profits and losses. Perezs capital account has a net decrease of P80,000 during the calendar year 2008. During 2008, Perez withdrew P160,000 (charge against his capital account) and contibuted property valued at P30,000 to the partnership. What was the net income of the AP Partnership for 2008?

a. P200,000 c. P 520,000

b. P320,000 d.P840, 000

Question #6

A, B and C are partners of A Co. By contributing P10,000; P20,000 and services, respectively, to the capital. After 5 years, the assets of the partnership is only P9,000. the share of C in the remaining asset is:
a. Equal to the share of A b. Equal to the share of B c. P3,000 d. Nothing

Question #7
Abe, Bert and Carl are partners sharing profit on a 7:2:1 ratio. On January 1, 2010, Dave was admitted into the partnership with 15% share in profits. The old partners continue to participate in profits in their original ratios. For the year 2010, the partnership showed a profit of P15,000. However, it was discovered that the following items were omitted in the firms book: 2009 2010 Accrued expense p 1,050 Accrued income 875 Prepaid expenses P 1,400 Unearned income 1,225 The share of partner Bert in the 2010 net profit is:

a. P2,197.50 c. P 2,637.00

b. P2,490.50 d. P 3,149.75

Question #8 X, Y, and Z are partners, with X contributing P60,000; Y P40,000; and Z service. They agreed to divide the profits and losses in the following proportions: X 35%; Y 25%; Z 40%. If the partnership incurred a loss of P10,000, how should that loss be shared by the partners?

a. b. c. d.

X 6,000 3,500 5,000 4,500

Y 4,000 2,500 3,500 3,000

Z -04,000 2,000 2,500

Question #9

A corporation is being organized with an authorized capital stock of P50,000. How much thereof should be subscribed and how much be actually paid?? Amount subscribed 12,500 10,000 12,500 25,000 Amount Paid 3,125 2,500 5,000 6,250

a. b. c. d.

Question #10

Which of the following conditions will allow corporate formation and allow securities and exchange registration?
Authorized Capital Subscribed Capital Paid-in capital

a. b. C. d.

200,000 50,000 100,000 60,000

50,000 12,000 49, 000 15,000

9,500 5,000 12, 000 6,000