Direction: Answer the following questions, please answer it correctly. Thank you in advance hehez

I. MULTIPLE CHOICE. Directions: Read each statement carefully. Write the letter of the correct answer on the answer sheet provided. 1. A horizontal analysis can be done with or A. decimals; percentages B. peso; percentages C. ratios, decimals D. peso; decimals 2. Which of the following statement is INCORRECT? A. An organization is considered solvent when its current assets exceed current liabilities B. A company is considered solvent if its current ratio is less than 1;1. C. A solvent company can achieve its goals of long-term growth and expansion while meeting its financial obligations. D. Current ratio is the most used ratio in measuring the ability of a business to pay its short-term debts 3. Which of the following reasons best explain why businesses use liquidity ratios? A. To assess their liquidity and thereby measure their financial health. B. To determine whether a company can pay off all its short-term debt with the money received from selling its assets. C. To know how fast a company can pay its debts using all of its assets D. None of these 4. Which of the following is TRUE about profitability ratios? A. Profitability ratios measures how efficient the company is in utilizing its assets. B. Profitability ratios measure the ability of the company to pay its short term and long term debts, C. Profitability ratios are financial measures used to evaluate the ability of the company to generate income. D. All of these 5. If a business has P350,000 in total asset, which includes P122,500 in cash, PP70,000 in inventory, and P157,500 in accounts receivable. It also indicates a total liability of P85,000. What is the vertical analysis of total assets? A. Cash - 35%, Inventory - 20% , Accounts Receivable - 45% B. Cash - 144.11% , Inventory - 82.35% , Accounts Receivable - 185.29% C, Cash - 46.23% , Inventory - 26.42% , Accounts Receivable - 59.43% D. Cash - 45% , Inventory - 10%, Accounts Receivable - 45% 6. Which does not belong to the group? A. Liquidity ratios B. Solvency ratios 1C. Profitability ratios D. Financial Ratios 7. This serve as base amount or the 100% in preparing a vertical analysis of items in a Balance Sheet. A Current assets B. Noncurrent assets C. Total assets D. Total Liabilities 8. This serve as base amount or the 100% in preparing a vertical analysis of items in an Income Statement A. Net sales B. Cost of sales C. Gross profit D. Net profit 9. This is the ability of the company to generate income from the use of its assets and invested capital A Solvency B. Liquidity C. Profitability D. Efficiency 10. Choose the best answer to explain the difference between solvency and liquidity. A. Solvency describes a longer-term ability to pay debts, whereas liquidity focuses on term ones. B. Liquidity describes a longer-term ability to pay debts, whereas solvency focuses on term ones. C. Neither of the two focuses on liquidating assets D. None of these 1 1. Vertical analysis is typically performed on what financial statements A. SFP and SCI B. SFP and SCE C. SCI and SCE D. SCI and CFS 12. It is a widely accepted bank document used to pay and withdraw huge and irregular value/amount of cash. A. check B. money C. note D. voucher 13. A record of the account holder's transaction for the past 30 days A. deposit slip B. bank statement C. payment slip D. withdrawal slip 14. An account that intended to help clients save money for future needs A. current account B. savings account C. recurring deposit D. time deposit15. What happens to a check that is not transacted beyond 180days? It becomes a A. bouncing check B. crossed check C. stale check D. post-dated check 16. These are bank charges subtracted from the depositor's bank account. A. debit memo B. credit memo C, book error D. bank error 17. Which is NOT a part of a Bank statement? A. amount in words B. depositor's information C. bank's information D. transaction codes 18. Each bank accounts are insured from the PDIC for up to what amount? A. P250,000 B. P300,000 C. P500,000 D. P1,000,000 19. It is a statement prepared to reconcile the difference between cash book and bank balance, A. Bank Statement B. Bank Reconciliation Statement C. Income Statement D. Financial Statement 20. How many reciprocal accounts should be reconciled in a bank reconciliation? A. 1 B. 2 C. 3 D. 4 21. After all the adjustments made, what should be the result of the reciprocal accounts have? A. Different balance B. Same balance C. Unpredicted Balance D. Zero balance 22. Bank reconciliations statement prepared to show that the cash balance per book and bank records has no discrepancy. A. Annually B. Daily C. Monthly D Quarterly 23. Which of the following is not an example of a Credit Memo? A Bank Service Charge B. A collection made by the bank C. Interest Income earned by the account holder D. Proceed from loan added by the bank24, Which of the following is an example of a Debit Memo? A. Automatic payments of bills on behalf of the account holder B. A collection made by the bank on behalf of the account holder C. Deposit in Transit D. Outstanding Checks 25. Why is bank reconciliation being prepared? A. To gather data from the company's record and bank statement B. It explains the difference between the reposted cash balance per book and bank C. Provide information for adjusting journal entries D. For reporting 26. Masigasig Company issued a check for P56, and it cleared the bank for P56. However, the company recorded the check on its cash ledger as P66. How is the difference of P10 be treated on the bank reconciliation? A. Add to BOOK Balance B. Deduct from BOOK Balance C. Add to BANK Balance D. Deduct from BANK Balance 27. A resident Filipino citizen who became an Overseas Contract Worker is taxed as follows: A. Tax-exempt B. On income derived abroad C On income derived within the Philippines only D. On income derived inside and outside the Philippines 28 The following may be considered De Minimis Benefits, except. A. Daily allowance meal B. Expenses for International Travel C. Laundry Allowance D. Rice subsidy 29. An income generated by entrepreneurs (business) or by different professionals like lawyers, doctors, and accountants. A. Administrative feasibility B. Business or Professional Income C. Compensation D. Passive Income 30. Tax on a person's income derived from employment, business, trade. the practice of a profession, or property after deductions allowed under the law. A. Business tax B. Income tax C Value-added tax D. Withholding tax 31 A VAT-registered business makes a sale of P 10,000, inclusive of VAT. The VAT on the sale can be computed as A P10,000 x 12% B. P10,000 12%. C. P10,000 x 12%/112% D P10.000 -12%/1 12% 32. A Non-VAT registered business makes total sales of P1 10.000 during a taxable period The percentage tax can be computed as A. P110,000 x 3%B. P1 10,000 3% C. P110,000 x 39%/103% D. P1 10,000 3%/103% 33. A VAT-registered business makes a sale of P34,500, inclusive of VAT. The amount of sale that was reported in the statement of comprehensive income can be computed as A. P34,500 x 1129% B. P34.500 112% C. P34,500 x 129% 112% D. P34,500 12% 112% 34. A VAT-registered business has total sales of P62,720 and total purchases of P25,088, both inclusive of VAT. How much is the net VAT payable to the BIR? A. 1,882 B. 4.032 C. 4,516 D. 5,224 35, A Non-VAT business has total sales of P200,720. How much is the sales tax payable to the BIR? A. 2,007 B. 4.015 C. 4,516 D. 6.022 Use the following information for the next three questions: Maricel started a laundry business last year. At the end of 2018, he earned a taxable income of P350,000 in total. He did not opt the 8% income tax rate 36. What is the tax rate based on the graduated tax schedule? A. 20% of the excess over P250,000 B. P30,000 + 25% of the excess over P400,000 C. P130,000 + 30% of the excess over P800,000 D. P490,000 + 32% of the excess over P2,090,000 37. What is the tax due? A. 0 B. 20.000 C. 55,000 D. 70,000 38. What is the percentage tax? A. 0 B. 600 C. 10,500 D. 30,500 Use the following information for the next two questions: Shirley is a salesclerk in a certain mall. She earned P410,000.00 in 2019. 39. What is the tax rate based on the graduated tax schedule? A. 20% of the excess over P250,000 B. P30,000 + 25% of the excess over P400,000 C. P130,000 + 30% of the excess over P800,000 D. P490,000 + 32% of the excess over P2,000,000 40. What is the tax due? in\f