Instructions:

• Do not use peso sign
• Do not use comma
• Do not use decimal point
• Round off your final answer to the nearest whole number ( Unless there is a specific instruction attached to the problem or question)
• Example: If your answer is Php 123,456.78, write 123457

Questions (1-12)

1.

The recording phase of financial accounting covers the following steps, except

Group of answer choices

Business documents are received and prepared.

Transactions are journalized.

Transactions are posted to the ledger.

Financial statements are prepared.

2.

There are four phases of accounting. The phase whereby the liquidity, solvency, stability, and profitability of an enterprise are significantly portrayed is known as

Group of answer choices

summarizing.

recording.

interpreting.

classifying.

3.

In the equation assets + expenses + losses = liabilities + revenues + gains + capital, the expenses and revenues are

Group of answer choices

Incorrectly included in the formula because assets = liabilities + capital.

Contra asset and contra liability accounts, respectively, that assist analysis of the financial progress of the firm.

Adjustments to capital that are postponed until the end of a specific accounting period to determine their net effect on capital for that period.

Incorrectly stated because their signs are reversed; i.e., both are contra items that should have negative signs in the formula.

4.

The essential characteristics of accounting include I.Communication of financial information to interested persons. II.Communication of financial information about economic entities. III.Identification, measurement, and communication of financial information.

Group of answer choices

I and II only

II and III only

I only

I, II and III

5.

Which of the following may not be made?

Group of answer choices

Adjusting entries.

Reversing entries.

Recording entries.

Closing entries.

6.

A chart of accounts is a

Group of answer choices

general ledger.

listing of all account titles.

subsidiary ledger.

general journal.

7.

Which of the following is a real (permanent) account?

Group of answer choices

Accounts Receivable

Goodwill

Sales

Both Goodwill and Accounts Receivable

8.

Subscriptions receivable and other receivables arising from sale of shares that are not collectible currently are presented as

Group of answer choices

Long term investment.

Deduction from subscribed share capital.

Other non-current asset.

Not recognized, disclosed only.

9.

Contributed capital does not include

Group of answer choices

Issuance of ordinary shares at par.

Issuing treasury shares at above its cost.

Share premium on ordinary shares.

Profit for the year.

10.

The excess of the subscription price over the par value of the subscribed share capital, assuming the collectability is reasonably assured, shall be recorded as

Group of answer choices

Share premium when the subscription is collected.

Share premium on the date the subscribe shares are issued.

Share premium upon the date of subscription.

Part of the subscribed share capital.

11.

The share capital of a stock corporation is divided into shares evidenced by share certificates. The subscribed share capital is reported as part of shareholders' equity net of the related subscription receivable which are not collectible currently.

Group of answer choices

False, False

True, True

True, False

False, True

12.

Share premium is the amount fixed in the articles of incorporation that is subscribed and paid in by the shareholders of the corporation. For a no-par share value share, it will instead have an issued value or stated value which will be fixed by the shareholders of the corporation.

Group of answer choices

True, False

False, False

False, True

True, True