LUYONG - 3rd Periodical - FABM1

UIC-SHS DEPARTMENT NAME:_____________________________
3RD PERIODICAL EXAM (January 17-19, 2019) SECTION: __________________________

FABM 1 SCORE:
MS. JONAVI LUYONG
________ / ______
GENERAL INSTRUCTIONS
1. Read all items carefully.
2. Do not leave any item UNANSWERED.
3. Cheating will merit failure in this examination besides other disciplinary actions.
4. If you have questions, ask only your adviser.
Be honest, God is watching us.
TEST I.Multiple Choice. Encircle the letter of the correct answer.

1. Which of the following is a purpose/ use of the books of accounts?
a. Proof of the business transactions reflected in the financial statements
b. Analysis of a company’s performance
c. Ensuring regulatory compliance of the company
d. All of the above
2. A transaction is first recorded in a record called a ______.
a. Journal b. T-account c. Ledger d. Chart of accounts
3. The account title to describe money, either in paper or in coins.
a. Receipts b. Cash equivalents c. Cash d. Inventories
4. The journal is often referred to as the book of original entry because
a. It is in chronological order
b. It involves the process of journalizing
c. The business transaction is first recorded in this book
d. None of the above
5. Which is NOT a current asset among the following items?
a. Cash and cash equivalents c. Prepaid insurance to be used up this year
b. Inventory under production d. A company’s office building bought this year
6. Represents written promises to the entity to receive cash at a later date.
a. Accounts Receivable b. Notes receivable
b. Accounts Payable d. Notes Payable
7. In which of the following cases can the accounting equation be written?
a. Assets + Liabilities= Equity c. Equity - Assets = Liabilities
b. Assets - Liabilities= Equity d. Equity + Assets = Liabilities
8. Oral promises to the entity to receive cash at a later date.
a. Accounts Receivable b. Notes receivable
b. Accounts Payable d. Notes Payable
9. Which is NOT an asset in the following items?
a. Land b. Building c. Furniture d. Capital
10. These are liabilities which are expected to be settled or paid out by the entity within twelve months.
a. Current liabilities b. Non-current liabilities c. Equity d. Asset
11. It refers to all assets that are expected to be realized, sold or consumed within the enterprise’s normal
operating cycle.
a. Fixed Asset b. Current Asset c. Accounts receivable d. Inventories
12. An account title for a financial obligation of an enterprise that constitutes an oral or verbal promise to pay.
a. Accrued expense b. Unearned income c. Notes Payable d. Accounts Payable
13. It is the process of recording a transaction in the journal after it has been recognized and measured.
a. Encoding b. Processing c. Journalizing d. Summarizing
14. The following are transactions that increase the assets of a business, EXCEPT.
a. Paid telephone bill c. Paid employees’ salaries
b. Rendered services for cash d. Paid electricity bill received
II. Selected transactions are presented below. Give the effect of the following transactions on the three
elements of the balance sheet. Give the accounts affected and the amount of increase or decrease. Write your
answer on the space provided for. (2 points each)
1. Bought supplies on credit ₱ 4,300
2. Owner invested equipment valued at ₱90,000
3. Rendered services to account customers, ₱10,000
4. Owner withdrew ₱15,000 cash for personal use
5. Paid secretary’s salary, ₱ 7,700
6. Received bill from Globe for internet services, ₱999
7. Owner made an additional investment of ₱100,000
8. Paid Globe bill
9. Paid insurance for one year ₱ 36,000
10. Paid one month rent ₱20,000

III. Journalize the following transactions of Till A Look Consultancy for the month of January 2016. Write your
answer on the space provided for. (16 POINTS)
January 1 Mr. Look invested computer valued at ₱67,000.
2 Consultancy services rendered to Mongolia Corp. On account, ₱75,000
3 Bought ₱700,000 worth of transportation equipment from Mitsubishi on account
7 Consultancy services rendered to various clients for cash, ₱ 190,000
15 Consultancy services rendered to Codak Co. On account, ₱32,000
16 Paid Mitsubishi Motors in full

18 Collected ₱15,000 from Codak Co.
20 Received water bill, ₱980
26 Paid electricity for the month, ₱2,540
DATE ACCOUNT TITLE DEBIT CREDIT

Test IV. Create an income statement base on the given problem. Write your answer on the space provided for.
(10 points each)
1. Lucky has a convenience store. Last month, he purchased merchandise costing ₱83,500 for which he
paid freight of ₱5,000. He sold the merchandise for ₱250,102.00.
The store incurred the following operating expenses:
Rent ₱6,000
Advertising ₱8,500
Store Supplies ₱3,450
Office Supplies ₱2,050
Light and Water ₱7,350
Miscellaneous expenses ₱11,250
He borrowed money from the bank for which he paid ₱5,500 in interest.

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UIC-SHS DEPARTMENT NAME:_____________________________

3RD PERIODICAL EXAM (January 17-19, 2019) SECTION: __________________________

TEST I.Multiple Choice. Encircle the letter of the correct answer.

2. Owner invested equipment valued at ₱90,000

3. Rendered services to account customers, ₱10,000

4. Owner withdrew ₱15,000 cash for personal use

5. Paid secretary’s salary, ₱ 7,700

6. Received bill from Globe for internet services, ₱999

7. Owner made an additional investment of ₱100,000

8. Paid Globe bill

9. Paid insurance for one year ₱ 36,000

10. Paid one month rent ₱20,000

2 Consultancy services rendered to Mongolia Corp. On account, ₱75,000

3 Bought ₱700,000 worth of transportation equipment from Mitsubishi on account

7 Consultancy services rendered to various clients for cash, ₱ 190,000

15 Consultancy services rendered to Codak Co. On account, ₱32,000

16 Paid Mitsubishi Motors in full

20 Received water bill, ₱980

26 Paid electricity for the month, ₱2,540

DATE ACCOUNT TITLE DEBIT CREDIT

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