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    Special Tansaction Quiz 1 and 2

    Uploaded by

    Helen Fiedalan Falcutila Mondia
    The document contains multiple choice questions about accounting for transactions between a home office and branch. Specifically, it asks about how different types of transactions like freight payments, cash remittances, depreciation expenses, debit/credit memos would be recorded in the home and branch books. It also contains questions about how the individual financial statements of the home office and branch are combined for external reporting purposes and how profits are calculated.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Special Tansaction Quiz 1 and 2

    Uploaded by

    Helen Fiedalan Falcutila Mondia
    5K views4 pages
    The document contains multiple choice questions about accounting for transactions between a home office and branch. Specifically, it asks about how different types of transactions like freight payments, cash remittances, depreciation expenses, debit/credit memos would be recorded in the home and branch books. It also contains questions about how the individual financial statements of the home office and branch are combined for external reporting purposes and how profits are calculated.

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    Special Tansaction

    Original Title

    Special Tansaction quiz 1 and 2

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    The document contains multiple choice questions about accounting for transactions between a home office and branch. Specifically, it asks about how different types of transactions like freight payments, cash remittances, depreciation expenses, debit/credit memos would be recorded in the home and branch books. It also contains questions about how the individual financial statements of the home office and branch are combined for external reporting purposes and how profits are calculated.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    5K views4 pages

    Special Tansaction Quiz 1 and 2

    Uploaded by

    Helen Fiedalan Falcutila Mondia
    The document contains multiple choice questions about accounting for transactions between a home office and branch. Specifically, it asks about how different types of transactions like freight payments, cash remittances, depreciation expenses, debit/credit memos would be recorded in the home and branch books. It also contains questions about how the individual financial statements of the home office and branch are combined for external reporting purposes and how profits are calculated.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Question 1of 10

    Transaction between a home office and its branch are accounted for in reciprocal accounts. The
    reciprocal account maintained in the branch book is called

    Select the correct response:


    Any of the given
    Investment in branch
    Home office
    Advances from home office
    Question 1of 10
    Transaction between a home office and its branch are accounted for in reciprocal accounts. The
    reciprocal account maintained in the branch book is called

    Select the correct response:


    Any of the given
    Investment in branch
    Home office
    Advances from home office

    Question 2 of 10
    The freight on shipments to branch paid by the home office is recorded by the home office as

    Select the correct response:


    Credit to investment account
    Debit to freight in
    Credit to freight in
    Credit to cash

    Question 3 of 10
    A cash remittance from the branch to the home office is recorded by the home office as

    Select the correct response:


    Debit to home office
    Debit to investment account
    Credit to investment account
    Credit to cash

    Question 4 of 10
    The depreciation expenses on equipment being used by the branch but carried in the books of the
    home office is recorded in the branch's books as

    Select the correct response:


    Debit to investment in branch and credit to accumulated depreciation
    Debit to depreciation expense and credit to investment in branch
    Debit to depreciation expenses and credit to home office account
    Not recorded

    Question 5 of 10
    A debit memo received from the home office is recorded by the branch as

    Select the correct response:


    Debit to home office account
    Credit to home office account
    Debit to investment account
    Debit to allocated expense

    Question 6 of 10
    The freight on shipments to branch paid by the branch is recorded by the home office as

    Select the correct response:


    Debit to freight in
    Not recorded
    Credit to freight in
    Credit to investment account

    Question 7 of 10
    For external reporting, the individual financial statements of the home office and the branch are
    combined

    Select the correct response:


    by adding together similar items of assets, liabilities, income and expenses and eliminating
    reciprocal accounts
    by recognizing the home office's own assets, liabilities, income and expenses plus its share in
    the branch's assets, liabilities, income and expenses
    by using complex consolidation procedures
    by adding together similar items of assets, liabilities, income and expenses

    Question 8 of 10
    Transaction between branches are recorded by the transacting branches

    Select the correct response:


    as if each of them is transacting with the home office AND by debiting or crediting their own
    investment in branch account
    a branch is not permitted to transact with another branch
    by debiting or crediting their own investment in branch account
    as if each of them is transacting with the home office

    Question 9 of 10
    A credit memo received f rom the branch is recorded by the home office as

    Select the correct response:


    Credit to investment account
    Credit to allocated expenses
    Credit to home office account
    Debit to investment account
    Question 10 of 15
    The combined profit of the entity is equal

    Select the correct response:


    to the individual profits of the home office and the branch after
    eliminating any unrealized mark-up during the period
    to the individua l profit of home office plus the true profit of the branch.
    to the true profit of the home office plus its share in the profit of the branch.
    to the individual profits of the home office and the branch.

    Question 11 of 15
    An agency maintains its own separate books of accounts similar to a branch.

    Select the correct response:


    True/False

    Question 12 of 15
    For external reporting, the financial statements of the branch are combined with the financial
    statements of the home office and the other branches.

    Select the correct response:


    True/False

    Question 4 of 15
    A branch reported cash of P2 while the home office reported cash of P10.The total cash in the
    combined financial statements therefore is P13.

    Select the correct response:


    True/False

    Question 13 of 15
    After year-end adjustments but before elimination entries, the balance in the "allowance for
    mark-up on shipments to branch"

    Select the correct response:

    is equaIto zero
    represents the unrealized mark-up
    represents the realized mark up
    represents profit

    Question 9 of 15
    The 'Home office" is an equity account in the combined financial statements of the home office.

    Select the correct response:


    True/False

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