2nd Summative Test

Department of Education
Division of Cebu Province

District of Argao 1
Usmad National High School
Usmad, Argao, Cebu
SUMMATIVE TEST
Fundamentals of Accountancy, Business and Management 2
Name:____________________________________Date:______________________Score:_________________
A. Multiple Choice
Instruction: Read and analyze each question. Then choose the letter of the best answer and underline.
1. The process of transferring entries from the journal to the ledger is called _____________.
a. classifying b. posting c. recording d. reporting
2. The sorting process of the journal entries to the ledger is called ___________________.
a. classifying b. posting c. recording d. reporting
3. A trial balance __________________________
a. proves the mathematical accuracy of journalized transactions.
b. will not balance if a correct journal entry is posted twice.
c. is a list of accounts with their balances at a given time.
d. proves that all transactions have been recorded.
4. It is merely copying carefully of what has been footed in the ledger.
a. Adjusting Entries b. General Ledger c. Trial Balance d. Reversing Entries
5. Which of the following is not included in putting a heading of a trial balance?
a. Name of the business or proprietor c. Period covered by the report
b. Title of the Report d. Place of the business or address of the proprietor
6. These entries are prepared to properly match revenues against expenses during the period.
a. Adjusting Journal Entries c. Balance Sheet
b. Income Statement d. Worksheet
7. This statement summarizes the changes that occurred in owner’s equity.
a. Changes in Owner’s Equity c. Balance Sheet
b. Income Statement d. Worksheet
8. In the unadjusted trial balance of its worksheet for the year ended December 31, 2020, Benoi
Company reported Equipment of P120,000. The year-end adjusting entries require an adjustment of
P15,000 for depreciation expense for the equipment. After adjustment, the following adjusted amount
should be reported:
a. a debit of P105,000 for Equipment in the Statement of Financial Position column.
b. a credit of P15,000 for Depreciation Expense— Equipment in the income statement column.
c. a debit of P120,000 for Equipment in the Statement of Financial Position column.
d. a debit of P15,000 for Accumulated Depreciation— Equipment in the Statement of Financial Position
column
9. Which of the following is a true statement?
a. The Income Statement shows the financial performance of the entity as of the current period.
b. Changes in owner’s equity show the changes in equity for the current period.
c. The statement of financial position shows the financial condition for the current period.
d. The Cash Flows shows the flow of cash as of the current period.
10. This contains all real or balance sheet accounts only that remained open at the end of the accounting
period.
a. Post-Closing Trial Balance c. Reversing Entries
b. Adjusting Entries d. Closing Entries
11. A nominal account with a debit balance will be _________ in the closing entry by an amount equal to
its debit.
a. debited b. credited c. disregarded d. remain the same
12. It is where profit is added or where loss is deducted at the end of the accounting period.
a. Assets b. Liability c. Owner’s Equity d. Investments
13. To close withdrawal account, we debit _________________
a. Owner’s Capital b. Owner’s Drawing c. Income Summary d. Expense Summary
14. The Statement of Financial Position equation is:
a. A – C = L b. L + C = A c. A – L = C d. all of the choices
15. Which of the following transactions would increase cash as well as non-current liabilities?
a. Long-term bank loan c. Payment to suppliers
b. Purchasing equipment on credit d. Payment from customers
16. Which of the following is the correct gross profit formula?
a. Sales + Cost of Sales = Gross Profit c. Sales – Gross Profit = Cost of Sales
b. Sales + Gross Profit = Cost of Sales d. None of the above
17. Which of the following is a nominal account?
a. Salaries expense b. Cash c. Office supplies d. Account payable
18. What is the effect of purchasing equipment to the cash?
a. Increase b. Decrease c. both Inc and Dec d. no effect
19. What is the normal balance of Interest revenue?
a. Debit b. Credit c. reference d. account title
20. It is a piece of paper representing the stock or unit of corporate ownership.
a. Stocks b. Par value c. stok certificate d. stock certificate
B. T account
Directions: Selected transactions from the journal of Shiloah Suarez, investment broker, are presented
below and Post the transactions on T-Account. Write your answer on a separate sheet of paper.
2020 Account Titles and Explanation Ref. Debit Credit

Aug. 1 Cash 5,000
Owner’s Capital 5,000
Owner’s investment of cash in business
10 Cash 2,400
Service Revenue 2,400
Received cash for services performed
12 Equipment 5,000
Cash 3,000
Notes Payable 2,000
Purchased equipment for cash and notes payable
25 Accounts Receivable 1,700
Service Revenue 1,700
Billed clients for services performed
31 Cash 900
Accounts Receivable 900
Receipt of cash on account
Notes Payable
Cash
Aug P 5,000 Aug P 3,000
1 12
Owner’s Capital
Accounts Receivable
Service Revenue
Equipment

2nd Summative Test

Uploaded by

Copyright:

Available Formats

2nd Summative Test

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2nd Summative Test

Uploaded by

Copyright:

Available Formats

Department of Education

Division of Cebu Province

2020 Account Titles and Explanation Ref. Debit Credit

You might also like