Republic of the Philippines

Department of Education
Region I
Schools Division Office
San Carlos City, Pangasinan

Name ________________________ Adviser________________________

Grade and Section______________ Score ________________________

3rd QUARTERLY REMEDIAL TEST

School Year: SY 2023-2024

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS, AND MANAGEMENT 1

Learning Area

MULTIPLE CHOICE (50 points)

DIRECTION/S: Shade the letter of the correct answer on the answer sheet provided.
STRICTLY NO ERASURES, NO CHEATING! Use BALLPEN (BLACK/BLUE) ONLY
“The fear of the Lord is the beginning of knowledge; fools despise wisdom and discipline.” -Proverbs 1:7

1. Which of the following analysis is FALSE?

I. The owner invested P50,000 cash in her nail salon.
Increase in Asset: Cash P50,000 ; Increase in Owner’s Equity Owner’s Capital P50,000
II. The business bought a lot for P100,000 paying cash of P20,000 with the balance covered by a
promissory note.
Increase in Asset: Land P100,000 ; Decrease in Asset: Cash P20,000 ;
Increase in Liability: Notes Payable P80,000
III. The businessman bought supplies for P6,000 cash.
Increase in Asset: Laundry Supplies P6,000 ; Increase in Liability: Accounts Payable P6,000
A. I only B. II only C. III only D. I, II and III

2. Which of the following analysis is TRUE?

I. The owner bought machinery and equipment costing P150,000 by paying 50,000 from the
business funds and issuing a promissory note for the balance.
Increase in Asset Machinery and Equipment P150,000 ; Increase in Asset Cash P50,000
Increase in Liability Notes Payable P100,000
II. The owner invested cash of P10,000 in an automotive repair shop on February 2, 2024.
Increase in Asset Cash P10,000 ; Increase in Owner’s Equity Owner’s Capital P10,000
III. The owner paid P150 for business permits.
Decrease in Owner’s Equity Taxes and Licenses P150 ; Decrease in Asset Cash P150

A. I only B. II only C. I and II D. II and III

3. Which of the following analysis are NOT TRUE:

I. The owner purchased furniture for P5,500 on account.
Decrease in Asset: Furniture and Fixtures P5,500 ; Decrease in Asset: Accounts Receivable
P5,500
II. The owner bought tools for P7,000 cash.
Decrease in Asset Tools P7,000 ; Increase in Liability Accounts Payable P7,000

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 III. The owner of the business paid P12,000 for advertising.
Increase in Owner’s Equity: Advertising Expense P12,000 ; Decrease in Asset: Cash P12,000

A. I only B. II only C. II and III only D. I, II and III

4. Which of the following statements is FALSE?

A. An increase in rent expense is a credit by the rules of debit and credit.
B. Decreases in liability accounts are debited.
C. Expenses are increased by a debit
D. Income is increased by credit.

5. The accounts which have a normal credit balance are:

I. Capital II. Income III. Liability IV. Withdrawal

A. I and II B. II and III C. IV only D. I, II and III

6. The accounts which have a normal debit balance are:

I. Asset II. Expense III. Income IV. Withdrawal

A. I and III B. II and IV C. I, II and III D. I, II and IV

7. The following statements are true, EXCEPT:

A. Assets are equal to the sum of liabilities and owner’s equity.
B. Assets are increased by credit.
C. The left side of the T-account is called the debit.
D. The right side of the T-account is called the credit.

For numbers 8-15, analyze the following transactions and determine the correct account titles with their
respective debit and credit amounts.

8. He received and paid the telephone bill from Ph Telecom amounting to P1,080.
A. Credit, Utilities Expense=1,080 C. Debit, Cash=1,080
B. Credit, Utilities Payable=1,080 D. Debit, Utilities Expense=1,080

9. The owner deposited P280,000 in the name of his business.

A. Credit, Cash=280,000 C. Debit, Cash=208,000
B. Credit, Owner’s capital=280,000 D. Debit, Owner’s capital=208,000

10. He purchased a 4-in-1 equipment from Limay Equipment for P4,950, paying P1,000 in cash and the
balance on account.
A. Credit, Accounts Payable=3,950 C. Debit, Cash=1,000
B. Credit, Equipment =4,950 D. Debit, Equipment=3,950

11. He paid P3,500 for the salaries of employees.

A. Credit, Cash=3,500 C. Debit, Cash=3,500
B. Credit, Salaries Expense=3,500 D. Debit, Salaries Payable =3,500

12. He bought chairs and tables for the office for P12,300 cash.
A. Credit, Accounts Payable =12,300 C. Debit, Office Furniture=12,300
B. Credit, Office Furniture=12,300 D. Debit, Office Supplies=12,300

13. He paid P8,400 for the monthly rental of the place.

A. Credit, Rent Expense=8,400 C. Debit, Cash=8,400
B. Credit, Rent Payable=8,400 D. Debit, Rent Expense=8,400

14. He purchased furniture from Orion Company for P2,750 in cash.

A. Credit, Accounts Payable=2,750 C. Debit, Cash=2,750
B. Credit, Cash=2,750 D. Debit, Office Supplies=2,750

15. He received P17,650 in cash for services rendered.

A. Credit, Cash=17,650 C. Debit, Professional Fees=17,650
B. Credit, Professional Fees=17,650 D. Debit, Service Revenue=17,650
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16. It is the book of original entry.
A. journal B. ledger C. receipt D. worksheet

17. It pertains to the initial recording of transactions that occurred. This includes the date, the account
debited or credited, and its short description written chronologically.
A. adjusting B. analyzing C. journalizing D. posting

18. It refers to the procedure of transferring information from the journal to the ledger.
A. adjusting B. analyzing C. journalizing D. posting

19. It is called the book of final entry.

A. journal B. ledger C. receipt D. worksheet

For numbers 20-29, use the following information to answer the questions below. The following is the
trial balance for Manabat Company.

20. In the trial balance, total assets are equal to ________.

21. In the trial balance, total liabilities are equal to ________.

22. In the trial balance, if the wages expense is 50,000, total expenses are equal to ________.

23. If the trial balance showed a balance of 205,000 in the Manabat, withdrawals account and a balance of
P95,000 in the Wages Expense account, what would be the amount of Advertising revenues for the
period?

24. If the trial balance showed a balance of 300,000 in the Manabat, withdrawals account and a balance of
P123,000 in the Wages Expense account, what would be the amount of Advertising revenues for the
period?

25. If the balance of the Manabat, withdrawals account was P280,000 and the balance of the Wages
Expense account was P180,000, what would be the amount of B?

26. If the trial balance showed a balance of P700,000 in the wages expense and a balance of P330,000 in
the Advertising Revenue, what would be the amount of A?

27. If the total debits are equal to 800,000, what would be the balance of Advertising revenue?

28. If the trial balance showed a balance of P475,000 in the wages expense and a balance of P250,000 in
the Advertising Revenue, what would be the amount of A?

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 29. If the trial balance showed a debit balance of P1,000,000, what would be the amount of B?

For numbers 30-40, use the following information to answer the questions below.

The following accounts were taken from the General Ledger of Kapit Tuko Law Office at the end of its 1st year of
operation, December 31, 2023.

Cash 455,000
Accounts Receivable 92,000
Office Supplies 2,500
Office Equipment 142,000
Office Furnitures 233,000
Service Vehicle 987,000
Accounts Payable 296,000
SSS Payable 8,000
Philhealth Payable 10,000
Long-Term Notes Payable 77,000
K. Tuko, Capital 640,000
K. Tuko, Withdrawals 35,000
Professional Fees 2,190,500
Salaries and Wages Expense 450,000
Rent Expense 300,000
Advertising Expense 256,000
Supplies Expense 79,000
Utilities Expense 81,000
Miscellaneous Expense 26,000
Insurance Expense 77,000
Taxes and Licenses 6,000

30. How much are the Total Current Assets?

31. How much are the Total Non-current Assets?
32. How much is the Total Assets if Accounts Receivable is equal to 154,000?
33. How much are the Total Non-current Liabilities if Accounts Payable is equal to 700,000?
34. How much are the Total Current Liabilities?
35. How much is the Total Liabilities?
36. How much is the Total Expenses?
37. How much is the Total Owner’s Equity?
38. How much is the total balance of debit if the Cash is amounting to 985,000?
39. How much is the total credit balance if K. Tuko, Capital is amounting to 750,000?
40. What is the total balance of the debit and credit of Trial Balance?

* * * G O O D L U C K * * *

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