11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

Bookkeeping MIDTERM EXAM

INSTRUCTIONS:

1. Please read the instructions carefully.

2. Make sure you have a stable internet connection.
3. The link provided is exclusive to our Bookkeeping class. Do not share the link with anyone
outside of our class.
4. You have one (1) hour to complete the 60-point examination. This form will automatically
be closed by the end of the specified period.
5. You will be limited to one (1) response only so please be careful and be sure of your
answers. Once you click the "SUBMIT" button you can no longer amend or revise your
answers or re-submit your exam.

* Indicates required question

1. Email *

2. Full Name (Surname, First Name, M.I.) *

3. Section (i.e., 01, 02, 03) *

4. Class Number (i.e., 01, 02, 03) *

Multiple Choices

Choose the letter of the correct answer.

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

5. A corporation which is composed of one incorporater.

Mark only one oval.

Sole Corporation

One Person Corporation

One Incorporation

Sole Incorporation

None of the above

6. It is an area of accounting that emphasizes reporting to creditors and investors.

Mark only one oval.

Cost Accounting

Managerial Accounting

Financial Accounting

Private Accounting

7. What does the double entry bookkeeping system is requiring in all transactions?

Mark only one oval.

An entry to an asset account balanced by an entry to a capital account

An increase to one account balanced by a decrease to another account

Debit entries balanced with credit entries

All of the above

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

8. A school purchased an eraser with an estimated useful life of three years. Since an
eraser has a small amount of value relative to assets, it should be recorded as an
expense.

Mark only one oval.

Matching

Accrual

Materiality

Conservatism

Time Period

9. On November 17, 2023, Kween Leng Leng decided to have her hair cut at Ricky
Reyes Salon. On the same day, she went to the mall and have her hair cut. The
following day, she realized that she forgot to pay the company. Consequently, she
talked to the supervisor and promised to pay the company on November 19, 2023
via G-cash since her wallet was stolen. Leng Leng told the supervisor that her
payment will come from her friend’s debt. Leng Leng received the cash from her
friend on November 20, 2023 in the evening. However, she was able to transfer the
payment of the said amount to the Salon on November 21, 2023. From this
scenario, when should Ricky Reyes Salon recognize its income?

Mark only one oval.

November 17, 2023

November 18, 2023

November 19, 2023

November 20, 2023

November 21, 2023

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

10. If a company has two owners, which of the following may be form?

Mark only one oval.

Sole Proprietorship

Partnership

Corporation

Sole Proprietorship and Partnership

Sole Proprietorship and Corporation

Partnership and Corporation

11. I. A Corporation is an artificial being who is separate and not distinct from the
owners.II. The corporation begins its existence from the date the Articles of
Corporation is approved by the Securities and Exchange Commission (SEC).

Mark only one oval.

Statement I is correct

Statement II is correct

Both statements are correct

Neither statement is correct

12. I. The voting right in a corporation may be the same with a cooperative. II. The
management of the business is delegated by the owners to the Board of Directors
in a sole proprietorship.

Mark only one oval.

Statement I is correct

Statement II is correct

Both statements are correct

Neither statement is correct

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

13. I. Transfer of ownership in a corporation requires the consent of other stockholders.

II. Transfer of ownership in a partnership requires the consent of other members.

Mark only one oval.

Statement I is correct

Statement II is correct

Both statements are correct

Neither statement is correct

14. Revenue should be recognized when it is collected regardless when it is earned,

and expenses should be recognized when it is paid regardless when it is incurred.

Mark only one oval.

Absolutely True

False

It depends

15. Public Accounting includes all of the following, except:

Mark only one oval.

Taxation

None of the above

Auditing

Advisory Service

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

16. Tax Accounting involves all of the following, except:

Mark only one oval.

Tax advisory services

Minimizing taxes legally

Determination of income tax and other taxes

Evaluation of the consequences of tax decisions

None of the above

17. It refers to the examination of financial statements by an independent CPA with the
purpose of expressing an opinion.

Mark only one oval.

External Auditing

Internal Auditing

Private Accounting

Government Accounting

Managerial Accounting

18. I. Primary users can be External Users. II. Existing and Potential Investors are the
same.

Mark only one oval.

Statement I is correct

Statement II is correct

Both statements are correct

Neither statement is correct

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

19. I. Accounting is not an exact science because the rules and principles are not
constantly changing; II. Accounting is considered as an art because it requires
creative judgement and skills.

Mark only one oval.

Statement I is correct

Statement II is correct

Both statements are correct

Neither statement is correct

20. I. Recording process is done only in the ledger. II. Summarizing process is done
from trial balance up until financial statement.

Mark only one oval.

Statement I is correct

Statement II is correct

Both statements are correct

Neither statement is correct

21. This process involves the assigning of peso amounts to the accountable economic
transactions and events.

Mark only one oval.

Identifying

None of the above

Communicating

Classifying

Recording

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

22. Which of the following is not an intangible asset?

Mark only one oval.

Franchise

Secret Formula

Trademark

Shares

None of the above

23. Which of the following is not an asset?

Mark only one oval.

Prepaid Rent

Car

Cellphone

Capital

None of the above

24. A period which covers January 1, 2023 to December 31, 2023 is known as ____.

Mark only one oval.

Calendar Period

Fiscal Period

None of the above

Both statements

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

25. Which of the following is incorrect?

Mark only one oval.

Asset = Liability + Capital

Asset – Liability = Capital

Asset - Capital = Liability

Asset = Capital - Liability

None of the above

26. Accounting is the art of recording, classifying and summarizing in a significant

manner and in terms of money, transactions and events which are, in part at least
of a financial character, and interpreting the results thereof as defined by American
Institute of Certified Public Accountant.

Mark only one oval.

Absolutely true

False

27. The following accounts are depreciated, EXCEPT:

Mark only one oval.

Machinery

Supplies

Building

Truck

None of the above

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

28. Which of the following is incorrect?

Mark only one oval.

Accounting is about quantitative information.

The information is likely to be non-financial in nature.

The information should be useful in decision making.

None of the above

29. Once the business transactions and events, having financial character and
expressed in terms of money, have been recorded, classified and summarized, the
stakeholders can now make an informed judgment and decision.

Mark only one oval.

Absolutely true

False

30. The following are the criteria for accountable event, except:

Mark only one oval.

It is a result of a past activity

It must affect a financial element of accounting

Its cost can be measured arguably

None of the above

31. Each transaction affects at least one account.

Mark only one oval.

Absolutely true

False

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

32. The following are parts of a financial statement, EXCEPT:

Mark only one oval.

Statement of Changes in Equity

Notes to financial statements

Statement of Assets, Liabilities and Net Worth

Income Statement

None of the above

33. Bookkeeping is concerned with “how” and accounting is concerned with “why”.

Mark only one oval.

Absolutely true

False

34. Republic Act 2998 is the law regulating the practice of accountancy in the
Philippines.

Mark only one oval.

Absolutely true

False

35. Accountant employed in Commission on Audit (COA) is working under Government

Accounting.

Mark only one oval.

Absolutely true

False

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

36. Who is the father of Accounting?

Mark only one oval.

Lucas Pacaoile

Luca Paciolli

Lucas Pacioli

Luca Pacioli

None of the above

37. Debit refers to increases in account and credit refers to decreases in account

Mark only one oval.

Absolutely true

False

38. Financial statements may be presented in a one-year period for comparative

purposes.

Mark only one oval.

Absolutely true

False

39. Capital and assets increase when credited.

Mark only one oval.

Absolutely true

False

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

40. Which of the following is NOT an asset?

Mark only one oval.

Cash In Bank

Franchise

Notes Receivable

Notes Payable

None of the above

41. Which of the following is not a liability?

Mark only one oval.

Accounts payable

Earned Revenue

Mortgage payable

Short-term debt

None of the above

42. Which of the following is incorrect?

Mark only one oval.

Owner's equity is the term used for capital account in a sole proprietorship.

Partner’s capital is the term used for capital account in a cooperative.

Stockholder’s equity is the term used for capital account in a corporation.

None of the above

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

43. This type of business includes goods for sale.

Mark only one oval.

Service Business

Merchandising Business

Manufacturing Business

Service Business and Merchandising Business

Manufacturing Business and Merchandising Business

44. This type of business has supplies, but with no goods to be sold

Mark only one oval.

Service Business

Merchandising Business

Manufacturing Business

Service Business and Merchandising Business

Manufacturing Business and Merchandising Business

45. Arthur Anyare decided to produce a concert for Taylor Seesh. This type of business
is an example of _____.

Mark only one oval.

Service Business

Merchandising Business

Manufacturing Business

Hybrid Business

None of the above

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

46. I. Partnership is easy to operate like a sole proprietorship, compared to

corporation. II. Partnership is subject to several legal restrictions as listed in the
Partnership Code of the Philippines

Mark only one oval.

Statement I is correct

Statement II is correct

Both statements are correct

Neither statement is correct

47. I. Lenders and other debtors are interested in information which enables them to
determine whether their loans, interest thereon and other amounts owing to them
will be paid when due. II. Suppliers are concern in assessing the credit-worthiness
of its customers before offering goods and services on credit.

Mark only one oval.

Statement I is correct

Statement II is correct

Both statements are correct

Neither statement is correct

48. This means that the business is distinct and separate from the owners.

Mark only one oval.

Accrual Principle

Separate Principle

Objectivity Principle

Disclosure Principle

None of the above

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

49. The objectivity principle means _____.

Mark only one oval.

that information is supported by dependent and biased evidence

that information can be based on what the preparer thinks is true

that financial statements should contain information that is optimistic

that a business may not re-organize revenue until cash is received

None of the above

50. It deals with determining the operational efficiency of the company regarding the
protection of the company’s assets, accuracy and reliability of the accounting data,
and adherence to certain management policies.

Mark only one oval.

Internal auditing

External auditing

Tax accounting

Financial accounting

None of the above

51. _______ focuses on the search for new knowledge on the effects of economic
events on the process of summarizing, analyzing, verifying, and reporting
standardized financial information, and on the effects of reported information on
economic events.

Mark only one oval.

Accounting Research

Accounting Education

Financial Accounting

Cost Accounting

None of the above

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

52. The focus of ________ is the custody and administration of public funds.

Mark only one oval.

Government Accounting

Public Accounting

Funds Accounting

Private Accounting

None of the above

53. In the Philippines, _______ is concern in determining the credibility of the tax
returns filed on behalf of a company.

Mark only one oval.

Bureau of Internal Revenue

Board of External Revenue

Bureau of External Revenue

Board of Internal Revenue

None of the above

54. Which of the following is not an internal users?

Mark only one oval.

regulatory agencies

marketing managers

production supervisors

finance directors

company officers and owners

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

55. This account is debited for liabilities withdrawn by the owner for personal use from
the business.

Mark only one oval.

Cash

Drawing

Capital

Accounts Payable

None of the above

56. As a supplier of a business, which question would you like to be addressed?

Mark only one oval.

Is it profitable for me to invest in this business?

Do I extend credit to this company?

Is the owner paying the correct taxes?

If extend a loan to this company, will it be able to pay this loan?

Are the employees paid according to what the law states?

57. Local Government Units (LGUs) are interested in the following: I. Local taxes; II.
Business permits

Mark only one oval.

Statement I is correct

Statement II is correct

Both statements are correct

Neither statement is correct

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

58. I. The management of the business is delegated by the Board of Directors to

the shareholders. II. Cooperatives are regulated by the Cooperative Development
Association (CDA).

Mark only one oval.

Statement I is correct

Statement II is correct

Both statements are correct

Neither statement is correct

59. The following are the disadvantages of a Cooperative, EXCEPT:

Mark only one oval.

Limited distribution of surplus

Requires continuous education programs for members.

The members have active and direct participation in the business of the
cooperative.

Enjoys certain tax exemption privilege

None of the above

60. I. The liability of the owners in a corporation is limited

to the stock investment of the shareholder . II. The liability of the owners in a sole
proprietorship is unlimited, meaning, other properties not used in the business may
be held liable for the obligations.

Mark only one oval.

Statement I is correct

Statement II is correct

Both statements are correct

Neither statement is correct

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

61. Which of the following does not fall to the group?

Mark only one oval.

Doon Ka Sa Far Away Hotel

Clean Ko Place Mo Cleaning Business

Bruno Mars Pautang Barber Shop

Fish Be With You Fish Shop

None of the above

62. Which of the following does not fall to the group?

Mark only one oval.

Wow aq pa hahamunin mo ng walang pansinan? bakit kamusta ka na ba? grocery

store

Ang favorite kong flavor ng ice cream ay mocha ba akong di worth the risk bakery

Sa lahat ng nireview ko, ikaw lang pumasok sa utak ko hardware

G na G magstop pag red yung traffic light pero sa taong red flag go na go laundry
shop

None of the above

63. Which of the following should be done first (in order)? I. Internal Auditing; II.
External Auditing; III Accounting

Mark only one oval.

III, II & I

I, III & II

II, III, I

None of the above

II, I, & III

I, II & III

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

64. When you provide tutorial services to a customer and there is a transportation cost
incurred related to the tutorial services, it should be recorded as an expense for that
period. This is example of ______.

Mark only one oval.

Cost principle

Matching principle

Accrual principle

Disclosure principle

None of the above

65. In case of doubt, expenses should be recorded at a higher amount. Revenue

should be recorded at a lower amount. This is an example of what accounting
principle?

Mark only one oval.

Materiality principle

Conservatism principle

Accrual principle

Disclosure principle

None of the above

66. Jollibee should report financial statements in pesos even if they have a store in the
United States. This is an application of what accounting principle?

Mark only one oval.

Monetary unit principle

International principle

Matching principle

Time Period principle

None of the above

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

67. No financial statements were prepared by Michael Go for his business. He

explained that he will prepare the statements when he closes the business, which
he predicts to take place after 20 years. This is a violation of what principle?

Mark only one oval.

Monetary unit principle

Going concern principle

Matching principle

Time Period principle

None of the above

68. The owner had a business meeting with a prospective client. Which of the following
is correct? I. The expenses of printing the documents in relation to his presentation
should be part of the company’s expenses. II. If the owner paid for gas for his
personal use, it should be included as part of the company’s expenses.

Mark only one oval.

Statement I is correct

Statement II is correct

Both statements are correct

Neither statements are correct

None of the above

69. BONUS QUESTION: Papasa ka?

Mark only one oval.

Yes na yes

Dapat

Of course

Sako lang

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11/23/23, 9:19 PM Bookkeeping MIDTERM EXAM

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