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    Accbp100 2nd Exam Part 1

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    emem resuento
    1. This document contains a 15 multiple choice question exam on accounting concepts including inventory systems, FOB terms, types of companies, and steps in the accounting cycle. 2. Questions cover topics like inventory valuation methods, identifying errors in a trial balance, recording transactions under perpetual and periodic inventory systems, and distinguishing merchandising vs non-merchandising companies. 3. The questions test understanding of fundamental accounting principles including debit and credit rules, inventory accounting, and the process of identifying and correcting errors.

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    Download as PDF, TXT or read online from Scribd

    Accbp100 2nd Exam Part 1

    Uploaded by

    emem resuento
    262 views2 pages
    1. This document contains a 15 multiple choice question exam on accounting concepts including inventory systems, FOB terms, types of companies, and steps in the accounting cycle. 2. Questions cover topics like inventory valuation methods, identifying errors in a trial balance, recording transactions under perpetual and periodic inventory systems, and distinguishing merchandising vs non-merchandising companies. 3. The questions test understanding of fundamental accounting principles including debit and credit rules, inventory accounting, and the process of identifying and correcting errors.

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    1. This document contains a 15 multiple choice question exam on accounting concepts including inventory systems, FOB terms, types of companies, and steps in the accounting cycle. 2. Questions cover topics like inventory valuation methods, identifying errors in a trial balance, recording transactions under perpetual and periodic inventory systems, and distinguishing merchandising vs non-merchandising companies. 3. The questions test understanding of fundamental accounting principles including debit and credit rules, inventory accounting, and the process of identifying and correcting errors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    262 views2 pages

    Accbp100 2nd Exam Part 1

    Uploaded by

    emem resuento
    1. This document contains a 15 multiple choice question exam on accounting concepts including inventory systems, FOB terms, types of companies, and steps in the accounting cycle. 2. Questions cover topics like inventory valuation methods, identifying errors in a trial balance, recording transactions under perpetual and periodic inventory systems, and distinguishing merchandising vs non-merchandising companies. 3. The questions test understanding of fundamental accounting principles including debit and credit rules, inventory accounting, and the process of identifying and correcting errors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    ACCBP 100 2ND EXAM – PART 1

    Multiple Choice Question

    1. A buyer received an invoice for P6,000 dated June 10. If the terms are 2/10, n/30, and the buyer paid the invoice
    within the discount period, what amount will be the seller receive?
    a. 6,000
    b. 5,880
    c. 4,800
    d. 120

    2. Statement I- Under FOB Destination, the buyer is the owner of the goods when the inventory leaves the seller’s
    place of business.
    Statement II- Under FOB Shipping Point, the seller shoulders the transportation cost.
    a. Both statements are true.
    b. Both statements are false.
    c. Statement I is true; Statement II is false.
    d. Statement I is false; Statement II is true.

    3. Each of the following companies is a merchandising company except a


    a. wholesale parts company
    b. candy store
    c. car wash
    d. furniture store

    4. The periodic inventory system is used to most commonly by companies that sell
    a. low-priced, high-volume merchandise.
    b. low-priced, low-volume merchandise.
    c. high-priced, low-volume merchandise.
    d. high-priced, high-volume merchandise.

    5. A physical count of inventory is usually taken


    a. at the peak of the busy season
    b. in the middle of the fiscal year
    c. at the end of the fiscal year
    d. at the start of the fiscal year

    6. Under perpetual inventory system, the entry to record a purchase return would include a credit to
    a. Accounts Payable
    b. Purchase Returns and Allowances
    c. Cost of Goods Sold
    d. Merchandise Inventory

    7. Which of the following goods would not be included in merchandise inventory for a purchasing company?
    a. Goods in transit shipped FOB shipping point
    b. Goods in transit shipped FOB Destination
    c. Goods ordered and received from the supplier
    d. Goods on hand in the showroom

    8. Under perpetual inventory system, which of the following accounts would not be used?
    a. Sales
    b. Purchases
    c. Cost of Goods Sold
    d. Merchandise Inventory
    9. Statement I- Under perpetual inventory, there is no need to do physical count because the perpetual records are
    already updated.
    Statement II- Under periodic inventory, there is a need to do physical count to determine cost of goods sold.
    a. Both statements are true.
    b. Both statements are false.
    c. Statement I is true; Statement II is false.
    d. Statement I is false; Statement II is true.

    10. When locating errors in a trial balance, what kind of error has a discrepancy that is divisible by 9
    Transposition error
    Sliding error
    Omission
    Typo error

    11. Which of the following statements is true?


    When posting, beginning balances of the account titles are ignored.
    Trial balances are prepared to verify the accuracy of the debits and credits.
    The last step in the accounting cycle is the preparation to post-closing trial balance.
    Part of transaction analysis is identifying the transaction from source documents.

    12. Which of the following statements is true?


    Posting reference is used in the general ledger.
    Journal reference is used in the general journal.
    When a customer pays in advance, an entry is recorded for prepaid expenses.
    Settlement of accounts payable is recorded by debiting accounts payable.

    13. Which of the following statements is false?


    A compound entry involves at least three accounts.
    If the debits and credits in the trial balance is equal, it signifies the absence of errors.
    An error in the trial balance may occur when there is an erroneous recording of amounts.
    After preparation of financial statements, closing entries are journalized and posted.

    14. Statement I - The buyer shoulders the freight if the terms is FOB Shipping point.
    Statement II - The seller shoulders the freight if the terms is FOB Shipping point.
    a. Both statements are true.
    b. Both statements are false.
    c. Statement I is true; Statement II is false.
    d. Statement I is false; Statement II is true.

    15. Under perpetual inventory system, in addition to making the entry to record a sale, a company would
    a. debit Merchandise Inventory and credit Cost of Goods Sold
    b. debit Cost of Goods Sold and credit Purchases
    c. debit Cost of Goods Sold and credit Merchandise Inventory
    d. make no additional entry until the end of the period

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