Summative Test in Fabm 2 Name: - Grade/Section: - Score

Division of Cebu Province
District of Bantayan I
SUMMATIVE TEST IN FABM 2
Name:__________________________Grade/Section:________________Score: ________
Directions: Encircle the letter of the correct answer.

1. It is a generally accepted medium of financial exchange, a legal tender used to pay debts
a. check b. money c. note d. voucher
2. Which bank document is used by clients to get money from the banks?
a. deposit slip c. payment slip b. bank statement d. withdrawal slip
3. What do you call a record of the bank’s client set up by the bank?
4. Which document is used by clients to put money in the bank?
5. What kind of account carries the convenience of withdrawing by check?
a. checking account c. recurring deposit
b. savings account. d. time deposit
6. What kind of account has a fixed maturity date and higher interest rate?
a. current account c. recurring deposit
7. Which account provides clients with passbook for money placed in the bank for safekeeping?
a. current account c. recurring deposit
8. Which instrument is used for payment of goods and services as a substitute for cash?
a. check b. deposit slip c. payment slip d. withdrawal slip
9. What happens when a check was failed to be claimed after six months?
a. It becomes a postdated check. b. It becomes a receivable.
c. It becomes a stale check. d. It becomes an investment.
10. PDIC is an institution that insures bank deposits. What does it stand for?
a. Philippine Dangerous Income Check
b. Philippine Deposit Insurance Corporation
c. Philippine Depository Insurance Company
d. Philippine International Insurance Check
11. Each bank accounts are insured from the PDIC for up to what amount?
a. P250,000 c. P500,000
b. P300,000 d. P1,000,000
12. A record of the bank’s client set up by the bank.
a. bank account b. time deposit c. withdrawal slip d. deposit slip
13. It is the amount of money placed in a bank with modest interest and with no holding period.
a. bank account b. savings account c. current account d. time deposit
14. The amount of money placed in a bank or financial institution with fixed interest rate and maturity date.
a. bank account b. savings account c. current account d. time deposit
For numbers 15-17
You are Joey Lao, the customer of Mod Furniture. The date today is September 21, 2017. You are purchasing a
table from Mod Furniture in the amount of P25,000. You are going to issue a check dated today in payment for the
table you just purchased.
15. _______________
16. _______________
17. _______________
15. Pay to the order of _______________________

a. Joey Lao b. Mod Furniture c. Joy Lao d. Mad Furniture
16. Amount of __________________.
a. P25,000 b. Twenty-Five Thousand Pesos c. Twenty-Five Thousand pesos only
17. Signed by
a. Joey Lao b. Mod Furniture c. Joy Lao d. Mad Furniture
For numbers 18- 20
Below is a blank deposit slip. Fill up the deposit slip based on the following assumptions.
a. Lino Co deposited in Platinum Bank
b. Use the date today
c. Your savings account number is 000-123-456-789
d. Amount deposit is P10,000.
18. _______________
19. _______________
18. What is the account number?

a. 000-123-456-789 b. 000-132-345-789 c. 000-123-546-789 d. 000-213-456-789
19. What is the account name?
a. Sinac Tan b. Lino Co c. Mina Hal d. Ennie Wan
20. In what account it will be deposited?
a. Current b. savings c. TD/ Placement d. U.S. Dollar
Select the action necessary to reconcile the bank statement.

21. Fee charged by bank for returned check
a. add to book balance c. add to bank balance
b. deduct from book balance d. deduct from bank balance
22. A company wrote a check for Php 3,200 and it cleared the bank for Php 3,200. However, the company recorded
the check in its cash account as Php 2,300. How is the difference of Php 900 handled on the bank reconciliation?
23. A company had a receipt of Php 47,600 and correctly prepared its bank deposit slip for Php 47,600. However,
the company recorded the receipt in this cash amount as Php 46,700. How is the difference of Php 900 handled on
the bank reconciliation?
24. The bank collected a Note receivable for the company and credited the company’s bank account for Php
50,000.
25. A company deposited a check from a customer into its checking account. A few days later the check was
returned with a notation account closed and the bank deducted the amount on the bank statement.
26. A bank statement

a. is an acknowledgement from the bank that you are a client of good credit standing.
b. is a list from the bank for services rendered to the client.
c. shows the activities affecting the depositor’s account
d. none of the above
27. An “NSF” check returned by the banks means
a. “no signature found”

b. “no service fee”
c. “no stated fee”
d. “no sufficient fund”
8. A bank reconciliation is prepared
a. when the company is short of cash.
b. when the balance per bank and the balance per bank is in agreement.
c. when there is difference between the book balance and the bank balance.
d. when there is a need to establish the cashier’s accountability.
9. The following affect the book balance except
a. NSF.
b. outstanding checks.
c. bank service charges.
10. The following require an adjusting entry except
a. deposit in transit.
b. NSF checks.
c. bank service charges.
Answer Key
1. b
2. d
3. b
4. a
5. a
6. d
7. b
8. a
9. c
10. b
11. c
12. a
13. b
14. d
15. b
16. c
17. a
18.a
19.b
20.b

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Division of Cebu Province

Directions: Encircle the letter of the correct answer.

15. Pay to the order of _______________________

18. What is the account number?

Select the action necessary to reconcile the bank statement.

26. A bank statement

a. “no signature found”

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