FINALS| BUSINESS ACCOUNTING

Multiple Choice. Choose the letter of the best answer. If you think the correct answer is not given in the choices, shade
letter “E”.

The following data are for the Items 1 to 15

LAST NA EXAM COMPANY is a service business offering a tutorial to a wide range of consumers. The company is very generous to its
employees. The following shows the management policy of the company:
 The working days are from Monday to Friday.
 Employees will be working from 9:00 AM to 6:00 PM.
 Late will be only considered after an employee arrives 15 minutes later than 9:00 AM. As per management policy, the amount deducted
for late employees will be their rate per minute.
 After 6:00 PM, every hour thereafter will be considered as overtime.
 Deduction of SSS, Philhealth and Pag-ibig Contribution is made every payroll period 1-15. Contributions deducted are for the whole
month. (Assume the amount of payroll for the period 1-15 is the same as the period 16-30)

For the month of November, there are two Special Holidays (November 1 and 2) and one Regular Holiday (November 30).

Emp. No.: 1955432 Rate per day: P800.00 1. How much is the employees overtime rate per hour for regular working
Name: Delia Cruz days?
Period: November 1-15, 2019 a. P100
MORNING AFTERNOON TOTAL b. P125
Days c. P130
IN OUT IN OUT BASIC OT
1 d. P200
2
3 2. How much is the employees overtime rate per hour for special non working
days?
4 8:30 18:30
a. P100
5 9:10 19:30
b. P125
6 9:20 19:06
c. P130
7 8:57 18:14 d. P200
8 9:11 19:45
9 3. How many minutes is Delia Cruz late?
10 a. 22 minutes
11 9:30 20:05 b. 41 minutes
12 9:08 18:27 c. 63 minutes
13 8:15 19:33 d. 104 minutes
14 9:17 18:45
15 9:08 21:07 4. How much is the amount of late to be deducted to Delia Cruz?
I hereby certify that the above records are true and correct. a. P 22.00
b. P 36.67
DELIA CRUZ c. P 68.47
d. P173.68
5. How much is the gross basic pay?
a. P 7,826.32 b. P 7,963.33 c. P 7,978.00 d. P 8,000.00

6. How much is the net basic pay?

a. P 7,826.32 b. P 7,963.33 c. P 7,978.00 d. P 8,000.00

7. What is the total overtime hours of Delia Cruz?

a. 8 hours b. 9 hours c. 10 hours d. 12 hours

8. How much is the overtime of Delia Cruz?

a. P 1,000 b. P 1,040 c. P 1,125 d. P 1,170

9. How much is the Holiday Pay?

a. P 800.00 b. P 200.00 c. P 240.00 d. P 1,600.00

10. How much is the Gross Pay?

a. P 9,088.33 b. P 9,888.33 c. P 8,866.32 d. P 9,148.00

11. What is the amount of PhilHealth Contribution to be deducted to Delia Cruz payroll?
a. P 218.99 b. P 220.00 c. P 219.40 d. P 215.22

12. What is the amount of SSS Contribution to be deducted to Delia Cruz payroll?
a. P 620.00 b. P 640.00 c. P 660.00 d. P 680.00
13. What is the amount of PAG-IBIG Contribution to be deducted to Delia Cruz payroll?
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 a. P 100.00 b. P 200.00 c. P 150.00 d. P 187.50

14. Total Amount of Deductions.

a. P 1,078.99 b. P 958.99 c. P 939.40 d. P 955.22

15. Total Net Pay

a. P 6,921.01 b. P 7,907.33 c. P 8,129.34 d. P 8,208.60

16. Which of the following would be classified as an investing activity?

a. Purchasing an investment in bonds c. Issuing Common Stock
b. Payment of a dividend d. Payment of Interest

17. P Company sold equipment that cost P 45,600 for P 12,450. Depreciation on the equipment from purchase to date of sale amounted to
P35,000. What amount is reported in the Cash Flows from Investing Activities section of the Statement of Cash Flows.
a. P 12,450 b. P -0- c. P 1,850 d. P 10,600

18. The net cash provided by operating activities is affected by

a. A purchase of land for cash c. The issue of bonds payable for cash
b. A change in merchandise inventory d. Proceeds of cash investments by stockholders

19. The _______ provides a snapshot of the financial condition of the firm at a particular time.
a. Statement of Financial Position c. Statement of Cash Flow
b. Statement of Comprehensive Income d. All of the above

20. A company who issues stocks in result raised funds which finally
a. Decreases liabilities c. Increases cash
b. Decreases equity d. Decreases cash

21. Last year, Bland Brothers had positive net cash flow, yet cash on the balance sheet decreases. Which of the following could explain the
company’s financial performance?
a. The company issued new common stock. c. The company sold-off some of its assets.
b. The company issued new long-term debt d. The company purchased a lot of new fixed assets.

22. Company’s Total Liabilities and Equity amounted to Php 285,000. Total noncurrent assets ended at Php 85,000. Cash totaled Php50,000.
Inventory amounted to Php100,000. Assuming the company had no other assets, how much is Accounts Receivable?
a. P 35,000 b. P 50,000 c. P 135,000 d. P 150,000

23. Happy Selling’s Accounts Receivable amounted to Php 500,000. Prepaid Expense and Unearned Income totaled Php 30,000 and Php 10,000
respectively. Cash balance amounted to Php 100,000 while Accounts Payable and Inventory totaled to Php 20,000 and Php 10,000
respectively. How much is the company’s current assets?
a. P 630,000 b. P 640,000 c. P 660,000 d. P 670,000

24. Using the same data in number 23, how much is the company’s current liabilities?
a. P10,000 b. P20,000 c. P30,000 d. P50,000

25. Total assets amounted to Php575,000. Total equity amounted to Php 250,000. Accounts Payable amounted to Php 50,000 while Unearned
Income totaled Php 85,000. Assuming there are no other current liabilities, compute for the company’s noncurrent liabilities.
a. P 190,000 b. P 225,000 c. P 240,000 d. P 325,000

26. Happy Selling Company’s salaries to sales agents amounted to Php 10,000. Salaries of accountants amounted to Php 20,000. No other
expenses were incurred. How much is the company’s general and administrative expense?
a. P -0- b. P 10,000 c. P 20,000 d. P 30,000

27. Happy Selling’s Sales amounted to Php 500,000. Sales returns and sales discounts amounted to Php 30,000 and Php 10,000 respectively.
Purchases of the company totaled Php 100,000 while purchase returns and purchase discounts amounted to Php 20,000 and Php 10,000
respectively. How much is the company’s Net Sales?
a. P500,000 b. P490,000 c. P470,000 d. P460,000

28. Using the same information in number 27, how much is the company’s Net Purchases?
a. P100,000 b. P90,000 c. P80,000 d. P70,000

29. At the end of the first month of operations for Juan’s Service Company, the business had the following accounts: Cash, Php19,000; Prepaid
Rent, Php500; Equipment, Php5,000 and Accounts Payable Php2,000. By the end of the month, Jackson's had earned Php20,000 of Revenues,
Php1,000 of Utilities Expenses and Php1,500 of Salaries Expenses. Calculate the net income to be reported by the company for this first
month.
a. P 20,000 b. P 15,500 c. P 17,500 d. P 19,000

30. The following are all general and administrative expenses except
a. Salaries of admin personnel c. Utilities of home office
b. Salaries of sales agents d. Depreciation of office equipment
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 31. Beginning owner’s equity amounted to P 300,000. Net loss for the year totaled P 45,000. No additional investments and withdrawals for the
period. Compute for total increase in equity for the year.
a. P 300,000 b. P 265,000 c. P 45,000 d. P -0-

32. Ending owner’s equity amounted to P70,000. Additional investments during the year amounted to P30,000. Withdrawals totaled P50,000.
Compute for the company’s net income for the year assuming beginning equity is P10,000.
a. P 70,000 b. P 80,000 c. P 90,000 d. P 100,000

33. Owner, Juan invested an initial capital amounting P50,000 in order to put up his janitorial services company. During the first year of
operations (2018), the company had a loss of P25,000. Because of this, Juan invested additional capital amounting to P50,000 in 2019. In the
second year (2019), the company had a net income of P100,000 and Juan withdrew P10,000 for personal use. Compute for the ending capital
balance of Juan for the year 2019.
a. P 155,000 b. P 160,000 c. P 165,000 d. P 185,000

34. Agency to register the books of accounts and to obtain the Authority to Print of receipts.
a. Department of Trade and Industry c. Bureau of Internal Revenue
b. Securities and Exchange Commission d. Municipality / Local Government Units

35. Where to apply for business permit and license?

a. Department of Trade and Industry c. Bureau of Internal Revenue
b. Securities and Exchange Commission d. Municipality / Local Government Units

36. Agency to register the business of sole proprietors.

a. Department of Trade and Industry c. Bureau of Internal Revenue
b. Securities and Exchange Commission d. Municipality / Local Government Units

37. Agency to register the business of partnership.

a. Department of Trade and Industry c. Bureau of Internal Revenue
b. Securities and Exchange Commission d. Municipality / Local Government Units

38. A non-resident alien, not a citizen of the Philippines, who works and derives income from the Philippines is considered as not engaged in trade
or business if he stayed in the Philippines
a. For less than 60 days c. For 60 days or more
b. For less than 180 days d. For more than 180 days

39. A citizen of the Phils. Who works abroad and whose employment requires him to be physically present abroad most of the time during taxable
years
a. Taxable on income within and without the Phils. c. Exempt from income tax
b. Taxable on income from without the Phils. d. Taxable income from within the Phils.

40. Which of the following is not a taxable income of a resident Filipino citizen?
a. income from an illegal business-P100,000.00 c. income from accident injury sustained-P25,000.00
b. income from a business abroad-$2,000.00 d. winnings from lotto -P20,000.00

-END OF EXAMINATION-
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