COMPREHENSI

VE QUIZ
WARS
ACCOUNTIN
G
What is the law regulating the practice
of accountancy in the Philippines?
 ANSWER
:

R.A. 9298
BUSINESS
MATH
My income was increased by 20% and
later decreased by 15%. What was the
total change in percent in my income?
 ANSWER

2% increase :

Let x be my income
1.2x = income after 20% increase
0.85(1.2x) = income after 20% increase and 15% decrease
0.85(1.2x) – x = percent change in income
1.02x – x = 0.02 or 2% increase
TAXATION
Which tax principle is an example of the
one described in the statement “The
more income earned by the taxpayer,
the more tax he has to pay”?
 ANSWER
:

Theoretical Justice
MARKETING

It is one of the ways in satisfying human

needs which refers to enforcing threat
or force. What do you call this term?
 ANSWER
:

Coercion
ACCOUNTIN
G
If an equipment costs P200,000 and its
accumulated depreciation and salvage value
amount to P60,000 and P20,000,
respectively, what is the book value of the
equipment?
 ANSWER

P140,000
:

Book Value = Cost – Accumulated Depreciation

Book Value = P200,000 – P60,000
Book Value = P140,000
BUSINESS
MATH
If the VAT rate in your community is
12%, how much VAT would you, the
buyer, pay for a TV costing P11,200
inclusive of VAT if VAT will be collected
by the seller?
ANSWER

P1,200
:

Let x be the cost exclusive of VAT

x + 0.12x = P11,200
1.12x = P11,200
X = P10,000
P11,200 – P10,000 = P1,200 VAT
TAXATION

Fill in the blank.

Our National Internal Revenue Laws

are _____________ in nature.
ANSWER
:

Civil
MARKETING

It refers to any person or group with whom an

individual or organization has an existing or
potential exchange relationship.
 ANSWER
:

Market
ACCOUNTIN
G
What is the only underlying assumption
mentioned in the Conceptual
Framework for Financial Reporting?
 ANSWER
:

Going Concern
BUSINESS
MATH
You scored 52 out of 80 item test, what
percent of the items did you miss?
ANSWER

35%
:

Let x be number of missed items

x + 52 = 80
x = 28
Rate = 28/80
Rate = 35%
 End
of
PRELIMINARY ROUND
BUSINESS
MATH
Your company’s gross profit for the
month is P58,642.75. If 45% is the
company’s gross profit, how much is
your cost of sale?
 ANSWER

P71,674.47
:

Sales – Cost of Sales = Gross Profit

P58,642.75/0.45 = Sales
P130,317.22 – Cost of Sales = P58,642.75
Cost of Sales = P71, 674.47
ACCOUNTIN
GThe supplies account had a P3,500 debit
balance at the end of the accounting period before
adjustment for supplies used, and a count of P750
worth of unused supplies was on hand. What
would be the adjusting entry?
 ANSWER
Supplies Expense : P2,750
Supplies P2,750
Supplies, beginning – Supplies used = Supplies count, ending
P3,500 – Supplies used = P750
Supplies used = P3,500 – P750
Supplies used = P2,750
TAXATION

It is the reciprocal duties of support

and protection between the people and
the government .
 ANSWER
:
Theory of Taxation
ACCOUNTIN
GA business received cash of P15,000 in
advance for revenue that will be earned later. The
cash receipt entry debited cash and credited
unearned revenues for P15,000. At the end of the
period, P11,000 is still unearned. The adjusting
entry for this situation is?
 ANSWER
Unearned Revenues: P4,000
Service Revenue P4,000
Unearned Revenues, beginning – Revenue Earned = Unearned Revenues, ending
P15,000 – Revenues Earned = P11,000
Revenues Earned = P15,000 – P11,000
Revenues Earned = P4,000
MARKETING
What do you call the anxiety created by the
fact that in most purchases the alternative
selected has some negative features and the
alternatives not selected have some positive
features?
 ANSWER
:
Cognitive Dissonance
ACCOUNTIN
G
An entity’s 5-day weekly payroll of P35,000
is paid on Fridays. Assume that the last day of
the month falls on Thursday. What will be the
adjusting entry on Thursday?
 ANSWER
:
Salaries Expense P28,000
Salaries Payable P28,000
Days not paid = 4 days (Monday to Friday)
Daily salaries = P35,000/5 days = P7,000
Salaries not paid = P7,000 x 4 days = P28,000
BUSINESS
MATH
Your corporation earned P65,000 in
net income after tax. If the corporation’s
income tax is 35%, compute for your
income tax.
 ANSWER

P35,000 :

Net income before income tax – Income tax = Net income after income tax
100% - 35% = 65%
P65,000/0.65 – Income tax = P65,000
Income tax = P35,000
ACCOUNTIN
G
If Accounts Receivable has debit postings of
P750,000, credit postings of P250,000, and a
normal ending balance of P1,000,000, what is
its beginning balance?
 ANSWER
:
P500,000
Beginning balance + Debit Postings – Credit Postings = Ending Balance
Beginning balance + P750,000 – P250,000 = P1,000,000
Beginning balance = P500,000
TAXATION
You, an English singer, was engaged to
sing for one week at MOA Arena after which
you returned to U.K. For income tax
purposes, you shall be classified as:
 ANSWER
:
Nonresident alien not engaged in
trade or business (NRANETB)
ACCOUNTIN
G
It is an accounting device used to summarize
the effect of changes in assets, liabilities and
owner’s equity.
 ANSWER
:
Account
 End
of
ADJUSTING ROUND
ACCOUNTIN
G

It is also known as a book

of accounts.
 ANSWER
:
Ledger
TAXATION
A taxpayer is a married nonresident alien engaged in
business in the Philippines with two (2) qualified dependent
children. His country gives nonresident Filipino with income
therefrom a basic personal exemption of P25,000 and
P12,500 additional personal exemptions for each qualified
dependent children. He is entitled to total personal
exemptions in 2017 of how much?
 ANSWER

P50,000
:

Total personal exemption = Basic P25,000 and additional of P12,500 x 2 = P50,000

ACCOUNTIN
Jun owns a building in the downtown area in Cebu City,
G
which was partly rented by Brian sometime last year. Based on
their lease contract agreement, monthly rental amounts to
P30,000, the rental will be paid every day after the end of
every month and it was being done on a consistent basis. The
fiscal year will end on June 30 and payment of the rent will be
made beyond this date. Assuming all months have 30 days,
what will be your year-end adjustment in Brian’s point of view?
 ANSWER
Rent Expense :
P30,000
Rent Payable P30,000
Date of Payment: July 1 (1st day of next month)
Year end: June 30
BUSINESS
MATH
During the year, horizontal analysis showed a 25%
increase in operating expenses while vertical analysis
showed that the gross profit and the net profit are 37%
and 22% of sales, respectively. Assuming that the
operating expenses last year amounted to P88,200,
compute for this year’s cost of sales.
 ANSWER

P463,050 :

Current Year’s Operating Expenses = P88,200 x 125% = P110,250

Operating Expenses Rate = Gross Profit Rate – Net Profit Rate = 37% – 22% = 15%
Sales = P110,250/0.15 = P735,000
Cost of Sales Rate = Sales Rate – Gross Profit Rate = 100% - 37% = 63%
Cost of Sales = P735,000 x 0.63 = P463,050
ACCOUNTIN
GAlenton has insured his truck and building with San Jose Recoletos
Co. The following data relates to the insurance coverage and premium
payments:
Property Insured Date of Coverage Amount Paid
Building June 1, 20A – June 1, 20B P 12,000
Truck October 1, 20A – October 1, 20B 6,000
How much is the expired portion of the insurance premium payment
on December 31, 20A?
 ANSWER
:
P8,500
Expired portion of premium for building = (P12,000/12mos.) x 7mos. = P7,000
Expired portion of premium for building = (P6,000/12mos.) x 3 mos. = P1,500
MARKETING

It is a strategy where by an entity sets a low

price for a new product in order to attract a
large number of buyers and a large market
share.
 ANSWER
:
Market-Penetration Pricing
TAXATION

TRAIN Law stands for what?

 ANSWER
:
Tax Reform for Acceleration
and Inclusion (TRAIN)
ACCOUNTIN
GAfar Brian, an iCPA investor, decided to invest
P1,200,000 excess cash in a certificate of deposit on
April 1, 2019. The certificate carried an 8% annual rate
of interest and a 1-year term to maturity. Interest will be
withdrawn bimonthly (disregard tax effects). What would
be the adjusting entry assuming fiscal year ending
October 31, 2019?
 ANSWER
Interest Receivable : P8,000
Interest Income P8,000
1st withdrawal of interest: May 31, 2019 (April-May)
2nd Withdrawal of Interest: July 31, 2019 (June-July)
3rd withdrawal of interest: September 30, 2019 (August-September)
Interest earned but not yet collected until November 30, 2019 =
P1,200,000 x 0.08/12mos.
BUSINESS
MATH
This refers to part or portion of a
whole. It means known fraction of a
whole.
e.g. ½=0.5, 1/3=0.33, 2/3=0.67
 ANSWER
:
Aliquot Parts
ACCOUNTIN
G
He was a Franciscan friar and
regarded as the “Father of
Accounting”.
 ANSWER
:
Luca Pacioli
 End
of
POST-CLOSING ROUND