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FINANCIAL ACCOUNTING

AND REPORTING
(BASIC ACCOUNTING
QUIZBOWL)
WALTER S. DELIG, CPA
QUIZ MASTER
GUIDELINES
1. There will be 3 rounds in the competition – Easy, Average, and Difficult.
2. Easy, Average and Difficult round will be answered for 20, 30 and 60 seconds and
will be scored with 2, 4 and 6 points, respectively.
3. The questions will be read twice only. Once the quizmaster announces to raise
your boards, you should immediately raise it, otherwise, your answer will be
considered incorrect. Furthermore, once the correct answer has been declared,
you should keep your boards up for recording.
4. For items where computations are involved, you can manipulate your calculators
(only basic calculators will be allowed) once the quizmaster starts to read the
question.
5. In case there will be a tie, we will proceed with the clincher round, and whoever
provides the correct answer first, will be declared as the winner for the said round.
EASY ROUND
20 SECONDS
2 POINTS
EASY ROUND
1. It encompasses the process of
analyzing, classifying, summarizing, and
communicating all transactions involving
the receipt and disposition of government
funds and property and interpreting the
results thereof.
ANSWER:
GOVERNMENT
ACCOUNTING
EASY ROUND
2. It is procedural by nature and is largely
concerned with the development and
maintenance of accounting records. It is
also considered as the “HOW” of
accounting.
ANSWER:

BOOKKEEPING
EASY ROUND
3. It is a Republic Act regulating the
practice of Accountancy in the
Philippines, repealing for the purpose of
Presidential Decree No. 692 as the
Revised Accountancy Law, appropriating
funds therefor and for other purposes.
ANSWER:

R.A. 9298
EASY ROUND
4. It is a corporation
established for purposes of
public charity.
ANSWER:
Eleemosynary
Corporation
EASY ROUND
5. It is the independent examination that
ensures the fairness and reliability of the
reports that management submits to
users outside the business entity.
ANSWER:

Audit
EASY ROUND
6. (TRUE or FALSE) : The members of the
Board of Accountancy are to be appointed
by the Professional Regulation
Commission upon the recommendation
of the President of the Philippines.
ANSWER:

FALSE
EASY ROUND
7. The set of guidelines and
procedures that constitute
acceptable accounting practices at a
given time is called ______.
ANSWER:
GAAP (Generally
Accepted Accounting
Principles)
EASY ROUND
8. It is a chronological record of the
entity’s transaction.
A. Notebook
B. Journal
C. Ledger
D. Financial Statement
ANSWER:

B. Journal
EASY ROUND
9. The concept of matching is best demonstrated by
a. Associating effort with accomplishment
b. Establishing an allowance for possible market
decline in inventory account
c. Not recognizing any expense unless some
revenue is realized
d. Recognized prepaid rent received as revenue
ANSWER:
C. Not recognizing any expense
unless some revenue is realized
EASY ROUND
10. During the lifetime of an entity,
accountants produce financial
statements at arbitrary points in time
in accordance with which basic
accounting principle?
ANSWER:

Periodicity Concept
AVERAGE
ROUND
30 SECONDS
4 POINTS
AVERAGE ROUND
1.Which one of the following can the accounting equation can be rewritten as?
A. Assets + profit – drawings – liabilities = closing liabilities
B. Assets – liabilities – drawings = opening capital + profit
C. Assets – liabilities – opening capital+ drawings = profit
D. Assets – profit – drawings – capital introduced =closing capital – liabilities
ANSWER:
C. A-L-Opening
Cap+drawings=profit
AVERAGE ROUND
During the year ended 30 September 2017, the entity recorded the
following cash transactions:
• Payment of an annual insurance premium of P12,000. This
covered the period to 31 December 2017.
• Receipt of P6,000 in respect of rent from a tenant covering the
three month period to 30 November 2017.

2. What is the impact on the profit of making the year end


adjustments for prepaid expenditure and unearned income at 30
September 2017? State the amount of increase/decrease.
ANSWER:

Php 1,000 decrease


AVERAGE ROUND
3. Comparison of the balance sheet of OPAW at the end of
2015 with its balance sheet at the end of 2014 showed a
decrease in total assets of P69,000 and owners’ equity by
P15,000. The change in liabilities during the year was
A. Increase of 84,000
B. Decrease of 84,000
C. Decrease of 54,000
D. Increase of 54,000
ANSWER:
C. Increase of
54,000
AVERAGE ROUND
4. The beginning-of-the-year total equity for a
firm was P40,000. During the year, the firm
issued ordinary shares for a total proceeds of
P20,000, earned P20,000 net income, and
paid P5,000 in cash dividends. If ending total
liabilities are P100,000, what is ending total
assets?
ANSWER:

175,000
AVERAGE ROUND
5. (45 seconds) Moon Company purchased
equipment on November 1, 2014, by giving its
supplier a 12-month, 9 percent note with a
face value of P48,000. The December 31,
2014, adjusting entry is
ANSWER:
Dr. Interest Expense 720
Cr. Interest Payable 720
AVERAGE ROUND
6. (45 seconds) Gehrig Corporation renewed an
insurance policy for 3 years beginning July 1, 2014 and
recorded the P81,000 premium in the prepaid insurance
account. The P81,000 premium represents an increase of
P23,400 from the P57,600 premium charged 3 years ago.
Assuming Gehrig’s records its insurance adjustments only
at the end of the calendar year, the adjusting entry
required to reflect the proper balances in the insurance
accounts at December 31, 2014, Gehrig’s year-end is to
ANSWER:
Dr. Insurance Expense 23,100
Cr. Prepaid Insurance 23,100
AVERAGE ROUND
7. Prepaid Insurance:
Balance beginning of year P5,600
Balance end of year 6,400
During the year, an additional business insurance policy was
purchased. A 2-year premium of P2,500 was paid and charged to
Prepaid Insurance.

Determine the adjusting entry that was made to arrive at the ending
balance.
ANSWER:
Dr. Insurance Expense 1,700
Cr. Prepaid Insurance 1,700
AVERAGE ROUND
8. Cassie had these unadjusted account balances on Dec. 31:
Inventory, January 1 188,250
Purchases 142,700
Freight-in 12,880
Purchase Discounts 2,140
Purchase Returns 26,710
If the ending inventory is 97,900, the entry to adjust the inventory accounts would include
A. A debit to Inventory of 90,350
B. A debit to Cost of Goods Sold of 217,080
C. A credit to Purchase Discounts of 2,140
D. A credit to Purchase Returns 26,710
ANSWER:
B. A debit to Cost of Goods Sold
of 217,080
AVERAGE ROUND
9. A company receives interest on a P30,000, 8%, 5-
year note receivable each April 1. At December 31,
2014, the proper adjusting entry was made to
accrue interest receivable. If the company does not
use reversing entries, what entry should be made
on April 1, 2015 when the annual interest payment
is received?
ANSWER:
Cash 2,400
Interest Receivable 1,800
Interest Income 600
AVERAGE ROUND
10. C and D are partners who share profits and
losses on a 3:1 basis, respectively, after a salary
allowance of 15,000 is allocated to partner C.
Earnings for the period total 51,000. What will be
the total amount credited to the Capital account of
partner C when the Income Summary account is
closed?
ANSWER:

42,000
DIFFICULT
ROUND
60 SECONDS
6 POINTS
DIFFICULT ROUND
1. A P4,650 debit to utilities expense was incorrectly posted as a P465
debit. What is the effect of this error on the trial balance and the utilities
expense account?
A. The debit column of the trial balance would be P4,185 too low and
utilities expense would be understated by P4,185.
B. The debit column of the trial balance would be P4,185 too high and
utilities expense would be understated by P4,185.
C. The debit column of the trial balance would be P4,185 too low and
utilities expense would be overstated by P4,185.
D. The debit column of the trial balance would be P4,185 too high and
utilities expense would be overstated by P4,185.
ANSWER:

A
DIFFICULT ROUND
2. Heat Inc.'s fiscal year ended on November 30, 2018. The balance in
the prepaid insurance account as of November 30, 2018, was P35,200
(before adjustment) and consisted of the following policies:
The adjusting entry required on November 30, 2018, would include a
debit to Insurance Expense of
  Date of Date of Balance in
Policy Purchase Expiration Account
A 7/1/2018 6/30/2019 P14,400
B 12/1/2016 11/30/2018 9,600
C 4/1/2017 3/31/2019 11,200
      P35,200
ANSWER:

24,000
DIFFICULT ROUND
3. Mharis Co. began operations on January 1, 2017,
with P1,500,000 from the issuance of share capital
and borrowed funds of P300,000. Net income for
2017 was P100,000 and Mharis paid a P50,000 cash
dividend on December 15. No additional activities
affected owners' equity in 2017. At December 31,
2017, Mharis' liabilities had increased to P550,000.
In Mharis' December 31, 2017, statement of
financial position, total assets should be reported at
ANSWER:

2,100,000
DIFFICULT ROUND
4. The profit made by a business in 2017 was
P35,400. The proprietor injected new capital
of P10,200 during the year and withdrew a
monthly salary of P500. If the net assets at
the end of 2017 were P95,100, what was the
proprietor’s capital at the beginning of the
year?
ANSWER:

55,500
DIFFICULT ROUND
5. Bumbly Co extracted the trial balance for the year ended 31 December
2017. The total of the debits exceeded the credits by P300.
Which of the following could explain the imbalance?
A. Sales of P300 were omitted from the sales day book.
B. Returns inward of P150 were extracted to the debit column of the trial
balance.
C. Discounts received of P150 were extracted to the debit column of the
trial balance.
D. The bank ledger account did not agree with the bank statement by a
debit of P300.
ANSWER:

C
DIFFICULT ROUND
6. At 31 December 2017 the following require inclusion in a company’s financial statements:
• On 1 January 2017 the company made a loan of P12,000 to an employee, repayable on 1
January 2018, charging interest at 2% per year. On the due date she repaid the loan and
paid the whole of the interest due on the loan to that date.
• The company paid an annual insurance premium of P9,000 in 2017, covering the year
ending 31 August 2018.
• In January 2018 the company received rent from a tenant of P4,000 covering the six
months to 31 December 2017.
 
For these items, what should be included as current assets in the company’s statement of
financial position as at 31 December 2017?
ANSWER:

22,240
DIFFICULT ROUND
7. A Corporation had total assets of P40,000, total
liabilities of P20,000, and total contributed capital of
P8,000 at the beginning of the year. For the year, the
corporation earned net income of P50,000 and paid
cash dividends of P10,000. At the end of the year, the
company had total assets of P80,000 and its total
contributed capital remained at P8,000. At the end of
the year, the corporation had total liabilities of:
ANSWER:

20,000
DIFFICULT ROUND

8. The following errors were made in preparing a trial


balance: the P1,350 balance of Inventory was
omitted; the P450 balance of Prepaid Insurance was
listed as a credit; and the P300 balance of Salaries
Expense was listed as Utilities Expense. The debit and
credit totals of the trial balance would differ by
ANSWER:

2,250
DIFFICULT ROUND

9. Reversing entries
A. Are necessary to achieve a proper matching of
revenue and expense.
B. Impact the income statement only.
C. Are desirable to exercise consistency and establish
standardized procedures.
D. All of the above.
ANSWER:

C
DIFFICULT ROUND

10. A common business transaction that would not


affect the amount of owners' equity is
A. Signing a note payable to purchase a PPE
B. Payment of Property Taxes
C. Billing of customers for services rendered
D. Payment of dividends
ANSWER:

A
CLINCHER
On March 1, 2013, Forest Co. borrowed cash
and signed a 36-month, interest-bearing
note on which both the principal and
interest are payable on February 28, 2016.
At December 31, 2015, the liability for
accrued interest should be accrued for how
many months?
CLINCHER
• Which of the following is not a principal purpose of an
unadjusted trial balance?
A. It proves that debits and credits of equal amounts are in
the ledger.
B. It is the basis for any adjustments to the account
balances.
C. It supplies a listing of open accounts and their balances.
D. It proves that debits and credits were properly entered in
the ledger accounts.