FABM-1

A type of journal used to record all cash that had been received.
.A. Cash Receipts Journal
B. Cash Disbursements Journal
C.. Sales Journal
D. Purchase journal

Gray Electronic Repair Services estimates that P100.00 of its credit revenue for the period will not be
collected. The entry at the end of the period would be:

A. Bad Debts Expense 100.00

Allowance for Bad Debts 100.00
B. Allowance for Bad Debts 100.00
Bad Debts Expense 100.00

C. Depreciation Expense 100.00

Accumulated Depreciation 100.00
D. Account Receivable 100.00
Cash 100.00
Analyze the following statements:
Statement 1: A periodic inventory system provides better control over inventories than a
perpetual inventory.
Statement 2: The periodic system only periodically updates the cost of inventory on hand.
A. Only Statement 1 is True C. Both Statements are True
B. Only Statement 2 is True D. Both Statements are False
A merchandising inventory system where cost of goods sold is determined only at the end of an
accounting period.
A. Ending Inventory C. Periodic System
B. Beginning Inventory D. Perpetual System
It is a type of business activity that buys and sells goods to earn a profit.
A. Service Business C. Merchandising Business
B. Manufacturing Business D. None of the above
The entry to record a sale of merchandise for P15,000 with terms of 2/10, n/30 will include:
A. Debit to sales discount P300 C. Debit to sales P15,000
B. debit to accounts receivable P15,000
C. Debit to sales P15,000 D. debit to cash P14,700.
Which of the following will be placed in the debit column of a trial balance?
A. Capital C. Salaries Payable
B Merchandise Inventory D. None of the above
23. A trial balance which shows equal totals for both debit and credit columns shows:
A. that there must be more than one error within the bookkeeping system
B. that the bookkeeping system is free of errors
C. that it is arithmetically correct but, errors may still present in the bookkeeping system
D. All of the above

Base on the general journal . Which of the following is the correct posting of transaction from general
journal to general ledger?
 Under a periodic inventory system, the entry to record a purchase of P60,000, with terms of
2/10, n/30 would include a
A. Debit purchase for P60,000
Credit accounts payable for P60,000
B. Debit purchase discounts for P1,200
Credit Purchase P1,200
C. Credit to purchases for P60,000
Debit accounts payable P60,000
D. Debit to accounts payable for P58,800
Credit purchase P58,800
. The TIMOTHY General Merchandising Inc. is one of the known hardware stores in Silang, Cavite. On
March 31, 2021, they had ledger accounts with the following normal balances. (Note: Actual transaction
data of a merchandising business may involve more ledger accounts than shown.)

Notes Payable Accounts Receivable Common Stocks Accounts Payable

40,000 5,000 30,000 15,000

Cash Salaries Exoense Inventory Retained earnings

65,000 5,000 20,000 10,000
Which among the tables below shows the correct trial balance for the month of March of V. Co General
Merchandising Inc.?

The Sun Set Shade Company purchased three pieces of office equipment for a total price of ₱2,100. One
piece of equipment costing ₱800 was damaged on delivery and was returned to the vendor. The invoice
has not been paid. The proper journal entry for the return is
A. Merchandise Inventory, debit, ₱800; Accounts Payable, credit, ₱800
B. Acc. Payable, debit, ₱800; Merchandise Inventory, credit, ₱800
C. Accounts Payable, debit ₱800; Office Equipment, credit, ₱800
D. Accounts Payable, debit ₱2,100; Purchases, credit, ₱2,100

It is the expenses incurred in the process of earning sales revenue.

A. Cost of Goods Sold C. Sales Expense
B. Inventory Expense D. Operating Expenses
What is your analysis of the given statements below?
Statement 1: A balanced trial balance only implies that the total debit amount is the same as total
credit amount, that the left side is equal to the right side.
Statement II: A trial balance is prepared after journalizing and posting have been made.
A. Both Statements are true C. Only Statement II is true
B. Only Statement 1 is true D. Both Statements are fals
. Which of the following represents the correct sequence of accounting cycle?
A. Transaction Analysis - Trial Balance - Journal – Ledger
B. Transaction Analysis - Journal - Ledger - Trial Balance
C. Journal - Trial Balance - Ledger - Transaction Analysis
D. Ledger - Trial Balance - Journal - Transaction Analysis
Which of the following is used to determine the cost of goods available for sale (periodic inventory)?
A. beginning merchandise inventory + purchases + ending merchandise inventory
B. ending merchandise inventory + purchases - freight charges
C. beginning merchandise inventory + purchases - freight charges
D. beginning merchandise inventory + purchases - purchases discount + freight charges
18. Goods totaling P50,000 were purchases February 2 with terms of 2/10, n/30. Returns of
P10,000 were made on February 10. What discounts, if any, can be availed of if the invoice
was paid on February 12?
A. None C. P1,000
B. P200 D. P800
Under the periodic inventory system, which of the following is a correct closing entry?
A. Income Summary, debit; Sales, credit
B. Income Summary, credit; Sales Returns and Allowances, debit
C. Income Summary, debit; Merchandise Inventory (beginning), credit
D. Purchases, debit; Income Summary, credit
If gross sales is ₱40,000, sales returns and allowances ₱1,000, sales discounts ₱400, and delivery
expenses ₱100, the net sales of the business will total
a. ₱38,500 b. ₱38,600 c. ₱40,000 d. ₱39,000
Under the periodic inventory system, the Purchases account is used to record
A. only cash purchases of merchandise inventory
B. purchases of any asset on account or note payable
C. only purchases of merchandise inventory on account
D. purchases of merchandise inventory for cash or on accoun
Gross profit from sales is the difference between
A. net sales and operating expenses
B net sales and the cost of goods sold
C. net sales and the cost of goods sold plus all the expenses
D. gross sales less the sales discounts and sales returns and allowances

It is the expenses incurred in the process of earning sales revenue.

A. Cost of Goods Sold C.. Sales Expense
B. Inventory Expense D. Operating Expenses

An item of merchandise with a list price of ₱100 was purchased with a trade discount of 40% and credit
terms of 2/10, n/30. If the vendor is paid within the discount period, the journal entry to record the
payment would be
A. Purchases, dr., ₱100.00; Purchase Discounts, cr., ₱42.00; Cash, cr., ₱58.00
B. Accounts Payable, dr., ₱60.00; Purchase Discounts, cr., ₱1.20; Cash, cr., ₱58.80
C. Accounts Payable, dr., ₱100.00; Purchase Discounts, cr., ₱42.00; Cash, cr., ₱58.00
D. Accounts Payable, dr., ₱40.00; Purchase Discounts, cr., ₱.80; Cash, cr., ₱39.20

These are items that have been initially recorded as assets but are expected to become expenses over
time or through the operations of the business. It also represent payments made for expenses which have
not yet been incurred. Among the choices, which of the following best describe the statement?
A. Accrued Expense C. Unearned Revenue
B. Prepaid Expense D.Depreciation
. The buyer received an invoice from the seller for merchandise with a list price of P400 and credit
terms of 2/10, n/60. The number 10 in the credit terms is the
A. credit period C. discount period
B. cash discount allowed for early payment of the invoice D. trade discount

Under a periodic inventory system, the entry to record a purchase of P60,000, with terms of 2/10, n/30
would include a
A. Debit purchase for P60,000
Credit accounts payable for P60,000
B. Debit purchase discounts for P1,200
Credit Purchase P1,200
C. Credit to purchases for P60,000
Debit accounts payable P60,000
D. Debit to accounts payable for P58,800
Credit purchase P58,800