Southwestern Institute of Business and Technology

SOUTHWESTERN INSTITUTE OF BUSINESS AND TECHNOLOGY
Panggulayan, Pinamalayan Oriental Mindoro
FINAL EXAMINATION
in FINANCIAL ACCOUNTING
NAME: __________________________ DATE: _______________

COURSE & SECTION: _______________ SCORE: _______________
I.TRUE OR FALSE
Direction: Write the word FINANCIAL if the statement is true and ACCOUNTING if the statement is false.
_________________1. Office supplies are classified as expenses.

_________________2. When the withdrawal is made, the owner’s withdrawal account is debited and cash is
credited.
_________________3. Salaries payable is a type of expense.
_________________4. A decrease in liability is recorded by a debit.
_________________5. Accumulated depreciation accounts may be referred to as contra-asset accounts.
_________________6. Market Value is the original cost less depreciation every year.
_________________7. Not all increases to cash represent revenues.
_________________8. All decreases in owner’s equity are a result of expenses.
_________________9. Liabilities represent amount owed to creditors.
_________________10. Capital represents the owner’s investment, or equity, in a business.
II. MULTIPLE CHOICE

Direction: Encircle your best answer. Use may use the back page of your sheet as your scratch. Do not use other
scratch paper.
II-A Nancy Mulles established the Mules Data Encoders on May 15, 2015. The following transactions occurred
during the month.
a. Mulles invested P57,000 cash to establish the business.
b. Bought office desks and filing cabinet for cash, P15,150.
c. Paid rent for the month, P5,300.
d. Received cash for services rendered, P5,610.
e. Bought computer software for P39,000, paying P15,000 down; the balance is due in thirty days.
f. Received bill for advertising from Buy and Sell Newspaper, P3,230.
g. Received and paid electric bill, P1,240.
Use the T-Account Analysis to answer the following question below (11-17).
11. What is the total amount of cash end?
A. P25,560 Dr B. P37,050 Dr C. P25,650 Cr D. P37,050 Cr E. Cannot be determined
12. How much is the total liability?
A. P24,000 B. P27,230 C. P39,000 D. P3,230 E. Cannot be determined
13. How much are the total expenses?
A. P9,770 B. P24,920 C. P63,920 D. None of the above
14. If the computer software has a salvage value of P10,000 with estimated useful life of five years, what is the
accumulated depreciation at the end of Dec 31,2015, if it is acquired at the beginning of June 2015?
A. P7,800 B. P10,000 C. P5,800 D. P3,383.33 E. Cannot be determined
15. Using No. 14, what is the book value of the equipment at the end of June?
A. P 36,583.33 B. P38,516.67 C. P33,200 D. P39,000 E. Cannot be determined
16. Using No. 14, what is the book value of the equipment at the end of December?
A. P 36,583.33 B. P38,516.67 C. P33,200 D. P39,000 E. Cannot be determined
17. How much is the revenue for the month?
A. P15,110 B. P8,840 C. P5,610 D. P3,230 E. Cannot be determined
18. A P200,000 machine is purchased by paying P50,000 cash and issuing a promissory note for the remainder.
The journal entry should include a
A. DR to Cash C. CR to Notes Receivable
B. CR to Notes payable D. Cr to Machinery
19. A business received cash of P30,000 in advance for revenue that will be earned later. The cash receipt entry
debited cash and credited unearned revenue. At the end of the period, P11,000 is still unearned. The adjusting
entry for this situation is
A. Dr revenues & Cr unearned revenues for P19,000 C. Dr unearned revenues & Cr revenues for
P19,000
B. Dr revenues & Cr unearned revenues for P11,000 D. Dr unearned revenues & Cr revenues for
P11,000
20. The recording of expense could result in a corresponding increase in
A. Revenue B. an asset C. owner’s equity D. a liability
III. UNEARNED REVENUES

Direction: Complete the missing data using this formula “ BEG. UNEARNED REVENUE + CASH RECEIVED(NOT YET
EARNED)=TOTAL UNEARNED REVENUES LESS SERVICE REVENUE (ALREADY EARNED) = UNEARNED
REVENUES,END “
BEG. UNEARNED CASH TOTAL SERVICE REVENUES UNEARNED

REVENUES RECEIVED UNEARNED REVENUES, END
21-22 P18,800 P25,400 P4,200

23-24 P3,000 P15,200 P2,350
25-28 ½ of total unearned P13,850 2/3 of total unearned
“And if thine eye offend thee, pluck it out: it is better for thee to enter into the kingdom of God with one eye, than
having two eyes to be cast into hell.” – Mark 9:47
“He that is faithful in that which is least is faithful also in much; and he that is unjust in the least is unjust also in
much.” - Luke 16:10
“Satisfaction lies in the effort, not in the attainment, full effort is full victory” – Mahatma Ghandi.
Prepared by:
________________________
Instructress

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SOUTHWESTERN INSTITUTE OF BUSINESS AND TECHNOLOGY

Panggulayan, Pinamalayan Oriental Mindoro

NAME: ____________ DATE: _

_________________1. Office supplies are classified as expenses.

II. MULTIPLE CHOICE

III. UNEARNED REVENUES

BEG. UNEARNED CASH TOTAL SERVICE REVENUES UNEARNED

21-22 P18,800 P25,400 P4,200

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