KINGFISHE

R
ABM Cup
(Gr. 11 edition)
 OUN D
ASY R
E
 EAS 3 points
YWhich of the following is not true?
E1.

a.Accounting is not an exact science

b.Accounting is the language of business
c.Accounting is a communication tool that is
useful to both internal and external decision-
makers
d.Accounting is useful only to profit-oriented

 
organization
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EAS 3 points
Y
D. Accounting is useful
only to profit-oriented
organization
 EAS 3 points
YThe basic purpose of accounting is
E2.

a. To provide the information that the managers of

an economic entity need to control its operations
b. To provide information that the creditors of an
economic entity can use in deciding whether to
make additional loans to the entity
c. To measure the periodic income of the economic
entity

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d. To provide information about an entity that is
useful in making rational economic decision End
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EAS 3 points
Y
D. To provide information
about an entity that is
useful in making rational
economic decision
 EAS 3 points
Y The area of accounting aimed at
E3.
serving the decision-making needs of
internal users is: 
A. Financial accounting.
B. Managerial accounting.
C. External auditing.
D. SEC reporting.
E. Bookkeeping. 10
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EAS 3 points
Y
B. Managerial
accounting.
 EAS 3 points
E4.Y  The accounting guideline that requires
financial statement information to be supported by
independent, unbiased evidence other than
someone's belief or opinion is the: 

A. Business entity principle.

B. Monetary unit principle.
C. Going-concern principle.
D. Cost principle.
E. Objectivity principle. 10
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EAS 3 points
Y

E. Objectivity principle.
 EAS 3 points
Y A complete set of financial statements for
E5.
Quarantine Company, at December 31, 2020, would
include each of the following, except: 

A. Statement of Financial Position as of December

31, 2020.
B. Income statement for the year ended December
31, 2020.
C. Statement of projected cash flows for 2020.
D. Notes containing additional information that is
useful in interpreting the financial statements. 10
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EAS 3 points
Y
C. Statement of projected
cash flows for 2020.
 EAS 3 points
Y
E6.  An example of a financing
activity is: 
A. Buying office supplies.
B. Obtaining a long-term loan.
C. Buying office equipment.
D. Selling inventory.
E. Buying land. 10
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EAS 3 points
Y

B. Obtaining a long-
term loan.
EAS 3 points
Y  If the liabilities of a business increased
E7.
P75,000 during a period of time and the
owner's equity in the business decreased
P30,000 during the same period, the assets of
the business must have increase or decrease
to what amount?

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EAS 3 points
Y

Decrease by 115,000
 EAS 3 points
E8.   The best definition of an accounting
Y
system is: 

A. Journals, ledgers, and worksheets.

B. Manual or computer-based records used in developing
information about an entity for use by managers and also
persons outside the organization.
C. The personnel, procedures, devices, and records used by
an entity to develop accounting information and communicate
this information to decision makers.
D. The concepts, principles, and standards specifying

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the information which should be included in financial
statements, and how that information should be
presented.
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EAS 3 points
Y
C. The personnel, procedures,
devices, and records used by an
entity to develop accounting
information and communicate
this information to decision
makers.
 EAS 3 points
Y
E9. Zoe Miranda company reported total equity of
P145,000 on its December 31, 2019 balance sheet. The
following information is available for the year ended
December 31, 2020:
 
2020 Revenues P210,000
2020 Expenses 165,000
Liabilities, at December 31, 2019 92,000

 What are the total assets of the company at December

31, 2020? 
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EAS 3 points
Y
P 282,000
 EAS 3 points
E10.Y
At the beginning of the year, SecRoque
company had P120,000 worth of liabilities.
During the year, assets increased by
P160,000 and at year-end they equaled
P360,000. Liabilities decreased P20,000
during the year. Calculate the ending equity.

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EAS 3 points
Y
P 260,000
 R A GE
AV E
O U ND
R
 AVER 5 points
A1.AGE
Go Company needed a new warehouse and a contractor
quoted a P5,000,000 price to construct it. XYZ believed that
it could build the warehouse for P4,300,000 and decided to
use company employees to build it. The final construction
cost incurred by XYZ was P4,800,000 but the asset was
recorded at P5,000,000. What principle is this a violation of?

a. Cost Principle
b. Separate Entity
c. Matching Principle
d. Full disclosure 10
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AVERA 5 points
GE

A. Cost Principle
 AVER 5 points
A2.
AGEIf no adjustments are needed
for a particular company, its

a. post closing trial balance will be identical to its trial

balance
b. adjusted trial balance will be identical to its post
closing trial balance
c. trial balance will be identical to its adjusted trial
balance
d. trial balance, adjusted trial balance, and post
closing trial balance will be identical 10
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 AVERA 5 points
GE
c. trial balance will be identical
to its adjusted trial balance
 AVER 5 points
A3.AGE
An important purpose of
closing entries is to
a. transfer the net income or loss to owner’s
capital account
b. set permanent account balances to zero to
begin the next period
c. update the nominal accounts at year end
d. help achieve the goals of the matching
principle
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 AVERA 5 points
GE
A. transfer the net income or
loss to owner’s capital account
 AVER 5 points
AGE
A4. A work sheet is useful for all
except of the following?
a. recording transactions from source documents
b. recording adjusting entries
c. recording closing entries
d. preparing financial statements

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 AVERA 5 points
GE
A. recording transactions
from source documents
 AVER 5 points
A5.AGE
On the work sheet, under what
circumstances will the last two columns be in
balance after the initial footing?
 
a.  under no circumstances
b. under all circumstances, assuming
no arithmetical errors have been
made
c. when net income is zero
d. when no adjustment have been
entered on the work sheet 10
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 AVERA 5 points
GE
C. when net income is
zero
 AVER 5 points
A6.AGE
What do you call the ability
of the company to pay debt as
they become due?  
 

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AVERA 5 points
GE
Liquidity
 AVER 5 points
AGE
A7. The following transactions occurred during July:
1. Received P900 cash for services provided to a customer during
July.
2. Received P2,200 cash investment from Daniel Miranda, the
owner of the business.
3. Received P750 from a customer in partial payment of his account
receivable from sales in June.
4. Provided services to a customer on credit, P375.
5. Borrowed P6,000 from the bank by signing a promissory note.
6. Received P1,250 cash from a customer for services to be rendered
next year.

What was the amount of revenue for July?  

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AVERA 5 points
GE

P 1,275
 AVER 5 points
A8.AGE
Oppa Company paid P12,960 for a 4 year
insurance policy on September 1, 2020 and
recorded the 12,960 in the Prepaid Insurance.

What adjusting entry should Oppa make on

December 31, 2021 assuming that the
company make adjusting entries at the end of
each year?

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 AVERA 5 points
GE
Dr. Insurance Expense 3,240
Cr. Prepaid Insurance 3,240
 AVER 5 points
A9. AGE
The account of Saranghaeyo company
made the following adjusting entry on
December 31, 2020.
Rent Expense P1,800
Prepaid Rent P1,800
 
If Annual rent is paid in advance every
October 1, the original transaction entry
made was
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 AVERA 5 points
GE
Dr. Prepaid Rent 7,200
Cr. Cash 7,200
 AVER 5 points
AGE
A10. Moonlovers Company
purchased equipment on November
1, 2020, by giving its supplier a 12-
month, 9% note with a face value of
P48,000. The December 31, 2020,
adjusting entry?

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 AVERA 5 points
GE
Dr. Interest Expense 720
Cr. Interest Payable 720
 IC U L T
DI FF
O U ND
R
DIFFIC 7 points
ULT
D1. The ______ has the primary
responsibility for the preparation and
presentation of the financial statements
of the entity.

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DIFFIC 7 points
ULT
The management
 DIFFIC 7 points
ULT
D2. Failure to record depreciation
expense at the end of an accounting
period results in

a.Understated income
b.Understated assets
c.Overstated expenses
d.Overstated assets 10
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DIFFIC 7 points
ULT
A. Overstated assets
 DIFFIC 7 points
ULT
D3. An equity is
a. a resources controlled by the entity as a result of
past events and from which future economic
benefits are expected to flow to the entity.
b. A present obligation of the entity arising from past
events, the settlement of which is expected to
result in an outflow from the entity of resources
embodying economic benefits
c. Residual interest in the assets of the entity after
deducting all of its liabilities
d. The excess of revenue over expenses
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 DIFFIC 7 points
ULT
C. Residual interest in the
assets of the entity after
deducting all of its liabilities
 DIFFIC 7 points
ULT
D4. A trial balance will not balance if
a. The purchase of office supplies on account is debited
to office supplies and credited to cash
b. A P600 payment on account is debited to accounts
payable for P60 and credited to cash for P60
c. A correct entry is posted twice
d. A P250 drawing by the owner is debited to owner
drawing account for P2,500 and credited to cash for
P250

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 DIFFIC 7 points
ULT
D. A P250 drawing by the owner is
debited to owner drawing account for
P2,500 and credited to cash for P250
 DIFFIC 7 points
ULT
D5. Which concept assumes
that the purchasing power of
the peso is constant?

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DIFFIC 7 points
ULT
Stable Peso
Assumption
 DIFFIC 7 points
ULT
D6. Accumulated depreciation
is an example of
a.Nominal and adjunct account
b.Real and adjunct account
c.Nominal and contra account
d.Real and contra account
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 DIFFIC 7 points
ULT
D. Real and contra
account
 DIFFIC 7 points
ULT
D7. Scarlet Heart company receives
interest on a P30,000, 8%, 5 year note
receivable each April 1. At December 31,
2019, the proper adjusting entry was made
to accrue interest receivable. Assuming the
company does not use reversing entries,
what entry should be made on April 1, 2020
when the annual interest payment is
received?
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 DIFFIC 7 points
ULT
Dr. Cash 2,400
Cr. Interest Receivable 1,800
Cr. Interest Revenue 600
 DIFFIC 7 points
D8. Lee Min Ho company issued financial statements for the year ended
ULT
December 31, but failed to include the following adjusting entries:
A. Accrued service fees earned of P2,200.
B. Depreciation expense of P8,000.
C. Portion of office supplies (an asset) used P3,100.
D. Accrued salaries of P5,200.
E. Revenues of P7,200, originally recorded as unearned, have been
earned by the end of the year.

Reported amounts for the Asset, Liability, Equity and Net Income are
350,000, 200,000, 150,000 and 70,000.

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Determine the correct amounts for the December 31
Asset
DIFFIC 7 points
ULT

P 341,100
 DIFFIC 7 points
D9. Complete the following by filling in the blanks:
ULT
(1) The Prepaid Insurance account had a P455 debit
balance at the beginning of the current year; P650 of
insurance premiums were paid during the year; and the
year-end balance sheet showed P420 of prepaid insurance;
consequently, the income statement for the year must have
shown P______________ of insurance expense.
(2) The Office Supplies account began the current year with
a P235 debit balance; the income statement for the year
showed P475 of office supplies expense; and the year-end
balance sheet showed the current asset, office supplies, at
P225; consequently, if all supplies were accounted for,

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P____________ of office supplies must have been
purchased during the year.
DIFFIC 7 points
ULT
First blank: 685
Second blank: 465
 DIFFIC 7 points
ULT
D10. WalaAkongKaDate Co. record all disbursements using nominal
accounts. On December 31, 2001, WalaAkongKaDate has total
expenses of P1,000,000 before considering the following:
- Advertising costs paid during December 31, 2001 totaled
P10,000. The advertisement was aired on TV on January 5, 2002.
- A two-year insurance on assets was obtained on July 1, 2001 for
P24,000.
- On July 15, 2001, Andres entered into an operating lease
requiring monthly payments of P60,000 starting on the date of the
lease contract and monthly thereafter.
- Office supplies has a balance of P20,000. The physical count of
office supplies revealed a balance of P16,000.

Compute the adjusted total expenses. End

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DIFFIC 7 points
ULT
P 1,340,000
 Clincher
C1. Which of the following would not require
a journal entry?
a.Purchase a one-year insurance policy
b.Agreement to perform a service at a future
date
c.Performance of a service agreed to at a
past date
d.Payment for a service performed
previously
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Clincher

B. Agreement to
perform a service at a
future date
 Clincher
C2. Which of the following does not affect
the balance sheets totals?

a.Withdrawal of P5,000 by the firm’s owner

b.Collecting P2,000 from customer on
account
c. Purchasing P300 supplies on account
d.Paying P1,500 note payable
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Clincher

B. Collecting P2,000
from customer on
account
 Clincher
C3. Which of the following is not a
nominal account?

a.Supplies expense
b.Prepaid insurance
c.Interest Revenue
d. Owner’s Withdrawals

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Clincher

B. Prepaid insurance
 Clinche
r
C4. Clark Co.’s advertising expense account had a balance of
P146,000 at December 31, 2021, before any necessary year-end
adjustment relating to the following:
• Included in the P146,000 is the P15,000 cost of printing
catalogs for a sales promotional campaign in January 2022.
• Radio advertisements broadcast during December 2021
were billed to Clark on January 2, 2022. Clark paid the
P9,000 invoice on January 11, 2022.
 
What amount should Clark report as advertising expense in its
income statement for the year ended December 31, 2021?

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Clincher

P 131,000