INTACC - Identification

Question 1

51. What is the traditional accounting period?

Answer 1

**12 months”*

Question 2

52. Posting refers to the process of transferring information from:

Answer 2

journals to general ledger accounts

Question 3

53. During the lifetime of an entity, accountants produce financial statements at arbitrary points in time in accordance
    with which basic accounting concept?

Answer 3

Periodicity

Question 4

54. The financial statements should be stated in terms of a common financial denominator.

Answer 4

Monetary unit

Question 5

55. Which of the following is not among the economic resources of a business enterprise?

Answer 5

Obligations to pay money

Question 6

56. Which of the following is an example of a deferral?

Answer 6

Recording prepaid rent

Question 7

57. Normally, revenue is recognized:

Answer 7

when the title of the goods changed

Question 8

58. Jim is the sole owner and manager of Clean Laundry Service. Jim purchased a car for personal use. Jim uses a van in the business. Which of the following is violated if Jim recorded the cost of the car as an asset of the business?

Answer 8

Separate entity assumption

Question 9

59. The total credits in the balance sheet column of the worksheet amounted P1,440,800 while the total debits in the
    income statement columns is P493,600. If the total debits in ths adjusted trial balance is P1,980,000, how much is the profit/(loss) for the period?

Answer 9

45,600

Question 10

60. Poison Co. received a P1,000,000, 15%, 4-year note on September 1, 200A. Principal, on equal annual installments,
    plus interest is collected every September 1. At year-end, an adjusting entry was made to take up accrued interest. Poison Co. records all collections using nominal accounts. If reversing entries were made, what is the beginning balance of the interest income account in 200B?

Answer 10

0

Question 11

61. Consider the following:
    Cash in Bank – checking account of $13,500 Cash on hand of $1,000
    Post-dated checks received totaling $3,500 &
    Certificates of deposit totaling $124,000.

How much should be reported as cash in the following sheet?

Answer 11

$14,500

Question 12

62. In which account are postage stamps classified?

Answer 12

Office Supplies

Question 13

63. Dwight Company has the following item at year-end:
    Cash in bank $40,000
    Petty Cash 600
    Short-term paper
    with maturity of
    2 months 11,000

Dwight should report cash and cash equivalents of:

Answer 13

$51,600

Question 14

64. All of the following may be included under the heading of “cash” except:

Answer 14

money market funds

Question 15

65. Under which section of the balance sheet is “cash restricted for factory expansion” reported?

Answer 15

Non-current assets

Question 16

66. A process of classifying accounts receivable in terms of how long they have been outstanding is called a/an ___ of
    accounts receivable.

Answer 16

Aging

Question 17

67. When a firm writes off a bad debt under the allowance method of accounting for bad debts:

Answer 17

the realizable value of accounts receivable will not change

Question 18

68. If the ___method id used, the accounts receivable would be recorded by deducting first the discount whether it is
    availed of or not by the customer.

Answer 18

Net

Question 19

69. True or False
    Statement 1: In order to meet the requirements of the matching principle, the direct write-off method of recording
    bad debts should be used.

Statement 2: Estimating bad debts by focusing on the income statement would involve the determination of bad
debts based on the history of uncollected credit sales.

Answer 19

False

True

Question 20

70. A 90-day, 11%, promissory note that is dated June 24 will have a maturity date of:

Answer 20

September 22

Question 21

71. Under a perpetual inventory system, part of the merchandise purchased on account at an earlier time is now being
    returned. None of the goods have been paid for. The current journal entry for this return will be a:

Answer 21

debit to Accounts Payable and a credit to Merchandise Inventory

Question 22

72. A method of accounting that records the cost of inventory purchased but does not track the quantity on hand or sold to customers is called a ___ inventory system.

Answer 22

Periodic

Question 23

73. An item of merchandise was sold for $800 cash by a business using the perpetual inventory system. The product sold cost the business $600. After the sale entry has been recorded, a second entry will:

Answer 23

debit Cost of Goods and credit Merchandise Inventory $600

Question 24

74. The Sun Set Shade Company purchased three pieces of office equipment for a total price of P2,100. One piece of equipment costing P800 was damaged on delivery and was returned to the vendor. The invoice has not been paid. The proper journal entry for the return is:

Answer 24

Accounts Payable, debit P800;
Office Equipment, credit, P800

Question 25

75. Which of the following is considered as inventory?

Answer 25

Apartment housed being sold by Camella Homes

Question 26

76. When using the double balance method in computing depreciation, which of the following is not used?

Answer 26

Depreciable amount

Question 27

77. Which among the following is not a capitalizable cost?

Answer 27

Ordinary Repairs

Question 28

78. Ukraine Company had the following costs in relation to its PPE for 2022: Fee for title search P12,345; Cash price of land and dilapidated building purchased P789,012; Cost of razing dilapidated building P34,567; Cost of constructed building P2,345,678; Cost of open house party P23,456; Cost of grading, leveling and landfill P10,987; Cost of temporary fence during building construction P5,678; Cost of permanent fence around the building P123,456; Salvage proceeds from razed building P34,567; Driveways and parking lots P234,567; Delinquent property taxes paid on purchased land P21,098.

What is the cost to be capitalized on the land account?

Answer 28

P 822,455

Question 29

79. True or False
    Statement 1: If land and building are acquired on a lump-sum basis, the assessed value of the land and building may be used as the basis for allocation.

Statement 2: If the equipment is purchased inclusive of VAT, the capitalizable cost of the equipment will be the cost
exclusive of VAT.

Answer 29

Both TRUE

Question 30

80. Which of the following is true with regards to PPE?

Answer 30

None of these

Question 31

81. J Company had the following information regarding its biological assets:
    Advertising costs P120,000
    Cost to sell 60,000
    Est. selling price 500,000
    Historical cost 340,000

a. How much is the fair value of the biological assets?
b. How much is the fair value less cost to sell of the biological assets?

Answer 31

a. 500,000

b. 440,000

Question 32

82. Sky Company had the following info regarding its biological assets:
    Beginning balance P375,000
    Purch. of biological assets 130,000
    Gain due to Price Change 60,000
    Gain due to Physical Change 80,000

How much is the total value of biological assets of Sky Co.?

Answer 32

645,000

Question 33

83. J Company had the following assets:
    Land $35
    Trees on land $50
    Cash $40
    Inventory $25
    Picked fruits $10
    Elephants $90
    Sheep $70
    Wool $20

How much is the total value of the biological assets?

Answer 33

210