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Fundamentals of Accountancy, Business and Management (FDNACCT)

FDNACCT 04 · Transactions and Records

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Core and hard Quiz 2 questions with complete facts, misconception-based alternatives and worked solutions.

Jade Laurence EmpleoPublic26 questionsFundamentals of Accountancy, Business and Management (FDNACCT)Updated
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Exam
15concepts
11calculations
Conventions

Amounts are Philippine pesos (₱). Use accrual accounting and periodic inventory unless explicitly stated. Interest uses annual rates with days/360 or months/12; maturity dates use actual calendar days, excluding issue date. Cash-discount cases explicitly state the course original-balance convention. Numeric answers omit currency symbols; round monetary answers to two decimal places when needed. Each question supplies its own complete facts and is independent. No VAT or period-end adjustments apply unless stated.

Questions

01Which account increases with a credit?
  1. Cash
  2. Rent expense
  3. Owner drawings
  4. Service revenue
FDNACCT Unit 4.1-4.4_Analyzing business transactions_Study Guide.pdf, pp. 1–4
02A ₱40,000 laptop is purchased on account. Which entry is correct?
  1. Dr Equipment; Cr Accounts payable
  2. Dr Expense; Cr Cash
  3. Dr Accounts payable; Cr Equipment
  4. Dr Cash; Cr Capital
FDNACCT Unit 4.1_Analyzing business transactions_Class Exercise.xlsx, Analysis of Transactions_+ & -; Dr & Cr; Analysis of Transactions_Dr & C
03What amount remains receivable after the completed service?

Problem

All amounts are Philippine pesos (₱). Faith completes services costing the customer 40,000 and collects 30% immediately. The customer owes the remaining amount; this is earned service revenue, not an advance.

  1. ₱12,000
  2. ₱28,000
  3. ₱40,000
  4. ₱52,000
FDNACCT Unit 4.1_Analyzing business transactions_Class Exercise.xlsx, Analysis of Transactions_+ & -; Dr & Cr; Analysis of Transactions_Dr & C
04What amount is credited to Accounts payable?

Problem

All amounts are Philippine pesos (₱). Faith buys furniture costing 80,000. She pays a 20% cash downpayment and owes the rest to the supplier.

  1. ₱16,000
  2. ₱80,000
  3. ₱64,000
  4. ₱96,000
FDNACCT Unit 4.1_Analyzing business transactions_Class Exercise.xlsx, Analysis of Transactions_+ & -; Dr & Cr; Analysis of Transactions_Dr & C
05Which entry records collection of a customer account?
  1. Dr Cash; Cr Revenue
  2. Dr Cash; Cr Accounts receivable
  3. Dr Accounts payable; Cr Cash
  4. Dr Drawings; Cr Cash
FDNACCT Unit 4.1-4.4_Analyzing business transactions_Study Guide.pdf, pp. 1–4
06The owner withdraws ₱15,000 for personal use. What happens?
  1. Expense increases
  2. Revenue decreases
  3. Drawings increase and cash decreases
  4. Liabilities increase
FDNACCT Unit 4.1_Analyzing business transactions_Class Exercise.xlsx, Analysis of Transactions_+ & -; Dr & Cr; Analysis of Transactions_Dr & C
07What is the normal balance of Accounts payable?
  1. Debit
  2. Credit
  3. No balance
  4. Always both equally
FDNACCT Unit 4.1-4.4_Analyzing business transactions_Study Guide.pdf, pp. 1–4
08Which document records quantity and condition after inspection of goods received?
  1. Receiving report
  2. Purchase requisition
  3. Remittance advice
  4. Trial balance
FDNACCT Unit 4.1-4.4_Analyzing business transactions_Study Guide.pdf, pp. 1–4
09Which describes the ledger?
  1. Chronological first-entry record
  2. Classified record by account
  3. Customer sales invoice
  4. Physical inventory count
FDNACCT Unit 4.1-4.4_Analyzing business transactions_Study Guide.pdf, pp. 1–4
10Which entry is compound?
  1. One debit, one credit
  2. Two debits, one credit
  3. No debit, one credit
  4. One debit, no credit
FDNACCT Unit 4.2 to 4.4_Journalizing, Posting, Preparing Trial Balance_Class Exercise.xlsx, GJ_Ex; GJ; GL; TB
11What error leaves debit and credit totals equal?
  1. Recording only a debit
  2. Posting different amounts
  3. Omitting an entire balanced entry
  4. Adding only one column incorrectly
FDNACCT Unit 4.1-4.4_Analyzing business transactions_Study Guide.pdf, pp. 1–4
12Recording 357 as 375 is what error?
  1. Transposition
  2. Sliding
  3. Depreciation
  4. Reversal
FDNACCT Unit 4.1-4.4_Analyzing business transactions_Study Guide.pdf, pp. 1–4
13Recording 375 as 37.50 is what error?
  1. Transposition
  2. Sliding/transplacement
  3. Accrual
  4. Omission
FDNACCT Unit 4.1-4.4_Analyzing business transactions_Study Guide.pdf, pp. 1–4
14An owner settles a supplier payable directly with personal funds as an additional contribution. Which business journal entry records the settlement?
  1. Dr Cash; Cr Revenue
  2. Dr Accounts payable; Cr Capital
  3. Dr Drawings; Cr Accounts payable
  4. Dr Expense; Cr Cash
FDNACCT Unit 4.1_Analyzing business transactions_Class Exercise.xlsx, Analysis of Transactions_+ & -; Dr & Cr; Analysis of Transactions_Dr & C
15What is Faith’s unadjusted Cash balance on July 31?

Problem

All amounts are Philippine pesos (₱). Faith starts an accounting-services business on July 1 with no prior balances. The following are all July transactions; no period-end adjustments have been made.

DateTransaction
July 1Owner contributes 300,000 cash
July 2Pays 60,000 for three months of future rent
July 4Buys unused office supplies for 5,000 cash
July 7Buys laptop for 40,000 on account
July 8Buys furniture for 80,000; pays 20% down, balance on account
July 9Completes 20,000 services for cash
July 11Completes 30,000 services on account for A1 Trading
July 15Completes 40,000 services; receives 30%, balance receivable
July 18Receives 10,000 advance for next month’s services
July 20Owner withdraws 15,000 cash for personal use
July 22Pays the laptop supplier account in full
July 30Pays this month’s salaries of 25,000
July 31Collects A1 Trading’s account in full
  1. ₱181,000
  2. ₱211,000
  3. ₱141,000
  4. ₱300,000
FDNACCT Unit 4.1_Analyzing business transactions_Class Exercise.xlsx, Analysis of Transactions_+ & -; Dr & Cr; Analysis of Transactions_Dr & C
16What is Faith’s unadjusted July service revenue?

Problem

All amounts are Philippine pesos (₱). Faith starts an accounting-services business on July 1 with no prior balances. The following are all July transactions; no period-end adjustments have been made.

DateTransaction
July 1Owner contributes 300,000 cash
July 2Pays 60,000 for three months of future rent
July 4Buys unused office supplies for 5,000 cash
July 7Buys laptop for 40,000 on account
July 8Buys furniture for 80,000; pays 20% down, balance on account
July 9Completes 20,000 services for cash
July 11Completes 30,000 services on account for A1 Trading
July 15Completes 40,000 services; receives 30%, balance receivable
July 18Receives 10,000 advance for next month’s services
July 20Owner withdraws 15,000 cash for personal use
July 22Pays the laptop supplier account in full
July 30Pays this month’s salaries of 25,000
July 31Collects A1 Trading’s account in full
  1. ₱60,000
  2. ₱100,000
  3. ₱90,000
  4. ₱40,000
FDNACCT Unit 4.1_Analyzing business transactions_Class Exercise.xlsx, Analysis of Transactions_+ & -; Dr & Cr; Analysis of Transactions_Dr & C
17Which compound entry records the acquisition?

Problem

A business purchases equipment for ₱90,000, pays 20% cash and issues a note for the balance. No interest is recognized at issuance.

  1. Dr Equipment 90,000; Cr Cash 18,000; Cr Notes payable 72,000
  2. Dr Equipment 72,000; Cr Cash 18,000; Cr Notes payable 54,000
  3. Dr Equipment 90,000; Cr Cash 90,000
  4. Dr Cash 18,000; Dr Equipment 72,000; Cr Capital 90,000
FDNACCT Unit 4.1-4.4_Analyzing business transactions_Study Guide.pdf pp.2–3; FDNACCT_2526_T3_Quiz #2_1_Questionnaire.pdf II.3, original analogue
18What is ending Accounts payable?

Problem

Opening AP ₱21,000. New unused supplies ₱30,000: ₱6,000 paid down, balance owed to Dalisay. Later pay 50% of the Dalisay balance. No other activity.

  1. ₱25,500
  2. ₱45,000
  3. ₱36,000
  4. ₱33,000
FDNACCT_2526_T3_Quiz #2_1_Questionnaire.pdf III.12, original analogue
19What is ending Accounts receivable?

Problem

Opening AR ₱64,000. Complete ₱50,000 services with 20% cash down; collect ₱20,000 of that account. Accept a ₱22,000 note directly for a separate newly completed service. An older customer replaces ₱30,000 of opening AR with a note. No other events.

  1. ₱39,000
  2. ₱74,000
  3. ₱54,000
  4. ₱106,000
FDNACCT_2526_T1_Quiz #2_1_Questionnaire.pdf III.2, original analogue
20What is current-month Service revenue?

Problem

Complete services: ₱16,000 for cash, ₱27,000 on account and ₱15,000 directly for a note. Also collect ₱8,000 of last month’s accounts and receive ₱12,000 for next month’s work.

  1. ₱36,000
  2. ₱58,000
  3. ₱78,000
  4. ₱43,000
FDNACCT_2526_T2_Quiz #2_1_Questionnaire.pdf III.1; FDNACCT_2526_T3_Quiz #2_1_Questionnaire.pdf III.11, original analogue
21What is ending Cash?

Problem

Opening Cash ₱150,000. Pay ₱18,000 prepaid rent and ₱9,000 current salaries; collect ₱14,000 of old AR and ₱6,000 future-service advance. Exchange a ₱30,000 old AR for a note. No other cash flows.

  1. ₱143,000
  2. ₱173,000
  3. ₱113,000
  4. ₱158,000
FDNACCT_2526_T3_Quiz #2_1_Questionnaire.pdf III.13, original analogue
22After placing all accounts on their normal sides, what is each trial-balance total?

Problem

Balances, all pesos: Cash 70,000; AR 26,000; Equipment 98,000; AP 31,000; Capital 120,000; Service revenue 79,000; Salaries expense 22,000; Drawings 14,000. No contra accounts.

  1. ₱210,000
  2. ₱199,000
  3. ₱261,000
  4. ₱230,000
FDNACCT_2526_T2_Quiz #2_1_Questionnaire.pdf III.3, original analogue
23A ₱4,600 payable credit balance is entered in the debit column. Which statement is correct?

Problem

All other trial-balance balances are classified and totaled correctly. Only the stated payable was put on the wrong side.

  1. Credit exceeds debit by ₱9,200
  2. The totals still agree
  3. Debit exceeds credit by ₱9,200
  4. Debit exceeds credit by ₱4,600
FDNACCT Unit 4.1-4.4_Analyzing business transactions_Study Guide.pdf p.4, original error drill
24Which error can leave the trial balance equal while overstating both Cash and Accounts payable?
  1. Crediting Cash twice but debiting AP once
  2. Omitting an entire supplier-payment entry
  3. Posting only a Cash credit for the payment
  4. Placing the payable credit balance in debit
FDNACCT Unit 4.1-4.4_Analyzing business transactions_Study Guide.pdf p.4
25Which pair correctly identifies the document and the accounting response?
  1. Seller credit note: buyer debits AP for an accepted invoice-value return
  2. Buyer purchase order: buyer always credits Cash immediately
  3. Receiving report: seller debits Cash for goods inspected
  4. Remittance advice: buyer records a second Purchases debit
FDNACCT Unit 4.1-4.4_Analyzing business transactions_Study Guide.pdf p.1; FDNACCT_2526_T3_Quiz #2_1_Questionnaire.pdf I.2
26Which evidence most directly distinguishes a running-balance ledger from a general journal?
  1. A narration beneath a complete entry
  2. A dated entry with multiple account titles
  3. A debit total equal to a credit total
  4. A balance updated after every posting to the account
FDNACCT Unit 4.1-4.4_Analyzing business transactions_Study Guide.pdf p.3; FDNACCT_2526_T2_Quiz #2_1_Questionnaire.pdf I.2
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