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Fundamentals of Accountancy, Business and Management (FDNACCT)

FDNACCT 08 · Completing the Cycle

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Completing the Cycle. Test concepts and calculations with worked solutions.

Jade Laurence EmpleoPublic15 questionsFundamentals of Accountancy, Business and Management (FDNACCT)Updated
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Exam
9concepts
6calculations
Conventions

Amounts are Philippine pesos (₱). Enter numeric answers without a currency symbol; commas are optional. Use accrual accounting, periodic inventory, prepaid expenses under the asset method, unearned revenue under the liability method, straight-line depreciation, and the allowance method unless a question states otherwise. Interest uses a 360-day year or months/12. Follow the course cash-flow convention: interest/dividends received are investing, interest/dividends paid are financing. Each Practice Lab table has one highlighted blank. Questions are independent; use only the facts given in that question.

Questions

01Which five pairs belong to a 10-column worksheet?
  1. Trial Balance, Adjustments, Adjusted Trial Balance, Profit or Loss, Financial Position
  2. Journal, Ledger, Cash Flows, Equity, Notes
  3. Only five asset columns and five liability columns
  4. Trial Balance, Bank Reconciliation, Cash Flows, Equity, Budget
FDNACCT Unit 4.8_Preparing worksheet_Study Guide.pdf, pp. 1–2
02An adjustment has been entered on the worksheet. What must still happen?
  1. Nothing; the worksheet is the final journal
  2. Journalize and post the adjustment, and prepare formal statements
  3. Delete the corresponding ledger account
  4. Record it only after next year’s cash collection
FDNACCT Unit 4.8_Preparing worksheet_Study Guide.pdf, pp. 1–2
03Under the periodic worksheet procedure, how is beginning Merchandise Inventory removed?
  1. Dr Merchandise Inventory; Cr Cash
  2. Dr Sales; Cr Merchandise Inventory
  3. Dr Income Summary; Cr Merchandise Inventory
  4. Dr Merchandise Inventory; Cr Capital
FDNACCT Unit 4.8_Preparing worksheet_Study Guide.pdf, pp. 1–2
04What balancing net-income amount and column are needed?

Problem

All amounts are Philippine pesos (₱). In a worksheet’s Profit or loss section, the credit column totals 90,000 and the debit column totals 70,000 before the net-income or net-loss balancing entry.

  1. ₱20,000 net loss in the credit column
  2. ₱160,000 net income in the debit column
  3. ₱20,000 net income in the debit column
  4. ₱20,000 net income in both financial-position columns
FDNACCT Unit 4.8_Preparing worksheet_Study Guide.pdf, pp. 1–2
05Delivery fees are incurred to get sold goods to customers. What is their expense classification by function?
  1. Investing expenses
  2. Selling expenses
  3. Financing expenses
  4. Owner’s drawings
FDNACCT Unit 4.9_Financial Statements_1_Statement of Profit or Loss.pdf, p. 2
06Which item is a general and administrative expense?
  1. Freight in on merchandise purchases
  2. Owner’s cash withdrawal
  3. Principal repaid on a loan
  4. Legal and accounting professional fees
FDNACCT Unit 4.9_Financial Statements_1_Statement of Profit or Loss.pdf, p. 2
07Which statement best distinguishes natural and functional expense presentation?
  1. Natural groups by expense type; functional groups by purpose
  2. Natural reports cash only; functional reports credit only
  3. Natural excludes salaries; functional excludes rent
  4. Both mean assets on the left and liabilities on the right
FDNACCT_Topics.pdf, sections 3.5.1 and 4.9.1; FDNACCT Unit 4.9_Financial Statements_1_Statement of Profit or Loss.pdf
08How much cash was paid for the merchandise purchase?

Problem

All amounts are Philippine pesos (₱). The business buys merchandise for 200,000. Twenty percent remains unpaid on account; the rest is paid in cash. No discount, return, or freight changes this payment.

  1. ₱200,000
  2. ₱160,000
  3. ₱40,000
  4. ₱240,000
FDNACCT Unit 4.9.4_Statement of Cash Flows_Class Exercise.xlsx, OIF; CCE
09How much cash rent was collected?

Problem

All amounts are Philippine pesos (₱). The business bills 60,000 for rental of part of its store. One sixth is still uncollected at year-end; the remainder was collected during the year.

  1. ₱10,000
  2. ₱60,000
  3. ₱50,000
  4. ₱70,000
FDNACCT Unit 4.9.4_Statement of Cash Flows_Class Exercise.xlsx, OIF; CCE
10What is net cash flow from operating activities?

Problem

All amounts are Philippine pesos (₱). Beginning cash is 100,000. These are all cash-relevant transactions for the year. Use the direct cash-flow method; amounts described as on account or unpaid are not cash receipts/payments.

TransactionFacts
Owner contribution50,000 cash
Bank borrowing250,000 cash
Merchandise purchases200,000 total; 20% is on account
Store-space rental billed60,000; one sixth remains uncollected
Operating expenses incurred42,000; electricity of 8,000 remains unpaid
Supplies purchased2,000; half remains unpaid, one fifth remains unused
Manager loanCollect 10,000 principal on a non-trade loan previously made to the manager
Owner drawings5,000 cash
Computer purchase40,000 cash for PPE
Goods sold on account120,000; none collected during the year
  1. ₱145,000 provided
  2. ₱145,000 used
  3. ₱195,000 used
  4. ₱50,000 provided
FDNACCT Unit 4.9.4_Statement of Cash Flows_Class Exercise.xlsx, OIF; CCE
11What is net cash flow from investing activities?

Problem

All amounts are Philippine pesos (₱). Beginning cash is 100,000. These are all cash-relevant transactions for the year. Use the direct cash-flow method; amounts described as on account or unpaid are not cash receipts/payments.

TransactionFacts
Owner contribution50,000 cash
Bank borrowing250,000 cash
Merchandise purchases200,000 total; 20% is on account
Store-space rental billed60,000; one sixth remains uncollected
Operating expenses incurred42,000; electricity of 8,000 remains unpaid
Supplies purchased2,000; half remains unpaid, one fifth remains unused
Manager loanCollect 10,000 principal on a non-trade loan previously made to the manager
Owner drawings5,000 cash
Computer purchase40,000 cash for PPE
Goods sold on account120,000; none collected during the year
  1. ₱30,000 used
  2. ₱50,000 provided
  3. ₱10,000 operating inflow
  4. ₱40,000 financing outflow
FDNACCT Unit 4.9.4_Statement of Cash Flows_Class Exercise.xlsx, OIF; CCE
12What is ending cash and cash equivalents?

Problem

All amounts are Philippine pesos (₱). At July 1, cash and cash equivalents are 230,000. Over the following twelve months, operating activities use 190,000; investing activities use 280,000; financing activities provide 670,000. These are the complete activity totals.

  1. ₱200,000
  2. ₱810,000
  3. ₱430,000
  4. ₱900,000
FDNACCT Unit 4.9.4_Statement of Cash Flows_Class Exercise.xlsx, OIF; CCE
13Under the FDNACCT cash-flow classification convention, which category includes cash paid as interest on a bank borrowing?
  1. Operating
  2. Investing
  3. Financing
  4. Excluded because it is an expense
FDNACCT Unit 4.9_Financial Statements_4_Statement of Cash Flows_Study Guide.pdf, pp. 1–2
14Which account belongs on a post-closing trial balance?
  1. Sales revenue
  2. Owner’s drawings
  3. Income Summary
  4. Accounts payable
FDNACCT Unit 4.10-4.12_Closing entries, Post-closing Trial Balance, Reversing Entries_Study Guide.pdf, pp. 1–2
15Which prior adjusting entry is reversed at the beginning of the next period in the course?
  1. Depreciation expense / Accumulated depreciation
  2. Salaries expense / Salaries payable for an accrued expense
  3. Insurance expense / Prepaid insurance under the asset method
  4. Doubtful accounts expense / Allowance for doubtful accounts
FDNACCT Unit 4.10-4.12_Closing entries, Post-closing Trial Balance, Reversing Entries_Study Guide.pdf, pp. 1–2
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