- 1. It is a statement prepared to reconcile the difference between cash
book and bank balance.
A) Income Statement
B) Bank Statement
C) Financial Statement
D) Bank Reconciliation Statement
- 2. How many reciprocal accounts should be reconciled in a bank
reconciliation?
A) 1
B) 2
C) 3
D) 4
- 3. After all the adjustments made, what should be the result of the
reciprocal accounts have?
A) Zero balance
B) Unpredicted Balance
C) Different balance
D) Same balance
- 4. Bank reconciliations statement prepared to show that the cash
balance per book and bank records has no discrepancy.
A) Annually
B) Monthly
C) Quarterly
D) Daily
- 5. These are items added made by the bank but not yet recorded by the
depositor.
A) Deposit in Transits
B) NSF Checks
C) Credit Memo
D) Debit Memo
- 6. A cash or check deposit recorded by the company but not recorded
by the bank that deposited after the cut-off.
A) Deposit in Transits
B) NSF Checks
C) Debit Memo
D) Credit Memo
- 7. These are items deducted made by the bank but not yet recorded by
the depositor.
A) Credit Memo
B) Deposit in Transits
C) NSF Checks
D) Debit Memo
- 8. Which is not a bank reconciling items?
A) Bank errors
B) Deposit in Transits
C) NSF Checks
D) Outstanding Checks
- 9. Which is not a book reconciling items?
A) Deposit in Transits
B) Credit Memo
C) Debit Memo
D) Outstanding Checks
- 10. Which is a book reconciling items?
A) Outstanding checks
B) Bank Errors
C) Deposit in Transit
D) Auto debit
- 11. Which of the following is not an example of a Credit Memo?
A) A collection made by the bank
B) Interest Income earned by the account holder
C) Bank Service Charge
D) Proceed from loan added by the bank
- 12. Which of the following is an example of a Debit Memo?
A) Automatic payments of bills on behalf of the account holder
B) Outstanding Checks
C) Deposit in Transit
D) A collection made by the bank on behalf of the account holder
- 13. Why is bank reconciliation being prepared?
A) For reporting
B) To gather data from the company’s record and bank statement
C) Provide information for adjusting journal entries
D) It explains the difference between the reposted cash balance per book and bank
- 14. Items that are erroneously recorded by the company.
A) Book errors
B) Collection by the banks
C) Bank errors
D) Payments of Loan
- 15. Items that are correctly recorded by the company but erroneously
recorded by the bank
A) Book errors
B) Payments of Loan
C) Collection by the banks
D) Bank errors
- 16. Which of the following is an integral part of cash management and
control.
A) Cash and check
B) Bank reconciliation
C) None of the above
D) Bank statement
- 17. Which of the following is a mistake made by the company?
A) entering an amount that does not belong to the company's bank Statement
B) omitting an amount from a company's bank statement
C) entering a transaction that does not belong to the account
D) the bank records an incorrect amount
- 18. These are checks already issued for payments by the company but
not yet presented by the payee to the bank for payment.
A) NSF checks
B) outstanding checks
C) not given
D) deposit in transit
- 19. The bank gives interest to the account at the end of the month.
What will be the action for this?
A) add to bank balance
B) add to book balance
C) deduct to bank balance
D) deduct to book balance
- 20. Which of the following reconciling items requires an adjusting
entry?
A) interest income
B) bank charges
C) debit memo
D) all of these
- 21. Bank reconciliation involves a series of steps to arrive at the
correct balances of cash. This means bank reconciliation is________.
A) an art
B) a process
C) a science
D) a strategy
- 22. Bank reconciliation helps in the identification of _________ in
the accounting records of the company or the bank.
A) errors
B) value
C) fraud
D) balances
- 23. Debit memo was communicated to the company. What should be done?
A) add it to book balance
B) deduct it from bank balance
C) deduct it from book balance
D) add it to bank balance
- 24. Its main purpose is to see if there are any differences between
the balances of the bank and the book.
A) company financial statement
B) none of the above
C) bank financial statement
D) bank reconciliation statement
- 25. These are checks issued by customers which have no sufficient
funds available in the bank.
A) deposit in transit
B) outstanding checks
C) A&C
D) NSF checks
- 26. Checks that have been written buy a company but have not yet been charge to the
company's checking account are referred to as ______.
A) deposit in transit
B) Outstanding checks
C) Bank error
D) Service charge
- 27. A company's receipts from September 30 that get deposited to the company's bank
account on October 1st are referred to as deposits ______ as of September 30.
A) deposit in transit
B) Bank error
C) Service charge
D) Outstanding checks
- 28. Which of the following items will require a journal entry to the company's books?
A) Bank service
B) bank error
C) deposit in transit
D) service charge
- 29. Bank erred by posting another company's credit memo to your company's bank
account.
A) Deduct from bank balance
B) Add to bank balance
C) Deduct from book balance
D) Add to book balance
- 30. Bank inadvertently charged your bank account for another company's bank fees.
A) Deduct from bank balance
B) Add to bank balance
C) Add to book balance
D) Deduct from bank balance
- 31. In reconciling items, Interest income should be ______.
A) add to book balance
B) add to bank balance
C) deduct to bank balance
D) deduct to book balance
- 32. In reconciling items, outstanding checks should be ______.
A) add to book balance
B) deduct to bank balance
C) add to bank balance
D) deduct to book balance
- 33. A service charge worth 6,000 was deducted
by the bank from balance of ABC company.
The depositor was only informed of such
deduction upon receipt of the August bank
statement on September 3, 2016.
A) deduct to book balance (aug.31)
B) add to bank balance (aug.31)
C) add to book balance (aug.31)
D) deduct to bank balance (aug.31)
- 34. The company incorrectly recorded a
check payment as 10,600 when it
should have been recorded as 1,600.
A) add to book balance (aug.31)
B) add to bank balance (aug.31)
C) deduct to bank balance (aug.31)
D) deduct to book balance (aug.31)
- 35. It is a kind of income received by the employees working in different
companies. It is often in the form of salaries, bonuses, and allowances.
a. Police power
b. Passive income
c. Compensation income
d. Gross income
A) 0
B) o
- 36. A classification of individual who is a Filipino citizen and lives or resides in
the Philippines.
a. Resident citizen
b. Non-resident citizen
c. Resident alien
d. Non-resident alien
A) 0
B) 0
- 37. It is the income generated by the entrepreneur or by professionals.
a. Compensation income
b. Business income
c. Passive income
d. All of the above
A) 0
B) 0
- 38. TRAIN Law is a comprehensive tax reform program signed by Pres. Rodrigo
R. Duterte on December 19, 2017. What does TRAIN means?
a. Tax Reform for Acceleration and Inclusion
b. Tax Related Accounts and Inclusion
c. Tax Refund Activity of Individual
d. Tax Reform for Allowed Individual
A) 0
B) o
- 39. Which is an allowable deduction to the gross income of an individual?
a. SSS
b. PhilHealth
c. Pag-IBIG
d. All of the above
A) 0
B) 0
- 40. In the classification of individuals for taxation, Ryan Bang is a Korean who is a TV Actor in the Philippines since 2010. He is a _______.
A) 0
B) Resident Alien
C) 0
- 41. Armando, a Filipino citizen, who works at Bataan Refinery Corporation as a
welder from January 2020 to June 2020.
A) Resident Citizen
B) o
- 42. David, an American hair stylist, conducted a 1-day income-generating
seminar for Filipino hair stylist in Balanga, Bataan.
A) 0
B) NRA NETB
- 43. Nikita, a Filipino and a renowned chef in Singapore and resides there for a
decade now.
A) 0
B) NRC
- 44. Lee Ji-Eun, a Korean singer-songwriter performed a 2-day concert in the
Philippines.
A) NRA NETB
B) 0
- 45. An employee with monthly salary of P65,000, monthly allowable deduction of
P4,300, bonus of P40,000 for the year.
A) 0
B) 112,100
- 46. A business has net income before tax of P310,000.
A) 12,000
B) 0
- 47. An employee with annual salary of P1,000,000, annual total contributions of
P48,000 and bonus of P200,000 for the year.
A) 0
B) 175,600
- 48. Compute for the tax due of the following individuals using the RA 10963 tax
table.
An employee with monthly salary of P50,000, monthly allowable
deductions of P2,300, annual bonus of P50,000.
A) 0
B) 73,100
- 49. A business has net income before tax of P5,910,000.
Identify the income and expenses to be recognized in the taxable income of
the following individual.
A) 0
B) 1,741,200
- 50. Lee Seung Gi performs a 1-day concert in the Philippines.
A) Resident Alien
B) o
- 51. A business has net income before tax of P999,000
A) 700,981
B) 918,700
C) 970,018
D) 189,700
- 52. An employee with annual salary of P150,000, annual total contributions of
P1,000 and bonus of P12,000 for the year.
A) 0
B) 1,000
C) 12,100
D) 50,000
- 53. P250,000 and below of annual income is tax exempt under TRAIN Law.
A) False
B) True
C) both
D) Maybe
- 54. A citizen of another foreign country but resides in the Philippines during
the taxable year is a resident citizen
A) False
B) both
C) True
D) Maybe
- 55. A business that has net income before tax of P250,000 is tax exempted.
A) False
B) Maybe
C) both
D) True
- 56. A resident citizen that monthly income of P250,000 is tax exempted.
A) both
B) True
C) Maybe
D) False
- 57. A non-resident alien does not engage in trade or business is imposed of
25% final tax on net income.
A) Maybe
B) False
C) both
D) True
- 58. An employee with annual salary of P500,000, annual allowable deductions of
P28,000 and bonus of P100,000 for the year.
A) 6,880
B) 6800
C) 8,806
D) 6,088
- 59. An employee with monthly salary of P25,000, monthly allowable deductions
of P1,300, bonus of P25,000 for the year
A) 48,000
B) 40,000
C) 8,400
D) 4,800
- 60. A business has net income before tax of P2,410,000.
A) 216,200
B) 206,100
C) 200,216
D) 621,200
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