FABM2 Quarter exam Review

Froggy Jumps

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Reviewer for quarter 2 in Fundamentals of accountancy business and management

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Josh Borbs

Philippines

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FABM2 Quarter exam Review


Froggy Jumps FABM2 Quarter exam ReviewOnline version Reviewer for quarter 2 in Fundamentals of accountancy business and management by Josh Borbs 1 What negotiable instrument contains a complete order to the bank to pay a certain sum mentioned in the instrument, from the drawer's account to the person to whom it is issued? a Bill of Exchange b Check c Promissory Notes 2 Choose the word that makes the sentence incorrect in this statement – “The check amount in word form should not tally in numeric form.” a Check b Should c Not 3 Which part of a check will helps you track your checks? a Bank contact information b Check number c Personal information 4 Applying your mastery in bank transactions what column in the bank statement represents all charges or deductions made by the bank to your account? a Credit Column b Balance Column c Debit Column 5 These are amounts already received and recorded by the company but are not yet recorded by the bank. a NSF Checks b Outstanding Checks c Deposit in Transit 6 It is a report which compares the bank balance as per company’s accounting records with the balance stated in the bank statement. a Bank statement b Bank reconciliation statement c Deposit Slip 7 Every what period is the preparation of bank reconciliation to assists in the regular monitoring of cash flows of a business? a Annually b Quarterly c Monthly 8 What is the main purpose of preparing a bank reconciliation statement? a To identify differences between the company’s cash records and the bank statement b To record new transactions in the bank’s ledger c To increase the company’s bank balance 9 A check issued by the company amounting to ₱5,000 has not yet been presented to the bank for payment. How should this be treated in the bank reconciliation statement? a Deduct from the book balance b Add to the bank balance c Deduct from the bank balance 10 The bank deducted ₱2,000 from the company’s account to pay for a loan, but this was not yet recorded in the company’s books. What should the company do? a Debit Loan Payable ₱2,000; Credit Cash ₱2,000 b Debit Cash ₱2,000; Credit Loan Payable ₱2,000 c Debit Expense ₱2,000; Credit Accounts Receivable ₱2,000 11 Which method of bank reconciliation starts with the unadjusted book balance? a Bank to book method b Book to bank method c Adjusted balance method 12 What is the effect of a bank credit memorandum on the company’s books? a Cash per book is understated b Cash per bank is overstated c Cash per bank is understated 13 How does a deposit in transit affect the reconciliation process? a It decreases the cash per bank to match the book balance b It increases the cash per bank to match the book balance c It decreases both balances equally 14 What is the primary purpose of taxation? a To control the economy b To punish individuals who earn more income c To provide funds for the government to promote the welfare of citizens 15 Which law governs taxation in the Philippines? a Philippine Taxpayer’s Law of 2000 b National Internal Revenue Code of 1997 c National Revenue Act of 1990

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FABM2 Quarter exam Review

Froggy Jumps

About this activity

Created by

Download the paper version to play

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FABM2 Quarter exam ReviewOnline version

by Josh Borbs

What negotiable instrument contains a complete order to the bank to pay a certain sum mentioned in the instrument, from the drawer's account to the person to whom it is issued?

Choose the word that makes the sentence incorrect in this statement – “The check amount in word form should not tally in numeric form.”

Which part of a check will helps you track your checks?

Applying your mastery in bank transactions what column in the bank statement represents all charges or deductions made by the bank to your account?

These are amounts already received and recorded by the company but are not yet recorded by the bank.

It is a report which compares the bank balance as per company’s accounting records with the balance stated in the bank statement.

Every what period is the preparation of bank reconciliation to assists in the regular monitoring of cash flows of a business?

What is the main purpose of preparing a bank reconciliation statement?

A check issued by the company amounting to ₱5,000 has not yet been presented to the bank for payment. How should this be treated in the bank reconciliation statement?

The bank deducted ₱2,000 from the company’s account to pay for a loan, but this was not yet recorded in the company’s books. What should the company do?

Which method of bank reconciliation starts with the unadjusted book balance?

What is the effect of a bank credit memorandum on the company’s books?

How does a deposit in transit affect the reconciliation process?

What is the primary purpose of taxation?

Which law governs taxation in the Philippines?