ACC 179 | Updates in Management Accounting Part 1
Student Activity Sheet Module #4
Name: _________________________________________________________________ Class number: _______
Section: ____________ Schedule: ________________________________________ Date: ________________
Quiz 1 Materials:
Writing Materials and Ballpen
Multiple Choice. Write the letter of the best answer.
1. The receipt of cash arising from a sales transaction would be recorded in the
a. cash payments journal
b. cash receipts journal
c. purchases journal
d. sales journal
2. The classification and normal balance of the sales discount account would be
a. contra revenue and debit
b. contra revenue and credit
c. expense and debit
d. revenue and credit
3. Each time an entry is recorded in the purchases journal, the credit would be entered in the
a. accounts payable column
b. accounts receivable column
c. purchases column
d. supplies column
4. Which of the following items would be recorded in the purchases journal?
a. equipment purchased on account
b. merchandise purchased on account
c. supplies purchased on account
d. all of the above
5. The controlling account in the general ledger that summarizes the debits and credits to the
individual accounts in the customers’ ledger is called
a. accounts payable
b. accounts receivable
c. purchases
d. sales
6. Infrequent sales returns would be recorded in which journal?
This document is the property of PHINMA EDUCATION
ACC 179 | Updates in Management Accounting Part 1
Student Activity Sheet Module #4
Name: _________________________________________________________________ Class number: _______
Section: ____________ Schedule: ________________________________________ Date: ________________
a. cash payments
b. cash receipts
c. general
d. sales returns
7. The individual amounts in the accounts payable column of the purchases journal are posted to the
appropriate account in the
a. accounts payable ledger
b. accounts receivable ledger
c. general journal
d. general ledger
8. The controlling account in the general ledger that summarizes the individual accounts with creditors
in a subsidiary ledger is called
a. accounts payable
b. accounts receivable
c. purchases
d. sales returns and allowances
9. A sole proprietor contributes his own van with the value of P 400,000 to the business. The journal
entry should be:
Debit Credit
a. Asset Liability
b. Cash Capital
c. Capital Van
d. Van Capital
10. A sole proprietor borrows P 50,000 cash from the bank for the purchase of computer equipment of
P 40,000 in the office. The remaining cash is held in hand. The journal entry should be:
Debit Credit
a. Equipment, P50,000 Bank Loan, P50,000
b. Equipment, P40,000 Bank Loan, P50,000
Cash, P10,000
c. Bank Loan, P50,000 Equipment, P40,000
Cash, P10,000
d. Cash, P50,000 Equipment, P40,000
Bank Loan, P10,000
11. Which of the following journal entry is correct for the transactions of goods returned by a customer?
Debit Credit
a. sales returns trade payables
b. sales returns trade receivables
This document is the property of PHINMA EDUCATION
ACC 179 | Updates in Management Accounting Part 1
Student Activity Sheet Module #4
Name: _________________________________________________________________ Class number: _______
Section: ____________ Schedule: ________________________________________ Date: ________________
c. purchase returns trade payables
d. purchase returns trade receivables
12. Suppose an entity purchases P 50,000 goods on credit. The journal entry should be:
Debit Credit
a. Purchases Cash
b. Accounts Payable Purchases
c. Purchases Accounts Payable
d. Accounts Receivable Accounts Payable
13. Which of the following cases show(s) the situation(s) that the list price is higher than the net price
after a deduction as stated on the sales invoice?
[1] There is a trade discount of 5% given by the seller.
[2] There is a cash discount of 5% given by the seller.
[3] Some goods are returned to the supplier.
a. 1 only
b. 2 only
c. 1 and 3 only
d. 2 and 3 only
14. Which of the following is not a reason for sales discounts to be offered to the debtors?
a. increase the amount paid by the debtors
b. improve the liquidity by turning the accounts receivable into cash
c. encourage earlier settlement of debts by debtors
d. reduce the level of bad debts
15. Which of the following statements is correct about credit period?
a. If a customer purchases goods within the credit period, a cash discount will be allowed to the
customer.
b. If a customer settles the payment within the credit period, a cash discount will be allowed to the
customer.
c. It refers to the period in which customers must settle their debts due.
d. It refers to the period in which customers need to settle one-third of the debts in order to avoid
further interests charged.
***end of quiz***
This document is the property of PHINMA EDUCATION
