nations Practical Accounting 2

2ND Semester 2010-2011

Multiple Choice (2 points each - total 100 points)

Instructions: Choose the BEST answer for each of the following items. Mark only one answer for each
item on the Special Answer Sheet provided. Any alteration or erasure is considered a wrong answer.
(Submit supporting computations in good form) Do not write on the Questionnaire

1. The agency X received bills on January 2, 2010 for Rent (Annual), P700,000; Office supplies, P100,000;
Meralco P1,000,000 and PLDT bill of P65,000. Which of the following is correct?

a. Memo Entry on the RAOPS

b. The payment of Meralco bill will credit Cash National Treasury MDS

c. The receipt of PLDT will debit Cash Collecting Officer

d. The payment of Rent will debit Rent Expense

2. On April 15,2010, The BIR collected taxes from individual taxpayers in the amount of P200 billion. The
BIR has no authority to use these collections in their operation and therefore deposited it to the Bureau of
Treasury. What is the journal entry to record the remittance Bureau of Treasury?

a. Income Taxes - Individuals 200B

Cash Disbursing Officer 200B

b. Cash Collecting Officer 200B

Cash Disbursing Officer 200B

c. Income taxes - Individuals 200B

Cash Collecting Officer 200B

d. Cash Collecting Officer 200B

 a. Income Taxes - Individuals 200B

Cash Disbursing Officer 200B

Cash National Treasury MDS 200B

3. JEJEMON University, a private not for profit university, had the following cash inflows during the year
ended June 30, 2010:

I. P100 million from student tuition

II. P500 million from a donor who stipulated that the money be invested indefinitely

III. P800 million from a donor who stipulated that the money be spent in accocdance with the
wishes of JEJEMONs governing board.

On JEJEMONs statement of cash flows for the year ended June 30, 2010, what amount of these cash
flows should be reported as operating activities?

a. P900 million b. P800 million c. P600 million d. P1.3 billion

4. Under UST Hospitals established rate structure, the hospital would have earned patient service revenues
of P9,000,000 for the year ended December 31, 2009. However, P6,750,000 was collected because of
charity allowance of P1,500,000 and discounts of P750,000 to third party payors. For the year ended
December 31, 2009, what amount should US record as net patient service revenues?

a. P6,750,000 b. P7,500,000 c. P8,250,000 d. P9,000,000

5. Tristan Corp manufactures product J and product K from joint process. For product J
4,000 units were p