SPECIAL JOURNAL, VOUCHER SYSTEM & COMBINATION

Multiple choice
1. The type of transaction that would appear in the sales journal would be a sale of
a. Equipment for cash.​ ​ ​ ​ b. Equipment in exchange for a note.
c. Merchandise for cash.​ ​ ​ ​ d. Merchandise on account.

2. 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.

3. The classification and normal balance of the sales discount account would be
a. Contra revenue and debit.​ ​ ​ b. Contra revenue and debit.
c. Expense and debit.​ ​ ​ ​ ​ d. Revenue and credit.

4. An item retailing for p10,000, subject to a trade discount of 25%, is paid for within the
discount period on terms of 2/10, n/30. What is the amount of payment?
a. P10,000​ ​ b. P 7,500​ ​ c. P7,400​ ​ d. P7,350

5. 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.

6. 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

7. 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.

8. Infrequent sales returns would be recorded in which journal?

a. Cash payments​ ​ ​ ​ ​ b. Cash receipts​
c. General​ ​ ​ ​ ​ ​ d. Sales returns
9. 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.

10. 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.

11. If a firm uses special journals, in which journal would the sale of merchandise for cash be
recorded?
a. Cash disbursements journal​ ​ ​ b. Cash receipts journal
c. General journal​ ​ ​ ​ ​ d. Sales journal

12. A firm that uses special journals acquired merchandise for p5,000, giving a p5,000 note
payable. In which journal would the transaction be recorded?
a. Cash disbursements journal​ ​ ​ b. Cash receipts journal
c. General journal​ ​ ​ ​ ​ d. Purchases journal

13. A special journal contained columns for cash, purchases discounts, and accounts payable.
This journal is
a. A cash disbursements journal.​ ​ b. A cash receipts journal.
c. A purchases journal.​ ​ ​ ​ d. A sales journal.

14. Which of the following is true of a voucher system?

a. All major expenditures, including cash transactions for payment of rent and
utilities expense, would first be credited to vouchers payable before payment is
made.
b. The check register replaces the cash receipts journal. The voucher register contains a debit
column for vouchers payable.
c. A purchase journal
d. Transactions are first entered in the check register, and later, when payment is made, in
the voucher register.

15. When merchandise is returned or a price adjustment is granted, an entry is made in the
a. Adjustments journal.​ ​ ​ ​ b. Cash receipts journal.
c. General journal.​​ ​ ​ ​ d. Purchases journal.
True or False
1.​ Transactions involving the payment of cash for any purpose are usually recorded in a
cash journal. T
2.​ Special journals are modified in practice to adapt to the specific needs of an entity. T
3.​ The primary ledger that contains all of the balance sheet and income statement
accounts is called the general ledger. T
4.​ At the end of each month, the total of the amount column of the sales journal is
posted as a debit to accounts receivable and a credit to sales. T
5.​ After postings have been completed for the month, if the sum of the balances in the
accounts receivable subsidiary ledger does not agree with the balance of the accounts
receivable account in the general ledger, the errors must be located and corrected. T
6.​ Sales on account of office equipment used in the business would be recorded in the
sales journal. F
7.​ Each amount in the other accounts column of the cash receipts journal must be
posted individually to the appropriate general ledger account. T
8.​ When there are numerous accounts with a common characteristic, it is common to
place them in a separate ledger called a detail ledger. T
9.​ The sale of merchandise for cash is recorded in the sales journal. F
10.​The total of the other accounts column of the cash receipts journal is not posted to the
general ledger. F
11.​When special journals, control accounts and subsidiary ledgers are used, no posting
to any ledger is performed until the end of the month. F
12.​For each transaction recorded in the purchases journal, the credit is entered in the
accounts payable column. T
13.​Acquisitions on account which are not provided for in special debit columns are
recorded in the other accounts column in the purchases journal. T
14.​Debits to creditors' accounts for invoices paid are recorded in the accounts payable
debit column of the cash payments journal. T
15.​Comparing the purchase order with the receiving report will show that all the goods
ordered actually arrived and that all goods that arrived were actually ordered. T
16.​The total of the accounts payable column in the cash payments journal is posted at
the end of the month as a debit to accounts payable and a credit to cash. T
17.​When customers are allowed to return merchandise for credit to their accounts these
transactions are recorded in the general journal. T
18.​A check register is used to record all expenditures. T
19.​The voucher register is a substitute for a sales journal. F
 20.​ The voucher register takes the place of the cash payments journal. T

MANUFACTURING OPERATIONS

True or False
1.​ Finished goods inventory is an asset, but inventories of raw materials and work in
process are not considered assets until production is completed. F
2.​ Manufacturing costs are regarded as expenses of the current period and are expensed
when incurred. F
3.​ Product costs are the costs of purchasing or manufacturing inventory and considered
as assets until the goods are sold. T
4.​ All costs and expenses incurred by a manufacturing entity are considered product
costs rather than period costs. F
5.​ A manufacturing entity usually has three separate inventories: raw materials, work in
process, and finished goods. T
6.​ Raw materials inventory refers to the direct materials on hand and available for use
in the manufacturing process. T
7.​ Manufacturing overhead includes all manufacturing costs except direct labor and
direct materials. T
8.​ The wages paid to supervisors are an example of indirect labor. T
9.​ Product costs are all deducted from revenue in the period in which they are incurred.
F
10.​Prime costs consist of direct materials and direct labor. Conversion cost is essentially
direct labor. F
11.​The cost of factory insurance is included as part of manufacturing overhead. T
12.​Depreciation on office equipment is considered a manufacturing cost. F
13.​Variable costs change in total in direct proportion to changes in production volume. T
14.​The job order cost system is best used in industries that produce large quantities of
identical units. F
15.​ In process costing, the cost per unit is determined by dividing total manufacturing
costs by the number of equivalent units produced. T
Multiple Choice
1.​ Manufacturing Costs Would Not Include​
a. Depreciation On Factory Equipment​ ​ b. Indirect Labor Costs​
c. Indirect Materials Used​ ​ ​ ​ d. Sales Salaries Expense

2.​ Each Of The Following Is True With Respect To Product Costs, Except​
a. Direct Labor Is An Example Of A Product Cost.​
b. Product Costs Are Deducted From Revenue When The Manufacturing Process Is
Completed.​
c. Product Costs Are Not Regarded As Expenses Of The Current Period.​
d. Product Costs Represent Inventoriable Costs.

3.​ Which Of The Following Is Not Likely To Be Treated As A Product Cost?​

a. Depreciation On The Factory​
b. Interest Paid On Notes Payable​
c. Portion Of The Cost Of Running The Quality Control Department​
d. Wages Paid To Factory Workers

4.​ The Purchases–Raw Materials Account Is Debited When​

a. Direct Materials Are Placed Into Production.​
b. Direct Materials Are Purchased.​
c. Indirect Materials Are Placed Into Production.​
d. Indirect Materials Are Purchased.

5.​ The Direct Labor Account Is Debited​

a. At The End Of The Payroll Period, When Employees Are Paid.​
b. When A New Factory Employee Begins Work.​
c. When Related Labor Costs Are Transferred Into The Work In Process
Inventory Account.​
d. When The Goods Manufactured Are Completed.

6.​ Which Of The Following Costs Would Be Classified As Manufacturing Overhead?​

a. Wages Of Assembly Line Workers​ ​ ​ b. Factory Janitor’s Salary​
c. Raw Materials Used​​ ​ ​ ​ d. Delivery Expenses

7.​ Period Costs Are​

a. Expensed In The Period In Which They Are Incurred.​
b. Included As Part Of The Cost Of Inventory.​
 c. Deferred Until Goods Are Sold.​
d. Always Included In Manufacturing Overhead.

8.​ The Work In Process Inventory Account Includes​

a. Direct Materials, Direct Labor, And Applied Overhead.​
b. Only Direct Labor.​
c. Only Finished Goods.​
d. Only Indirect Materials.

9.​ Conversion Costs Include​

a. Direct Materials And Direct Labor.​
b. Direct Labor And Manufacturing Overhead.​
c. Direct Materials And Indirect Materials.​
d. Factory Rent And Raw Materials.

10.​ In Cost Accounting, A Predetermined Overhead Rate Is Used To​

a. Record Actual Manufacturing Costs.​
b. Eliminate The Need For Overhead Control Accounts.​
c. Apply Overhead Costs To Jobs During The Period.​
d. Adjust Materials Inventory For Spoilage.

PAYROLL ACCOUNTING

True or False
1.​ The Employer Is Required By Law To Deduct SSS, Philhealth, And Pag-IBIG
Contributions From An Employee’s Salary. T
2.​ The Withholding Tax On Compensation Is Based On The Employee’s Gross Income
Before Any Deductions. F
3.​ Overtime Pay, Night Differential, And Holiday Pay Are All Considered Part Of An
Employee’s Taxable Compensation. T
4.​ The SSS Contribution Of The Employee Is Shouldered Entirely By The Employee. F
5.​ The Employer’s Share Of Contributions To SSS, Philhealth, And Pag-IBIG Are
Recorded As Part Of Operating Expenses. T
6.​ The Minimum Wage Earners In The Philippines Are Exempted From Withholding
Tax On Compensation. T
7.​ The 13th Month Pay Is A Government-Mandated Benefit And Should Be Paid Not
Later Than December 24 Of Every Year. T
8.​ Philhealth Contributions Are Computed As A Fixed Monthly Amount For All
Employees Regardless Of Salary. F
9.​ Deductions For SSS, Philhealth, And Pag-IBIG Are Examples Of Voluntary
Deductions. F
10.​ The Employer Must Remit The Total SSS, Philhealth, And Pag-IBIG Contributions,
Including Both Employee And Employer Shares, To The Respective Agencies. T

Multiple Choice
1.​ The 13th Month Pay In The Philippines Is Equivalent To:​
a. One-Half Of The Monthly Basic Salary​
b. One-Twelfth Of The Total Basic Salary Earned Within A Year​
c. One Full Month’s Pay Regardless Of Attendance​
d. The Total Of Overtime And Holiday Pay

2.​ Which Government Agency Administers The Withholding Tax On Compensation?​

a. SSS​ ​ ​ ​ ​ ​ ​ b. Philhealth​
c. Pag-IBIG​ ​ ​ ​ ​ ​ d. BIR
3.​ The Amount Deducted From An Employee’s Salary For SSS Contributions Is
Recorded As:​
a. A Liability Until Remitted To SSS​ ​ b. An Expense Immediately​
c. An Asset Of The Company​ ​ ​ ​ d. A Capital Account

4.​ Which Of The Following Is Not A Mandatory Payroll Deduction In The Philippines?​
a. SSS Contribution​ ​ ​ ​ ​ b. Pag-IBIG Contribution​
c. Philhealth Contribution​ ​ ​ ​ d. Union Dues

5.​ The Document That Shows An Employee’s Earnings, Deductions, And Net Pay For A
Specific Period Is Called:​
a. Payroll Register​ ​ ​ ​ ​ b. Payslip​
c. Cash Voucher​ ​ ​ ​ ​ d. Time Record