Math Quiz

1. In the Philippines, if a service costs P20,000, what is the 12% VAT amount that must be collected?

a) P2,000 b) P2,400 c) P1,200

Correct Answer: b) P2,400. Calculation: P20,000 * 12% (0.12) = P2,400. This amount is collected on behalf of the government.

2. Following the previous question, what is the total cash collected for the P20,000 service in the Philippines?

a) P20,000 b) P22,000 c) P22,400

Correct Answer: c) P22,400. Calculation: P20,000 (Service Price) + P2,400 (VAT) = P22,400.

3. An employee in the Philippines has a gross salary of P30,000 and a withholding tax of P2,500. What is their net pay?

a) P27,500 b) P30,000 c) P32,500

Correct Answer: a) P27,500. Calculation: P30,000 (Gross Salary) - P2,500 (Withholding Tax) = P27,500.

4. In Japan, software is purchased for ¥50,000, which includes the 10% consumption tax. What is the original cost of the software before tax?

a) ¥45,000 b) ¥50,000 c) ¥45,455

Correct Answer: c) ¥45,455. Calculation: ¥50,000 / 1.10 = ¥45,455 (rounded). This separates the base cost from the included tax.

5. For the Japanese software purchase of ¥50,000 (tax included), what is the amount of the Consumption Tax?

a) ¥5,000 b) ¥4,545 c) ¥10,000

Correct Answer: b) ¥4,545. Calculation: ¥50,000 (Total) - ¥45,455 (Software Cost) = ¥4,545.

6. In the Philippines, a business meeting expense is P1,500 + 12% VAT. What is the total cash paid?

a) P1,680 b) P1,500 c) P1,800

Correct Answer: a) P1,680. Calculation: P1,500 * 0.12 = P180 (VAT). Total = P1,500 + P180 = P1,680.

7. What is the Input VAT amount for the P1,500 business meeting expense?

a) P150 b) P180 c) P120

Correct Answer: b) P180. Calculation: P1,500 * 12% (0.12) = P180. This is the tax portion of the expense.

8. A freelancer is paid a gross fee of $500, and $50 is withheld for taxes. What is the net cash paid to the freelancer?

a) $550 b) $500 c) $450

Correct Answer: c) $450. Calculation: $500 (Gross Fee) - $50 (Tax Withheld) = $450.

9. If a company's Total Assets are $50,000 and its Total Liabilities are $20,000, what is its Equity?

a) $70,000 b) $30,000 c) $20,000

Correct Answer: b) $30,000. Based on the accounting equation: Assets = Liabilities + Equity. Therefore, Equity = $50,000 - $20,000 = $30,000.

10. If Equity is $40,000 and Liabilities are $15,000, what are the Total Assets?

a) $25,000 b) $55,000 c) $40,000

Correct Answer: b) $55,000. Based on the accounting equation: Assets = Liabilities + Equity. So, Assets = $15,000 + $40,000 = $55,000.

11. A Philippine company makes a sale of P50,000. How much VAT Payable do they record?

a) P5,000 b) P12,000 c) P6,000

Correct Answer: c) P6,000. Calculation: P50,000 * 12% (0.12) = P6,000. This is a liability owed to the government.

12. A Japanese company buys inventory for ¥110,000, a price that includes 10% consumption tax. What is the amount of the Consumption Tax Paid?

a) ¥11,000 b) ¥10,000 c) ¥1,000

Correct Answer: b) ¥10,000. First find the base cost: ¥110,000 / 1.10 = ¥100,000. The tax is the difference: ¥110,000 - ¥100,000 = ¥10,000.

13. A journal entry has total debits of $1,000. According to the golden rule of accounting, what must the total credits be?

a) $500 b) $1,000 c) $2,000

Correct Answer: b) $1,000. The fundamental rule of double-entry bookkeeping is that Debits must always equal Credits.

14. If a company takes a loan of $10,000 cash, the Cash account is debited $10,000. What is the corresponding credit of $10,000?

a) Debit Loans Payable b) Credit Service Revenue c) Credit Loans Payable

Correct Answer: c) Credit Loans Payable. Taking a loan increases both an Asset (Cash) and a Liability (Loans Payable). To increase a Liability, you credit it.

15. A transaction involves a Debit to Salaries Expense for P30,000, a Credit to Cash for P27,500, and another Credit. What must the value of the second Credit be?

a) P2,500 b) P3,000 c) P-2,500

Correct Answer: a) P2,500. Total Debits (P30,000) must equal Total Credits. Since one credit is P27,500, the other must be P30,000 - P27,500 = P2,500.

16. If a service in the Philippines is priced at P8,000 before tax, what is the total amount a customer pays in cash?

a) P8,960 b) P8,000 c) P9,200

Correct Answer: a) P8,960. Calculation: VAT = P8,000 * 0.12 = P960. Total cash = P8,000 + P960 = P8,960.

17. A piece of equipment is purchased in Japan for ¥200,000 before tax. What is the total cash paid, including the 10% consumption tax?

a) ¥200,000 b) ¥210,000 c) ¥220,000

Correct Answer: c) ¥220,000. Calculation: Tax = ¥200,000 * 0.10 = ¥20,000. Total cash = ¥200,000 + ¥20,000 = ¥220,000.

18. A monthly salary is P50,000. If total deductions (tax, SSS, etc.) are P8,000, what is the cash credited from the company's bank account?

a) P58,000 b) P42,000 c) P50,000

Correct Answer: b) P42,000. The cash credited (paid out) is the net pay. P50,000 (Gross) - P8,000 (Deductions) = P42,000.

19. If a company's sales revenue is $10,000 and total expenses are $6,000, by how much does Equity increase (before considering dividends)?

a) $16,000 b) $10,000 c) $4,000

Correct Answer: c) $4,000. The increase in Equity from operations is the Net Income, calculated as Revenue - Expenses. $10,000 - $6,000 = $4,000.

20. A company in the Philippines buys office supplies for P5,600, a price which already includes 12% VAT. What was the original price of the supplies?

a) P6,272 b) P5,000 c) P4,928

Correct Answer: b) P5,000. To find the original price when VAT is included, you divide by 1 + the VAT rate. P5,600 / 1.12 = P5,000.

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