Bank Reconciliation Quiz

<p>They are only taxed on income earned in the Philippines (B)</p> Signup and view all the answers

<p>Taxed on all income from both local and international sources (D)</p> Signup and view all the answers

<p>To match accounting records with bank statements (B)</p> Signup and view all the answers

<p>Not Sufficient Funds (C)</p> Signup and view all the answers

<p>At the top of the first page (C)</p> Signup and view all the answers

<p>The balance in a company's accounting records (B)</p> Signup and view all the answers

<p>Processing Fee (A)</p> Signup and view all the answers

<p>A list of withdrawals and deposits (A)</p> Signup and view all the answers

<p>The ending balance on the bank statement (C)</p> Signup and view all the answers

<p>Lack of available funds in their account (A)</p> Signup and view all the answers

<p>Fees, salaries, and commissions (C)</p> Signup and view all the answers

<p>Interest income (C)</p> Signup and view all the answers

<p>6% (D)</p> Signup and view all the answers

<p>Royalties from literary works (D)</p> Signup and view all the answers

<p>Dividends (B)</p> Signup and view all the answers

<p>Personal and additional exemptions (C)</p> Signup and view all the answers

<p>Gross income from business activities (C)</p> Signup and view all the answers

<p>20% final withholding tax (C)</p> Signup and view all the answers

<p>The balance shown in the company’s general ledger for the bank account. (A)</p> Signup and view all the answers

<p>Cash or checks received and recorded by an entity but not yet appearing in the bank records. (A)</p> Signup and view all the answers

<p>A check payment recorded by the issuer that has not cleared the bank. (C)</p> Signup and view all the answers

<p>To compare the bank balance per accounting records with the bank statement balance. (D)</p> Signup and view all the answers

<p>Adjust its book balance to correct the error. (A)</p> Signup and view all the answers

<p>Timing differences due to outstanding checks and deposits in transit. (B)</p> Signup and view all the answers

<p>Fees for supplying check stock to the company. (A)</p> Signup and view all the answers

<p>To help in budgeting for future expenses. (D)</p> Signup and view all the answers

<p>Separately determining the bank and book balances. (B)</p> Signup and view all the answers

<p>Book to Bank Method (B)</p> Signup and view all the answers

<p>Checks issued but not yet cleared by the bank. (C)</p> Signup and view all the answers

<p>Outstanding checks and deposits in transit. (D)</p> Signup and view all the answers

<p>To ensure the book balance and bank balance match. (C)</p> Signup and view all the answers

<p>₱250,000 (D)</p> Signup and view all the answers

<p>It will increase to 35%. (B)</p> Signup and view all the answers

<p>BIR Form 1700 (A)</p> Signup and view all the answers

<p>A statement of income tax withheld (B)</p> Signup and view all the answers

<p>₱ 50,000 (D)</p> Signup and view all the answers

<p>₱ 25,000 (B)</p> Signup and view all the answers

<p>Progressive tax rate based on income (C)</p> Signup and view all the answers

<p>BIR Form 1701 (A)</p> Signup and view all the answers

<p>Substituted filing (B)</p> Signup and view all the answers

<p>The owner of the business (C)</p> Signup and view all the answers

Matching a company's book balance (accounting records) to its bank statement balance.

The balance of a company's cash account as shown in its accounting records.

The balance of a company's cash account on the bank statement.

A check that a bank refuses to pay because of insufficient funds.

A document issued by a bank that summarizes all transactions related to a company's account.

To identify and correct differences between the book and bank balances and bring both to an agreement.

Part of the bank statement showing opening and closing balances, deposits, withdrawals, and fees.

Part of the bank statement listing individual transactions.

Cash or checks received and recorded by the company but not yet recorded by the bank.

A check the company has written but which hasn't cleared the bank yet.

When a deposit is recorded incorrectly or insufficient funds are deposited, the company must adjust its book balance.

A report comparing bank balance per company accounting records with the bank statement balance.

Items like deposits in transit, outstanding checks, and errors that need adjustment during bank reconciliation.

Filipinos, regardless of where they live, must pay taxes on all income earned both inside and outside the Philippines.

A non-resident Filipino citizen is only responsible for taxes on income earned within the Philippines.

An Overseas Filipino Worker (OFW) is only taxed on income earned within the Philippines.

A foreigner residing in the Philippines is only required to pay taxes on income earned within the Philippines.

Domestic corporations are responsible for taxes on all their income, regardless of whether it comes from sources inside or outside the Philippines.

Bank reconciliation method where bank & book balances are determined separately.

Bank reconciliation method where the book balance is adjusted to match the bank balance.

Bank reconciliation method where the bank balance is adjusted to align with the book balance.

Tax reform aiming for simplicity, fairness, and efficiency in the tax system.

The National Internal Revenue Code of 1997 (NIRC) is the primary law governing taxation in the Philippines. It establishes rules and regulations for tax collection and administration.

The Bureau of Internal Revenue (BIR) is the government agency responsible for implementing and enforcing the NIRC.

The NIRC identifies several categories of income that are taxable, including wages, salaries, business profits, gains from property sales, interest, rents, royalties, dividends, and winnings.

This income category includes wages, salaries, fees, commissions, and other forms of payment received for work performed.

This category includes profits earned from running a business or practicing a profession.

Individuals typically pay a 10% final withholding tax on dividends, while corporations usually receive tax exemptions.

Taxable income from annuities is calculated after deducting any personal and additional exemptions.

Winnings from prizes, lotteries, and other competitions are generally subject to a 20% final withholding tax.

A tax system where higher earners pay a larger proportion of their income in taxes. The tax rate increases as income rises.

When an employer files an income tax return on behalf of an employee, relieving the employee from filing their own return. This applies to employees whose income is solely from compensation.

A deduction allowed to individual taxpayers, lowering their taxable income. This is a fixed amount for everyone.

A deduction allowed for each qualifying dependent, further reducing taxable income. This is a fixed amount per dependent.

Employers withhold income tax from employees' gross income each month. The total withheld tax is deducted from the tax due by the employee to determine their final tax liability.

Business owners are considered individual taxpayers and file a tax return (BIR Form 1701). The owner pays the income tax for the business.

A statement issued by the employer (and signed by the employee) showing the income tax withheld. It's not filed with the BIR, but serves as a record of substituted filing.

The tax rate increases as the taxable income increases. Those with higher income pay a higher percentage in tax.