Central Mindanao University

COLLEGE OF BUSINESS AND MANAGEMENT
Department of Accountancy
FINAL EXAM
ACCY 21* Principles of Accounting
December 1, 2016

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the total income earned and total expenses incurred and paid by the business were P70. Write ALL your answers in clear and legible CAPITAL LETTERS.Accrued Rent Expense 12. Avoid copying the answer of your seatmate. MULTIPLE CHOICE. Liability. ____________________________ SIGNATURE OVER PRINTED NAME Date: _______________________ I. 2.000 respectively.000 and P40. For questions 21 to 23.Unearned Service Revenues 14. A deferral is the recognition of an expense that has arisen but has not yet been recorded.Accrued Rent Income 20. Owner’s Equity. or Expenses. 2. 16. otherwise write PARSNIP.Salaries and Wages III. 4. answer the following questions: . this causes the asset accounts and expense accounts to be understated. TRUE or FALSE.The adjusting entry to recognize earned commission revenues not previously recorded or billed will cause total assets to increase. An adjusting entry includes at least one balance sheet account and at least one income statement account. Do not cheat. 15. Revenue is equal to the cash received by a company during an accounting period. unless required.000 At the end of the month. 4.Service Revenue 15.Retained Earnings 19. 11.Furniture and Fixtures 17. Write your answer before the number. Classify each item as Asset. 5. I hereby affix my signature as a sign of adherence to the above-mentioned general instructions.Prepaid Insurance 16. use the following data.Omission in posting in either debit or credit entry in the journal will affect the total of a trial balance. If all income and expenses are all accounted for cash and there is no liability incurred.000 P190. The amount of accrued revenues is recorded by debiting an asset account and crediting an income account. 3. 5. 9.0 in the final term exam. Write VEN if the statement is true. When a reduction in prepaid insurance is not properly recorded.000 100. 13. Brytko Diri made the following investment: Cash Equipment TOTAL P90. 11. Write the letter of your answer before the number. Applying accrual accounting results in a more accurate measurement of profit for the period than does the cash basis of accounting.Bonds Payable 18. Anyone caught cheating will be automatically given a 5.GENERAL INSTRUCTIONS: 1. 7. Revenue.Prepaid Insurance 13. 1. II. Wrong spelling is considered wrong.The adjusting entry to recognize an expense which is unrecorded and unpaid will cause total assets to increase. Do not write anything on the paper.Business activities are said to be accountable when they affect the accounting elements. Provide only what is asked.

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a. c.000 b. P100.000 b. P260. An error in trial balance wherein the orders of the figure are written in reverse order as 257 instead of 275.000 22.000 d. P120. How much is the amount of total assets after considering the month's transactions? a. P250. Balance Sheet c. Transposition error error b.000 c. P6.000 c.21.000 d. Accrued Rent Expense. Which of the following transactions would not result in an increase in revenues? a. has an unpaid rental in the amount of P6. transposition error error b. An error in placing the decimal point of a figure as P2. P180.000 24. P220.000 26. accumulation of interest in bank account .000. She offered credit terms to customers and collections are satisfactorily done. Accounts Receivable showed a debit balance of P65.75 is incorrectly written as P275. Sale of goods on credit b. P220. posting a.000 d.000 Rent Expense.000 Rent Expense. P50.000 c.000 P3.000 d.000.000 25. sliding error d. posting a. Rent Expense. Accrued Rent Expense. Gong Yoo Co. P220. sliding error d. b. footing error 27. P45.000 23. The adjusting entry to correct the balances of accounts affected in the entry would be CREDI DEBIT T Accrued Rent Expense. P160. Accounts Receivable at December 1 should have been a. c.000 representing credit charges to customers and a credit of P25.000 representing collections from customers. A statement that summarizes the debit and credit entries of each account in a general ledger a. How much is the amount of cash left for the business? a. If Accounts Receivable at the end of December was P85.000 c. Trial Balance b. How much is the new owner's equity balance of Brytko Diri? a. P195.000 d. P3.000 P6. Income Statement d.000. P75. Rent Expense. The bookkeeper mistakenly recorded the adjustment at P9.000 b. P60. P150. P6.000 Accrued Rent Expense. P3. During the peak season of December. P3.000 c.000 b. P6. Statement of Account 29. footing error 28. Song Hye-kyo was engaged in printing industry in Korea for the first time. P205.

purchase of a two-year insurance policy b. a liability b.c. interest earned on bank account . Overstatement of total liabilities b. overstatement of total assets c. An adjusting entry made to record accrued interest on notes payable due next year consist of a debit to a. A cash withdrawal by the owner b. Unearned Revenues and credit to Cash b. Which of the following transactions will not result in the recognition of an expense? a. revenue 36. Which of the following is an example of a deferral? a. Which of the following transactions during the year would most likely no need an adjusting entry at the end of the period? a. overstatement of profit d. overstatement of profit d. overstatement of liabilities b. interest accrued on bank loan d. Cash and a credit to Notes Payable d. understatement of total liabilities 31. Unearned Revenues and credit to Service Revenues 33. Sale of services for cash d. performance of a service that previously was paid for 37. An investment in the business by the owner 30. purchase of office equipment d. Failure to record depreciation at year end will result in an a. The adjustment for that portion of revenue received in advance which now has been earned is to debit a. understatement of assets 32. Use of machinery during the period 35. understatement of owner's equity c. Interest Receivable and a credit to Interest Earned c. Expiration of prepaid insurance c. Failure to adjust for accrued wages at year end will result in an a. a commission collected in advance b. an asset c. owner's equity d. The recording of an expense could result in the corresponding increase in a. Service Revenues and a credit to Unearned Revenues c. Cash and credit to Unearned Revenues d. Interest Expense and a credit to Interest Payable b. Unearned Revenues and credit to Service Revenues 34. cash withdrawal by owner c.

the unexpired insurance amounted to P2. Debit to supplies expense for P13. bookkeeping fees collected but not yet earned c. 2016.000. medical fees earned but not yet collected 38. Company Service Revenue Salaries Expense Rent Expense P20. If on December 31. 2016.000 d.000 c. The trial balance for Matt Damon Company appears as follows: Matt Damon Company Trial Balance December 31. debit to supplies for P2. interest earned but not yet received d.000 15.000 c. Which of the following is an example of an accrual? a. the adjusting entry would contain a.000 b. debit to supplies for P13.000 10.000 P20.000 50.c. If on December 31. six months' rent paid in advance Use the following information to answer questions 19 to 23 below.000. debit to prepaid insurance for P3.000 20.000 b. supplies on hand were P2.00 0 30.000 40. 2016 Cash Accounts Receivable Prepaid Insurance Suppli es Office Equipment Accumulated Depreciation Accounts Payable Damon. debit to insurance expense for . 000 39.00 0 50.000 P160.000 60. interest expense incurred but not yet paid d. credit to prepaid insurance for P3.000 5. 000 P160.000 40. Equipment purchased for use in the business b. the adjusting entry would contain a a. credit to supplies for P2.

Wages Expense for October was P18. credit to Accumulated Rent for P10. debit to Service Revenues for P12.00 at the end of October.400 c. Wages Payable were P3.000 43. Accounting Period 47. credit to Cash for P10.000. This practice is justified by c.000 b.400 46.000 c.000.500 b. the rent of P10. 2016.000 41.500 had been performed but not yet billed. the amounts reported in the accounts for assets used in the business operations are based on the cost of the assets.500 at the end of October.000 d. credit to office Equipment for P20. P5. P24. credit to Service Revenues for P62. the adjusting entry would contain a a. If the business is not being sold or closed. P11. P17.000 d. It is the quality of the information that assures readers that the information is free from bias or error and faithfully represents what it purports to show. the adjusting entry to record this would include a a. If as of December 31. debit to Unearned Service Revenues for P12. If services totaling P12. the adjusting entry would include a a.000.000 d. Wages Expense for October was P18. credit to prepaid insurance for P2. P2. If the estimated depreciation for the office equipment were P20.300 b.500 at the end of September and P2.000 42.500 44. .500 c.700 45. P14. Unearned Revenue was P6.000 b. Going a. credit to Service Revenues for P12. How much cash was paid for wages during October? a. debit to Accumulated Depreciation for P20.000 at the end of February and P7.400 d. credit to Accumulated Depreciation for P20.100 d.000 c. P18.400 b. How much cash was received for services provided during March? a. P17. Accrual Period b.000 for December had not been recorded or paid.P2. debit to Rent Payable for P10. debit to Rent Expense for P10.500 d. Time-period d.700 c. credit to Depreciation Expense for P20.

revenues 49. equities b. expenses b. a credit purchase invoice c. then owner's equity will be increase by a. land d. Which of the following is not subject to depreciation? a. Relevance b. increase total assets and increase total liabilities d. Which of the following is a form of revenue? a. has no effect on total assets or total liabilities c. income c. Assets = Liabilities + Owner's Equity c. P340. Over a period. liabilities d.000 c. increase Supplies and decrease Cash b. profit or loss 55. increase Supplies Expense and decrease Cash c. a credit sales to customers d. machinery 56. Which of the following equations is the fundamental accounting equation? a. Assets + Liabilities = Owner's Equity d. decrease Cash and increase Capital 54. Assets . P70. The purchase of an asset for cash will a.Liabilities = Owner's Equity b. Amounts owed by the business are referred to as a. decrease Cash and increase Accounts Payable d. if total assets increase by P270. equipment b.a. Obligations which are expected to e liquidated through the use of existing . Assets + Owner's Equity = Liabilities 50. building c.000 and total liabilities increase by P70. P200. The purchase of supplies for cash will a. P270. a check paying a mortgage b.000 52. Comparability 48. assets d. increase total assets and decrease total liabilities b.000 b. Understandability d.000 d.000. assets c. a cash paying invoice 53. Reliability c. The following can be found in an income statement except a. increase total assets and increase total equity 51.

000 . assets d. or confirming. their past evaluations.000 70.000 A P B 61.000 50. P340. present.000 c. income b.000. P180.000 50. Which of the following accounts is decreased with a debit? a. unearned revenues 57. current liabilities d. Interest Expense b.000 debit d.000 150. Owner's withdrawals Use the following information to answer the questions below. A credit entry decrease the balance of a. liabilities 58.000 30.000. Notes Payable c. Comparability 59. what would be the amount of B? a. or future events.000 30. long-term liabilities b. 2016 Cash Accounts Receivable Art Supplies Office Supplies Prepaid Rent Prepaid Insurance Art Equipment Office Equipment Accounts Payable CENBSIT3. If Accounts Receivable has debit postings of P580. and a normal ending balance of P480. a.000 credit c. or correcting. Capital CENBSIT3. It is the capacity of information to make a difference in decision by helping users evaluate past. Relevance c. The following is the trial balance of CENBSIT3 Company: CENBSIT3 Company Trial Balance January 31. Understandability b.000 50. Reliability d. owner's equity c.000 d. current assets c. If the balance of the CENBSIT3.000.000 b.000 debit b. P620. P620.000 20. which of the following was its beginning balance? a. credit postings of P440. P340.000 and the balance of the Wages Expense account was P50. Withdrawals Advertising Revenues Wages Expense Utilities Expense Telephone Expense P30.current assets or the creation of other current liabilities are called a.000 30.000 ? ? P ? 50.000 credit 60. P580. P380. Withdrawals account were P120. Cash d. P370.000 P50.000.

000 b. P180. P430.000 63. P10. P190.Paid P18. 71. If the trial balance showed a balance of P70.Paid P28. liabilities.000 c.Scamander used P6.000 64. Scamander completed the following transactions: (Complete the table by filling the amount in its appropriate column. In the trial balance. P330.Received P5. P410.000 cash in the bank for use by the business. The assets. 73. P50. and owner’s equity of Newt Scamander who operates a Witchcraft and Sorcery Academy (WS&A) are expressed in the equation form below. 67. P480.000 in the Advertising Revenues account.Purchased P20.62.000 in the Wages Expense account and a balance of P300. 74.000 expenses were incurred on account by the business. there is nothing to worry about failure.000 d. 69.000 c.During the month. P140.) ASSETS Cash + Suppli es + Land LIABILI OE TIES = Accounts + Scamand Payable er.000 of supplies on account.During the month. P250.000 of personal funds in the business. Balance ______End of Final Term Exam______ “When you are doing your best.How much is the working capital (Current Asset less Current Liabilities)? Provide the answer only.Withdrew P25. 70.Organized WS&A and deposited P500.000 d.000 for a cash service call. If the trial balance showed a balance of P40.000 in the CENBSIT3. what would be the amount of the CENBSIT3.000 worth of supplies.000 b. Withdrawals account? a. P330.000 for personal use.000 65. 72.Purchased land for academy site for P140. total assets equal a. what would be the amount of Advertising Revenues for the period? a. Withdrawals account and a balance of P50. Capital 66. Scamander invested another P100.” .00 d.000 b. 75.000 in the Wages Expense account.000 to creditors. P230.000 c. 68. P430.000 for site and equipment rent for the month.000 cash.

CPA .Prepared by: ERWIN DAVE DAHAO.