Question 1

Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

Merchandising business usually does activities that converts raw materials into finished
products, and sells this to other firms or to individuals.

Select one:
True
False

Question 2
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Asset are considered current when it is kept principally for trading. If realization of the asset
is expected to be within twelve months after the date of the SFP, it is current.

Select one:
a. The 2nd statement is true
b. Both statements are true
c. Both statements are false
d. The 1st statement is false
e. The 2nd statement is false
f. The 1st statement is true

Question 3
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

SFP is also the Balance sheet.

Select one:
True
False

Question 4
Correct
Mark 1.00 out of 1.00

Flag question

Question text

If revenue increases and cost of goods sold remains constant, gross profit also increases.

Select one:
True
False

Question 5
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

Long-term debts are noncurrent.

Select one:
True
 False

Question 6
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The income statement format that segregates the operating revenues and expenses from
the non-operating revenues and expenses is the ___________.

Select one:
a. Multi-step
b. none of the choices
c. Single-step
d. Dual-step

Question 7
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Inflows of resources arising from the sale of goods and services.

Select one:
a. Gains
b. Losses
c. Revenues
d. Expenses

Question 8
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

Also known as Time Period Concept

Select one:
a. Service business
b. Periodicity
c. Accounting
d. Fiscal year

Question 9
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The law that manages Corporations

Select one:
a. Corporate code
b. Fiscal year
c. Service business
d. Accounting

Question 10
Incorrect
Mark 0.00 out of 1.00

Flag question
Question text

Noncurrent assets are kept principally for trading.

Select one:
True
False

Question 11
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

The Statement of Financial Position is commonly prepared at the year ended December 31..

Select one:
True
False

Question 12
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Type of business activities that generates profit from the conversion of raw materials to
finished products for sale.

Select one:
a. Manufacturing
b. Service
c. Merchandising
d. Sole proprietorship
Question 13
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

Capital are claims by creditors against the company's assets.

Select one:
True
False

Question 14
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Cash, building, and office supplies are examples of assets.

Select one:
True
False

Question 15
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Rent Expense, Wages Expense and Utilities Expense are nominal accounts.
Select one:
True
False

Question 16
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

Residual asset is the result of combining liabilities and equity.

Select one:
True
False

Question 17
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The difference between revenues and gains, and expenses and losses when the expenses
and losses are greater than the revenues and gains.

Select one:
a. Net profit
b. Net loss
c. Net assets
d. Net worth

Question 18
Incorrect
Mark 0.00 out of 1.00
 Flag question

Question text

It is a voluntary association of at least 15 persons having a common bond of interest for the
purpose of generating capital from among themselves through a systematic and continuous
savings program in order to grant loans to each other at reasonable rates of interest.

Select one:
a. single proprietorship
b. corporation
c. cooperative
d. partnership

Question 19
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Which of the following will cause owner's equity to increase?

Select one:
a. Expenses
b. Revenue
c. Owner Draws

Question 20
Incorrect
Mark 0.00 out of 1.00

Flag question
Question text

When the owner makes withdrawal from the business for personal use, only the asset
decreases.

Select one:
True
False

Prepaid rent is an asset..

Select one:
True
Question text

Long-term debts are noncurrent.

False

The law that manages Corporations

Select one:
c. Corporate code
Land is a current asset..

Select one:
True
Two or more people join together to contribute money, property or industry for purposes of
dividing the profits (or loss) among themselves.

Select one:
c. Partnership
Branch of accounting solely for government purposes such as collecting of taxes, computing
of national income, fixing the gross national product target, ascertaining the balance of
payments position, etc..

Select one:
a. Government Accounting
Capital is another term for equity.

Select one:
True
Entity principle separate business from personal transactions.

Select one:
 True
A mortgage payable is a noncurrent liability..

Select one:
False
Question text

SFP is an acronym for Statement of Financial Position, which is also known as the Balance
Sheet.

Select one:
True
Prepaid rent is an asset..

Select one:
True
Question text

Long-term debts are noncurrent.

False

The law that manages Corporations

Select one:
c. Corporate code
Land is a current asset..

Select one:
True
Two or more people join together to contribute money, property or industry for purposes of
dividing the profits (or loss) among themselves.

Select one:
c. Partnership
Branch of accounting solely for government purposes such as collecting of taxes, computing
of national income, fixing the gross national product target, ascertaining the balance of
payments position, etc..

Select one:
a. Government Accounting
Capital is another term for equity.

Select one:
 True
Entity principle separate business from personal transactions.

Select one:
True
A mortgage payable is a noncurrent liability..

Select one:
False

SFP is an acronym for Statement of Financial Position, which is also known as the Balance
Sheet.

Select one:
True
Capital is another term for equity.

Select one:
True
SFP is also the Balance sheet.

Select one:
True
Cash and cash equivalents are noncurrent assets..

Select one:
True
Transactions which are financial in nature, such as payment and purchases in cash.

Select one:

d. Financial Character
CPA means Certified Public Accountant.

Select one:
True
Long-term debts are noncurrent.

Select one:
True
Stockholders are the owners of a corporation.
Select one:
True
Current assets are expected to be used after 12 months.

Select one:

False
Property, plant, and equipment are assets.

Select one:
True
This is the type of business which offers services for a fee

Select one:
a. Service business
Account form is more commonly used form of an SFP.

Select one:
True
False
AICPA means

Select one:
a. Corporate code
b. Service business
c. Fiscal year
d. American Institute of Certified Public Accountants
Accrual basis of accounting records income when earned regardless of when cash is
received.

Select one:
True
False
The cost accountant handles Management Accounting.

Select one:
True
False
Withdrawals are also known as "drawings".
Select one:
True
False
Income statement is another term for the Statement of Financial Position.

Select one:
True
False
Noncurrent assets are assets that are expected to be used within 12 months.

Select one:
True
False
Property, plant, and equipment are not assets.

Select one:
True
False
The Fiscal year always ends in December.

Select one:
True
False
Sole proprietorships mostly managed by their owners.

Select one:
True
False
The Income Statement is composed of the revenues and expenses.

Select one:
True
False
A debit account in excess of credits would possess a credit balance.

Select one:
True
False
The statement of financial position is also known as the Profit and Loss Statement.

Select one:
True
False
Income from the sale of an equipment of a machine business is considered a gain.

Select one:
True
False
Accounts Payable and Notes Payable are two examples of accounts that are reported in the
SFP under the heading.

Select one:
a. Contra Asset
b. Current Liability
c. Equity
d. Current Asset

Question 9
Correct
Mark 1.00 out of 1.00

Flag question

Question text

What type of accounts are Prepaid Insurance, Prepaid Advertising, and Prepaid Expenses?

Select one:
a. Equity
b. Asset
c. Revenue
d. Liability

Question 10
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

Liabilities are present obligations arising from past events..

Select one:
True
False

Accrual basis of accounting records income when earned regardless of when cash is
received.

Select one:
True
False

Question 13
Correct
Mark 1.00 out of 1.00

Flag question

Question text

This principle requires that life of the enterprise be subdivided into time periods or
accounting periods which may be a calendar year or fiscal year.

Select one:
a. Going Concern
b. Periodicity
c. Business Entity
d. Stable monetary Unit

Question 14
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

Capital is another term for equity.

Select one:
True
False

The cost accountant handles Management Accounting.

Select one:
True
False
It is the difference between net sales and the cost of goods sold.

Select one:
a. Gross Profit
b. Net Income
c. Operating Expenses
d. Cost of Goods Available for Sale
Long-term debts are noncurrent.

Select one:
True
False
Branch of accounting solely for government purposes such as collecting of taxes, computing
of national income, fixing the gross national product target, ascertaining the balance of
payments position, etc..

Select one:
a. General Accepted Accounting Principles
b. Government Accounting
c. Financial Character
d. Partnership
Question 20
Correct
Mark 1.00 out of 1.00

Flag question

Question text

AICPA means

Select one:
a. Service business
b. American Institute of Certified Public Accountants
c. Fiscal year
d. Corporate code

An asset is a present obligation arising out of past events.

Select one:
True
False

Question 2
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Cash and cash equivalents are current assets.

Select one:
True
False

Question 3
Correct
Mark 1.00 out of 1.00
 Flag question

Question text

Revenue is synonymous to Gains.

Select one:
True
False

Question 4
Correct
Mark 1.00 out of 1.00

Flag question

Question text

What is the effect on accounting equation of Triple A when it records the transaction as a
debit to Rent Expense for P8,000 and a credit to Accounts Payable for P8,000?Owner's (or
Stockholders')

Select one:
a. Liabilities Increase, Equity Increase
b. Owner's (or Stockholders')
c. Asset Decrease, No Effect
d. Asset Increase, Equity Increase
e. Equity Decrease, Liability Increase

Question 5
Correct
Mark 1.00 out of 1.00

Flag question
Question text

Property, plant, and equipment are assets.

Select one:
True
False

Question 6
Correct
Mark 1.00 out of 1.00

Flag question

Question text

As compared to the corporation, single proprietorship is easier to form because of its

simplicity in operation.

Select one:
True
False

Question 7
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

Increases in the assets are recorded on the right side of the account.

Select one:
True
False

Question 1
Correct

Mark 1.00 out of 1.00

Flag question

Question text

An asset is a present obligation arising out of past events.

Select one:

True

False

Question 2
Correct

Mark 1.00 out of 1.00

Flag question

Question text

Cash and cash equivalents are current assets.

Select one:

True

False

Question 3
Correct

Mark 1.00 out of 1.00

 Flag question

Question text

Revenue is synonymous to Gains.

Select one:

True

False

Question 4
Correct

Mark 1.00 out of 1.00

Flag question

Question text

What is the effect on accounting equation of Triple A when it records the transaction as a
debit to Rent Expense for P8,000 and a credit to Accounts Payable for P8,000?Owner's (or
Stockholders')

Select one:

a. Liabilities Increase, Equity Increase

b. Owner's (or Stockholders')

c. Asset Decrease, No Effect

d. Asset Increase, Equity Increase

e. Equity Decrease, Liability Increase

Question 5
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Property, plant, and equipment are assets.

Select one:

True

False

Question 6
Correct

Mark 1.00 out of 1.00

Flag question

Question text

As compared to the corporation, single proprietorship is easier to form because of its

simplicity in operation.

Select one:

True

False

Question 7
Incorrect

Mark 0.00 out of 1.00

 Flag question

Question text

Increases in the assets are recorded on the right side of the account.

Select one:

True

False

Question 8
Correct

Mark 1.00 out of 1.00

Flag question

Question text

Long-term liabilities are noncurrent.

Select one:

True

False

Question 9
Incorrect

Mark 0.00 out of 1.00

Flag question
Question text

Land is a current asset..

Select one:

True

False

Question 10
Correct

Mark 1.00 out of 1.00

Flag question

Question text

Net income is a result of expenses higher than revenues.

Select one:

True

False

Question 11
Correct

Mark 1.00 out of 1.00

Flag question

Question text

Cash basis accounting only records transaction when cash is received or paid.

Select one:
 True

False

Question 12
Correct

Mark 1.00 out of 1.00

Flag question

Question text

Examples of this type of business are laundry shops, salons, spas, dress shops, barber shops,
appliance repair shops, vulcanizing shops, computer/internet shops, printing and
photocopying.

Select one:

a. Cooperative

b. Manufacturing

c. Merchandizing

d. Service business

Question 13
Correct

Mark 1.00 out of 1.00

Flag question

Question text

This type of business usually does activities that converts raw materials into finished
products, and sells this to other firms or to individuals.
Select one:

a. Cooperative

b. Merchandizing

c. Service

d. Manfacturing

Question 14
Correct

Mark 1.00 out of 1.00

Flag question

Question text

Bank loans are credited to Loans Payable or Mortgage Payable.

Select one:

True

False

Question 15
Correct

Mark 1.00 out of 1.00

Flag question

Question text

This concept states that assets and services that are acquired should be recorded at their
actual cost.

Select one:
a. going concern concept

b. business entity concept

c. reliability or objectivity principle

d. cost concept

Question 16
Correct

Mark 1.00 out of 1.00

Flag question

Question text

Meaning of GAAP

Select one:

a. Government Accounting

b. Financial Character

c. Partnership

d. General Accepted Accounting Principles

Question 17
Correct

Mark 1.00 out of 1.00

Flag question

Question text
Accounting is defined in part as the art of ____________, ___________, and ____________ in a
significant manner and in terms of money, transactions and events.

Select one:

a. analyzing, evaluating, assessing

b. recording, classifying, summarizing

c. processing, computing, finalizing

d. journalizing, synthesizing, reporting

Question 18
Incorrect

Mark 0.00 out of 1.00

Flag question

Question text

Single proprietorship is concerned with the manufacture of goods into finished product.

Select one:

True

False

Question 19
Correct

Mark 1.00 out of 1.00

Flag question

Question text
The accounts in the report form of SFP are arranged in a single column wherein assets are
listed first, followed by the liabilities and owner's equity..

Select one:

True

False

Question 20
Correct

Mark 1.00 out of 1.00

Flag question

Question text

The income statement summarizes the profitability of the business over a specified period
of time.

Select one:

True

False