1.

Debit means
a. increase both assets and liabilities c. increase asset and decrease
liability
b. decrease both asset and liabilities d. decrease asset and increase
liability
2. It is an ”asset off-set” account af Accounts Receivable. It provides for possible
losses arising from uncollectible accounts.
a. Uncollectible Accounts c. Estimated Uncollectible Accounts
b. Doubtful Accounts d. None of these
3. This refers to the allocated portion of fixed assets of the cost of fixed asset or
property and equipment.
a. Depreciation Expense c. Accumulated portion
b. Amortization Expense d. None of these.
4. Based on the equation A = L+ OE, when Asset decreases and liability remains
the same,
a. capital increases c. no effect on capital
b. capital decreases d. asset = liability
5. A T-Account is composed of
a. Accounts debited and credited c. Account balances
b. Account titles d. all of the above.
6. Which of the following accounts will increase when debited?
a. Income or revenue c. owner’s equity
b. accounts payable d. drawing
7. When customers account are collected in full
a. total assets will increase c. total asset will remain the samr
b. total assets will decrease d. none of these.
8. When Supplier’s account is paid in full, there will be a
a. decrease in liability and increase in asset
b. increase in liability and decrease in asset
c. decrease in both asset and liability
d. either of the above.
9. The nominal/temporary accounts are extended to what section of the
worksheet?
a. balance sheet section c. credit side of the income statement
section
b. income statement section d. debit side of the income statement
section
10.Which of the following should come first in preparing a worksheet?
a. Adjusted trial balance c. Adjustment
b. Balance sheet d. Income STATEMENT
11.Which of the following financial statements is completed in a worksheet?
a. Notes to Financial Statements c. Statement of Cash Flows
b. Income Statement d. Statement of Changes In Equity
12.Which of the following Cash Flow transaction is a financing activity?
a. Purchase of Equipment c. Proceeds from Bank Loan
b. Payment of Rental Expense d. Proceeds from Sale of Equipment
13.Which of the following Cash Flows is considered as Investing activity?
a. Investment by the owner c. Withdrawal by the owner
b. Collection of a customer account d. Purchase of equipment
14.Which of the following accounts is closed?
a. Unearned interest income c. accumulated depreciation
b. prepaid insurance expense d. uncollectible account
15.Which of the following accounts is included in the post-closing trial balance?
a. asset account c. expense account
b. income account d. temporary accounts
16.The following statements are true about closing journal entries, except
a. all nominal accounts are closed
b. closing entry is done at the end of thep eriod
c. It is recorded in the General Journal
d. Income accounts are closed by a credit.
17.Payment to suppliers account may result to
a. debit to payable account c. debit to cash accout
b. debit to receivable account d. credit to payable account
18.A company purchased a machine costing P100,000. It paid a downpayment of
P20,000 and issued a note for the balance. The credit entry will include
a. cash, P20,000 and accounts payable P80,000
b. cash, P20,000 and notes payable P80,000
c. cash, P20,000 and discount P80,000
d. cash, P20,000 and machine P80,000
19.If no adjusting is made on pre-collection of income using the liability method,
income/revenue will-
a. be understated c. not be affected
b. overstated d. none of these
Accountants refer to an economic
event as a
a. purchase.
b. sale.
c. transaction.
d. change in ownershi
Accountants refer to an economic
event as a
a. purchase.
b. sale.
c. transaction.
d. change in ownershi
Accountants refer to an economic
event as a
a. purchase.
b. sale.
c. transaction.
d. change in ownershi