(Amaleaks - Blogspot.com) Fabm 2nd Sem

FABM 2nd SEM
AMALEAKS.BLOGSPOT.COM
These are resources of the firm which were taken by the owner for personal use.
Select one:
a. Ending Capital
b. Investments
c. Withdrawals C
d. Net Loss
Question 1
Correct
Mark 1.00 out of 1.00
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Question text
Income statement for merchandising businesses usually have how many sections?
Select one: a. 7 C
b. 3
c. 5
d. 8
Question 2
Correct
Question text
The heading of a statement of income usually consists of the following except:
Select one:
a. Period covered by the statement
b. Business Name
c. None of the choices C
d. Statement of Income
Question 3
Incorrect
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It represents the right of the owner over the resources of the firm.
Select one: a. Equity
b. Stocks
c. All of the choices
d. Assets W
Question 4
Correct
Question text
How many sections do income statement for merchandising businesses usually have?
Select one: a. 5
b. 10
c. 7 C
d. 8
Question 5
Correct
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The story of the success, or failure, of operations is shown in the _______________________.
Select one:
a. Statement of Income C
b. All of the choices
c. Report
d. Balance Sheet
Question 6
Incorrect
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It represents the total amount of inventory on hand.
Select one:
a. Net cost of goods purchased
b. Net Sales
c. Beginning Inventory W
d. Merchandise Inventory
Question 7
Correct
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It is the usual account title used for corporations.
Select one:
a. Both of the given choices correct
b. None of the choices
c. Capital
d. Stockholder's Equity C
Question 8
Incorrect
Question text
These are deducted in the purchase price either because of returns or reductions due to defects
or damages of goods purchased.
Select one:
a. Sales Allowances
b. Purchase discounts
c. Sales Returns W
d. Purchase returns and allowances
Question 9
Correct
Question text
Total is synonymous to ___________.
Select one: a.
Net
c. Gross C
d. Both A and B
Question 10
Incorrect
Question text
If the firm has been operating in the past year, the beginning capital of the current year is
_____________ the ending capital of the previous year. Select one:
a. The same
b. Equal to
c. None of the choices
d. Different W
This could be deducted to the beginning capital and additional investments done during the
year. Select one:
a. Ending Capital
b. Net Profit
c. Net Loss C
d. Withdrawals and drawings
We could find the period covered by the statement at the ________________ of the statement
of the account. Select one: a. Heading
c. Both A and B W
d. Body
Question 2
Correct
Question text
These are added to the capital beginning to arrive at the total investments used during the year
Select one:
a. Investments C
b. Net Profit
c. Ending capital
Question 3
Correct
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These are reductions in the total sales price given to the customer if the account will be paid
within a short period of time.
Select one:
a. Sales discounts C
b. Purchase Discounts
c. Cost of goods sold
d. Sales of returns and allowances
Question 4
Correct
Question text
It is consists of the owner's investment and the earned profit less any withdrawals made during
a given period. Select one:
a. Investments
b. Capital C
c. Ending Capital
d. Beginning Capital
Question 5
Incorrect
Question text
An income statement for _________________ could be written using a single-step approach.
Select one:
a. Service Business
b. Both A and B W
c. Merchandising Business
d. All of the choices
Question 6
Correct
Question text
It is the difference arrived at after deducting withdrawals from the sum of the beginning capital,
additional investments, and profit.
Select one:
a. Beginning Capital
b. Investments
c. Net Profit
d. Ending Capital C
Question 7
Correct
Not flaggedFlag question Question
text
These are added to the capital beginning to arrive at the total investments used during the year.
Select one:
a. Investments C
b. Withdrawals and drawings
c. Ending Capital
d. Net Profit Question 8
Incorrect
text
The single-step approach could be used in writing the income statement for _______________.
Select one:
a. Manufacturing business
b. Merchandising business
c. Service Business
d. All of the choices W
Question 9
Correct
Question text
The following are included in the income statement for merchandising businesses except:
Select one:
a. Net Sales
b. Operating Expenses
c. Business name C
d. Other revenues and gains
Question 10
Incorrect
Question text
Net Profit is derived from: Select
one:
a. Journal W
b. Statement of Income
c. Statement of Changes in Equity
d. Balance Sheet
Question 1
Correct
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There are common account titles between assets and liabilities..
Select one:
True C
False
Question 2
Correct
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Property, plant, and equipment are assets.
Select one:
True C
False
Question 3
Correct
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Assets minus Liabilities is equal to Equity is also considered an Accounting Equation. Select
one:
True C
False
Question 4
Correct
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This is the type of business which offers services for a fee Select
one:
a. Accounting
b. Service business C
c. Fiscal year
d. Corporate code
Question 5
Correct
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Services businesses offer products.
Select one:
True
False C
Question 6
Correct
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Long-term liabilities are noncurrent.
Select one:
True C
False
Question 7
Correct
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Cash and cash equivalents are current assets.
Select one:
True C
False
Question 8
Incorrect
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The Calendar year ends on January 01.
Select one:
True C
False
Question 9
Correct
Question text
A liability is a present obligation arising out of past events.
Select one:
True C
False
Question 10
Correct
Question text
Liabilities are present obligations arising from past events..
Select one:
True C
False
Question 1
Correct
Question text
Operating expenses and operating income or operating loss are items which can be found in an
income statement prepared in a multi-step approach.
Select one:
True C
False
Question 2
Correct
Question text
Select one:
a. Sales of returns and allowances
b. Sales discounts C
d. Purchase Discounts
Question 3
Correct
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Mr. Alvarez , capital is an example of account title used for the equity of the owner in what form
of business organization?
Select one:
a. partnership
b. corporation
d. Sole proprietorship C
Question 4
Incorrect
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This is the common transaction happening in the organization. Select
one:
a. Financing
b. Operating
c. All of the choices W
d. Investing
Question 5
Correct
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What item do we deduct from the beginning capital of the statement of changes in equity to
arrive at the ending capital?
Select one:
a. None of the choices
b. Investment
c. Withdrawals C
Correct
Question text
It is a basic accounting principle that states that income is earned regardless of when cash is
received, and expenses are incurred regardless of when cash is pai~ Select one:
a. Cash basis
b. Accrual basis C
Question 7
Correct
Question text
The equation for cost of goods sold is:
Select one:
a. Beginning inventory + Net cost of goods purchased - Ending inventory C
b. Beginning inventory - Net cost of goods purchased - Ending inventory
c. Beginning inventory + Net cost of goods purchased + Ending inventory. {
d. None of the choices
Question 8
Correct
Question text
Accrual basis of accounting is a basic accounting principle that states that income is earned
regardless of when cash is received, and expenses are incurred regardless of when cash is
paid
Select one:
True C
False
Question 9
Correct
Question text
Cash receipts from customers is P200,000, cash paid to suppliers is P10,000 and cash paid to
employees is P25,000, how much is the net cash from operating activities. Select one:
a. P190,000
b. P175,000
c. P165,000 C
d. Cannot be determined from the data given
Question 10
Incorrect
Question text
The following consists an income statement for merchandising businesses except: Select
one:
b. Net Profit or Net Loss W
d. Gross Profit
Question 11
Incorrect
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The firm can create as many capital accounts as there are owners in a corporation. Select
one:
True
False C
Question 12
Incorrect
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Select one:
a. Withdrawals and drawings
b. Net Profit W
c. Beginning Capital
d. Ending Capital
Question 13
Correct
Question text
Cash flows are categorized as follows except:
Select one:
a. financing activities
b. Developing activities C
c. Operating activities
d. investing activities
Question 14
Correct
Question text
An income statement for _________________ could be written using a single-step approach.
Select one:
a. Service Business C
b. Both A and B
c. Merchandising Business
Question 15
Correct
Question text
It relies entirely on the payment and receipt of cash.
Select one:
a. Accrual basis of accounting
b. Investing Activities
c. Financing Activities
d. Cash basis accounting C
Question 16
Incorrect
Question text
Its use varies depending on the form of business organization.
Select one:
a. Equity Accounts
b. Capital
c. Statement of Changes in Equity W
d. Equity Question 17
Incorrect
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The following are terms pertaining to Owner's Equity except: Select
one:
a. Net Worth
b. Capital W
c. Net Gross
d. Net Assets
Question 18
Correct
Question text
It is the common account title in the financial statement.
Select one: a.
Equity
b. Capital
c. Investment
d. Cash C
Question 19
Correct
Question text
Select one:
a. Purchase returns and allowances C
c. Sales Returns
d. Sales Allowances
Question 20
Incorrect
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Activities related to the acquisition and disposal of long-term assets, including investments not
considered cash equivalents is called financing activities.
Select one:
True
False C
Question 1
Correct
Question text
Merchandising business are charging fees for rendered services.
Select one:
True
False °
Question 2
Incorrect
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Transactions which are financial in nature, such as payment and purchases in cash. Select
one:
a. Partnership
b. Financial Character
c. General Accepted Accounting Principles xxx
d. Government Accounting
Question 3
Correct
Question text
A promissory note issued by the customer is an evidence of the notes receivable account.
Select one:
True°
False
Question 4
Correct
Question text
Noncurrent assets are kept principally for trading.
Select one:
True
False°
Question 5
Correct
Question text
Manufacturing business converts raw materials to finished goods.
Select one:
True°
False
Question 6
Correct
Question text
What type of accounts are Prepaid Insurance, Prepaid Advertising, and Prepaid Expenses?
b. Revenue
c. Asset°
d. Liability Question 7
Correct
Question text
ABC Store records the transaction by a debit to Accounts Receivable for P1,000 and a credit to
Service Revenues for P1,000. What is the effect of this entry upon the accounting equation for
ABC Store?
Select one:
a. Asset Decrease, No Effect
b. Equity Decrease, Equity No Effect
c. Owner's (or Stockholders')
d. Asset Increase, Equity Increase°
e. Liabilities Increase, Equity Increase
Question 8
Correct
Question text
Increase in assets is recorded as a Debit..
Select one:
True°
False
Question 9
Correct
Question text
Select one:
True°
False
Question 10
Correct
Question text
Revenues are commonly called the "cost of doing business." Select
one:
True° False
Question 11
Correct
Question text
Property, plant, and equipment are not assets.
Select one:
True
False°
Question 12
Correct
Question text
This principle has two aspects, the quantifiability and stability of peso.
Select one:
a. Stable monetary unit°
b. Going concern
c. Matching
d. Accrual Question 13
Correct
Question text
A liability is a present obligation arising out of past events.
Select one:
True° False
Question 14
Incorrect
Question text
If Revenue is greater expenses, there is a Gain.
Select one:
True
False°
Question 15
Correct
Question text
Manufacturing business changes the basic inputs into products that are sold to individual
customers. Select one:
True°
False
Question 16
Correct
Question text
Capital is another term for equity.
Select one:
True°
False
Question 17
Correct
Question text
When the owner makes withdrawal from the business for personal use, only the asset
decreases. Select one:
True
False°
Question 18
Correct
Question text
The Income Statement is composed of the revenues and expenses. Select
one:
True°
False
Question 19
Correct
Question text
Which of the following will cause owner's equity to increase? Select
one:
a. Revenue°
b. Owner Draws
c. Expenses Question 20
Incorrect
Question text
In August 2016, ABE Store receives the P4,000 for services rendered. What is the effect on the
accounting equation and which accounts are affected?
Select one:
a. Asset Increase, Equity Increase
b. Equity Decrease, Liability Increase
c. Liabilities Increase, Equity Increase
d. Owner's (or Stockholders') xxx
e. Asset Decrease, No Effect
Question 1
Incorrect
Question text
An asset is a present obligation arising out of past events.
Select one:
True W
False
Question 2
Correct
Question text
Liabilities are present obligations arising from past events..
Select one:
True C
False
Question 3
Incorrect
Question text
Income statement is another term for the Statement of Financial Position.
Select one:
True W
False
Question 4
Correct
Question text
The law that manages Corporations Select
one:
a. Corporate code C
b. Fiscal year
c. Accounting
d. Service business
Question 5
Correct
Question text
Select one:
True C
False
Question 6
Correct
Question text
Meaning of GAAP Select
one:
a. Government Accounting
b. General Accepted Accounting Principles C
c. Partnership
d. Financial Character
Question 7
Incorrect
Question text
The Calendar year ends on January 01.
Select one:
True
False W
Question 8
Correct
Question text
Long-term debts are noncurrent.
Select one:
True C
False
Question 9
Correct
Question text
Select one:
True C
False
Question 10
Incorrect
Question text
Noncurrent assets are assets that are expected to be used within 12 months.
Select one:
True W
False
Question 1
Incorrect
Question text
Losses are outflows that result from the main activity of the business.
Select one:
True W
False
Question 2
Correct
Question text
Manufacturing business converts raw materials to finished goods. Select
one:
True C
False
Question 3
Incorrect
Question text
What form of the SFP wherein the assets are listed on the left side and the liabilities and equity
are on the right side, and the two sides must equal?
Select one:
a. Working capital form W
b. Narrative form
c. Account form
d. Report form
Question 4
Incorrect
Question text
Cash and cash equivalents are noncurrent assets..
Select one:
True
False W
Question 5
Correct
Question text
Noncurrent assets are kept principally for trading.
Select one:
True
False C
Question 6
Incorrect
Question text
Revenue is synonymous to Gains. Select
one:
True W
False
Question 7
Incorrect
Question text
The Fiscal year always ends in December.
Select one:
True W
False
Question 8
Incorrect
Question text
The following are known as Balance Sheet accounts except: Select
one:
a. Equity W
b. Liability
c. Income
d. Asset Question 9
Incorrect
Question text
The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a
specific date is the __________.
Select one:
a. Statement of Financial Position
b. Statement of Cash Flow
c. Statement of Owner's Equity W
d. Income Statement
Question 10
Correct
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. Service
c. Merchandizing
d. Manfacturing C
Question 11
Correct
Question text
When the owner makes withdrawal from the business for personal use, only the asset
decreases. Select one:
True
False C
Question 12
Correct
Question text
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 C
b. Partnership
c. Financial Character
d. General Accepted Accounting Principles
Question 13
Correct
Question text
This principle requires that "those costs and expenses incurred in earning a revenue should be
recorded and reported in the same period". Select one:
a. Dual Effect
b. Going Concern
c. Accrual Principle
d. Matching Principle C
Question 14
Incorrect
Question text
Residual asset is the result of combining liabilities and equity.
Select one:
True C
False
Question 15
Correct
Question text
Accrual basis of accounting recognizes income regardless of when cash is received. Select
one:
True C
False
Question 16
Correct
Question text
Asset are resources owned and/or controlled by the enterprise.Asset are acquired by an
enterprise as a result of a past transaction or event.
Select one:
a. The 1st statement is true
b. Both statements are false
c. Both statements are true C
d. The 1st statement is false
e. The 2nd statement is true
f. The 2nd statement is false
Question 17
Incorrect
Question text
Accounting records and statements are based on the most reliable data available so that they
will be as accurate and as useful as possible.
Select one:
a. stable monetary unit concept
b. going concern concept
c. time-period concept
d. reliability or objectivity principle W
Question 18
Incorrect
Question text
Income from the sale of an equipment of a machine business is considered a gain. Select
one:
True W
False
Question 19
Correct
Question text
This concept states that assets and services that are acquired should be recorded at their
actual cost. Select one:
a. reliability or objectivity principle
b. cost concept C
c. going concern concept
d. business entity concept
Question 20
Incorrect
Question text
This occurs whenever the enterprise purchased goods or received services on account issuing
a promissory note to settle the account in a specified future date.
Select one:
a. Accounts Payable W
b. Mortgage Payable
c. Notes Payable
d. Bonds Payable
Question 1
Correct
Question text
Accounting is the system of measuring business activities of financial character. Select
one:
True C
False
Question 2
Correct
Question text
Every time a business transaction occurs like purchase of supplies, payment of receivables,
granting credit, payment of utilities, etc., we assume that for every value received there is an
equivalent value parted with.
Select one:
a. Going Concern
b. Matching Principle
c. Accrual Principle
d. Dual Effect C
Question 3
Correct
Question text
Liabilities are company's obligations.
Select one:
True C
False
Question 4
Incorrect
Question text
The following are current assets, except::
Select one:
a. Long-term liabilities
b. Accounts receivable
c. Prepaid expense W
d. Cash Question 5
Correct
Question text
Select one:
True C
False
Question 6
Correct
Question text
An asset is a present obligation arising out of past events.
Select one:
True
False C
Question 7
Correct
Question text
The Income Statement is composed of the revenues and expenses. Select
one:
True C
False
Question 8
Correct
Question text
Cash and Accounts Receivable are two examples of accounts that are reported on the
classified balance sheet under the heading __________.
Select one:
a. Current Asset C
b. Equity
c. Contra Asset
d. Current Liability
Question 9
Correct
Question text
Withdrawals are also known as "drawings".
Select one:
True C
False
Question 10
Correct
Question text
The group of accounts of the entity is called ledger.
Select one:
True C
False
Question 11
Correct
Question text
Meaning of GAAP Select
one:
a. Partnership
b. General Accepted Accounting Principles C
c. Government Accounting
d. Financial Character
Question 12
Incorrect
Question text
Current assets are obligations expected to be settled after a year.
Select one:
True W
False
Question 13
Incorrect
Question text
A cash withdrawal was made by the owner from the business for personal use.
Select one:
a. Equity Decrease, Liability Increase W
b. Owner's (or Stockholders')
d. Asset Decrease, Equity Decrease
e. Asset Decrease, No Effect
Question 14
Incorrect
Question text
The income statement line gross profit will appear on which income statement format? Select
one:
a. none of the choices
b. Multiple-step
c. Single-step W
d. Dual-step
Question 15
Correct
Question text
Going-concern is a concept where accountants assume that the business will continue to
operate for a foreseeable future.
Select one:
True C
False
Question 16
Incorrect
Question text
The financial statement that reports the revenues and expenses for a period of time such as a
year or a month is the ___________.
Select one:
a. Statement of Cash Flow
b. Statement of Financial Position W
c. Income Statement
d. Statement of Owner's Equity
Question 17
Correct
Question text
Also known as Time Period Concept Select
one:
a. Periodicity C
b. Fiscal year
c. Service business
d. Accounting
Question 18
Correct
Question text
Cash, Accounts receivable and Office supplies are examples of current assets. Select
one:
True C
False
Question 19
Incorrect
Question text
All of the following are general and administrative expenses except Select
one:
a. Depreciation expense (office equip) W
b. Taxes and business licenses
c. Advertising & promotional expenses
d. Office salaries
Question 20
Correct
Question text
The T-account is the simplest form of account.
Select one:
True C
False
Question 1
Correct
Question text
The following are examples of non-current assets except Select
one:
a. Intangible asset
b. Long-term investment
c. Property, plant and equipment
d. Accounts Receivable C
Question 2
Incorrect
Question text
What type of accounts are Deferred Revenues and Unearned Revenues?
b. Revenue W
c. Liability
d. Asset Question 3 Correct
Question text
Wages are considered expenses.
Select one:
True C
False
Question 4
Incorrect
Question text
The business receives cash from a bank loan.
Select one:
a. Liabilities Increase, Equity Increase
b. Equity Decrease, Equity No Effect W
c. Asset Increase, Equity Increase
d. Asset Decrease, No Effect
e. Owner's (or Stockholders')
Question 5
Incorrect
Question text
Increases in the assets are recorded on the right side of the account.
Select one:
True W
False
Question 6
Correct
Question text
AICPA means Select
one:
a. Fiscal year
b. American Institute of Certified Public Accountants C
c. Service business
d. Corporate code
Question 7
Incorrect
Question text
Salaries are considered income to the business.
Select one:
True W
False
Question 8
Incorrect
Question text
The Statement of Financial Position commonly adopts the Calendar Year. Select
one:
True
False W
Question 9
Correct
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 C
Question 10
Correct
Question text
Which of the following names is NOT associated with the income statement?
Select one:
a. Statement of Gains and Losses
b. Statement of Operations
c. P & L
d. Statement of Financial Position C
Question 11
Incorrect
Question text
We technically call recording as bookkeeping or journalizing because we use the book we call
_________________.
Select one:
a. General ledger W
b. Trial Balance
c. Worksheet
d. General journal
Question 12
Correct
Question text
This principle has two aspects, the quantifiability and stability of peso.
Select one:
a. Stable monetary unit C
b. Going concern
c. Accrual
d. Matching Question 13
Correct
Question text
Debit entries with a larger number would always possess a debit balance. Select
one:
True C
False
Question 14
Correct
Question text
What type of accounts are Prepaid Insurance, Prepaid Advertising, and Prepaid Expenses?
Select one: a. Liability
b. Revenue
c. Asset C
d. Equity Question 15
Correct
text
This concept ensures that accounting information is current and is reported at regular intervals.
Select one:
a. going concern concept
b. stable monetary unit concept
c. reliability or objectivity principle
d. time-period concept C
Question 16
Correct
Question text
What is the effect on Single Lady's accounting equation when it pays the account to the supplier
P22,500? And which accounts are affected?
Select one:
a. Owner's (or Stockholders')
b. Liabilities Increase, Equity Increase
d. Equity Decrease, Equity No Effect
e. Asset Decrease, Liability Decrease C
Question 17
Incorrect
Question text
Capital are claims by creditors against the company's assets.
Select one:
True W
False
Question 18
Correct
Question text
Transactions which are financial in nature, such as payment and purchases in cash.
Select one:
a. Government Accounting
b. General Accepted Accounting Principles
c. Financial Character C
d. Partnership
Question 19
Incorrect
Question text
A Statement of Financial Position is a formal statement presenting the three accounting
elements which are?
Select one:
a. Net sales, cost of goods sold, net income
b. Revenue, expense and profit W
c. Cash, accounts receivable, prepaid expense
d. assets, liabilities and equity
Question 20
Correct
Question text
Revenues are also known as income.
Select one:
True C
False
We use a multi-step approach in preparing a statement of income for

______________________.
Select one:
a. Both A and C
c. Merchandising Business C
d. Service Business
Question 2
Correct
Question text
a given period.
Select one:
a. Ending Capital
b. Capital C
c. Investments
Question 3
Correct
Question text
Select one:
a. Investments C
b. Net Profit
c. Ending capital
Question 4
Correct
Question text
We could find the period covered by the statement at the ________________ of the statement
of the account.
Select one:
a. Both A and B
b. Heading C
d. Body Question 5
Correct
Question text
How many parts does the Statement of Changes in Equity have?
Select one: a. 7
b. 3
c. 8
d. 5 C
Question 6
Incorrect
Question text
Capital is the account title used for____________________.
Select one:
a. Sole proprietorship W
b. Corporation
c. Sole proprietorship and Corporation
d. Partnership
e. Sole proprietorship and Partnership
f. Partnership and Corporation
Question 7
Correct
Question text
Select one:
a. Sales returns and allowances
b. Net Sales
c. Sales discount C
d. Cost of goods sold
Question 8
Incorrect
Question text
It refers to the right of the owner over the resources of the firm after deducting the claims of
creditors. Select one:
a. Capital W
b. Statement of Changes in Equity
c. Investment
d. Equity C Question 9
Correct
Question text
additional investments, and profit. Select one:
a. Net Profit
b. Beginning Capital
c. Investments
d. Ending Capital C
Question 10
Correct
Question text
_____________ the ending capital of the previous year. Select one: a. Different
c. Equal to
d. The same C
Question 1
Incorrect
Question text
In the statement of changes in equity of a sole proprietor, this is deducted from the beginning
capital to arrive at the ending capital.
Select one:
a. investment W
b. withdrawal
c. Net profit
Question 2
Incorrect
Question text
This accounting principle relies entirely on the payment and receipt of cash.
Select one:
a. Accrual basis W
b. Cash basis Question 3
Incorrect
Question text
The first part of a statement of income for a merchandising business is composed of the
following except: Select one:
a. sales discount
b. sales
c. beginning inventory
d. sales returns and allowances W
Question 4
Correct
Question text
It represents the total amount of inventory on hand.
a. Merchandise Inventory C
Select one:
c. Beginning Inventory
Incorrect
Question text
The customer paid his account to us. This represents:
Select one:
a. Cash receipts
b. Cash payments W
c. Investment
d. not a cash flow item
Question 6
Correct
Question text
The income statement for merchandising businesses usually has eight sections: Net sales,
Cost of goods sold, Gross profit, Operating expenses, Operating income or operating loss,
Other revenues and gains (expenses and losses), Net profit or net loss. Select one:
True C
False
Question 7
Correct
Question text
Cash flows are categorized into three types: operating, investing, and financing activities. Select
one:
True C
False
Question 8
Incorrect
Question text
An accounting principle where in income shall only be recognized when cash is received, and
expenses shall only be recorded when cash is paid.
a. Accrual Basis Accounting W
b. Cash Basis Accounting
Question 9
Incorrect
Select one:
Question text
The ________________represents the total capital at the start of the business. Select
one:
a. investment
b. Beginning capital W
c. Ending capital
d. net profit
Question 10
Correct
Question text
Beginning inventory is P50,000, net cost of purchases is P125,000, and ending inventory is
P35,000. Compute for the cost of goods sol~ Select one:
a. P210,000
b. Cannot be determined from the given data
c. P140,000 C
d. P110,000 Question 11
Correct
Question text
Merchandising business' statement of income include the following except:
Select one: a. Sales
d. Drawing C
Question 12
Correct
Question text
A form of business organization whose statement of income does not include sales.
Select one:
a. service business C
b. merchandising business
Question 13
Incorrect
Question text
a given period. Select one:
a. Investments
b. Beginning Capital
c. Ending Capital W
d. Capital Question 14
Correct
Question text
Cash withdrawal of an owner for personal use falls in what cash flow category? Select
one:
a. Financing C
b. Assessing
c. Investing
d. Operating Question 15
Correct
Question text
_____________________ involves transactions showing those related to gross cash receipts
and gross cash payments.
Select one:
a. expense method
b. asset method
c. direct method C
d. indirect method
Question 16
Correct
Question text
Financing activities are those which involve changes in the equity and liability accounts in the
accounting records.
Select one:
True C
False
Question 17
Incorrect
Question text
_____________________ is acceptable in the accounting industry.
Select one:
c. Cash basis of accounting
d. Both A and B W
Question 18
Incorrect
Question text
The statement of cash flows starts with cash on hand, beginning and ends with
________________?
Select one:
a. Ending inventory W
b. Net Profit
c. Cash on hand, end
d. Cost of goods sold
Question 19
Correct
Question text
Owner's equity represents the right of the owner over the resources of the firm. Select
one:
True C
False
Question 20
Incorrect
Question text
It states that income shall only be recognized when cash is received, and expenses shall only
be recorded when cash is paid.
Select one:
a. Cash basis of accounting
b. Accrual basis of accounting W
c. Financing activities
Question 1
Correct
Question text
In August 2016, ABE Store receives the P4,000 for services rendered. What is the effect on the
accounting equation and which accounts are affected?
Select one:
a. Equity Decrease, Liability Increase
b. Asset Decrease, No Effect
d. Owner's (or Stockholders')
e. Asset Increase, Equity Increase C
Question 2
Correct
Question text
If revenue increases and cost of goods sold remains constant, gross profit also increases.
Select one:
True C
False
Question 3
Incorrect
Question text
Long-term debts are noncurrent.
Select one:
True W
False
Question 4
Correct
Question text
A debit account in excess of credits would possess a credit balance. Select
one:
True C
False
Question 5
Incorrect
Question text
Land is a current asset..
Select one:
True
False W
Question 6
Correct
Question text
SFP is also the Balance sheet.
Select one:
True C
False
Question 7
Incorrect
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. Asset Increase, Equity Increase
c. Owner's (or Stockholders') W
d. Equity Decrease, Liability Increase
e. Liabilities Increase, Equity Increase
Question 8
Incorrect
Question text
Ownership of a cooperative is divided into shares of stock.
Select one:
True W
False
Question 9
Incorrect
Question text
The business bought furniture for office use on account.
Select one:
a. Owner's (or Stockholders')
c. Equity Decrease, Liability Increase W
d. Asset Increase, Equity Decrease
e. Asset Increase, Liability Increase
Question 10
Incorrect
Question text
The owner invests trucksto be used in the business.
Select one:
a. Asset Decrease, No Effect
b. Liabilities Increase, Equity Increase W
d. Equity Decrease, Equity No Effect
e. Owner's (or Stockholders')
Question 11
Incorrect
Question text
Capital is equal to Asset minus Liability. Asset is equal to Liability minus Capital.
Select one:
a. The 2nd statement is false.
c. The 2nd statement is true.
d. The 1st statement is false.
e. The 1st statement is true.
f. Both statements are true W
Question 12
Incorrect
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 W
Question 13
Incorrect
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 loss
b. Net assets W
c. Net worth
d. Net profit Question 14
Incorrect
Question text
Net income is a result of expenses higher than revenues.
Select one:
True W
False
Question 15
Correct
Question text
Prepaid rent is an asset..
Select one:
True C
False
Question 16
Correct
Question text
Refers to the outflows of resources usually paid in cash or incurred on credit resulting from the
main operating activities of the business.
Select one:
a. Expenses C
b. Asset
c. Losses
d. Liabilities
Question 17
Correct
Question text
Select one:
True C
False
Question 18
Correct
Question text
Businesses usually have three activities: investing, financing, and recording. Select
one:
True
False C
Question 19
Correct
Question text
Cash basis accounting only records transaction when cash is received or paid. Select
one:
True C
False
Question 20
Correct
Question text
It refers to total or gross sales less any sales discounts, and sales returns and allowances.
Select one:
a. Net Operating Income
b. Cost of Goods Sold
c. Net Sales C
d. Net Income
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BL-FABM-2121-LEC-1922S FUNDA OF ACCOUNTANCY B&M2

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BL-FABM-2121-LEC-1922S
Week 8 and 9: Cash Flow Statement
Long Quiz 002
Started on Sunday, 8 December 2019, 6:59 PM
State Finished
Completed on Sunday, 8 December 2019, 7:06 PM
Time taken 7 mins 28 secs
Grade 11.00 out of 20.00 (55%)
Question 1
Correct
Question text
In preparing the income statement for service businesses, expenses are deducted from the
revenue to arrive at the net profit or loss.
Select one:
True
False
Question 2
Incorrect
Question text
These involve changes in the equity and liability accounts in the accounting records. Select
one:
a. Operating Activities
b. Investing Activities W
c. Financing Activities
Question 3
Incorrect
Question text
Which transaction represents accrual basis of accounting?
Select one:
a. Cash paid to suppliers
b. Interest paid W
c. Depreciation of old service vehicle
Question 4
Incorrect
Question text
In the preparation of cash flow, the following items are considered using accrual basis of
accounting except:
Select one:
a. increase in trade payables W
b. interest paid
c. depreciation
Question 5
Incorrect
text
The income statement for merchandising businesses usually has the following sections,
namely: revenue, expenses and net profit or loss.
Select one:
True W
False
Question 6
Correct
Question text
Select one:
a. Cost of goods sold
b. Net Sales
c. Sales discount C
d. Sales returns and allowances
Question 7
Correct
Question text
Among all the activities, only ____________________ have different ways of being presented.
Select one:
a. Financing Activities
b. Investing Activities
c. Operating Activities C
Question 8
Correct
Question text
It represents the total amount of inventory on hand. Select
one:
a. Net Sales
b. Net cost of goods purchased
c. Beginning Inventory
d. Merchandise Inventory C
Question 9
Correct
Question text
To arrive at the net cash from operating activities using the direct method we add/deduct the
following except:
Select one:
a. Cash paid to suppliers
b. Decrease in inventory C
c. Cash receipts from customers
d. Cash paid to employees
Question 10
Incorrect
Question text
What is the effect of cash paid to supplier of P20,000 to the cash beginning of P100,000? Select
one:
a. increase of P20,000
b. not a cash flow item
c. no effect W
d. decrease of P20,000
Question 11
Correct
Question text
Cash receipts from customers is P200,000, cash paid to suppliers is P10,000 and cash paid to
employees is P25,000, how much is the net cash from operating activities. Select one:
a. P190,000
b. P165,000 C
c. P175,000
d. Cannot be determined from the data given
Question 12
Incorrect
Question text
This is the common transaction happening in the organization. Select
one:
a. Operating
b. Investing
c. All of the choices
d. Financing W
Question 13
Correct
Question text
Which one does not form part of cost of goods sold?
Select one:
a. Purchase returns and allowances
b. Merchandise inventory
c. Purchases
d. owner's equity C
Question 14
Correct
Question text
Income shall only be recognized when cash is received, and expenses shall only be recorded
when cash is paid.
Select one:
a. Financing Activities
b. Accrual Basis of Accounting
c. Cash Basis of Accounting C
d. Cash Flow
Question 15
Correct
Question text
Select one:
a. Period covered by the statement
b. None of the choices C
c. Statement of Income
d. Business Name
Question 16
Correct
Question text
If the firm has been operating in the past year, the beginning capital of the current year is the
same as the ending capital of the previous year.
Select one:
True C
False
Question 17
Correct
Question text
Select one:
a. Purchase discounts
b. Sales Allowances
c. Sales Returns
d. Purchase returns and allowances C
Question 18
Incorrect
text
The cash in a financing activity mostly involve current assets or income and expense accounts.
Select one:
True W
False
Question 19
Incorrect
Question text
Sale of equipment for P500,00 is an example of what activity? Select
one:
a. Investing
b. Developing
c. Operating W
d. Financing Question 20
Incorrect
Question text
Capital is the account title used for____________________.
Select one:
a. Corporation
b. Sole proprietorship W
c. Sole proprietorship and Corporation W
d. Partnership and Corporation
e. Partnership
f. Sole proprietorship and Partnership
Question 1
Correct
Question text
Select one:
True C
False
Question 2
Correct
Question text
Manufacturing business converts raw materials to finished goods.
Select one:
True C
False
Question 3
Correct
Question text
Bank loans are credited to Loans Payable or Mortgage Payable.
Select one:
True C
False
Question 4
Incorrect
Question text
Which of the following is a current liability?
Select one:
a. Deferred tax liability W
b. Long-term obligations of company officers
c. Long-term deferred revenue
d. Accounts payable
Question 5
Incorrect
Question text
This form of business organization has limited liability, meaning creditors cannot go after their
personal property in case of bankruptcy.
Select one:
a. Single Proprietor
b. Partnership W
c. Cooperative
d. Corporation
Question 6
Incorrect
Question text
Current assets are expected to be used after 12 months.
Select one:
True W
False
Question 7
Correct
Question text
Revenues are commonly called the "cost of doing business." Select
one:
True C
False
Question 8
Correct
Question text
Entity principle separate business from personal transactions.
Select one:
True C
False
Question 9
Correct
Question text
As compared to the corporation, single proprietorship is easier to form because of its simplicity
in operation.
Select one:
True C
False
Question 10
Correct
Question text
Asset is equal to Liability plus Capital. Liability is equal to Asset minus Capital.
Select one:
a. The 2nd statement is true.
b. The 1st statement is false.
c. Both statements are false
d. The 1st statement is true.
e. Both statements are true C
f. The 2nd statement is false.
Question 11
Correct
Question text
The language of business Select
one:
a. Corporate code
b. Service business
c. Accounting C
d. Fiscal year
Question 12
Correct
Question text
Utilities include electric bills and internet fees.
Select one:
True C
False
Question 13
Correct
Question text
The difference between net sales and the cost of goods sold.
Select one:
a. Gross profit C
b. Operating income
c. Net profit
d. Net loss Question 14
Correct
Question text
Stockholders are the owners of a corporation.
Select one:
True C
False
Question 15
Correct
Question text
Assets minus Liabilities is equal to Equity is also considered an Accounting Equation. Select
one:
True C
False
Question 16
Incorrect
Question text
This type of business is concerned with buying and selling of goods for profit.
Select one:
a. Service business
b. Merchandizing W
c. Manufacturing
d. Cooperative
Question 17
Incorrect
Question text
Single proprietorship is concerned with the manufacture of goods into finished product. Select
one:
True W
False
Question 18
Correct
Question text
Noncurrent assets are assets that are expected to be used within 12 months. Select
one:
True
False C
Question 19
Correct
Question text
Capital is another term for equity.
Select one:
True C
False
Question 20
Correct
Question text
This is the type of business which offers services for a fee Select
one:
a. Corporate code
b. Fiscal year
c. Service business C
d. Accounting
Question 1
Incorrect
Question text
The transactions falling under __________________________ shall primarily involve cash
received from customers and paid to suppliers, lenders, or employees.
Select one:
a. Investing Activities
b. All of the choices
c. Operating Activities
d. Financing Activities W
Question 2
Correct
Question text
It states that income shall only be recognized when cash is received, and expenses shall only
be recorded when cash is paid.
Select one:
c. Financing activities
d. Cash basis of accounting C
Question 3
Correct
Question text
If all business transactions uses cash, then income between accrual basis and cash basis of
accounting shall be _____.
Select one:
b. Same C
c. Either A or B
d. Different Question 4
Correct
Question text
Select one:
a. Investments
b. Ending Capital C
c. Net Profit
Question 5
Correct
Question text
Refers to total or gross sales less any sales discounts, and sales returns and allowances.
Select one:
a. Net cost of goods purchased
c. Net Sales C
d. Sales returns and allowances
Question 6
Incorrect
Question text
Sale of equipment for P500,00 is an example of what activity?
Select one:
a. Developing
b. Financing W
c. Operating
d. Investing Question 7
Correct
Question text
Income of a merchandising business comes from _________________. Select
one:
a. Rendered Services
c. Sales of the product C
d. Both A and B
Question 8
Correct
Question text
Select one:
a. Ending capital
b. Net Profit
c. Withdrawals and drawings
d. Investments C
Question 9
Incorrect
Question text
It represents the right of the owner over the resources of the firm. Select
one:
a. Stocks W
b. Equity
c. Assets W
Question 10
Incorrect
Question text
The income statement for service businesses does not include.
Select one:
a. cost of goods sold
b. net profit or net loss W
c. revenue
d. expenses Question 11
Correct
Question text
The equation for cost of goods sold is:
Select one:
b. Beginning inventory - Net cost of goods purchased - Ending inventory
c. Beginning inventory + Net cost of goods purchased + Ending inventory
d. Beginning inventory + Net cost of goods purchased - Ending inventory C
Question 12
Correct
Question text
An accounting principle where in income shall only be recognized when cash is received, and
expenses shall only be recorded when cash is paid.
Select one:
a. Cash Basis Accounting C
b. Accrual Basis Accounting
Question 13
Correct
Question text
If the beginning capital of Mrs. Castro is P200,000 and she made an additional investment
during the year of P100,000 with a net profit of P52,000, how much is the ending capital? Select
one:
a. P300,000
b. P248,000
c. P352,000 C
d. P252,000 Question 14
Correct
Question text
This accounting principle relies entirely on the payment and receipt of cash. Select
one:
a. Cash basis C
b. Accrual basis
Question 15
Correct
Question text
Cash basis accounting relies entirely on the payment and receipt of cash. Accrual basis of
accounting recognizes expenses when incurred, whether or not any cash is received or pai~
Select one:
a. The 1st statement is true. The 2nd statement is false.
c. Both statements are true C
d. The 1st statement is false. The 2nd statement is true.
Question 16
Correct
Question text
The heading of the statement of changes in equity will have to show the following except: Select
one:
a. Name of business
b. Period covered by the statement
c. Statement of changes in equity
d. Address of the business C
Question 17
Incorrect
Question text
The corporation uses this account title for the equity of the owner or owners.
Select one:
b. Name of owner, capital
c. Stockholder's equity
d. Name of owner, capital (create as many capital accounts as there are owners) W Question
18
Correct
Question text
We use this account title for the equity of the owner in constructing a Statement of Changes in
Equity for a Sole Proprietorship.
Select one:
b. Name of owner, capital C
c. Name of owner, capital (create as many capital accounts as there are owners) d.
Stockholder's equity
Question 19
Correct
Question text
Revenues of a service business is synonymous to the following except:
Select one:
a. service income
b. Sales C
c. Professional fees
d. commission income
Question 20
Correct
Question text
To arrive at the net cash from operating activities using the direct method we add/deduct the
following except:
Select one:
a. Cash paid to employees
b. Decrease in inventory C
c. Cash receipts from customers
d. Cash paid to suppliers
Question 1
Correct
Question text
_____________________ involves transactions showing those related to gross cash receipts
and gross cash payments.
Select one:
a. expense method
b. asset method
c. indirect method
d. direct method C
Question 2
Correct
Question text
a given period.
Select one:
a. Ending Capital
b. Capital C
c. Investments
Question 3
Incorrect
Question text
This is derived from the income statement and is also added to the beginning capital and
additional investments done during the year. Select one:
a. withdrawal
b. Net profit
c. investment W
Question 4
Correct
Question text
It is the total or gross purchases less any purchase discounts and purchase returns and
allowances.
Select one:
a. Sales discounts
b. Purchase returns and allowances
d. Net cost of goods purchased C
Question 5
Correct
Question text
It details the movement of cash in the business.
Select one:
a. Cash flow statement C
b. Statement of Financial Position
c. Statement of Changes in Equity
d. Statement of Income
Question 6
Correct
Question text
Which form of business organization's statement of income has cost of goods sold?
a. merchandising business C
Select one:
b. service business
Question 7
Incorrect
Question text
In cash basis accounting, companies who sell their goods on credit will record the said
transactions as sales even if they have not paid cash.
Select one:
True W
False
Question 8
Correct
Question text
This shows relationship between the inflows and outflows of resources within the firm is
an indicator of how successful the business operation was for a given period.
Select one:
a. Balance Sheet
b. Statement of Financial Position
c. Statement of Income C
Question 9
Incorrect
Question text
We use the account title "name of owner, capital" for the equity of the owner or owners
considering what form of business organization? Select one:
a. partnership
b. corporation W
d. Sole proprietorship
Question 10
Incorrect
Question text
a. Net Profit or Net Loss
Select one:
c. None of the choices W
d. Both A and B
Question 11
Incorrect
Question text
The statement of income of a service business does not include this item. Select
one:
a. Revenues
b. Expenses
d. Net profit W
Question 12
Correct
Question text
Operating activities may be presented using either the direct method or indirect method.
Select one:
True C
False
Question 13
Correct
Question text
_____________ the ending capital of the previous year. Select one: a. Equal to
b. The same C
c. Different
Question 14
Incorrect
Question text
These are the common transactions happening in the organization.
Select one:
a. Both A and C W
b. Financing Activities
c. Investing Activities
d. Operating Activities
Question 15
Correct
Question text
Which one is not a cash flow activity?
Select one:
a. Assessing C
b. Investing
c. Operating
d. Financing Question 16
Correct
Question text
In the preparation of cash flow, the following items are considered using accrual basis of
accounting except:
Select one:
a. interest paid C
b. increase in trade payables
c. depreciation
Question 17
Correct
Question text
The __________________are added to the capital beginning to arrive at the total
investments used during the year. Select one: a. Net loss
b. Net profit
c. Investments C
d. Withdrawal Question 18
Incorrect
Question text
Net sales is P450,000, sales discounts is P35,000, and sales returns and allowances is
P15,000. Compute for the gross sales. Select one:
a. P500,000
b. P430,000
c. P400,000 W
d. Cannot be determined from the given data
Question 19
Incorrect
Question text
Which of the following is not a part of the Statement of Changes in Equity?
Select one:
a. Accounts Payable
b. Beginning capital
c. Investment W
d. Withdrawal
Question 20
Correct
Question text
Which of the following is not part of the cash basis of accounting?
Select one:
a. Cash paid to employees
b. Interest accrued but not yet paid C
c. Cash receipts from customer
d. Cash paid to suppliers

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BL-FABM-2121-LEC-1922S FUNDA OF ACCOUNTANCY B&M2

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