Which of the following statements regarding accounting is incorrect?

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A transaction or event is recorded in the accounting records only if it has an effect on the assets,
liabilities, equity, income or expenses of the business.

All business transactions and events are recorded in the accounting books.

The purpose of accounting is to provide information that is useful in making economic decisions.

Although bookkeeping and accounting are interrelated, they are not the same.

Which of the following is not one of the necessary processes performed in accounting in order to
provide information that is useful to interested users?

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Identifying

Summarizing

Recording

Counting

Accounting is described in various ways. Which of the following is not one of those descriptions?

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Accounting is the “language of business” because it is fundamental to the communication of financial

information.

Accounting is a process and a service activity.

Accounting is a social science and a practical art.

Accounting is the art of professionally stealing money and other evil purposes.

Accounting has a long history. Which of the following is incorrect regarding the history of accounting?

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Accounting can be traced as far back as the prehistoric times.

All of these are correct.

Fra Luca Pacioli is the mama of modern accounting.

Accounting is as old as civilization and has evolved in response to economic and social needs of men.

5. The main purpose of accounting is

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to safeguard the assets of a company.

to account for money so it will not be lost.

to provide information that is useful in making economic decisions.

to provide a clear view of the state of the industry’s economy.

Other:

In accounting, the term “recording” is also called

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communicating

videoing.

debiting.

journalizing.

Other:

This process refers to the reporting of the information processed in the accounting system to interested
users.

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Measuring

Classifying

Communicating
Identifying

Other:

Which of the following statements is correct?

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The internal users of accounting information include management, owners and creditors.

The external users of accounting information include potential and existing investors and lenders and
other creditors.

Government accounting is the branch of accounting that deals with the analysis of the costs of products
and services.

Financial accounting is the branch of accounting that deals with the specific needs of an entity’s
management.

Other:

Which of the following statements is incorrect?

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Internal users of financial information refer to the entity’s management personnel.

Accounting education is the branch of accounting that deals with the teaching of accounting and related
subjects in order to produce competent and responsible business professionals.

Erroneous financial statements can lead to bad financial decisions.

Tax accounting refers to the branch of accounting that deals with tax computations, filing of tax returns,
and tax planning. sers of accounting information include management, owners and creditors.

Other:

Correct answer

Accounting education is the branch of accounting that deals with the teaching of accounting and related
subjects in order to produce competent and responsible business professionals.

The most common form of business organization is

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sole proprietorship.

partnership.

cell phone stand

corporation.

Other:

This branch of accounting focuses on catering to the information needs of external users

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Auditing

Financial accounting

Management accounting

External accounting

Other:

These users need accounting information in order to regulate businesses that are within the scope of
their legal authority.

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Employees

Auditors

Creditors

Government regulatory bodies or agencies

Other:

These users need accounting information in evaluating the stability of the business in so far as their job
security, future remuneration, and career growth and opportunities are concerned.
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Creditors

Regulatory authorities

Employees

Auditors

Other:

Correct answer

Employees

The following are decisions made by external users except

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whether to obtain additional capital from outside creditors or to generate it internally.

whether to sell goods on credit to the business.

whether or not to extend a loan to the business.

whether to hold or sell investments in stocks.

Other:

Which of the following users of financial information is not considered a creditor of the business?

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A loan provider, such as a bank

A customer that buys goods from the entity on credit

A financing company that provides the entity with machineries on a “rent-to-own” basis

A supplier that sells goods to the entity on credit

Other:
It is the branch of accounting that involves the careful analysis of economic events and other variables
to understand their impact on decisions.

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Tax accounting

Accounting research

Accounting education

Cost accounting

Other:

It is the process of objectively evaluating evidence and expressing an opinion regarding the
correspondence between management’s assertions and established criteria.

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Tax accounting

Accounting education

Auditing

Accounting research

Other:

An advantage of a sole proprietorship over the other forms of a business organization is

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it has unlimited life.

you are the only boss and you keep all the profits.

although it is easier to form, it may be more difficult to raise financing.

it has limited liability.

Other:
Which of the following is not an advantage of a partnership over the other forms of business
organization?

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Compared to a sole proprietorship, risks are spread out over more than one owner.

Compared to a corporation, it is easier to form because of fewer legal requirements.

Compared to a cooperative, the business organization is driven more towards the earning of profit.

Compared to a corporation, it has an unlimited life and an unlimited liability.

Other:

Correct answer

Compared to a corporation, it has an unlimited life and an unlimited liability.

Which of the following terms may not refer to the logical notions and procedures that guide the
accountant in recording and communicating financial information?

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Accounting laws and regulations

Accounting standards

Accounting concepts

Accounting principles

Other:

Under this concept, a business is not expected to end its operations in the near term.

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Going concern

Separate entity concept

Stable monetary unit

Materiality
Other:

Transactions and other events are recorded in the periods in which they occur, not when they affect
cash.

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Going concern

Accrual basis

Reporting period

Consistency

Other:

The personal transactions of the business owner that do not involve the business are not recorded in the
books of accounts of the business. This relates to the concept of

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Materiality.

Separate entity concept.

Going concern

Stable monetary unit.

Other:

5. in Philippine pesos and disregarding the effects of inflation on the purchasing power of the Philippine
peso relate to the concept of

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Separate entity concept.

Stable monetary unit.

Going concern

Materiality.
Other:

Under this concept, the life of the business is divided into series of reporting periods.

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Periodicity

Time period

All of these

Reporting period

Other:

The banking industry in the Philippines is mainly regulated by the

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CDA.

BIR.

SEC.

BSP.

Other:

The Standards used in the Philippines are patterned from

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Japanese Financial Reporting Standards

Spanish Standards.

U.S. GAAP.

international standards, called the International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board (IASB) which is based in the U.K.

Other:
Correct answer

international standards, called the International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board (IASB) which is based in the U.K.

Recording assets at their acquisition cost (entry value), rather than at their net selling price (exit value),
is in line with the concept of

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Historical cost concept.

Matching principle.

Going concern concept.

Single entity concept.

Other:

Which of the following relates to the concept of consistency?

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Using the same accounting treatment for similar items from period to period.

Recording sales revenue when a sale occurs rather than when the sale price is collected.

Measuring assets at their acquisition cost.

Treating the business as a separate entity from its owner.

Other:

Which of the following is an application of the concept of prudence or conservatism?

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Doing nothing in cases of uncertainty.

Choosing a potentially unfavorable outcome over a potentially favorable one.

Deliberately understating assets and income and deliberately overstating liabilities and expenses.
Choosing a potentially favorable outcome over a potentially unfavorable one.

Other:

The cost of providing or using information should not exceed the information’s usefulness.

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Going concern

Materiality

Cost-benefit or Cost constraint

Relevance

Other:

Under this concept, some costs are initially recognized as assets and recognized only as expenses when
the related revenue is recognized.

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Separate entity concept

Matching principle

Going concern

Historical cost concept

Other:

Businesses are required by law to file tax returns with this government agency.

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Bureau of Internal Revenue

Bangko Sentral ng Pilipinas

Cooperative Development Authority

Security and Exchange Commission

Other:

The accounting standards that are currently used in the Philippines are referred to as the

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Juan’s GAAP.

Philippine Financial Reporting Standards (PFRS).

Filipino Accounting Standards (FAS).

Philippine GAAP.

Other:

The usefulness of information is assessed in terms of its

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verifiability.

timeliness.

qualitative characteristics.

size.

Other:

Correct answer

qualitative characteristics.

Which of the following is one of the fundamental qualitative characteristics?

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Comparability

verifiability.

Relevance

timeliness.
Other:

Correct answer

Relevance

Which of the following is correct concerning the qualitative characteristics?

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The enhancing qualitative characteristics can convert non-useful information to useful information.

Neutrality means information is selected or presented with bias to increase the probability that the
information will be received favorably by the users.

Information that is not capable of affecting the decisions of users is considered irrelevant.

Free from error means the information contained in the financial statements is perfectly accurate in all
respects.

Other:

Correct answer

Information that is not capable of affecting the decisions of users is considered irrelevant.

A business purchased equipment for ₱10,000 but deliberately reported it as ₱100,000. Which of the
following principles is most likely not violated?

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Historical cost

Faithful representation

Materiality.

Free from error

Other:

This qualitative characteristic requires at least two items.

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Comparability
Timeliness

Understandability

Verifiability

Other:

It is an economic resource controlled by the entity that has resulted from past events and has a
potential to produce economic benefits.

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Liability

Asset

Income

Equity

Other:

The term ‘economic resource’ connotes

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an asset.

all of these

an equity.

a liability.

Other:

The claim of the owner(s) on the total assets of an entity is also called

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equity.
liabilities.

asset

profit.

Other:

It is a present obligation that has resulted from past events and has the potential to cause a transfer of
an economic resource in its settlement.

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asset

expense

liability.

income.

Other:

A business owner’s contribution to the business results in

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an increase in assets and an increase in income.

an increase in assets and an increase in liabilities.

a decrease in assets and an increase in owner’s equity.

an increase in assets and an increase in owner’s equity.

Other:

Indicating to others, through your past action, that you will accept and discharge certain responsibilities,
thereby creating an expectation on them that you will do so, creates an obligation called

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indicative obligation.

constructive obligation.
construction obligation.

legal obligation.

Other:

A decrease in the economic benefits of a resource would be treated as

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liability.

expense.

income

asset.

Other:

Which of the following would not give rise to income?

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all of these

enhancement in the value of an asset

investment by the business owner to the business

decrease in liabilities

Other:

Correct answer

investment by the business owner to the business

In which of the following did a loss occur? ASSETS = LIABILITIES + EQUITY + INCOME - EXPENSES

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₱920,000 ₱710,000 ₱290,000 ₱440,000 ₱520,000

₱870,000 ₱310,000 ₱240,000 ₱470,000 ₱150,000

₱890,000 ₱240,000 ₱240,000 ₱600,000 ₱190,000

₱740,000 ₱530,000 ₱170,000 ₱1,900,000 ₱1,860,000

Other:

None of the following

Correct answer

₱920,000 ₱710,000 ₱290,000 ₱440,000 ₱520,000

In accounting, a negative amount is normally presented

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in parentheses.

beginning with a minus sign.

as a squeezed amount.

negatively.

Other:

Assets and liabilities result from

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life events.

income and expenses.

future events.

past events.

Other:

Correct answer

past events.

Which of the following is incorrect regarding profit?

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Profit increases equity.

Profit is earned if total income is less than total expenses.

Profit is the excess of total income over total expenses.

Profit is measured only indirectly as an arithmetical difference.

Other:

A business incurs total expenses of ₱630,000 and reports loss of ₱270,000. How much is the total
income?

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900,000

380,000

360,000

320,000

Other:

This includes money or its equivalent that is readily available for unrestricted use.

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Cash payable

Money expense

Cash

Cash expense

Other:

For a sole proprietorship, this represents the residual amount after deducting total liabilities from total
assets
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Owner’s equity

Owner’s drawing

Interest expense

Salaries payable

Other:

Revenues earned from sales of goods are recorded in this account.

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Service fees

Sales

Gains

Interest income

Other:

This represents the value of inventories that have been sold during the accounting period.

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Rent expense

Cost of sales

Interest Expense

Travel expense

Other:

It is the aggregate of estimated losses from uncollectible accounts receivable.

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Accounts receivable
Notes receivable

Bad debts expense

Allowance for bad debts

Other:

Correct answer

Allowance for bad debts

This represents the costs incurred when travelling on business trips.

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Cost of sales

Travel expense

Interest expense

Rent expense

Other:

This represents the rentals that have been used up during the accounting period.

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Rent expense

Cost of sales

Travel expense

Prepaid rent

Other:

This represents the cost of business and local taxes required by the government for the conduct of
business.

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Government expense

Utilities expense

Taxes and licenses

Insurance expense

Other:

This account is used to record the temporary withdrawals of the owner during the period.

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Owner’s drawing

Owner’s equity

Owner’s capital

Interest expense

Other:

Revenues earned from rendering services are recorded in this account.

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Interest income

Sales

Gains

Service fees

Other:

The business sells goods to a customer who orally promises to pay for the purchase price after 30 days.

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Cash

Accounts payable
Accounts receivable

Cost of sales

Other:

Correct answer

Accounts receivable

The business sells goods to a customer who orally promises to pay for the purchase price after 30 days.
The customer in above is subsequently found to be in financial distress. The business estimates that only
half of the purchase price will be collected from the customer.

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Owner’s equity

Allowance for bad debts

Interest expense

Accumulated depreciation

Other:

The business purchases goods to be held for resale in the ordinary course of business activities.

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Inventory

Owner’s capital

Accounts receivable

Building

Other:

The business acquires equipment for a total cost of ₱1M. Instead of expensing right away the ₱1M cost,
the business allocates it over the 5-year useful life of the equipment. Meaning, the business will
recognize the ₱1M cost as expense on a piecemeal basis or ₱200K per year (1M ÷ 5 years). The portion
of the cost that is expensed during the period is recorded as

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Bad debts expense

Equipment.

Depreciation expense.

Allowance for bad debts.

Other:

The business purchases inventory on account (on credit).

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Accounts receivable

Cash

Accounts payable

Prepaid supplies

Other:

The business borrowed ₱1M from the bank. At maturity date, the business pays the bank ₱1.4M to
settle the loan. The ₱.4M difference between the settlement amount and the principal (i.e., 1.4M – 1M =
.4M difference) is recorded as

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Notes payable.

Prepaid rent.

Interest expense.

Utilities expense.

Other:
The business pays its employees compensation for the services they have rendered during the period.

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Rent expense

Cost of sales or Cost of goods sold

Freight-out

Salaries expense

Other:

The business owner invested cash to the business.

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Owner’s equity

Loss

Owner’s drawings

Salaries expense

Other:

The business renders services to clients.

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Sales

Interest income

Service fees

Gain

Other:

The business receives billing for electricity used during the period. Before the bill is paid, it is initially
recorded in this account.
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Utilities payable

Salaries payable

Interest payable

Accounts payable

Other:

Which of the following statements is incorrect regarding the use of the books of accounts?

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All the accounts in the general ledger have supporting accounts in the subsidiary ledger.

If an entity uses special journals, its sales on account are recorded in the sales journal, while its sales on
cash basis are recorded in the cash receipts journal.

If an entity uses special journals, all transactions that cannot be recorded in the special journals are
recorded in the general journal.

If an entity uses special journals, it will record only purchases on account in the purchases journal. It will
not record cash purchases and purchases in exchange for notes payable in the purchases journal.

Other:

Journals are used in a recording process called

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journalizing.

postinging.

journalizationing.

posting.

Other:

Which of the following is not a special journal?

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Cash receipts journal

Subsidiary ledger

Sales journal

Purchases journal

Other:

4. An increase to an account is recorded

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in the side of that account that represents its normal balance.

in the credit side of that account.

in the debit side of that account.

beside the account.

Other:

Correct answer

in the side of that account that represents its normal balance.

When two debits get together, the result is

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addition.

love and happiness.

deduction.

multiplication.

Other:

Cash is increased through

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none of the above

a credit.

a debit.

ask Mama to make padala.

Other:

The minimum balance of an account is zero. In accounting, a negative balance in an account is referred
to as

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abnormal balance.

psychotic balance.

LOL balance.

crazy balance.

Other:

At the beginning of the period, a business has a cash balance of ₱20,000. During the period, total cash
collections and total cash payments amounted to ₱100,000 and ₱70,000, respectively. How much is the
ending balance of cash?

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30,000

70,000

50,000

10,000

Other:
You opened up a business and invested ₱5M cash as the business’ initial capital. Which of the following
accounts is increased and therefore debited?

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Accounts receivable

Owner’s equity

Accounts payable

Cash

Other:

You opened up a business and invested ₱5M cash as the business’ initial capital. Which of the following
accounts is increased and therefore debited? In conjunction with the transaction above, which of the
following accounts is also increased and therefore credited?

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Owner’s equity

Cash

Accounts receivable

Accounts payable

Other:

You purchased goods to be held for sale in the ordinary course of business activities, on cash basis.
Which of the following accounts is increased and therefore debited?

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Accounts payable

Owner’s equity

Cash

Inventory

Other:
You purchased goods to be held for sale in the ordinary course of business activities, on cash basis.
Which of the following accounts is increased and therefore debited? In conjunction with the transaction
above, which of the following accounts is decreased and therefore credited?

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Accounts payable

Cash

Owner’s equity

Inventory

Other:

You purchased goods to be held for sale in the ordinary course of business activities, on cash basis.
Which of the following accounts is increased and therefore debited? If the transaction above was made
on account, which of the following accounts is also increased and therefore credited?

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Cash

Accounts receivable

Inventory

Accounts payable

Other:

A customer bought goods from your business, on credit. The customer orally promised to pay the sale
price next week. Which of the following accounts is increased and therefore debited?

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Accounts receivable

Inventory

Notes receivable
Cash

Other:

A customer bought goods from your business, on credit. The customer orally promised to pay the sale
price next week. Which of the following accounts is increased and therefore debited? In conjunction
with the transaction above, which of the following accounts is also increased and therefore credited?

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Cash

Notes receivable

Inventory

Sales

Other:

A customer bought goods from your business, on credit. The customer orally promised to pay the sale
price next week. Which of the following accounts is increased and therefore debited? When the
customer above pays the sale price, which of the following accounts is decreased and therefore
credited?

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Accounts receivable

Cash

Inventory

Sales

Other:

Correct answer

Accounts receivable

Your business obtained a ₱1M loan from a financing company. The financing company made you sign a
contract promising to repay the loan after a year. Which of the following accounts is increased and
therefore credited?
1/1

Notes payable

Accounts payable

Accounts receivable

Notes receivable

Other:

Your business obtained a ₱1M loan from a financing company. The financing company made you sign a
contract promising to repay the loan after a year. Which of the following accounts is increased and
therefore credited? To record the transaction above, which of the following accounts will you debit?

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Owner’s equity

Inventory

Accounts payable

Cash
Other:

Your business obtained a ₱1M loan from a financing company. The financing company made you sign a
contract promising to repay the loan after a year. Which of the following accounts is increased and
therefore credited? The financing company who lent you the loan above will record the transaction by
debiting which of the following accounts?

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Notes receivable

Accounts receivable

Notes payable

Accounts payable

Other:

Your business obtained a ₱1M loan from a financing company. The financing company made you sign a
contract promising to repay the loan after a year. The financing company above will credit which of the
following accounts?

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Notes payable

Accounts payable

Accounts receivable

Cash

Other:

You purchased a computer for ₱50,000 cash. To record this transaction, which of the following accounts
will you credit?

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Owner’s capital

Computer equipment
Inventory

Cash

Other:

Correct answer

Cash

You purchased a computer for ₱50,000 cash. To record this transaction, which of the following accounts
will you credit? You expect to use the computer above over the next 5 years. At the end of Year 1, you
will debit which of the following accounts?

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Depreciation expense for ₱50,000

Accumulated depreciation – Equipment for ₱10,000

Depreciation expense for ₱10,000

Accumulated depreciation – Equipment for ₱50,000

Other:

Which of the following statements is correct?

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Accounts receivable is increased through credit.

Accounts payable is decreased through credit.

A contra-asset account is increased through credit.

Owner’s equity is increased through debit.

Other:

Correct answer

A contra-asset account is increased through credit.

The “Allowance for bad debts” account is a contra account of

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Accounts receivable.

Equipment.

Cash.

Building.

Other:

Entity A’s accounts receivable has a balance of ₱10,000. If the related allowance for bad debts account
has a balance of ₱4,000, the carrying amount of accounts receivable in Entity A’s financial statements is

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₱4,000.

₱14,000.

0.

₱6,000.

Other:

Entity A had total assets, liabilities, and equity of ₱130M, ₱80M and ₱50M, respectively, at the
beginning of the period. During the period, Entity A’s total liabilities decreased by ₱20M, while its profit
was ₱25M. There were no other transactions or events that affected equity during the period. How
much is Entity A’s ending total assets?

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₱135M

₱95M

₱125M

₱85M

Other:
Entity A had total assets, liabilities, and equity of ₱150M, ₱90M and ₱60M, respectively, at the
beginning of the period. During the period, Entity A’s total liabilities decreased to ₱40M, while its profit
was ₱25M. There were no other transactions or events that affected equity during the period. How
much is Entity A’s ending total assets?

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₱75M

₱115M

₱125M

₱95M

Other:

135M

Correct answer

₱125M

Entity A had total assets of ₱120M and total liabilities of ₱80M at the beginning of the period. If at the
end of the period, total assets increased by ₱30M, while total liabilities remained the same, Entity A’s
total equity at the end of the period would be

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₱90M

₱80M

₱70M

₱60M

Other:

Entity A had total assets and total liabilities of ₱120M and ₱85M, respectively, at the beginning of the
period. During the period, Entity A earned total income of ₱60 and incurred total expenses of ₱45. How
much is Entity A’s ending total equity?

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₱120M

₱50M

₱60M

₱90M

Other:

Entity A had total assets and total liabilities of ₱150M and ₱80M, respectively, at the beginning of the
period. During the period, Entity A earned total income of ₱60 and incurred total expenses of ₱40. Entity
A’s total assets decreased to ₱130M by year-end. There were no additional contributions by, or
distributions to, the owner during the period. How much is Entity A’s ending total liabilities?

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₱90M

₱40M

₱50M

₱60M

Other:

Entity A has ending total assets of ₱90M and ending total liabilities of ₱60M. Entity A had a beginning
equity of ₱10M. If Entity A earned total income of ₱45M during the year, how much were the total
expenses?

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₱60M

₱25M

₱90M

₱0

Other:
Entity A has ending total assets of ₱150M and ending total liabilities of ₱90M. Entity A had a beginning
equity of ₱30M. If Entity A incurred total expenses of ₱50M during the year, how much was the total
income?

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₱50M

₱90M

₱80M

₱60M

Other:

Entity A has ending total assets of ₱150M and ending total liabilities of ₱90M. Entity A had a beginning
equity of ₱30M. If Entity A incurred total expenses of ₱50M during the year, how much was the total
income?

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80M

(₱35M)

₱35M

(₱25M)

Other:

80M

Inventory normal balance *

1/1

Debit

Credit

Expenses normal balance *

0/1

Credit

Debit

Correct answer

Debit

Cost of Sales normal balance *

1/1

Debit

Credit

Accumulated Depreciation normal balance *

0/1

Debit

Credit

Correct answer

Credit

Interest income normal balance *

0/1

Credit

Debit

Correct answer

Credit
Allowance for doubtful accounts normal balance *

1/1

Debit

Credit

Unearned income normal balance *

1/1

Credit

Debit

Owner drawings normal balance *

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Credit

Debit

Correct answer

Debit

Prepaid expense normal balance *

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Debit

Credit

Service fees normal balance *

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Debit
Credit

Accrued wages *

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CR SALARY EXPENSE

CR CASH

DR SALARY EXPENSE

DR SALARIES PAYABLE

Sale of Building used formerly on operations *

0/1

CR BLDG

CR SALE

CR INVENTORY

CR BAD DEBT EXPENSE

Correct answer

CR BLDG

Interest received from bank savings *

0/1

DR INTEREST INCOME

CR SERVICE FEE

CR INTEREST INCOME

DR SERVICE FEE

Correct answer
CR INTEREST INCOME

Unpaid utilities *

0/1

CR CASH

DR UTILITIES EXPENSE

DR UTILITIES PAYABLE

DR CASH

Correct answer

DR UTILITIES EXPENSE

Unpaid rent *

0/1

DR PREPAID RENT

CR CASH

DR RENT EXPENSE

DR RENT PAYABLE

Correct answer

DR RENT EXPENSE

Accounting record where business transactions are first recorded. *

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Trial balance

Ledger

Financial accounting & reporting (Fundamentals) - Milan

Journal
A systematic compilation of a group of accounts. *

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Financial accounting & reporting (Fundamentals) - Milan

Trial balance

Ledger

Journal

Account which consists of a group of accounts with similar nature. *

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Control account

Bank account

Income statement account

Balance sheet account

Correct answer

Control account

Standard contents of General Journal that defines chronological order. *

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Account number

Debit & Credit column

Account title

Date

Standard contents of General Journal that defines chronological order. *

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Date

Account number

Account title

Debit & Credit column

Standard contents of General Journal that includes accounts affected and brief description of the the
transaction. *

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Account number

Date

Account title

Debit & Credit column

Standard contents of General Journal that is used to cross-reference the journal entry to ledger. *

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Ledger reference

Account number

Posting reference

Sub ledger reference

Used to record transactions of similar nature. *

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Subsidiary Ledger

Special Journal

General Ledger
General Journal

Used to record transactions involving payments of cash. *

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Cash receipts journal

Sales journal

Cash disbursement journal

Purchase journal

Used to record sales on account. *

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Cash disbursement journal

Cash receipts journal

Purchase journal

Sales journal

If a business does not utilize special journals, all its transactions are recorded in? *

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Subsidiary ledger

General journal

General ledger

Special journal

Correct answer

General journal

Debit decreases *
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Cash

Accumulated depreciation

Sales return

Notes receivable

Credit increases *

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Inventory

Land

Purchase return

Owner's drawing

Correct answer

Purchase return

Account used to get current/net value of PPE *

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Cost of goods sold

Depreciation expense

Accumulated depreciation

Purchases

Correct answer

Accumulated depreciation

A company that sells cars would record *

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Accumulated depreciation

PPE

Inventory

Machinery

Correct answer

Inventory

Step in accounting cycle, gathering of information from source documentation *

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Posting

Journalizing

Identifying & Analyzing

Preparation of unadjusted trial balance

Which comes first? *

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Preparing adjusting entries

Journalizing

Preparation of unadjusted trial balance

Posting

Which comes last? *

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Preparation of unadjusted trial balance

Preparing adjusting entries

Journalizing

Posting

Correct answer

Preparing adjusting entries

Which comes second? *

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Preparation of post-closing trial balance

Preparation of financial statements

Preparation of adjusted trial balance

Closing books

Which comes second? *

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Preparation of post-closing trial balance

Preparation of financial statements

Closing books

Preparation of adjusted trial balance

Which comes second? *

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Preparation of adjusted trial balance

Journalizing

Closing of books

Preparation of unadjusted trial balance

Which comes third? *

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Preparation of unadjusted trial balance

Journalizing

Preparation of financial statements

Identifying & analy

Which comes last? *

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Closing books

Preparation of financial statements

Preparation of adjusted trial balance

Preparation of post-closing trial balance

Source document that forms evidence of parcel received *

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Delivery receipt

Purchase Order

Official receipt

Picture with kuya shopee/lazada

Source document that forms as a report that shows listing of transactions *

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Bank deposit

Bank statement

Statement of account
Sales Invoice

Journal entry that contains two or more debits & credits *

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Compound JE

Simple JE

Adjusting JE

Post adjusting entry

Entry to record investment of Building by owner is debit to building & credit to? (ALL ANSWERS IN
UPPERCASE) *

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OWNER'S EQUITY

Which journal should sale of land on account by AYALA LANDS corp be booked? *

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Sales journal

General journal

Purchase journal

Cash receipts

Correct answer

Sales journal

Which journal should sale of land on account by MACAO milktea shop be booked? *

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General journal

Sales journal

Purchase journal

Cash receipts

Correct answer

General journal

Which journal should cash collections be booked? *

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Cash receipts

Sales journal

Purchase journal

General journal