Types of Major Accounts Quiz

Types of Major Accounts
QUIZ 1: IDENTIFICATION:
Instruction: Identify the account title referred to by each of the following statements.
Place your answers before the numberings.
1. This account is used to record the costs incurred in marketing

or promoting the products or services of a business.
2. This is the expense account used to record the uncollectible

portion of accounts receivable.
3. This is used to record the cost of supplies used during the

period.
4. This account may be used to record the payments for water and
electricity bills.
5. Transport costs of delivering goods to customers are recorded

in this account.
6. It is a liability account that is used to record amounts received

from customers in advance of providing goods or services.
7. These represent claims for cashthat are supported by oral or

informal promises to pay by a customer.
8. This is used to record the unused portion of supplies.
9. Thisrepresents the goods that are held for sale by a business.
10. This represents various small expenditures that do not

warrant separate presentation.
“Be joyful in hope, patient in affliction, faithful in prayer.”(Romans 12:12)
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ANSWERS TO QUIZ 1:
1. Advertising expense
2. Bad debts expense (or Doubtful accounts expense)
3. Supplies expense
4. Utilities expense
5. Freight out (Delivery expense, Transportation-out, or Carriage outwards)
6. Unearned income (Unearned revenue or Advances from customers)
7. Accounts receivable
8. Prepaid supplies
9. Inventory
10. Miscellaneous expense
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NAME: Date:
Professor: Section: Score:
QUIZ 2: MULTIPLE CHOICE
1. This represents the costs incurred when travelling on business trips.

a. Interest expense
b. Travel expense
c. Rent expense
d. Cost of sales
2. This represents the value of inventories that have been sold during the accounting
period.
a. Interest Expense
b. Travel expense
c. Rent expense
d. Cost of sales
3. This represents the rentals that have been used up during the accounting period.
a. Prepaid rent
b. Travel expense
c. Rent expense
d. Cost of sales
4. This represents the cost of business and local taxes required by the government for
the conduct of business.
a. Insurance expense
b. Utilities expense
c. Taxes and licenses
d. Government expense
5. This includes money or its equivalent that is readily available for unrestricted use.
a. Money expense
b. Cash expense
c. Cash
d. Cash payable
6. It is the aggregate of estimated losses from uncollectible accounts receivable.

a. Bad debts expense
b. Allowance for bad debts
c. Accounts receivable
d. Notes receivable
7. This account is used to record the temporary withdrawals of the owner during the
period.
a. Owner’s drawing
b. Owner’s capital
c. Owner’s equity
d. Interest expense
8. For a sole proprietorship, this represents the residual amount after deducting total
liabilities from total assets.
a. Owner’s drawing
b. Salaries payable
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c. Owner’s equity
d. Interest expense
9. Revenues earned from rendering services arerecorded in this account.

a. Sales
b. Service fees
c. Interest income
d. Gains
10. Revenues earned from sales of goods are recorded in this account.
a. Sales
b. Service fees
c. Interest income
d. Gains
“May the God of hope fill you with all joy and peace as you trust in him, so that you may
overflow with hope by the power of the Holy Spirit.”(Romans 15:13)
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NAME: Date:
Professor: Section: Score:
QUIZ 3: MULTIPLE CHOICE
Instruction: Choose the letter corresponding to the correct account titles used in
recording each of the transactions described below.
1. The business sells goods to a customer who orally promises to pay for the purchase
price after 30 days.
a. Accounts receivable
b. Accounts payable
c. Cash
d. Cost of sales
2. The customer in Question 1 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.
a. Owner’s equity
b. Accumulated depreciation
c. Allowance for bad debts
d. Interest expense
3. The business purchases goods to be held for resale in the ordinary course of
business activities.
a. Building
b. Inventory
c. Accounts receivable
d. Owner’s capital
4. 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
a. Bad debts expense
b. Equipment
c. Allowance for bad debts
d. Depreciation expense
5. The business purchases inventory on account (on credit).

a. Cash
b. Accounts receivable
c. Accounts payable
d. Prepaid supplies
6. The business borrowed ₱1M from the bank. At maturity date, the business pays the
bank ₱1.4M to settle the loan. The difference between the principal and the
settlement amount of .4M (1.4M – 1M) is recorded as
a. Prepaid rent
b. Notes payable
c. Interest expense
d. Utilities expense
7. The business pays its employees compensation for the services they have rendered
during the period.
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a. Rent expense
b. Cost of sales or Cost of goods sold
c. Freight-out
d. Salaries expense
8. The business owner invested cash to the business.

a. Owner’s capital
b. Owner’s drawings
c. Salaries expense
d. Loss
9. The business renders services to clients.

a. Sales
b. Service fees
c. Interest income
d. Gain
10. The business receives billing for electricity used during the period. Before the bill is
paid, it is initially recorded in this account.
a. Utilities payable
b. Interest payable
c. Accounts payable
d. Salaries payable
“To those who by persistence in doing good seek glory, honor and immortality, he will
give eternal life.”(Romans 2:7)
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Types of Major Accounts

1. This account is used to record the costs incurred in marketing

2. This is the expense account used to record the uncollectible

3. This is used to record the cost of supplies used during the

5. Transport costs of delivering goods to customers are recorded

6. It is a liability account that is used to record amounts received

7. These represent claims for cashthat are supported by oral or

8. This is used to record the unused portion of supplies.

9. Thisrepresents the goods that are held for sale by a business.

10. This represents various small expenditures that do not

“Be joyful in hope, patient in affliction, faithful in prayer.”(Romans 12:12)

QUIZ 2: MULTIPLE CHOICE

1. This represents the costs incurred when travelling on business trips.

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

9. Revenues earned from rendering services arerecorded in this account.

QUIZ 3: MULTIPLE CHOICE

2. The customer in Question 1 above is subsequently found to be in financial distress.

5. The business purchases inventory on account (on credit).

8. The business owner invested cash to the business.

9. The business renders services to clients.

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