The account Notes Receivable is recorded by the Seller/Creditor, what is the account title to be

used by the Buyer/Debtor? (1pts.)

TYPE: IDENTIFICATION
Your Answer : Current Assets
Correct Answer : Notes Payable
Remarks : close

2.Paid P160,000 cash to purchase a delivery van (surplus) on April 1, 2021. The van was
expected to have a 5-year life. Depreciation is computed on a straight-line basis. How much is
the book value of the delivery van on December 31, 2026? (5pts.)
TYPE: IDENTIFICATION
Your Answer : 160,000
Correct Answer : P0.00 / P0 / zero
Remarks : close

3.Received P9,800 from customers billed on February 15. what will happen to cash account in
the transaction? (1pts.)TYPE: MULTIPLE CHOICE

A. decreased
B. not affected
C. increased
Your Answer : C
Correct Answer : C
Remarks : checked

4.Acquired an old service vehicle costing P47,000 for the business, paying P10,000 cash, and
financing the remaining P37,000 by issuing a notes payable. The following accounts are affected
by the transaction except- (1pts.)TYPE: MULTIPLE CHOICE

A. cash
B. notes payable
C. service vehicle
D. accounts payable
Your Answer : D Correct Answer : D
Remarks : checked

5.Software development, Accounting, and legal are examples of what type of

business? (1pts.)TYPE: MULTIPLE CHOICE

A. manufacturing
B. trading
C. service
D. infrasctructure
Your Answer : C Correct Answer : C Remarks : checked

6.If income is less than expense, income summary has ____________ balance (1pts.)
TYPE: IDENTIFICATION
Your Answer : Credit
Correct Answer : debit
Remarks : close

7.Revenue is recognized when earned even not yet received/collected (1pts.)

TYPE: MULTIPLE CHOICE

A. accrual basis
B. cash basis
C. historical cost
D. market value
Your Answer : A
Correct Answer : A
Remarks : checked

8.Deposited P62,000 cash in a bank account in the name of the new entity. What accounts are
increased in the transaction? (1pts.)

TYPE: MULTIPLE CHOICE

A. bank account and entity
B. bank account and capital
C. cash and entity
D. cash and capital
Your Answer : A
Correct Answer : D
Remarks : close

9.The accounting equation is (1pts.)

TYPE: MULTIPLE CHOICE

A. A = AP + L
B. L = A - C
C. A = L + C
D. C = A - L
Your Answer : C
Correct Answer : C
Remarks : checked

10.What is the end of an accounting period if the business starts on March 3, 2021 if it applies
fiscal year? (1pts.)

TYPE: MULTIPLE CHOICE

A. December 31, 2021
B. March 3, 2022
C. March 31, 2021
D. March 31, 2022
Your Answer : D
Correct Answer : D
Remarks : checked

11.These are tangible assets that are held by an enterprise for use in the production or supply of
goods or services, or for rental to others, or for administrative purposes and which are expected
to be used during more than one period. (1pts.)

TYPE: MULTIPLE CHOICE

A. Marketable Securities
B. Intangible Assets
C. Laibilities
D. Property, Plant and Equipment
Your Answer : B
Correct Answer : D
Remarks : close
12.

The third line of a financial transaction worksheet heading is (1pts.)

TYPE: MULTIPLE CHOICE
A. the date of the transaction
B. the beginning period covered
C. the applicable month or period
D. the businessname
Your Answer : B
Correct Answer : C
Remarks : close
13.

if assets amounts to P10,000 and the liabilities is P4,500, the capital is P___________ (2pts.)
TYPE: MULTIPLE CHOICE
A. P4,500
B. P5,500
C. P0
D. P5,000
Your Answer : B
Correct Answer : B
Remarks : checked
14.

A quarterly period is composed of how many months? (1pts.)

TYPE: MULTIPLE CHOICE
A. 2 months
B. 3 months
C. 4 months
D. 6 months
Your Answer : B
Correct Answer : B
Remarks : checked
15.
Expense is recognized when paid (1pts.)
TYPE: MULTIPLE CHOICE
A. cash basis
B. accrual basis
C. historical cost
D. market value
Your Answer : A
Correct Answer : A
Remarks : checked
16.

The liabilities of Lenore Loqueloque Stylist equal one-third of the total assets, and the owner's
equity is P240,000. What is the amount of the liabilities? (5pts.)
TYPE: MULTIPLE CHOICE
A. 360,000
B. 240,000
C. 120,000
D. 600,000
Your Answer : C
Correct Answer : C
Remarks : checked
17.
The income is greater than expense, the income summary has _________ balance (1pts.)
TYPE: IDENTIFICATION
Your Answer : Credit balance
Correct Answer : credit
Remarks : close
18.The elements of the statement of income are the following, except? (1pts.)

TYPE: MULTIPLE CHOICE

A. expense
B. capital
C. income
Your Answer : B Correct Answer : C Remarks : close
19.The following are classified as cash, except (1pts.)

TYPE: MULTIPLE CHOICE

A. coins
B. currency
C. change fund
D. Petty Cash Receipt
Your Answer : C
Correct Answer : D
Remarks : close
20.Which statement is false (1pts.)

TYPE: MULTIPLE CHOICE

A. Increase in Assets = Increase in Liabilities
B. Increase in Assets = Decrease in Owner's Equity
C. Increase in Owner's Equity = Decrease in Liabilities
D. Increase in one Liability = Decrease in another Liability
Your Answer : D
Correct Answer : B
Remarks : close
21.When a prepaid insurance expires, what the is the appropriate account to record the said
expired portion? (1pts.)
TYPE: IDENTIFICATION
Your Answer : Expense Account
Correct Answer : Insurance Expense
Remarks : close
22.Paid miscellaneous expenses, P2,200. The account decreased by the transaction is (1pts.)

TYPE: MULTIPLE CHOICE

A. Miscellaneous expense
B. Expense
C. accounts
D. cash
Your Answer : D
Correct Answer : D
Remarks : checked
23.

farming, mining, and oil are examples of (1pts.)

TYPE: MULTIPLE CHOICE
A. infrastructure
B. raw mateerials
C. trading
D. service
Your Answer : D
Correct Answer : B
Remarks : close
24.which statement is false? (1pts.)

TYPE: MULTIPLE CHOICE

A. the t-account's debit and credit totals are always equal
B. the t-account has debit and credit side
C. the top of the t-account is the account title
D. to determine the balance of the t-account, the debit totals are deducted by the credit totals, the
difference is laced on the side with greater value.
Your Answer : A
Correct Answer : A
Remarks : checked
25.Paid P160,000 cash to purchase a delivery van (surplus) on April 1, 2021. The van was
expected to have a 5-year life. Depreciation is computed on a straight-line basis. How much is
the accumulated depreciation at December 31, 2022? (5pts.)
TYPE: IDENTIFICATION
Your Answer : 32,000
Correct Answer : P56,000.00 / P56,000
Remarks : close
26.Buying a range of raw materials and manufactured goods and consolidating them, making
them available for sale in locations near to their customers or online for delivery is a structure
of (1pts.)

TYPE: MULTIPLE CHOICE

A. trading/merchandising
B. service
C. manufacturing
D. insurance
Your Answer : A
Correct Answer : A
Remarks : checked
27.Paid P160,000 cash to purchase a delivery van (surplus) on April 1, 2021. The van was
expected to have a 5-year life. Depreciation is computed on a straight-line basis. How much is
the annual depreciation expense? (5pts.)
TYPE: IDENTIFICATION
Your Answer : 32,000
Correct Answer : P32,000.00 / P32,000
Remarks : close
28.If income is greater than expense, the difference is (1pts.)

TYPE: MULTIPLE CHOICE

A. net loss
B. accounts payable
C. net income
D. cash
Your Answer : C
Correct Answer : C
Remarks : checked

29.On what month will end the 1st Quarter of a business if it starts business on March 3, 2021
using fiscal year? (1pts.)

TYPE: MULTIPLE CHOICE

A. May
B. June
C. April
D. March
Your Answer : A
Correct Answer : A
Remarks : checked
30.If income is less than expense, the difference is (1pts.)

TYPE: MULTIPLE CHOICE

A. net loss
B. accounts payable
C. cash
D. net income
Your Answer : A
Correct Answer : A
Remarks : checked
31.
Paid P160,000 cash to purchase a delivery van (surplus) on April 1, 2021. The van was expected
to have a 5-year life. Depreciation is computed on a straight-line basis. How much is the annual
depreciation expense at the end of December 31, 2021? (5pts.)
TYPE: IDENTIFICATION
Your Answer : 24,000
Correct Answer : P24,000
Remarks : close
32.The following are the elements of a partnership except (1pts.)

TYPE: MULTIPLE CHOICE

A. Two or more persons
B. Contributes cash
C. Common fund
D. Division of profit/loss
Your Answer : C
Correct Answer : B
Remarks : close
33.mixer, construction equipment, crane etc. are examples of (1pts.)

TYPE: MULTIPLE CHOICE

A. furniture and fixtures
B. office equipment
C. machinery and equipment
D. motor Vehicles and Equipment
Your Answer : C Correct Answer : C Remarks : checked
34.Withdrew P10,000 from the business. what is the effect to capital account in the
transaction? (1pts.)

TYPE: MULTIPLE CHOICE

A. increased
B. not affected
C. decreased
Your Answer : C
Correct Answer : C
Remarks : checked
35.The elements of a statement of financial position are the following, except (1pts.)

TYPE: MULTIPLE CHOICE

A. assets
B. income
C. liabilities
D. capital
Your Answer : B
Correct Answer : B
Remarks : checked
36.Expense is recognized in the books when they are incurred even if not yet paid (1pts.)

TYPE: MULTIPLE CHOICE

A. cash basis
B. accrual basis
C. historical cost
D. market value
Your Answer : B
Correct Answer : B
Remarks : checked
37.A contra-asset account that contains the sum of the periodic depreciation charges (1pts.)

TYPE: MULTIPLE CHOICE

A. depreciation expense
B. depreciation charges
C. accumulated depreciation
D. salvage value
Your Answer : C
Correct Answer : C
Remarks : checked
38.These are claims against customers arising from sale of services or goods on credit. This type
of receivable offers less security than a promissory note. (1pts.)

TYPE: MULTIPLE CHOICE

A. Notes Receivable
B. Accounts Receivable
C. Account Receivables D. Note Receivables Your Answer : B Correct Answer : B
Remarks : checked
39.If expense is less than income, the difference is (1pts.)

TYPE: MULTIPLE CHOICE

A. cash
B. net loss
C. accounts payable
D. net income
Your Answer : B
Correct Answer : D
Remarks : close
40.Revenue is recognized when received/collected (1pts.)

TYPE: MULTIPLE CHOICE

A. historical cost
B. market value
C. accrual basis
D. cash basis
Your Answer : C
Correct Answer : D
Remarks : close
41.When a transaction is recorded in the financial transaction worksheet the equality of the
accounting equation is maintained (1pts.)

TYPE: MULTIPLE CHOICE

A. true
B. false
Your Answer : A
Correct Answer : A
Remarks : checked
42.Each transaction entered into the accounting system should be supported by the following
source documents, except (1pts.)

TYPE: MULTIPLE CHOICE

A. deposit slips
B. customer invoices
C. vendor invoices
D. time clock
Your Answer : D
Correct Answer : D
Remarks : checked

43.

The business organization that has two or more persons (1pts.)

TYPE: MULTIPLE CHOICE
A. partnership
B. corporation
C. cooperative
D. single proprietorship
Your Answer : A
Correct Answer : A
Remarks : checked
44.

After all transactions are recorded in a financial transaction worksheet there no need to foot each
column. (1pts.)
TYPE: MULTIPLE CHOICE
A. true
B. false
Your Answer : A
Correct Answer : B
Remarks : close