Review Quiz

INTRODUCTION TO ACCOUNTING
The following are examples of manufacturing businesses, except
a.
Red Ribbon Bakeshop
b.
Rolex Watch Repair Shop
c.
Toyota Motors, Inc.
d.
Sony Philippines
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Your answer is correct.
The correct answer is:
Rolex Watch Repair Shop
Question 2
Correct
Mark 1.00 out of 1.00
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A business of two or more persons who bind themselves to contribute money, property or industry to a
common fund, with the intention of dividing the profits among themselves
a.
Cooperative
b.
Partnership
c.
Sole proprietorship
d.
Corporation
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Partnership
Question 3
Correct
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The following are examples of service businesses except
a.
Cagayan River Hotel and Resorts
b.
Azina Water Refilling Station
c.
Spendmore Supermarket
d.
Philippine Airlines
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Question 4
Correct
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Which is not one of the legal requirements of a business?
a.
Secure business registration certificates and permits
b.
Conduct profitable activities
c.
Maintain accounting records
d.
Issue receipts and invoices
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Question 5
Correct
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It is the legal form of business organization
a.
Service entity
b.
Merchandising entity
c.
Partnership
d.
Sole proprietorship
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Sole proprietorship
Question 6
Correct
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It is a type of business that buys goods and commodities then sells the same for profit without changing
its form
a.
Service business
b.
Merchandising business
c.
Manufacturing business
d.
All of the above
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Question 7
Incorrect
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Which is not a basic characteristic of a business?
a.
Conducted for profit
b.
Involves commercial activities
c.
Social marketing
d.
A regular activity
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Social marketing
Question 8
Correct
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Businesses must register in the following except
a.
Securities and Exchange Commission
b.
Department of Trade and Industry
c.
Cooperative Development Authority
d.
Department of Business and Management
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Question 9
Correct
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The form of business organization owned by stockholders
a.
Partnership
b.
Sole proprietorship
c.
Corporation
d.
Non-profit organization
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Corporation
Question 10
Correct
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a.
Pay business permits and licenses
b.
Withhold taxes on certain payments
c.
Maintain profitability
d.
File and pay taxes
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Question 11
Incorrect
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Which may not be a function of a bookkeeper?
a.
Record transactions
b.
Finalize financial statements
c.
Post adjusting entries
d.
Prepare unadjusted trial balance
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Question 12
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Which is not a type of business?
a.
Philanthropy
b.
Manufacturing
c.
Servicing
d.
Merchandising or trading
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Philanthropy
Question 13
Correct
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Question text
a.
Record purchase invoices
b.
Record sales invoices
c.
Record cash receipts and payments
d.
Record employee attendances
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Question 14
Correct
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In the accounting process, which step follows journalizing?
a.
Preparation of financial statements
b.
Documentation of the transaction
c.
Preparation of trial balance
d.
Posting to the ledger
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Question 15
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a.
Record purchases and payments
b.
Record sales and collections
c.
Approve transactions
d.
Record inventory movements
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Question 16
Correct
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Which is not a form of business organization?
a.
Corporation
b.
Sole proprietorship
c.
Partnership
d.
Business association
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Question 17
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Bookkeeping is
a.
the person who keeps and maintains the books of accounts of the business organization. The bookkeeper
is responsible for recording the transactions of the business.
b.
the recording of financial transactions and is part of the process of accounting in business.
c.
the art of recording, classifying, and summarizing in a significant manner and in terms of money,
transactions and events which are, in part at least of financial character, and interpreting the results
thereof.
d.
the process of recording, classifying and summarizing business transactions for the proper determination
of correct tax declarations and payments.
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Question 18
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Accounting is
a.
thereof.
b.
the recording of financial transactions.
c.
d.
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thereof.
Question 19
Incorrect
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Which of the following gives the best definition of bookkeeping?
a.
To calculate the amount of tax to be paid to BIR.
b.
To calculate the amount of profit to be paid to investors.
c.
To record, classify and summarize financial transactions and events.
d.
To provide financial information to users.
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Question 20
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The bookkeeper is
a.
b.
the artist of recording, classifying, and summarizing in a significant manner and in terms of money,
thereof.
c.
the person who keeps and maintains the books of accounts of the business organization, and is
responsible for recording the transactions of the business.
d.
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Which one of the following statements is correct?
Select one:
a.
Assets and revenues normally have credit balances
b.
Assets and expenses normally have debit balances
c.
Assets and liabilities normally have credit balances
d.
Liabilities and revenues normally have debit balances
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The correct answer is: Assets and expenses normally have debit balances
Question 2
Correct
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a.
Servicing
b.
Manufacturing
c.
Philanthropy
d.
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Philanthropy
Question 3
Correct
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Which document is issued by a vendor or supplier for items or goods rendered the company? It is called
Sales Invoice from the point of view of the supplier.
Select one:
a.
Order slip
b.
Purchase invoice
c.
Disbursement voucher
d.
Official receipt
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The correct answer is: Purchase invoice
Question 4
Correct
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The bookkeeper is
a.
b.
c.
thereof.
d.
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Question 5
Correct
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Which of the following is not an accountable transaction?
Select one:
a.
Cash investment into the business by the proprietor
b.
Purchase of equipment on account
c.
Spending of cash of the proprietor for his wedding
d.
Purchase of merchandise inventory in cash
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The correct answer is: Spending of cash of the proprietor for his wedding
Question 6
Correct
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What is the normal order of accounts in the trial balance?
Select one:
a.
Assets, liabilities, capital
b.
Assets, liabilities, capital, revenues and expenses
c.
Assets, capital, revenues, expenses and liabilities
d.
Assets, liabilities, revenues and expenses
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The correct answer is: Assets, liabilities, capital, revenues and expenses
Question 7
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a.
b.
c.
d.
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Question 8
Correct
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Which of the following is true about debits and credits?
Select one:
a.
Increases in assets and liabilities are always debited.
b.
Decreases in assets and increases in liabilities are always credited.
c.
Decreases in owner’s equity and drawing are always debited.
d.
Increases in owner’s equity and decreases in liabilities are always credited.
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The correct answer is: Decreases in assets and increases in liabilities are always credited.
Question 9
Correct
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Journalizing involves
Select one:
a.
Transferring the amounts from the source documents to the general journal in the form of journal entry
b.
Transferring the amounts from the general ledger to the trial balance
c.
Transferring the amount from the general journal to the general ledger
d.
Preparation of various source documents before recording the transactions in the general journal
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The correct answer is: Transferring the amounts from the source documents to the general journal in the
form of journal entry
Question 10
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a.
b.
Partnership
c.
Sole proprietorship
d.
Corporation
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Question 11
Correct
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a.
Sole proprietorship
b.
Corporation
c.
Partnership
d.
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Corporation
Question 12
Correct
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It is the simplest form of business organization
a.
b.
Service entity
c.
Sole proprietorship
d.
Partnership
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Sole proprietorship
Question 13
Correct
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It is called the books of original entry
Select one:
a.
General Ledger
b.
Chart of Accounts
c.
Trial Balance
d.
General Journal
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The correct answer is: General Journal
Question 14
Incorrect
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Which of the following entries record the receipt of an electric bill which will paid next month?
Select one:
a.
Debit utilities expense and credit utilities payable
b.
Debit utilities payable and credit cash
c.
Debit utilities expense and credit cash
d.
Debit utilities expense and credit notes payable
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The correct answer is: Debit utilities expense and credit utilities payable
Question 15
Correct
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a.
b.
c.
d.
Record transactions
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Question 16
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Select one:
a.
Documentation
b.
c.
d.
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The correct answer is: Posting to the ledger
Question 17
Correct
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a.
Pay business permits and licenses
b.
File and pay taxes
c.
Withhold taxes on certain payments
d.
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Question 18
Correct
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The following are examples of service businesses except
a.
Philippine Airlines
b.
c.
Azina Water Refilling Station
d.
Cagayan River Hotel and Resorts
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Question 19
Correct
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a.
b.
c.
d.
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Question 20
Correct
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It contains the specific titles and codes to be used in recording transactions
Select one:
a.
Trial Balance
b.
General Journal
c.
General Ledger
d.
Chart of Accounts
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The correct answer is: Chart of Accounts
An adjusting entry is erroneously recorded twice. Which of the following statements will occur?
a.
Expenses will be understated
b.
Equity will be overstated
c.
Net income will be understated
d.
Assets will be overstated
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Question 2
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Adjust DoIt Company reported the following unadjusted balances at year-end:
Debit Credit
Accounts Receivable P3,000,000
Allowance for doubtful
12,000
accounts
Net credit sales 7,000,000
The company estimates that 2% of the gross accounts receivable would become uncollectible.
What amount should be reported as doubtful accounts expense for the current year?
a.
P48,000
b.
P40,000
c.
P140,000
d.
P120,000
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P48,000
Question 3
Correct
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Debit Credit
16,000
accounts
The company estimates that 3% of the net credit sales would become uncollectible.
a.
P240,000
b.
P224,000
c.
P160,000
d.
P225,000
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P225,000
Question 4
Incorrect
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The allowance for uncollectible accounts has a normal credit balance and is presented in the
a.
Balance Sheet as deduction from Accounts Payable
b.
Balance Sheet as addition to Accounts Receivable
c.
Balance Sheet as deduction from Accounts Receivable
d.
Income Statement as part of the Operating Expenses
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Question 5
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a.
b.
c.
d.
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Question 6
Correct
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a.
Partnership
b.
Sole proprietorship
c.
d.
Service entity
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Sole proprietorship
Question 7
Correct
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Prepaid expenses are amounts that are
a.
Paid and not yet matched with current revenues
b.
Paid and matched with current revenues
c.
Matched with current revenues and are already paid
d.
Matched with current revenues but not yet paid
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Question 8
Correct
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Which of the following is true about debits and credits?
Select one:
a.
Decreases in owner’s equity and drawing are always debited.
b.
Increases in assets and liabilities are always debited.
c.
Increases in owner’s equity and decreases in liabilities are always credited.
d.
Decreases in assets and increases in liabilities are always credited.
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The correct answer is: Decreases in assets and increases in liabilities are always credited.
Question 9
Correct
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The adjusted trial balance shows
a.
Accounts and amounts which have been adjusted only
b.
Revenues and expenses accounts only
c.
Accounts and amounts for the preparation of financial statements
d.
Assets, liabilities and equity accounts only
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Question 10
Incorrect
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Accrued income
a.
Decreases assets
b.
Decreases liabilities
c.
Increases expenses
d.
Increases revenues
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Increases revenues
Question 11
Correct
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a.
Servicing
b.
Manufacturing
c.
d.
Philanthropy
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Philanthropy
Question 12
Correct
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Which of the following is not an accountable transaction?
Select one:
a.
Purchase of merchandise inventory in cash
b.
Spending of cash of the proprietor for his wedding
c.
Cash investment into the business by the proprietor
d.
Purchase of equipment on account
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The correct answer is: Spending of cash of the proprietor for his wedding
Question 13
Correct
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An asset has been acquired for P100,000. It is estimated to have a useful life of 10 years and salvage value
of P20,000. How much is the annual depreciation?
a.
P6,000
b.
P10,000
c.
P12,000
d.
P8,000
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P8,000
Question 14
Correct
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A prepaid expense is a/an
a.
Revenue
b.
Equity
c.
Asset
d.
Expense
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Asset
Question 15
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a.
b.
c.
d.
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Question 16
Incorrect
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The term footing refers to
Select one:
a.
The process of obtaining the bottom number in an account
b.
The process of taking the total of a set of numbers arranged in a column
c.
The process of obtaining the top number in an account
d.
The process of posting
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The correct answer is: The process of taking the total of a set of numbers arranged in a column
Question 17
Incorrect
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The purpose of adjusting entry is to
a.
Detect and correct an erroneous recording of transactions
b.
Prove that total debits and total credits are equal
c.
Properly match the expenses and revenues
d.
Facilitate the preparation of financial statements
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Question 18
Correct
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It contains the specific titles and codes to be used in recording transactions
Select one:
a.
General Journal
b.
Chart of Accounts
c.
Trial Balance
d.
General Ledger
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The correct answer is: Chart of Accounts
Question 19
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a.
Sole proprietorship
b.
Corporation
c.
Partnership
d.
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Question 20
Correct
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The recording phase of financial accounting covers the following except
Select one:
a.
Financial statements are prepared
b.
c.
Source documents are gathered and analyzed
d.
Transactions are recorded in the journal
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The correct answer is: Financial statements are prepared
Select one:
a.
b.
Order slip
c.
Official receipt
d.
Purchase invoice
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Question 2
Incorrect
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Which transaction decreased both total assets and total liabilities by P10,000?
Select one:
a.
Payment of salaries, P10,000
b.
Collection of accounts receivable, P10,000
c.
Payment of accounts payable, P10,000
d.
Purchase of equipment for cash, P10,000
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The correct answer is: Payment of accounts payable, P10,000
Question 3
Correct
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a.
b.
Record purchases and payments
c.
Record inventory movements
d.
Record sales and collections
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Question 4
Correct
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Failure to record the adjusting entry for the expired portion of prepaid expenses will
a.
Understate assets and net income
b.
Overstate equity and understate liability
c.
Overstate assets and net income
d.
Understate equity and overstate liability
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Question 5
Correct
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Accrued income
a.
b.
Increases expenses
c.
Increases revenues
d.
Decreases assets
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Increases revenues
Question 6
Incorrect
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Under the accrual basis of accounting, transactions and effects are recorded when
a.
Expenses are incurred and revenues are earned
b.
Expenses are incurred and revenues are collected in cash
c.
Expenses are paid and revenues are earned
d.
Expenses are incurred but not paid and revenues are earned but not yet collected
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Question 7
Correct
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Which of the following cannot be recorded into the company’s books of accounts?
Select one:
a.
The proprietor withdrew a certain amount of cash from the business.
b.
Repair services have been rendered to a customer but not yet collected.
c.
Invoices for supplies purchased have been received but not yet paid.
d.
One month telephone services have been utilized but the bill has not yet arrived.
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The correct answer is: One month telephone services have been utilized but the bill has not yet arrived.
Question 8
Correct
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Businesses must register in the following except
a.
Department of Trade and Industry
b.
Securities and Exchange Commission
c.
Cooperative Development Authority
d.
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Question 9
Correct
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An asset has been acquired for P250,000. It is estimated to have a useful life of 8 years, and is being
depreciated at P29,375 per year. How much is its estimated scrap value?
a.
P28,750
b.
P43,750
c.
P15,000
d.
P0
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P15,000
Question 10
Correct
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Debit Credit
16,000
accounts
a.
P160,000
b.
P225,000
c.
P224,000
d.
P240,000
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P225,000
Question 11
Incorrect
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Which document is issued for specific items or goods purchased by customers?
Select one:
a.
Deposit slip
b.
Purchase invoice
c.
Sales invoice
d.
Order slip
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The correct answer is: Sales invoice
Question 12
Incorrect
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Which of the following entries record the purchase of an equipment by issuing a promissory note?
Select one:
a.
Debit equipment and credit notes receivable
b.
Debit notes payable and credit equipment
c.
Debit notes receivable and credit equipment
d.
Debit equipment and credit notes payable
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The correct answer is: Debit equipment and credit notes payable
Question 13
Correct
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a.
P8,000
b.
P6,000
c.
P12,000
d.
P10,000
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P8,000
Question 14
Incorrect
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The Accumulated Depreciation – Delivery Equipment is reported in the
a.
b.
Trial Balance only
c.
Balance Sheet as Addition to the Delivery Equipment account
d.
Balance Sheet as Deduction from the Delivery Equipment account
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Question 15
Correct
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The bookkeeper is
a.
b.
thereof.
c.
d.
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Question 16
Correct
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The adjusted trial balance shows
a.
Revenues and expenses accounts only
b.
Assets, liabilities and equity accounts only
c.
d.
Accounts and amounts which have been adjusted only
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Question 17
Correct
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Unearned revenue is a/an
a.
Equity
b.
Liability
c.
Asset
d.
Revenue
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Liability
Question 18
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a.
b.
c.
d.
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Question 19
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a.
b.
c.
d.
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Question 20
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a.
Record transactions
b.
c.
d.
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its form
a.
Service business
b.
c.
d.
All of the above
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Question 2
Incorrect
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If the totals of a trial balance are not equal, it may indicate that
Select one:
a.
A transaction has been recorded with an erroneous amount on both debit and credit
b.
A transaction is not recorded
c.
The balance of one account is incorrectly computed
d.
A transaction has been recorded twice
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The correct answer is: The balance of one account is incorrectly computed
Question 3
Correct
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Debit Credit
12,000
accounts
a.
P120,000
b.
P40,000
c.
P48,000
d.
P140,000
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P48,000
Question 4
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a.
b.
c.
Trial Balance only
d.
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Question 5
Correct
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Unearned revenue is a/an
a.
Equity
b.
Liability
c.
Revenue
d.
Asset
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Liability
Question 6
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a.
Sole proprietorship
b.
Partnership
c.
Cooperative
d.
Corporation
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Partnership
Question 7
Incorrect
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Journalizing involves
Select one:
a.
Preparation of various source documents before recording the transactions in the general journal
b.
Transferring the amount from the general journal to the general ledger
c.
Transferring the amounts from the general ledger to the trial balance
d.
Transferring the amounts from the source documents to the general journal in the form of journal entry
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The correct answer is: Transferring the amounts from the source documents to the general journal in the
form of journal entry
Question 8
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a.
b.
Sole proprietorship
c.
Partnership
d.
Corporation
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Corporation
Question 9
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Posting is the process of
Select one:
a.
Reconciling entries from the general journal to the general ledger
b.
Transferring entries from the general ledger to the general journal
c.
Transferring entries from the general journal to the general ledger
d.
Reconciling entries from the general ledger to the general journal
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The correct answer is: Transferring entries from the general journal to the general ledger
Question 10
Correct
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A prepaid expense is a/an
a.
Expense
b.
Asset
c.
Equity
d.
Revenue
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Asset
Question 11
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a.
b.
c.
d.
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Question 12
Correct
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An adjusting entry is erroneously recorded twice. Which of the following statements will occur?
a.
Expenses will be understated
b.
Equity will be overstated
c.
d.
Assets will be overstated
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Question 13
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a.
b.
c.
d.
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Question 14
Correct
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A transaction or event is accountable when it meets the following criteria, except:
Select one:
a.
It affects the business entity
b.
It can be measured in terms of money
c.
If affects the assets, liabilities or equity of the business
d.
It is a personal transaction of the owner
e.
It is supported by a document
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The correct answer is: It is a personal transaction of the owner
Question 15
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An asset has been acquired for P250,000. It is estimated to have a useful life of 8 years, and is being
depreciated at P29,375 per year. How much is its estimated scrap value?
a.
P15,000
b.
P0
c.
P43,750
d.
P28,750
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P15,000
Question 16
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a.
b.
c.
Documentation of the transaction
d.
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Question 17
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a.
b.
c.
d.
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Question 18
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a.
b.
c.
d.
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Question 19
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A journal entry records the effects of a transaction or an event expressed in terms of debit and credit.
Which of the following is not a correct journal entry?
Select one:
a.
An entry with one debit and two or more credits
b.
An entry with one or more debits only
c.
An entry with one debit and one credit
d.
An entry with two or more debits and one credit
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The correct answer is: An entry with one or more debits only
Question 20
Correct
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Which is not a basic characteristic of a business?
a.
A regular activity
b.
Involves commercial activities
c.
Conducted for profit
d.
Social marketing
Accrued income
a.
b.
Decreases assets
c.
Increases revenues
d.
Increases expenses
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Increases revenues
Question 2
Incorrect
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Which of the following would appear in a balance sheet?
Select one:
a.
Cash receipts during the period
b.
Cash balance at the end of the period
c.
Cash balance at the beginning of a period
d.
Cash payments during the period
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The correct answer is: Cash balance at the end of the period
Question 3
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All of the following are uses of cash in investing activities, except
Select one:
a.
Cash payment to acquire furniture and fixtures
b.
Cash payment to acquire equipment
c.
Cash withdrawals by the business owner
d.
Cash payment for construction of building
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The correct answer is: Cash withdrawals by the business owner
Question 4
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All of the following are sources of cash from operating activities, except
Select one:
a.
Cash collection from customers
b.
Cash proceeds from bank borrowings
c.
Cash receipts from sale of goods
d.
Cash receipts from rendering services
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The correct answer is: Cash proceeds from bank borrowings
Question 5
Correct
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Question text
The bookkeeper is
a.
b.
c.
thereof.
d.
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Question 6
Correct
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Question text
a.
b.
c.
d.
Feedback
Question 7
Incorrect
Flag question
Question text
Which of the following would appear in an income statement?
Select one:
a.
Cash payments for expenses
b.
Expenses not yet paid
c.
Expenses whether paid or not
d.
Expenses that are paid
Feedback
The correct answer is: Expenses whether paid or not
Question 8
Correct
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Question text
Which of the following statements is correct?
Select one:
a.
The bottom line of an Income Statement shows that the business always have profit.
b.
The accounting equation can also be expressed as Assets – Liabilities = Owner’s Equity.
c.
Revenue and Expenses increase capital.
d.
Source documents are prepared after analyzing the business transactions.
Feedback
The correct answer is: The accounting equation can also be expressed as Assets – Liabilities = Owner’s
Equity.
Question 9
Incorrect
Flag question
Question text
In terms of debits and credits, which accounts have the same normal balances?
Select one:
a.
Accounts receivable, Accounts payable, Capital
b.
Prepaid expenses, Insurance expense, Capital
c.
Rental expense, Professional fees, Drawing
d.
Account payable, Rental revenue, Unearned rental revenue
Feedback
The correct answer is: Account payable, Rental revenue, Unearned rental revenue
Question 10
Incorrect
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Question text
The obligations of an enterprise to non-owners
Select one:
a.
Expenses
b.
Assets
c.
Revenues
d.
Liabilities
Feedback
The correct answer is: Liabilities
Question 11
Correct
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Question text
The balance sheet reports
Select one:
a.
The cost of sold merchandise inventory
b.
The financial position of the business entity as of a given date
c.
The sources and uses of cash
d.
The profits earned by the business entity
Feedback
The correct answer is: The financial position of the business entity as of a given date
Question 12
Correct
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Question text
Bookkeeping is
a.
b.
c.
d.
thereof.
Feedback
Question 13
Correct
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Question text
a.
b.
c.
d.
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Question 14
Correct
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Question text
a.
b.
c.
d.
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Question 15
Correct
Flag question
Question text
Which of the following financial statements discloses the economic resources of the organization and the
claims against those resources?
Select one:
a.
Income statement
b.
Statement of changes in equity
c.
Balance sheet
d.
Statement of cash flows
Feedback
The correct answer is: Balance sheet
Question 16
Correct
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Question text
a.
b.
c.
d.
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Question 17
Correct
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Question text
A statement that shows the listings of assets, liabilities and equity of an entity
Select one:
a.
Income statement
b.
Balance sheet
c.
d.
Notes to the financial statements
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Question 18
Correct
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Question text
Transactions are recorded chronologically in the
Select one:
a.
Trial Balance
b.
General Ledger
c.
General Journal
d.
Chart of Accounts
Feedback
The correct answer is: General Journal
Question 19
Correct
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Question text
Which of the following cannot be recorded into the company’s books of accounts?
Select one:
a.
Invoices for supplies purchased have been received but not yet paid.
b.
One month telephone services have been utilized but the bill has not yet arrived.
c.
The proprietor withdrew a certain amount of cash from the business.
d.
Repair services have been rendered to a customer but not yet collected.
Feedback
The correct answer is: One month telephone services have been utilized but the bill has not yet arrived.
Question 20
Correct
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Gross profit is calculated as
Select one:
a.
Gross sales less sales returns and discounts less merchandise inventory at the end of the period
b.
Net sales less merchandise inventory purchased
c.
Net sales less cost of goods sold
d.
Net sales less goods available for sale
Feedback
The correct answer is: Net sales less cost of goods sold
a.
b.
c.
d.
Trial Balance only
Feedback
Question 2
Correct
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Question text
Select one:
a.
Cash payments for expenses
b.
Expenses not yet paid
c.
Expenses that are paid
d.
Expenses whether paid or not
Feedback
The correct answer is: Expenses whether paid or not
Question 3
Correct
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Question text
All of the following are cash flows in the financing activities of a business, except
Select one:
a.
Cash investment by owners
b.
Cash withdrawals by owners
c.
Cash payment to suppliers
d.
Cash proceeds and payments to bank borrowings
Feedback
The correct answer is: Cash payment to suppliers
Question 4
Correct
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Question text
Which is not a classification of business activities in the Statement of Cash Flows?
Select one:
a.
Investing Activities
b.
Administrative Activities
c.
Financing Activities
d.
Operating Activities
Feedback
The correct answer is: Administrative Activities
Question 5
Correct
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a.
Sole proprietorship
b.
Cooperative
c.
Partnership
d.
Corporation
Feedback
Partnership
Question 6
Correct
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Question text
a.
P12,000
b.
P10,000
c.
P8,000
d.
P6,000
Feedback
P8,000
Question 7
Correct
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Question text
A claim from a customer for services rendered is an account reported as
Select one:
a.
Service revenue in the income statement
b.
Accounts payable in the balance sheet
c.
Account receivable in the balance sheet
d.
Service revenue in the statement of cash flows
Feedback
The correct answer is: Account receivable in the balance sheet
Question 8
Correct
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Question text
a.
b.
c.
d.
Feedback
Question 9
Correct
Flag question
Question text
a.
b.
c.
d.
Feedback
Question 10
Incorrect
Flag question
Question text
Which of the following is an operating cash flow?
Select one:
a.
Payment for purchased equipment
b.
Payments to suppliers
c.
Withdrawals of cash by owners
d.
Payments to banks for loan borrowings
Feedback
The correct answer is: Payments to suppliers
Question 11
Correct
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Select one:
a.
Balance sheet
b.
Income statement
c.
d.
Feedback
Question 12
Incorrect
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Question text
A trial balance will not disclose that an error has been made in
Select one:
a.
Posting amount to the wrong ledger account
b.
Entering an amount on the wrong side of an account
c.
Transferring an account balance from the ledger to the trial balance
d.
Computing the balance of an account
Feedback
The correct answer is: Posting amount to the wrong ledger account
Question 13
Incorrect
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Question text
Select one:
a.
Revenues that are collected
b.
Revenue whether collected or not
c.
Cash receipts from revenues
d.
Revenues that are not yet collected
Feedback
The correct answer is: Revenue whether collected or not
Question 14
Correct
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Question text
Which of the following would appear in a balance sheet?
Select one:
a.
Cash payments during the period
b.
Cash balance at the beginning of a period
c.
Cash receipts during the period
d.
Cash balance at the end of the period
Feedback
The correct answer is: Cash balance at the end of the period
Question 15
Correct
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Select one:
a.
b.
c.
d.
e.
Feedback
Question 16
Correct
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Question text
A journal entry records the effects of a transaction or an event expressed in terms of debit and credit.
Which of the following is not a correct journal entry?
Select one:
a.
An entry with one or more debits only
b.
An entry with one debit and two or more credits
c.
An entry with one debit and one credit
d.
An entry with two or more debits and one credit
Feedback
The correct answer is: An entry with one or more debits only
Question 17
Correct
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a.
b.
Partnership
c.
Sole proprietorship
d.
Service entity
Feedback
Sole proprietorship
Question 18
Correct
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its form
a.
Service business
b.
c.
d.
All of the above
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Question 19
Correct
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The Statement of Financial Position is another term for the
Select one:
a.
b.
Income statement
c.
d.
Balance sheet
Feedback
Question 20
Correct
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Question text
Which of the following correctly describes revenues?
Select one:
a.
Properties or resources owned by the business
b.
Economic claims of the owners to a business
c.
Increase in owner’s equity due to rendering service to a client
d.
Amount charged to the capital as cost of rendering services to a client
Feedback
The correct answer is: Increase in owner’s equity due to rendering service to a client
Gross profit is calculated as
Select one:
a.
Net sales less goods available for sale
b.
Gross sales less sales returns and discounts less merchandise inventory at the end of the period
c.
Net sales less merchandise inventory purchased
d.
Net sales less cost of goods sold
Feedback
The correct answer is: Net sales less cost of goods sold
Question 2
Correct
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a.
b.
Record transactions
c.
d.
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Question 3
Correct
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Question text
The recording phase of financial accounting covers the following except
Select one:
a.
Source documents are gathered and analyzed
b.
c.
d.
Transactions are recorded in the journal
Feedback
The correct answer is: Financial statements are prepared
Question 4
Correct
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Question text
Which of the following steps may be omitted in the completion of the accounting cycle?
Select one:
a.
b.
Reversal of some adjustments are made
c.
Adjusting entries are journalized and then posted to the general ledger
d.
Entries are posted to the general ledger
Feedback
The correct answer is: Reversal of some adjustments are made
Question 5
Incorrect
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Which of the following accounts will not appear in the post-closing trial balance?
Select one:
a.
Unearned Interest Income
b.
Interest Expense
c.
Prepaid Insurance Expense
d.
Accumulated Depreciation
Feedback
The correct answer is: Interest Expense
Question 6
Incorrect
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Question text
Which situation indicates a net loss in the income statement accounts?
Select one:
a.
Total debits equals total credits
b.
Total credits exceed total debits
c.
Total debits and total credits have zero balances
d.
Total debits exceed total credits
Feedback
The correct answer is: Total debits exceed total credits
Question 7
Correct
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Question text
Which of the following accounts are closed at the end of the accounting period?
Select one:
a.
Equity accounts
b.
Asset accounts
c.
Revenue accounts
d.
Liability accounts
Feedback
The correct answer is: Revenue accounts
Question 8
Correct
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Question text
Which of the following accounts would not appear in the post-closing trial balance?
Select one:
a.
b.
Doubtful Accounts Expense
c.
Unearned Service Revenue
d.
Accrued Interest Payable
Feedback
The correct answer is: Doubtful Accounts Expense
Question 9
Not answered
Marked out of 1.00
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Question text
a.
b.
c.
d.
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Question 10
Correct
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Question text
After posting all the closing entries
Select one:
a.
The revenues, expenses and income summary accounts have zero balances.
b.
All the accounts have zero balances.
c.
The capital and drawing accounts have zero balances
d.
The assets, liabilities and equity accounts have zero balances.
Feedback
The correct answer is: The revenues, expenses and income summary accounts have zero balances.
Question 11
Correct
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Question text
Which accounts are closed at the end of the accounting period?
Select one:
a.
Balance Sheet accounts
b.
Nominal or temporary accounts
c.
Equity accounts
d.
Permanent or real accounts
Feedback
The correct answer is: Nominal or temporary accounts
Question 12
Correct
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Question text
Which document is issued to acknowledge receipt of cash?
Select one:
a.
Sales invoice
b.
Delivery receipt
c.
Purchase invoice
d.
Official receipt
Feedback
The correct answer is: Official receipt
Question 13
Correct
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Question text
a.
b.
Trial Balance only
c.
d.
Feedback
Question 14
Correct
Flag question
Question text
Which account is used to close the revenue, purchases and expense accounts?
Select one:
a.
Income and expense summary account
b.
Capital account
c.
Revenue account
d.
Drawing account
Feedback
The correct answer is: Income and expense summary account
Question 15
Correct
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Question text
Select one:
a.
Income statement
b.
c.
Balance sheet
d.
Feedback
Question 16
Correct
Flag question
Question text
Which of the following correctly describes revenues?
Select one:
a.
Amount charged to the capital as cost of rendering services to a client
b.
Economic claims of the owners to a business
c.
Increase in owner’s equity due to rendering service to a client
d.
Properties or resources owned by the business
Feedback
The correct answer is: Increase in owner’s equity due to rendering service to a client
Question 17
Correct
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Select one:
a.
Order slip
b.
Official receipt
c.
Purchase invoice
d.
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Question 18
Correct
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Question text
Debit Credit
12,000
accounts
a.
P40,000
b.
P120,000
c.
P48,000
d.
P140,000
Feedback
P48,000
Question 19
Incorrect
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Question text
Which of the following accounts are not closed at the end of the accounting period?
Select one:
a.
Expense accounts
b.
Revenue accounts
c.
Purchases accounts
d.
Capital accounts
Feedback
The correct answer is: Capital accounts
Question 20
Incorrect
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Question text
Which of the following are real or permanent accounts?
Select one:
a.
Prepaid rent, accumulated depreciation and sales
b.
Notes payable, notes receivable and cash
c.
Accounts receivable, commission income and salaries
d.
Rent expense, capital and prepaid insurance
Feedback
The correct answer is: Notes payable, notes receivable and cash
To which account is the Drawing account closed to?
Select one:
a.
b.
Liability account
c.
Capital account
d.
Expense account
Feedback
The correct answer is: Capital account
Which of the following accounts would not appear in the post-closing trial balance?
Select one:
a.
Unearned Service Revenue
b.
Accrued Interest Payable
c.
d.
Doubtful Accounts Expense
Feedback
The correct answer is: Doubtful Accounts Expense
Question 2
Incorrect
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Question text
To which account is the Drawing account closed to?
Select one:
a.
b.
Liability account
c.
Capital account
d.
Expense account
Feedback
The correct answer is: Capital account
Question 3
Correct
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Question text
Select one:
a.
b.
c.
d.
e.
Feedback
Question 4
Correct
Flag question
Question text
A business of two or more persons who bind themselves to contribute money, property
or industry to a common fund, with the intention of dividing the profits among
themselves
a.
Partnership
b.
Corporation
c.
Cooperative
d.
Sole proprietorship
Feedback
Partnership
Question 5
Correct
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Question text
An asset has been acquired for P250,000. It is estimated to have a useful life of 8 years,
and is being depreciated at P29,375 per year. How much is its estimated scrap value?
a.
P43,750
b.
P0
c.
P28,750
d.
P15,000
Feedback
P15,000
Question 6
Correct
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Question text
Debit Credit
Allowance for doubtful accounts 16,000
a.
P224,000
b.
P160,000
c.
P225,000
d.
P240,000
Feedback
P225,000
Question 7
Correct
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Question text
Which of the following accounts are not closed at the end of the accounting period?
Select one:
a.
Revenue accounts
b.
Capital accounts
c.
Expense accounts
d.
Purchases accounts
Feedback
The correct answer is: Capital accounts
Question 8
Correct
Flag question
Question text
Which of the following steps may be omitted in the completion of the accounting cycle?
Select one:
a.
Adjusting entries are journalized and then posted to the general ledger
b.
c.
Entries are posted to the general ledger
d.
Reversal of some adjustments are made
Feedback
The correct answer is: Reversal of some adjustments are made
Question 9
Correct
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Question text
Which are temporary accounts?
Select one:
a.
Accounts Payable, Prepaid expenses, Rental expenses
b.
Insurance expenses, Professional fees, Capital
c.
Cash, Prepaid expenses, Drawing
d.
Insurance expenses, Professional fees, Drawing
Feedback
The correct answer is: Insurance expenses, Professional fees, Drawing
Question 10
Correct
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Question text
An event that affects the financial position of an organization and requires recording is
called
Select one:
a.
Account
b.
Transaction
c.
Operating activities
d.
Business documents
Feedback
The correct answer is: Transaction
Question 11
Correct
Flag question
Question text
a.
Corporation
b.
Partnership
c.
Sole proprietorship
d.
Feedback
Corporation
Question 12
Correct
Flag question
Question text
After posting the closing entries
Select one:
a.
Revenue accounts, expense accounts and income summary accounts have zero balances
b.
Expense accounts, revenue accounts and equity accounts have zero balances
c.
The balance of all accounts will become zero
d.
Income summary, revenue accounts and equity accounts have zero balances
Feedback
The correct answer is: Revenue accounts, expense accounts and income summary
accounts have zero balances
Question 13
Correct
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Question text
Which of the following is an operating cash flow?
Select one:
a.
Withdrawals of cash by owners
b.
Payment for purchased equipment
c.
Payments to banks for loan borrowings
d.
Payments to suppliers
Feedback
The correct answer is: Payments to suppliers
Question 14
Correct
Flag question
Question text
What are the elements of a journal entry?
I. The date of the transaction

II. The accounts debited and credited
III. The monetary values of the accounts debited and credited
IV. The posting reference code of the destination ledger account
V. A brief and clear explanation of the transaction
Select one:
a.
I, II and III only
b.
I, II, III and IV only
c.
I, II and IV only
d.
I, II, III, IV and V
Feedback
The correct answer is: I, II, III, IV and V
Question 15
Correct
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Question text
All of the following are sources of cash from operating activities, except
Select one:
a.
Cash receipts from sale of goods
b.
Cash receipts from rendering services
c.
Cash collection from customers
d.
Cash proceeds from bank borrowings
Feedback
The correct answer is: Cash proceeds from bank borrowings
Question 16
Correct
Flag question
Question text
Which account is used to close the revenue, purchases and expense accounts?
Select one:
a.
b.
Capital account
c.
Revenue account
d.
Drawing account
Feedback
The correct answer is: Income and expense summary account
Question 17
Correct
Flag question
Question text
Which accounts are closed at the end of the accounting period?
Select one:
a.
Nominal or temporary accounts
b.
Balance Sheet accounts
c.
Permanent or real accounts
d.
Equity accounts
Feedback
The correct answer is: Nominal or temporary accounts
Question 18
Correct
Flag question
Question text
Which of the following accounts are closed at the end of the accounting period?
Select one:
a.
Liability accounts
b.
Equity accounts
c.
Asset accounts
d.
Revenue accounts
Feedback
The correct answer is: Revenue accounts
Question 19
Correct
Flag question
Question text
All of the following are cash flows in the financing activities of a business, except
Select one:
a.
Cash payment to suppliers
b.
Cash proceeds and payments to bank borrowings
c.
Cash investment by owners
d.
Cash withdrawals by owners
Feedback
The correct answer is: Cash payment to suppliers
Question 20
Correct
Flag question
Question text
After posting all the closing entries
Select one:
a.
All the accounts have zero balances.
b.
The assets, liabilities and equity accounts have zero balances.
c.
The revenues, expenses and income summary accounts have zero balances.
d.
The capital and drawing accounts have zero balances
Feedback
The correct answer is: The revenues, expenses and income summary accounts have zero
balances.
Investment of P150,000 cash fund by Mr. Fabella into the business.

Select one:
a.
b.
c.
d.
Feedback
Question 2
Correct
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Question text
Received a Charge Invoice from a supplier for the purchase of a desktop computer
amounting to P32,500. The computer is estimated to be useful for five years and have a
salvage value of 2,500 thereafter.
Select one:
a.
b.
c.
d.
Feedback
Question 3
Correct
Flag question
Question text
Purchased supplies amounting to P18,000 in cash.
Select one:
a.
b.
c.
d.
Feedback
Question 4
Correct
Flag question
Question text
Paid P6,000 insurance for six months. The company uses the asset method in recording
insurance payments.
Select one:
a.
b.
c.
d.
Feedback

Question 5
Correct
Flag question
Question text
Issued a Service Invoice for an amount of P50,000 to a customer for services rendered
on account.
Select one:
a.
b.
c.
d.
Feedback
Question 6
Correct
Flag question
Question text
Received P35,000 cash from customers in payment of their account.
Select one:
a.
b.
c.
d.
Feedback
Question 7
Correct
Flag question
Question text
Paid in cash and received an official receipt from the supplier for payment of accounts,
P20,000.
Select one:
a.
b.
c.
d.
Feedback
Question 8
Correct
Flag question
Question text
Rendered services to customers billed for P30,000.
Select one:
a.
b.
c.
d.
Feedback
Question 9
Correct
Flag question
Question text
Cash payment of P15,000 for the salary of an employee.
Select one:
a.
b.
c.
d.
Feedback
Question 10
Correct
Flag question
Question text
Mr. Fabella withdrew P12,000 cash from the business.
Select one:
a.
b.
c.
d.
Feedback
Question 11
Correct
Flag question
Question text
Paid the telephone bill for February amounting to P3,000.
Select one:
a.
b.
(No entry; telephone expenses will be recognized in the recording of adjusting journal
entries later.)
c.
d.
Feedback
Question 12
Partially correct
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Question text
Fabella Bookkeeping Services
Preliminary Trial Balance
As of February 29, 2020
(INPUT NUMBERS ONLY,
DO NOT INPUT ANY CURRENCY/PESO SIGN)

Cod
Account Title Debit Credit
e
101 Cash Answer
111000
45000
Answer
Accounts
111
Receivable
18000
Answer
121 Supplies
6000
Answer
131 Prepaid Insurance
32500
Answer
151 Equipment
12500
Answer
201 Accounts Payable
150000
Answer
301 Fabella, Capital
12000
Answer
311 Fabella, Drawing
80000
Answer
401 Service Revenue
15000
Answer
601 Salaries
612 Utilities Expense 3000

Answer
232500
Answer
Answer 232500
Total
Feedback
Cod
e
P
101 Cash
111,000
Accounts
111 45,000
Receivable
121 Supplies 18,000
131 Prepaid Insurance 6,000
151 Equipment 32,500
P
12,500
301 Fabella, Capital 150,000
311 Fabella, Drawing 12,000
401 Service Revenue 80,000
601 Salaries 15,000
612 Utilities Expense 3,000
Total 232,500 232,500
Question 13
Correct
Flag question
Question text
Supplies remaining on hand worth P15,000.
Select one:
a.
b.
(No entry; supplies used shall be recognized in the recording of adjusting journal entries
later.)
c.
d.
Feedback
The correct answer is: (No entry; supplies used shall be recognized in the recording of
adjusting journal entries later.)
Question 14
Correct
Flag question
Question text
What is the adjusting entry for the used/unused supplies?
Select one:
a.
b.
c.
d.
Feedback
Supplies purchased P 18,000

On hand/unused at the end of the month 15,000
Used supplies P 3,000
Question 15
Correct
Flag question
Question text
What is the adjusting entry to record the depreciation expense for the month of
February?
Select one:
a.
b.
c.
d.
Feedback
Depreciation expense is computed as follows:
Acquisition Cost P 32,500
Less: Salvage value 2,500
Depreciable value P30,000
Divide by: Estimated Useful
5 years
Life
Yearly Depreciation P6,000
Divide by: Months per year 12
Monthly Depreciation P 500
Question 16
Correct
Flag question
Question text
What is the adjusting entry for the prepaid insurance?
Select one:
a.
b.
c.
d.
Feedback
Prepaid insurance P 6,000

No. of months 6
Monthly insurance expense P 1,000
From February 15 to Feb 29 is half a month, therefore, the expense is only P500.00
Question 17
Correct
Mark 15.00 out of 15.00
Flag question
Question text
Adjusted Trial Balance
Cod
e
Answer
111000
101 Cash
45000
Answer
111 Accounts Receivable
15000
Answer
121 Supplies
5500
Answer
151 Equipment 32500

Answer
500
Answer
Accumulated Depreciation -
152
Equipment
12500
Answer
Answer
150000
12000
Answer
311 Fabella, Drawing
80000
Answer
401 Service Revenue
15000
Answer
601 Salaries
3000
Answer
611 Supplies Expense
3000
Answer
612 Utilities Expense
500
Answer
631 Insurance Expense
500
Answer
641 Depreciation Expense
Answer Answer
243000 243000
Total
Feedback
Adjusted Trial Balance
Cod
Account Title
e Debit Credit
101 Cash 111,000
111 Accounts Receivable 45,000
121 Supplies 15,000
131 Prepaid Insurance 5,500
Accumulated Depreciation -
152 500
Equipment
201 Accounts Payable 12,500
301 Fabella, Capital 150,000
311 Fabella, Drawing 12,000
401 Service Revenue 80,000
601 Salaries 15,000
611 Supplies Expense 3,000
631 Insurance Expense 500
641 Depreciation Expense 500
Total 243,000 243,000
Question 18
Partially correct
Flag question
Question text
Income Statement
For the month ended February 29, 2020
Revenues:
8000
Answer
Service Revenue
Operating
Expenses:
Answer
15000
Salaries
3000
Answer
Supplies Expense
3000
Answer
Utilities Expense
500
Answer
Insurance Expense
Depreciation Expense 500

Answer
22000
Answer
Total Operating
Expenses
Answer
58000
Total
Feedback
Question 19
Partially correct
Flag question
Question text
Statement of Changes in Equity
0
Answer
Fabella, Capital, Feb 1, 2020
Add: Initial Investment Answer

150000
58000
Answer
Net Income
20800
Answer
Total
12000
Answer
Less: Fabella, Drawings
Answer
196000
Fabella, Capital, Feb 29,
2020
Question 20
Partially correct
Flag question
Question text
Statement of Financial Position
ASSETS
Current Assets:
Cash Answer
111000
111000
45000
Answer
Accounts Receivable
18000
Answer
Supplies
6000
Answer
Prepaid Insurance
Answer
180000
Total Current Assets
Non-Current Assets:
32500
Answer
Equipment
0
Answer
Less: Accumulated Depreciation -
Equipment
32500
Answer
Total Non-Current Assets
TOTAL ASSETS 212500

Answer
LIABILITIES AND EQUITY
Current Liabilities:
12500
Answer
Accounts Payable
Owner's Equity:
200000
Answer
Fabella, Capital
212500
Answer
TOTAL LIABILITIES AND EQUITY
Question 21
Partially correct
Mark 13.85 out of 15.00
Flag question
Question text
Statement of Cash Flows
For the month ended February 29, 2020
INPUT NUMBERS ONLY, DO NOT INPUT ANY CURRENCY/PESO SIGN.
FOR OUTFLOWS, USE THE NEGATIVE SIGN "-"

CASH FLOW FROM OPERATING
ACTIVITIES:
Cash received from:
Receivables collection 35000
Answer
Cash payment for:

Office supplies 24000
Answer
Operating expenses 18000

Answer
Net Cash Flow from Operating Activities -7000

Answer
CASH FLOW FROM INVESTING

ACTIVITIES:
Cash payment for:
Purchase of Equipment -20000
Answer
CASH FLOW FROM FINANCING

ACTIVITIES:
Cash received from:
Capital investment 150000
Answer
Cash payment for:

Capital withdrawal -12000
Answer
138000
Question 22
Correct 111000
Mark 10.00 out of 10.00
0
Flag question
Question text
Post-Closing Trial Balance
As of February 29, 2020 111000

Cod
e
Answer
111000
101 Cash
45000
Answer
15000
Answer
121 Supplies
5500
Answer
32500
Answer
151 Equipment
152 Accumulated Depreciation - 500

Answer
Equipment
12500
Answer
Answer
196000
Answer Answer
209000 209000
Total
Select the journal entry to record this transaction:

Mr. Diokno invested P100,000 cash into the business.
Select one:
a.
b.
c.
d.
Feedback

Information
Flag question
Information text
Based on the following transactions, prepare the journal entries, ledger, trial balances
and financial statements:
Question 2
Correct
Flag question
Question text
Bought computer equipment for P25,000 cash.
Select one:
a.
b.
c.
d.
Feedback
Question 3
Correct
Flag question
Question text
Bought merchandise on account from Mathew Trading Co. P32,400, terms 2/10, n/30.
Select one:
a.
b.
c.
d.
Feedback
Question 4
Correct
Flag question
Question text
Bought office supplies on cash basis for P4,000.
Select one:
a.
b.
c.
d.
Feedback
Question 5
Correct
Flag question
Question text
Sold merchandise on account P72,500, FOB Destination, terms 2/10, n/30.
Select one:
a.
b.
c.
d.
Feedback

Question 6
Correct
Flag question
Question text
Paid P600 freight on merchandise sold to customers.
Select one:
a.
b.
c.
d.
Feedback
Question 7
Correct
Flag question
Question text
Paid Mathew Trading Co. (Six days ago, the company purchased on account from
Mathew Trading Co. inventory amounting to P32,400, with terms of 2/10, n/30.)
Select one:
a.
b.
c.
d.
Feedback
Question 8
Correct
Flag question
Question text
Collected from customers. (Five days ago, the company sold merchandise of P72,500 on
account to the customers; terms 2/10, n/30.)
Select one:
a.
b.
c.
d.
Feedback
Question 9
Correct
Flag question
Question text
Bought merchandise on cash basis for P30,700.
Select one:
a.
b.
c.
d.
Feedback
Question 10
Correct
Flag question
Question text
Salaries paid P7,500.
Select one:
a.
b.
c.
d.
Feedback
Question 11
Correct
Flag question
Question text
Borrowed money from Banko, signed a promissory note for P30,000.
Select one:
a.
Accounts Payable 30,000
Cash 30,000
b.
Notes Payable 30,000
Cash 30,000
c.
30,00
Cash
0
d.
Cash 30,000
Feedback
Cash 30,000
Question 12
Correct
Flag question
Question text
Sold merchandise for P58,900.
Select one:
a.
b.
c.
d.
Feedback
Question 13
Correct
Flag question
Question text
Mr. Diokno withdrew cash from the business, P15,020.
Select one:
a.
b.
c.
d.
Feedback
Question 14
Correct
Flag question
Question text
Paid the following expenses: Advertising P1,990; Utilities P1,218; Rent P3,000; Salaries,
P7,500.
Select one:
a.
b.
c.
d.
Feedback
Question 15
Correct
Flag question
Question text
Based on a physical count conducted, the value of inventory remaining is P26,500.
Select one:
a.
(No entry; this will be recorded as part of the closing entries.)
b.
c.
d.
Feedback
The correct answer is: (No entry; this will be recorded as part of the closing entries.)
Question 16
Correct
Mark 10.00 out of 10.00
Remove flag
Question text
DIOKNO TRADING COMPANY
Trial Balance
Cod
e
Answer
131670
101 Cash
4000
Answer
120 Supplies
25000
Answer
150 Equipment
30000
Answer
202 Notes Payable
Answer
100000
301 Diokno, Capital
15020
Answer
302 Diokno, Drawings
131400
Answer
401 Sales
410 Sales Discount 1450

Answer
63100
Answer
501 Purchases
648
Answer
503 Purchase Discounts
600
Answer
506 Freight Out
3000
Answer
510 Rent Expense
15000
Answer
530 Salaries Expense
1218
Answer
1990
Answer
Advertising
550
Expense
262048 262048
Answer Answer
Total
Feedback
Question 17
Correct
Mark 10.00 out of 10.00
Remove flag
Question text
Statement of Cost of Goods Sold
For the period ended February 29, 2020
0
Answer
Merchandise Inventory, Feb 1
Add - Net Purchases:

Answer
63100
Purchases
0
Answer
Add: Freight-in
Answer
63100
Total
648
Answer
Less: Purchase Discounts
Net Purchases 62452

Answer
62452
Answer
Total Goods Available for Sale
26500
Answer
Less: Merchandise Inventory, Feb 29
Answer
35952
Cost of Goods Sold
Question 18
Correct
Mark 15.00 out of 15.00
Remove flag
Question text
Income Statement
Answer
131400
Sales
1450
Answer
Less: Sales Discount
129950
Answer
Net Sales
35952
Answer
Less: Cost of Goods Sold
93998
Answer
Gross Profit
Less - Operating Expenses:

600
Answer
Freight out
3000
Answer
Rent Expense
15000
Answer
Salaries Expense
1218
Answer
Utilities Expense
1990
Answer
Advertising Expense
Total Operating Expenses 21808

Answer
72190
Answer
Net Income
Question 19
Correct
Mark 10.00 out of 10.00
Flag question
Question text
0
Answer
Diokno, Capital, Feb 1, 2020
Answer
100000
Add: Initial Investment
72190
Answer
Net Income
Answer
172190
Total
15020
Answer
Less: Diokno, Drawings
157170
Answer
Diokno, Capital, Feb 29,
2020
Question 20
Correct
Mark 15.00 out of 15.00
Flag question
Question text
Balance Sheet
ASSETS
Current Assets:
Answer
131670
Cash
26500
Answer
Merchandise Inventory
4000
Answer
Supplies
Total Current Assets 162170

Answer
Non-Current Assets:
25000
Answer
Equipment
25000
Answer
Answer
187170
TOTAL ASSETS

Non-Current Liabilities:
30000
Answer
Notes Payable
Owner's Equity:
157170
Answer
Diokno, Capital
Answer
187170
TOTAL LIABILITIES AND
EQUITY
Question 21
Correct
Mark 15.00 out of 15.00
Flag question
Question text
ACTIVITIES:
Cash received from:
58900
Answer
Cash sales
71050
Answer
Receivables collection
Cash payment for:

-30700
Answer
Cash purchases of merchandise inventory
-31752
Answer
Payment of accounts payable
-4000
Answer
Office supplies
Freight out -600

Answer
-21208
Answer
Operating expenses
Net Cash Flow from Operating Activities

41690
Answer
CASH FLOW FROM INVESTING ACTIVITIES:

Cash payment for:
-25000
Answer
Purchase of Equipment
CASH FLOW FROM FINANCING ACTIVITIES:

Cash received from:
100000
Answer
Capital investment
30000
Answer
Bank borrowing
Cash payment for:

Answer
-15020
Capital withdrawal
Answer
114980
Net Cash from Financing Activities
Increase (Decrease) in Cash Answer

131670
131670
0
Answer
Cash, February 1
131670
Answer
Cash, February 29
Question 22
Correct
Mark 10.00 out of 10.00
Flag question
Question text
Cod
e
Answer
131670
101 Cash
26500
Answer
115 Merchandise Inventory
120 Supplies 4000

Answer
25000
Answer
150 Equipment
30000
Answer
202 Notes Payable
Answer
157170
301 Diokno, Capital
Answer Answer
187170 187170
Total
Mr. Diokno invested P200,000 cash into the business.

Select one:
a.
b.
c.
d.
Feedback
Question 2
Correct
Flag question
Question text
Bought computer equipment for P25,000 cash.
Select one:
a.
b.
c.
d.
Feedback
Question 3
Correct
Flag question
Question text
Bought merchandise on account from Mathew Trading Co. P82,400, terms 2/10, n/30.
Select one:
a.
b.
c.
d.
Feedback

Question 4
Correct
Flag question
Question text
Bought office supplies on cash basis for P4,000.
Select one:
a.
b.
c.
d.
Feedback
Question 5
Correct
Flag question
Question text
Sold merchandise on account P72,500, FOB Destination, terms 2/10, n/30. The inventory
sold costs P49,200.
Select one:
a.
b.
c.
d.
Feedback
Question 6
Correct
Flag question
Question text
Paid P600 freight on the merchandise sold.
Select one:
a.
b.
c.
d.
Feedback
Question 7
Correct
Flag question
Question text
Paid Mathew Trading Co. from whom we purchased (six days ago) P82,400 worth of
merchandise inventory on account with terms of 2/10, n/30.
Select one:
a.
Purchases 82,400
Purchase
1,648
Discounts
Cash 80,752
b.
Purchase
1,648
Discounts
Cash 80,752
c.
Merchandise Inventory 1,648
Cash 80,752
d.
Purchases 82,400
Cash 80,752
Feedback
Cash 80,752
Question 8
Correct
Flag question
Question text
Collected from customers, to whom we sold (5 days ago) merchandise on account
P72,500, FOB Destination, terms 2/10, n/30.
Select one:
a.
b.
c.
d.
Feedback
Question 9
Correct
Flag question
Question text
Bought merchandise on cash basis for P80,700.
Select one:
a.
b.
c.
d.
Feedback
Question 10
Correct
Flag question
Question text
Salaries paid P7,500.
Select one:
a.
b.
c.
d.
Feedback
Question 11
Correct
Flag question
Question text
Borrowed money from Banko, signed a promissory note for P30,000.
Select one:
a.
b.
c.
d.
Feedback
Question 12
Correct
Flag question
Question text
Sold merchandise for P58,900. The inventory sold costs P40,050.
Select one:
a.
b.
c.
d.
Feedback
Question 13
Correct
Flag question
Question text
Mr. Diokno withdrew cash from the business, P15,020.
Select one:
a.
b.
c.
d.
Feedback
Question 14
Correct
Flag question
Question text
Sold merchandise on account P47,300. The inventory sold costs P32,000.
Select one:
a.
b.
c.
d.
Feedback
Question 15
Correct
Flag question
Question text
Paid the following expenses: Advertising P1,990; Utilities P1,218; Rent P3,000; Salaries,
P7,500.
Select one:
a.
b.
c.
d.
Feedback
Question 16
Correct
Mark 10.00 out of 10.00
Flag question
Question text
Trial Balance
Cod
e
101 Cash Answer
132670
47300
Answer
40202
Answer
4000
Answer
120 Supplies
25000
Answer
150 Equipment
30000
Answer
202 Notes Payable
200000
Answer
301 Diokno, Capital
15020
Answer
302 Diokno, Drawings
Answer
178700
401 Sales
1450
Answer
410 Sales Discount
121250
Answer
501 Cost of Goods Sold
600
Answer
506 Freight Out
3000
Answer
510 Rent Expense
15000
Answer
530 Salaries Expense
1218
Answer
1990
Answer
550 Advertising Expense
Answer Answer
408700 408700
Total
Feedback
Trial Balance
Cod
e
P
101 Cash
132,670
105 Accounts Receivable 47,300
115 Merchandise Inventory 40,202
120 Supplies 4,000
202 Notes Payable P 30,000
301 Diokno, Capital 200,000
302 Diokno, Drawings 15,020
401 Sales 178,700}
410 Sales Discount 1,450
501 Cost of Goods Sold 121,250
506 Freight Out 600
510 Rent Expense 3,000
530 Salaries Expense 15,000
550 Advertising Expense 1,990
P
Total P 408,700
408,700
Question 17
Correct
Mark 15.00 out of 15.00
Flag question
Question text
Income Statement
178700
Answer
Sales
Less: Sales Discount 1450

Answer
Answer
177250
Net Sales
121250
Answer
Less: Cost of Goods Sold
56000
Answer
Gross Profit
Less - Operating
Expenses:
600
Answer
Freight out
3000
Answer
Rent Expense
15000
Answer
Salaries Expense
1218
Answer
Utilities Expense
1990
Answer
Advertising Expense
Total Operating Expenses 21808

Answer
34192
Answer
Net Income
Question 18
Correct
Mark 15.00 out of 15.00
Flag question
Question text
0
Answer
Diokno, Capital, Feb 1, 2020
Answer
200000
Add: Initial Investment
34192
Answer
Net Income
Answer
234192
Total
15020
Answer
Less: Diokno, Drawings
219172
Answer
Diokno, Capital, Feb 29,
2020
Question 19
Correct
Mark 15.00 out of 15.00
Flag question
Question text
Balance Sheet
ASSETS
Current Assets:
Answer
132670
Cash
47300
Answer
Accounts Receivable
40202
Answer
Merchandise Inventory
4000
Answer
Supplies
224172
Answer
Total Current Assets
Non-Current Assets:
25000
Answer
Equipment
25000
Answer
249172
Answer
TOTAL ASSETS

Non-Current Liabilities:
30000
Answer
Notes Payable
Owner's Equity:
219172
Answer
Diokno, Capital
Answer
249172
TOTAL LIABILITIES AND
EQUITY
Question 20
Correct
Mark 20.00 out of 20.00
Flag question
Question text
ACTIVITIES:
Cash received from:
58900
Answer
Cash sales
71050
Answer
Receivables collection
Cash payment for:

-80700
Answer
Cash purchases of merchandise inventory
Answer
-80752
Payment of accounts payable
-4000
Answer
Office supplies
-600
Answer
Freight out
Answer
-21208
Operating expenses
Net Cash Flow from Operating Activities

Answer
-57310
CASH FLOW FROM INVESTING ACTIVITIES:

Cash payment for:
-25000
Answer
Purchase of Equipment
CASH FLOW FROM FINANCING ACTIVITIES:

Cash received from:
200000
Answer
Capital investment
30000
Answer
Bank borrowing
Cash payment for:

Capital withdrawal Answer
-15020
214980
Answer
Net Cash from Financing Activities
132670
Answer
Increase (Decrease) in Cash
0
Answer
Cash, February 1
132670
Answer
Cash, February 29
Question 21
Correct
Mark 10.00 out of 10.00
Flag question
Question text
Cod
e
132670
Answer
101 Cash
105 Accounts Receivable 47300

Answer
40202
Answer
4000
Answer
120 Supplies
25000
Answer
150 Equipment
30000
Answer
202 Notes Payable
219172
Answer
301 Diokno, Capital
Answer Answer
249172 249172
Total

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INTRODUCTION TO ACCOUNTING

The following are examples of manufacturing businesses, except

I. The date of the transaction

Investment of P150,000 cash fund by Mr. Fabella into the business.

The correct answer is:

The correct answer is:

The correct answer is:

The correct answer is:

The correct answer is:

The correct answer is:

The correct answer is:

The correct answer is:

The correct answer is:

DO NOT INPUT ANY CURRENCY/PESO SIGN)

612 Utilities Expense 3000

Supplies purchased P 18,000

The correct answer is:

Prepaid insurance P 6,000

The correct answer is:

151 Equipment 32500

Depreciation Expense 500

Fabella, Capital, Feb 1, 2020

Add: Initial Investment Answer

Total Non-Current Assets

TOTAL ASSETS 212500

FOR OUTFLOWS, USE THE NEGATIVE SIGN "-"

Cash payment for:

Operating expenses 18000

Net Cash Flow from Operating Activities -7000

CASH FLOW FROM INVESTING

CASH FLOW FROM FINANCING

Cash payment for:

(INPUT NUMBERS ONLY,

152 Accumulated Depreciation - 500

Select the journal entry to record this transaction:

The correct answer is:

The correct answer is:

The correct answer is:

The correct answer is:

The correct answer is:

The correct answer is:

The correct answer is:

The correct answer is:

The correct answer is:

The correct answer is:

The correct answer is:

The correct answer is:

The correct answer is:

410 Sales Discount 1450

506 Freight Out

Add - Net Purchases:

Less: Purchase Discounts

Net Purchases 62452

Less: Merchandise Inventory, Feb 29

Cost of Goods Sold

Less: Cost of Goods Sold

Less - Operating Expenses:

Total Operating Expenses 21808

Diokno, Capital, Feb 1, 2020

Total Current Assets 162170

LIABILITIES AND EQUITY

Cash payment for:

Freight out -600

Net Cash Flow from Operating Activities