QUIZ 5

True or False

1. When the reduction in prepaid expenses is not properly recorded, this causes the asset accounts to be
understated. FALSE - overstated
2. The normal balance of any account refers to the side of the account -debit or credit - where decreases are
recorded.
FALSE – increases
3. A trial balance with equal debit and credit totals proves that all transactions have been journalized and posted to
the proper ledger accounts. TRUE
4. In a proper journal entry, the Post Ref. or PR column is left blank until the entry has been posted. TRUE
5. Recording an account with debit balance as credit, or vice-versa, will cause the trial balance to be out of balance
by an amount that is divisible by 2. TRUE
6. Double posting of a transaction causes the debits and credits not to balance.
FALSE – double posting means recording both debit and credit in the correct accounts
7. Amounts entered on the left side of account, regardless of the account title, are charges and addition to the
account.
FALSE – left side of account refers to debit side, where asset accounts increases and liability and expenses
decreases.
8. If equipment costing P93,000 is bought by paying P30,000 as a down payment and the remaining P63,000 in 30
days credit term, owner's equity is not affected. - TRUE
9. If equipment is bought by paying P20,000 as a down-payment and the remaining P40,000 in 30 days credit,
total liabilities are increased by P20,000. - FALSE
10. An entry to Accounts Payable will be on the left side of the account if there is a payment and on the right side if
there is purchase on account. – TRUE

Multiple Choice
1. Footing is the term used for

a. Adding columns of figures c. Multiplying the columns of figures

b. Subtracting the columns of figures d. Dividing the columns of figures

2. Which of the following errors cannot be revealed by a trial balance?

a. Posting the amount of an item to a wrong side of the account or ledger
b. Omission in posting of either debit or credit entry in the journal.
c. A journal entry that has not been posted in its entirely.
d. Wrong footing of account balance or in the ledger.
3. Posting is the process of sub-totaling both sides of an account and recording the amount on that side
is known as

a. Balancing the accounts c. Posting

b. Taking a trial balance d. Footing

4. Which of the following is not true about a proper journal entry?

a. An explanation needed immediatey after each debit and immediately after each credit.
b. All credits are indented
c. A debit is not indented, even if liability or owner's equity account is invoved.
d. All debits are listed before the first credit.
5. An accountant wanted to know the balance of a particular account would refer to the
a. ledger c. Book of original entry
b. chart of accounts d. Source document
6. The first step in posting process is
a. Recording the journal page number in the ledger account
b. Recording the ledger account number in the journal
c. Recording the date in the ledger account
d. Recording the explanation in the journal
7. The proof that the debits and credits in the ledger are equal is called the

a. Journal c. Balance sheet

b. trial balance d. Income statement

8. Which of the following errors will show up in the preparation of a trial balance?
a. Posting the debit of a journal entry as a credit and the credit as a debit
b. Failure to record the entire entry in the journal
c. Failure to post the entire entry in the ledger
d. Failure to post part of the entry
9. Posting is
a. Normally occurs before journalizing
b. Transfer ledger transactions data to the journal
c. Is an optional step in the recording process
d. Transfer of journal entries to the ledger accounts
10. If the total of the debit entries exceed to the total of the credit entries after footing the account, the
account is said to be
a. "in balance" c. "out of balance"
b. "credit balance" d. "debit balance"

11. A purchase is recognized in the accounting records when

a. The buyer receives the seller's bill.
b. Payment is made for the item purchased.
c. The purchase requisition is sent to the purchasing department.
d. Title transfers from the seller to the buyer.
 12. Which of the following errors will cause a trial balance out of balance?
a. A journal entry was accidentally posted twice
b. A credit was posted to an account is a debit
c. The bookkeeper forgot to journalize a transaction
d. The bookkeeper forgot to post a journal entry to the ledger
13.An entry with more than one debit or credit is
a. Multiple entry c. Compound entry
b. Double entry d. Dual entry
14. Which of the following gives the correct sequence of accounting procedures
a. Ledger, trial balance, journal, financial statements
b. Journal, ledger, trial balance, financial statements
c. Financial statements trial balance, ledger, journal
d. Financial statements journal, ledger, trial balance
15. Which of the following statements is true about the proper journal entry?
a. A line is skipped between each debit and each credit
b. Assets are entered before liabilities
c. Decreases in liabilities are indented
d. The posting reference column is left blank until entries are posted.
QUIZ 6
1. If the bookkeeper fails to make an adjusting entry at the end of fiscal year to record expired
insurance, the omission will cause
a. total assets to be understated c. total revenues to be understated
b. total expenses to be understated d. liabilities to be overstated

2. The word "accrued implies which of the following?

a. Money has been paid but no services have been provided.
b. Money has been paid for a service to be performed during the next period.
c. Money has been paid and the service has been provided.
d. Money has not been paid or received but the service has already been performed.

3. An adjusting entry to accrue salaries incurred but not yet paid is an example of
a. Aligning recorded costs with appropriate acctg periods.
b. Aligning recorded revenues with appropriate acctg periods.
c. Reflecting unrecorded expenses incurred during acctg period.
d. Reflecting unrecorded revenues carried during the accounting period.

4. Which of the following is an example of an adjusting entry?

a. Recording the purchase of supplies on account.
b. Recording depreciation expense on equipment.
c. Recording the billing of customers for services rendered.
d. Recording the payment of salaries to employees.

5. The trial balance will not expose which of the following problems?
a. Recording half an entry.
b. Leaving out an entire entry.
c. Recording both halves of an entry on the same sale.
d. Recording half an entry and leaving out an entire entry.

6. When a service has been performed, but no cash has been reserved, which of the following statement
is true?
a. No journal entry would be made.
b. The entry would include a debit to Accounts Receivable.
c. The entry would include a debit to Accounts Payable.
d. The entry would include a credit to Unearned Revenues.

7. Which of the following is not an application of accrual accounting?

a. Recording utilities expense when the monthly bill is received.
b. Recording revenue at the time payment is received.
c. Depreciating a building annually as allowed by income tax regulations.
d. Expensing a machine in its entirely when purchased.

8. An adjusting entry cannot include a debit to

a. expense and a credit to an asset account
b. asset and a credit to a revenue account
c. liability and a credit to a revenue account
d. asset and a credit to liability account
9. From the point of view of the firm receiving the cash, an item that represents services that have been
paid for by the customer, but have not yet been provided to that customer by the firm which received
the cash, is called
a. A prepaid expense c. An accrued expense
b. An unearned revenue d. An accrued revenue

10. The balance in the Prepaid Insurance account before adjustment at the end of the year is P7,200
which represents 12 months insurance purchased on Dec 1, 2022. The adjusting entry at Dec 31 is
a. Debit Insurance Exp. P600, credit Prepaid Insurance P600
b. Debit insurance Exp. P6,000, credit Prepaid Insurance P6,000
c. Debit Prepaid Ins. P600, credit Insurance Expense
d. Debit Prepaid Ins. P7,200, credit Insurance Expense P7,200

11. A business received cash of P30,000 in advance for revenue that will be earned later. The cash receipt
has entered as debit cash and credit unearned revenues for P30,000. At the end of the period, P11,000
is still unearned. The adjusting entry for this situation will
a. Debit unearned revenues and credit revenues for P19,000
b. Debit unearned revenues and credit revenues for P11.000
c. Debit revenues and credit unearned revenues for P19,000
d. Debit revenues and credit unearned revenues for P11,000

12. If a P4,700 cash purchase of supplies is recorded as a P5,700 debit to Supplies Experse and P5,700
credit to Cash, the result will be that
a. the trial balance will be out of balance
b. the Supplies Expense account will be understated
c. the Cash account will be overstated
d. Supplies Expense will be overstated and Cash will be understated

13. A business pays weekly salaries of P200,000 on Friday for a five-day week ending on that day. If the
fiscal period ends on Wednesday, the adjusting entry is
a. debit salaries expense, P120,000, credit cash, P120,000
b. debit salaries expense, P120,000, credit salaries payable, P120,000
c. debit withdrawals, P120,000, credit salaries payable, P1260,000
d. debit salaries payable, P200,000, credit cash, P200,000

14. Profit for JB Treasures is P 250,000 for the current year. The owner withdrew P30,000 per month
for personal living expenses. The owner's capital account will show a net
a. increase of P 100,000
b. increase of P 610,000
c. decrease of P 60,000
d. decrease of P 110,000

15. An Engineering firm began November with office supplies of P16,000. During the month, the firm
purchased supplies of P29,000. On November 30, supplies on hand totaled P21,000 Supplies expense
for the period is
a. P 21,000 c. P 29,000
b. P 24,000 d. P 45,000

16. If a P 2,500 adjustment for depreciation is omitted, which of the following financial statement errors
will occur?
a. Expense will be overstated. c. Net income will be understated.
b. Owner's equity will be overstated. d. Assets will be understated.
17. Which of the ff. errors would cause unequal totals in the trial balance?
 a. The firm recorded P21,008) received from a customer in advance for the delivery of goods as a debit
of P1,000 to cash and a credit of P21,000 to sales.
b. _____________as expense and failed to recognize the P 22,000 owed to Electric Company.
c. All these errors will cause unequal trial balance totals.
d. None of these errors will cause unequal trial balance total.

18. A business received cash of P30,000 in advance for revenue that will be earned later. The cash
receipt debited cash and credited unearned revenues for P36,000. At the end of the period P11,000 is
still unearned. The adjusting entry for this situation will
a. debit unearned revenues and credit revenues for P19,060
b. debit unearned revenues and credit revenues for P11,000
c. debit revenues and credit unearned revenues for P19,000
d. debit unearned revenues and credit revenues for P11,000

19. A company has P1500 of supplies on hand at the end of 2022. During the year 2023, P2,700 of
supplies were purchased. A count of supplies on hand at the end of 23023 found an inventory of
P875. What was the amount of supplies expense in 2011?
a. P 1,875 c. P 3,375
b. P 5,125 d. P4,250

20. If as of Dec. 31. 2023 the rent of P10,000 for December had out hon sold or paid the adjusting entry
would include a
a. credit to accumulated Rent for P10,000
b. credit to Rent payable for P 10,000
c. Debit to Rent expense for P 10,000
d. Credit to cash for P 10,000
Answer Key

Quiz 5 Quiz 6 Quiz 9 Quiz 10

True or False 1. B 1. IA
1. False 2. D 2. FA
2. False 3. C 3. FA
3. False 4. B 4. IA
4. True 5. B 5. OA
5. True 6. B 6. IA
6. False 7. B 7. OA
7. False 8. C 8. X
8. True 9. B 9. OA
9. False 10. A 10. OA
10. False 11. A 11. OA
Multiple Choice 12. D 12. OA
1. A 13. B 13. X
2. C 14. D 14. X
3. D 15. B 15. X
4. A 16. B 16. IA
5. A 17. D 17. FA
6. C 18. A 18. FA
7. B 19. C 19. OA
8. D 20. C 20. OA
9. D
10. C
11. D
12. B
13. C
14. B
15. D