Prelim Accounting1-1st Semester Sy 2018-2019

29 Questions | Total Attempts: 34

SettingsSettingsSettings
Please wait...
Prelim Accounting1-1st Semester Sy 2018-2019

.


Questions and Answers
  • 1. 
    The Accounting Equation is: ASSETS  =  LIABILITIES + OWNER'S EQUITY  OR ASSETS - LIABILITIES = OWNER'S EQUITY
    • A. 

      True

    • B. 

      False

  • 2. 
    Which of the following is/are a purpose of adjusting entries?
    • A. 

      To update the accounts in the books

    • B. 

      To apply the matching principle

    • C. 

      To properly reflect the the correct net income

    • D. 

      To make the equation A=L+C more accurate

    • E. 

      All of the above

  • 3. 
    If adjusting entries are recorded in the worksheet, there is no need for them to be journalized or posted
    • A. 

      True

    • B. 

      False

  • 4. 
    Accrual accounting involves all of the following except
    • A. 

      Recording all revenues when cash was received

    • B. 

      Applying the matching rule

    • C. 

      Recognizing expense when incurred

    • D. 

      Adjusting the accounts

    • E. 

      All of the above

  • 5. 
    Which one of the following categories of account is "credited" when it is increased? 
    • A. 

      Revenue

    • B. 

      Purchases

    • C. 

      Asset

    • D. 

      Expenses

  • 6. 
    Which one of the following categories of account is "debited" when it is increased?  
    • A. 

      Revenue

    • B. 

      Assets

    • C. 

      Sources of fund

    • D. 

      Liability

  • 7. 
    Is it true that the trial balance totals should agree?
    • A. 

      No, there are sometimes good reasons why they differ

    • B. 

      Yes, except where the trial balance is extracted at the year end

    • C. 

      Yes, always

    • D. 

      No, because it is not a balance sheet

  • 8. 
    The current portion of a long term debt should
    • A. 

      Be classsified as a long term liability

    • B. 

      Not be separated from the long term portion of debt

    • C. 

      Be paid immediately

    • D. 

      Be reclassified as a current liability

  • 9. 
    Which of the following accounts is what is known as a temporary or nominal account ?
    • A. 

      Asset

    • B. 

      Owner's Equity (Capital)

    • C. 

      Liability

    • D. 

      Revenue & Expenses

  • 10. 
    A Debit:
    • A. 

      Increase an Asset Account

    • B. 

      Decrease an Asset Account

    • C. 

      Increase a Liability Account

    • D. 

      Increase Owner's Equity

  • 11. 
    A Credit:
    • A. 

      Increase an Asset Account

    • B. 

      Decrease a Liablility Account

    • C. 

      Increase a Liability Account

    • D. 

      Decrease an Owner's Equity

  • 12. 
    Under accrual accounting, revenue is recorded
    • A. 

      When the cash is collected, regardless of when the services are performed

    • B. 

      When the services are performed, regardless of when the cash is received

    • C. 

      Either when the cash is received or the sale is made

  • 13. 
    A company using the accrual basis of accounting pays P15,000 for a television advertising campaign.  Commercials will run evenly in December, January, and February. How much expense will be reported on an income statement prepared for the month of December?
    • A. 

      P0

    • B. 

      P5,000

    • C. 

      P10,000

    • D. 

      P15,000

  • 14. 
    Adjusting entries are:
    • A. 

      Prepared by the Manager

    • B. 

      Closing entries

    • C. 

      Prepared at the beginning of the accounting period to update all accounts.

    • D. 

      Prepared at the end of the accounting period to update certain accounts.

  • 15. 
    Prepaid insurance is reported on the balance sheet as a(n):
    • A. 

      Expense

    • B. 

      Liability

    • C. 

      Asset

    • D. 

      Contra asset

  • 16. 
    A liability that arises from an expense that has not yet been paid is a(n):
    • A. 

      Unearned expense

    • B. 

      Prepaid expense

    • C. 

      Accrued expense

    • D. 

      Accrued revenue

  • 17. 
    The book value of an asset that cost P20,000 and has accumulated depreciation of P6,000 is
    • A. 

      P20,000

    • B. 

      P 6,000

    • C. 

      P26,000

    • D. 

      P14,000

  • 18. 
    A company has P800 beginning balance of Supplies (asset). At the end of the month, the Supplies on hand is P150.  The adjusting entry for this company is:
    • A. 

      Debit supplies of P150 and a credit of P150 to Supplies Expense

    • B. 

      Debit supplies Expense of P150 and a credit of P150 to Supplies

    • C. 

      Debit supplies Expense of P650 and a credit of P650 to Supplies

    • D. 

      There is not enough information given to prepare the entry

  • 19. 
    The financial statements are prepared from the
    • A. 

      Adjustments

    • B. 

      Unadjusted trial balance

    • C. 

      Ledger

    • D. 

      Adjusted trial balance

  • 20. 
    According to the revenue principle, revenue should be recorded
    • A. 

      Before it has been earned

    • B. 

      When the cash is received

    • C. 

      When it has been earned

    • D. 

      Whenever the company needs to record the revenue

  • 21. 
    An expense that is paid in advance is a(n):
    • A. 

      Unearned expense

    • B. 

      Prepaid expense

    • C. 

      Liability

    • D. 

      Unearned asset

  • 22. 
    Current assets include
    • A. 

      Cash and receivables

    • B. 

      Cash and payables

    • C. 

      Land and Building

    • D. 

      Retained earnings

  • 23. 
    Which account is debited in the adjusting entry to record depreciation expense during the current period?
    • A. 

      Accumulated Depreciation

    • B. 

      Equipment

    • C. 

      Depreciation Expense

    • D. 

      Depreciation Payable

  • 24. 
    Which of the following accurately describes the account type of the Accumulated Depreciation account?
    • A. 

      Contra-expense account

    • B. 

      Liability account

    • C. 

      Contra-asset account

    • D. 

      Expense account

  • 25. 
    On November 1, Phillips Company paid six months’ insurance in advance totalling P9,000.  An adjusted trial balance prepared on December 31 would include a balance in the Prepaid Insurance account of:
    • A. 

      P9000

    • B. 

      P6000

    • C. 

      P3000

    • D. 

      P0

Back to Top Back to top