Financial Accounting > EXAM > FUNDAMENTALS OF ACCOUNTING 1 & 2 (All)

FUNDAMENTALS OF ACCOUNTING 1 & 2

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1 T-Gang Consulting of BSACC3A bought P 9,000 of furniture. Accumulated Depreciation had a balance of P 3,000 prior to the recording of this year’s depreciation. Depreciation Expense at the end of t... he year is P 2,000. What is the book value of the furniture at the end of the year? A P 4,000 C P 11,000 B P 6,000 D P 3,000 2 Equities are legal and economic claims to the assets of a business. The owner’s claims on the business assets are also known as A Accounts Payable C Liabilities B Outsider Claims D Capital 3 The statement which presents the entity’s operations during a specific period of time is the A Statement of Owner’s Equity C Income Statement B Statement of Cash Flows D Balance Sheet 4 The purchase of office equipment on account will A increase an asset and increase owner’s equity C increase an asset and increase a liability B increase one asset and decrease another asset D increase an asset and decrease a liability 5 The performance of service for a customer or client and immediate receipt of cash will A increase one asset and decrease another asset C decrease an asset and decrease a liability B increase an asset and increase owner’s equity D increase an asset and increase a liability 6 The payment of an accounts payable will A decrease an asset and decrease owner’s equity C decrease an asset and decrease a liability B increase one asset and decrease another asset D increase an asset and increase a liability 7 A debit entry to the Cash account indicates A the payment of an expense B the borrowing of money from a bank C the billing of a client for services, payment subsequent to invoicing D the withdrawal of funds from the business by the owner 8 The trial balance is necessary in order to A post to the ledger B prepare the source documents C record entries into the journal D check the posting accuracy, that total debits equal total credits 9 If the Income Summary account has a P 4,000 credit balance before it is closed to the capital account, you know that A revenues exceeded expenses by P 2,000 B the company had a net loss for the year of P 4,000 C the owner invested an additional P 4,000 in the business D the company had a profit for the year of P 4,000 10 The post closing trial balance is prepared as the next step in the accounting cycle after A combining the trial balance and adjustment figures B preparing the trial balance C journalizing and posting the closing entries D none of these [Show More]

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