The Next Accounting Champion

The Next Accounting Champion

Number of Questions per Round

• Easy - 7 questions (45 seconds)

• Average - 5 questions (2 minutes)

• Difficult - 5 questions​ (3 minutes)

Easy Round

7 Questions | 45 seconds​

Multiple Choice

EASY | 1. From which accounting document is the Trial Balance prepared?

• Invoice

• Journal

• Ledger

• Worksheet

Multiple Choice

EASY | 2. What GAAP recognizes revenue when sales are made or services are performed, regardless of when cash is received; and recognizes expenses as incurred whether or not cash has been paid out?

• Accrual Principle

• Business Entity Concept

• Going Concern

• Matching Principle

Multiple Choice

EASY | 3. How are owners in a sole proprietorship are called?

• Sole Proprietor

• Partner

• Stockholders

• CEOs

Multiple Choice

EASY | 4. This refers to the excess of current assets over current liabilities.

• Capital

• Working Capital

Multiple Choice

EASY | 5. What is the normal balance of these accounts: Liability, Income, Owner's Equity?

• Debit

• Credit

Multiple Choice

EASY | 6. A method of inventory where movement of merchandise is directly debited or credited to this account, thus maintaining a continuous record of the inventory items.

• Periodic Inventory System

• Perpetual Inventory System

Multiple Choice

EASY | 7. Which of the following is not an example of an Adjusting Entries?

• Prepaid Expenses

• Unearned Revenues

• Accruals

• Contra Accounts

Average Round

4 Questions | 2 minutes​

Multiple Choice

AVERAGE | 1. A business received cash of ₱3,000 in advance for services that will be provided later. The cash receipt debited Cash and credited Unearned Revenue of ₱3,000. At the end of the period, ₱1,100 is still unearned.

What would this transaction require for its adjusting entry?

• A debit to Cash worth ₱3,000

• A debit to Unearned Revenue worth ₱1,100

• A credit to Service Income worth ₱1,900

• A credit to Unearned Revenue worth ₱3,000

Multiple Choice

AVERAGE | 2. A building that cost ₱120,000 has accumulated depreciation of ₱50,000. What is the book value of the building?

• ₱50,000

• ₱70,000

• ₱120,000

• ₱170,000

Multiple Choice

AVERAGE | 3. In preparing a worksheet at the end of the annual accounting period, Francisco Company's accountant incorrectly extended a ₱12,000 Salaries Expense amount from the Adjusted Trial Balance to the Balance Sheet column. As a result of this error:

• The net income calculated on the worksheet will be understated.

• The net income calculated on the worksheet will be overstated.

• The Adjusted Trial Balance columns will not balance.

• The Balance Sheet will be equal.

Multiple Choice

AVERAGE | 4. Den Mark, the owner of Denmark Trading has a beginning capital of ₱504,000. During the year, Denmark Trading earned a Net Income of ₱50,400. Furthermore, Den Mark withdrew ₱37,800 from Denmark Trading for his personal use.

How much is the balance of Den Mark's ending capital as of December 31, 2015?

• ₱516,600

• ₱492,200

• ₱592,200

• ₱416,200

Multiple Choice

AVERAGE | 5 Goodwill Company records the payment of ₱1,800 cash for a previously accrued expense and the accrual of ₱1,000 of another expense. The impact of these two entries on Total Expense and Net Income is:

• increase in Total Expense by ₱2,800; decrease in Net Income by ₱2,800

• increase in Total Expense by ₱1,800; decrease in Net Income by ₱1,800

• increase in Total Expense by ₱1,000; decrease in Net Income by ₱1,000

• Increase in Total Expense by ₱800; decrease in Net Income by ₱800

Difficult Round

5 Questions | 3 minutes​

Multiple Choice

DIFFICULT | 1. Below are the cash transactions of England Services for December 31, 2018:

Cash payment to suppliers of goods and services ₱70,000

Cash receipts from rendering services, ₱140,000

Payment to owners, ₱14,000

Proceeds from bank loans, ₱70,000

Proceeds from cash investment of owners, ₱322,000

Payment for acquisition of equipment, ₱280,000

How much is the Net Increase or Net Decrease in Cash?

• ₱168,000

• (₱168,000)

• ₱196,000

• (196,000)

Multiple Choice

DIFFICULT | 2. On December 31, Year1, Ace Company failed to make an adjustment for ₱600 of accrued service income earned and also failed to record the expiration of ₱1,000 of insurance premium that had been debited to Prepaid Insurance. As a result of these errors, the Year1 Income statement:

• Income will be overstated by ₱600 and expenses will be understated by ₱1,000

• Income will be understated by ₱600 and expenses will be understated by ₱1,000

• Income will be overstated by ₱600 and expenses will be overstated by ₱1,000

• Income will be understated by ₱600 and expenses will be overstated by ₱1,000

Multiple Choice

DIFFICULT | 3. If the balance shown on a company's bank statement is less than the correct cash balance and neither the company nor the bank has made any errors, there must be ________________.

• deposits created by the bank but not yet recorded by the company

• outstanding checks

• deposits-in-transit

• bank charges not yet deposited by the company

Multiple Choice

DIFFICULT | 4. The following are the account balances for C Company, December 31, Year 1: Assets - ₱54,000; Liabilities - ₱33,000

While on December 31, Year 2, the account balances of C Company are as follows: Net Income - ₱27,000; Owner's Investments - ₱36,000; Owner Withdrawals - ₱12,000; and Liabilities - ₱48,000.

How much is the Assets on December 31, Year 2?

• ₱21,000

• ₱72,000

• ₱24,000

• ₱120,000

Multiple Choice

DIFFICULT | 5. A company pays its employees for ₱35,000 for a 7-day workweek, payable every Friday. December 31 is a Wednesday. What is required for the adjusting entry?

• A debit to Salaries Expense, ₱15,000

• A debit to Salaries Expense, ₱25,000

• A credit to Salaries Payable, ₱15,000

• A credit to Salaries Payable, ₱35,000