FABM1

What type of business offers professional skills?

• Manufacturing business

• Merchandising business

• Service business

• Trading business

Which of the following is an example of a service business?

• Repair store

• Law office

• Shoe factory

• Supermarket

In which book are transactions are recorded for the first time?

• journal

• ledger

• logbook

• time sheet

In journalizing, which statement is TRUE?

• The credit account is written after a single space.

• The debit account is written first at the left margin under the account titles.

• The debit amount is written on the credit column across the debit account

• The credit account is written on the debit column across the credit account.

What is the process of transferring the records from the journal to the ledger?

• Analyzing

• identifying

• Journalizing

• Posting

The following information are transferred to the ledger EXCEPT ____________

• amount

• date

• explanation

• heading

What is called the list of accounts with open balances in the general ledger?

• chart of accounts

• major accounts

• passbook

• trial balance

What is the last step in preparing Trial Balance?

• Double rule the totals

• Foot the money columns

• Write the amounts on the debit or credit column

• Write the accounts according to five major accounts

What is the method of allocating the cost of an asset to an expense over the accounting periods that make up the asset’s useful life?

• appreciation

• completion

• depletion

• depreciation

What items that have been initially recorded as assets but are expected to become expenses over time or through the operations of the business.?

• Accrued income or accrued assets

• Accrued expenses or accrued liabilities

• Deferred income or unearned income

• Deferred expenses or prepaid expenses