far review

Accounting provides which type of information?

• Quantitative

• Qualitative

• Financial Information

• All of the above

Under this concept, economic events are recorded in the period in which they occur rather than at the point in time when they affect cash.

• Separate Entity Concept

• Accrual Basis of Accounting

• Going Concern Assumption

• Time Period

Which of the following would not give rise to income?

• Enhancement in the value of an asset

• Decrease in liabilities

• Investment by the business owner to the business

• All of the above

Financial Accounting focuses on catering to the information needs of external users.

• TRUE

• FALSE

Which of the ff would result to income of ₱320,000?

• Total expense of ₱280,000 and loss of ₱40,000

• Total expense of ₱360,000 and loss of ₱40,000

• Total expense of ₱220,000 and loss of ₱100,000

The amount of estimated losses from uncollectible accounts receivable during the period.

• Allowance for Bad Debts

• Losses

• Depreciation Expense

• Bad Debts Expense

Which of the ff is most likely considered an adjusting entry?

• Entry to record the payment of interest payble

• Entry to record the collection of accounts receivable

• Entry to record the purchase of equipment

• Entry to record bad debts expense for the period

On October 1, Natoy Co. paid ₱135,000 for advertising to be provided for the next 9 months. What is the correct adjusting entry?

• DR Advertising Expense, CR Prepaid Advertising - ₱45,000

• DR Advertising Expense, CR Cash - ₱45,000

• DR Prepaid Advertising, CR Advertising Expense - ₱135,000

• DR Advertising Expense, CR Prepaid Advertising - ₱135,000

A debit balance in retained earnings.

• Treasury shares

• Small stock dividends

• Deficit

• Stock Dividend

In failing to adjust insurance expense of ₱16,000 related to future insurance coverage, which account/s will be understated?

• Assets

• Liabilities

• Expense

• Net Income