FINACC QUIZ 1

This following are the external users of general purpose financial statements, except

• Government

• Creditors

• Managers

• Employees

Which of the following is not included in the Summa de Arithmetica of Pacioli

• Memorandum Book

• Journal Book

• Ledger Book

• Trial Balance Book

To carry the value of an asset in the Statement of Financial Position based on its historical cost is an application of

• Monetary unit

• Accounting Entity

• Going Concern

• Accounting Period

Business has the following items in it:

- Land ?

- Vehicles Php600,000

- Goodwill Php120,000

- Cash Php30,000

- Owners equity Php1,000,000

- Unearned Revenue Php500,000

- Bonds Payable Php50,000

What is the value of the land?

• Php 1,000,000

• Php 1,550,000

• Php 1,200,000

• None of the above

If assets = Php65,000 and liabilities = Php25,000, what is the net worth of the business?

• Php30,000

• Php40,000

• Php50,000

• Php35,000

An example of an asset is?

• Factory Building owned by the company

• Loan given to the company

• Amount owed by the company to one of its suppliers for purchase of goods on credit

• Capital of the company

What is the purpose of double entry bookkeeping?

• To ensure every transaction will be posted on the debit & credit side with the same amount in at least two accounts.

• To prepare books of prime entry accurately

• To record the cash in and out of business transactions

• To avoid careless mistakes

Which of the following is correct?

• When assets increase, are credited

• When assets increase, are debited and credited

• When assets increase, are not entered into books

• When assets increase, are debited

Which of the following is incorrect?

• When assets increase, are debited

• When liabilities increase, are credited

• When stockholder's equity increase, are credited

• When expenses increase, are credited

In bookkepping, posting a transaction means:

• Entering items in a cash book

• Making the first entry of double entry system

• Transferring the debit and credit items from the journal to their respective accounts in the ledger

• All of the above