ACADFEST_FOA_Simulation

The double-entry accounting system means

• Each transaction is recorded with two journal entries.

• Each item is recorded in a journal entry, then in a general ledger account.

• The dual effect of each transaction is recorded with a debit and a credit.

• All of the above.

Which accounting concept states that omitting or misstating this information could influence users of financial statements?

• The materiality concept

• The consistency concept

• The substance over form concept

• The accrual concept

1. Arrange the following steps in the correct order

I. Financial statements are prepared.

II. Adjusting entries are journalized.

III. Preparation of the worksheet.

Nominal accounts are closed.

• I, II, II, IV

• II, III, I, IV

• III, I, II, IV

• III, II, I, IV

Which of the following is not a principal purpose of an unadjusted trial balance?

• It proves that debits and credits of equal amounts are in the ledger.

• It is the basis for any adjustments to the account balances.

• It supplies a listing of open accounts and their balances.

• It proves that debits and credits were properly entered in the ledger accounts.

Which of the following would most likely be found in an adjusting entry

• Depreciation of an asset

• Sales on account

• Receipt of Cash

• Accounts Receivable

It is the area of the accountancy profession that encompasses the process of analyzing, classifying, summarizing, and communicating all transactions involving the receipt and disposition of government funds and property and interpreting the results thereof.

• Public accounting

• Government Accounting

• Internal Auditing

• External Auditing

What is the law regulating the practice of accountancy in the Philippines?

• R.A. No. 9892

• R.A. No. 9198

• R.A. No. 9298

• R.A. No. 9928

Failure to record the income earned but not yet collected would result to

• Understate asset

• Overstate asset

• Overstate revenue

• Overstate profit

Which of the following would be considered a source document?

• Chart of account

• General ledger

• Sales journal

• Invoice received from seller

1. Inventory system that uses a purchase account

• Perpetual Inventory system

• Periodic Inventory system

• Both a and b

• None of the choices