Review - Elements and Single -Step SCI

The SCI is a picture of the results of operations of the company as of the cut-off date.

• True

• False

Expense recognition strictly requires the matching expenses against revenue.

• True

• False

Revenue result in increase in equity and therefore has a credit normal balance.

• True

• False

This is the total amount of income that the company was able to generate from providing services to customers.

• Expenses

• Cost of Sales

• Revenue

• Inventory

ABM Company generated revenues amounting to Php 200,000. Expenses for the year totaled Php 156,000. How much is the company’s net income for the year?

• Php 256,000

• Php 356,000

• Php 44,000

• Php 156,000

The Statement of Income also called profit and loss statement, presents an entity’s results of operation for a period of time.

• True

• False

Gains are generated from the primary operations of the business

• True

• False

The normal balance of revenue account is debit.

• True

• False

These is also called temporary accounts because at the end of the accounting period, balances under these accounts are transferred to the capital account.

• Real Accounts

• Nominal Accounts

• False Accounts

• Fixed Accounts

At the end of the first month of operations for Juan’s Service Company, the business had the following accounts: Cash, Php19,000; Prepaid Rent, Php500; Equipment, Php5,000 and Accounts Payable Php2,000. By the end of the month, Jackson's had earned Php20,000 of Revenues, Php1,000 of Utilities Expenses and Php1,500 of Salaries Expenses. Calculate the net income to be reported by the company for this first month.

• 17,500

• 17,000

• 17,560

• 17,060