ABM 2 QUIZ 4

What is the normal balance of Cash?

• Debit

• Credit

What is the normal balance of Accounts payable?

• Debit

• Credit

What is the normal balance of Revenues?

• Debit

• Credit

What is the normal balance of Expenses?

• Debit

• Credit

If supplies are initially recognized amounting to P10,000 and there is an adjustment for the expired portion of P7,000, how much is the supplies on hand left?

• 10,0000

• 7,000

• 17,000

• 3,000

If you paid insurance in advance for 5 years, what account should be debited?

• Cash

• Insurance expense

• Prepaid insurance

• None of the choices.

What is the adjustment for the insurance paid in advance at year-end to defer the amount expired?

• Dr. Insurance expense; Cr. Prepaid insurance

• Dr. Prepaid insurance; Cr. Insurance expense

• Dr. Prepaid insurance; Cr. Cash

• Dr. Insurance expense; Cr. Cash

If the rent is paid in advance for P24,000 that is good for 12 months, how much of the portion is expired after 9 months?

• 9,000

• 18,000

• 21,000

• 15,000

The company purchased an equipment in Jan. 1, 2020. If the cost of the asset is P150,000 with 5 years useful life. How much is the depreciation expense using the straight-line method for the current year?

• 50,000

• 30,000

• 40,000

• 20,000

The company bought a building costing P20,000,000 on July 1, 2020 with a useful life of 40 years. How much is the depreciation expense for the year 2020?

• 500,000

• 1,000,000

• 250,000

• 750,000