JPIA QUIZ

An Accrued Expense is an expense?

• Incurred but not paid.

• Incurred and paid.

• Paid but not yet incurred.

• Not reasonably estimatable.

Balance sheet accounts that are not eliminated in the closing entries are called?

• Nominal.

• Private.

• Positive.

• Real.

If a transaction causes total liabilities to decrease but does not affect the owner’s equity, what change, if any, will occur in total assets?

• Assets will increased.

• Assets will decreased.

• No change in total assests.

• None.

A company has assets of P45,000, no liabilities, and stockholders’ equity of P45,000. It buys store fixtures worth P5,000 on credit. What effect would this transaction have?

• Both assets and stockholders’ equity increase by P5,000.

• Both assets and stockholders’ equity decrease by P5,000.

• Assets remain the same and stockholders’ equity increases by P5,000.

• Both assets and liabilities increase by P5,000.

Which among the following is not a Cashflow Activities?

• Investing.

• Financing.

• Auditing.

• Operating.

Which of the following are closed at the end of an accounting period?

• Nominal Accounts.

• Personal Accounts.

• Real Accounts

• Balance Account.

A decrease in value of a fixed asset due to age, wear and tear is known as?

• Accumulated Depreciation.

• Written Down Value.

• Appreciation.

• Depreciation.

JPIA Corp. loaned P150,000 to another corp. on Dec. 1,2020 and received a 3-month, 8% interest-bearing note with a face value of P150,000. What adjusting entry should JPIA make on Dec. 31,2020?

• Debit Interest Receivable and credit Interest Revenue, P3,000.

• Debit Cash and credit Interest Revenue, P1,000.

• Debit Interest Receivable and credit Interest Revenue, P1,000.

• Debit Cash and credit Interest Revenue, P3,000.

Which of the following adjustments is a unique feature of a merchandising company as compared to a service company?

• Impairment loss on receivable.

• Set-up of inventory at period-end.

• Accrued expenses.

• Unearned revenue.

Which of the following statements regarding a trial balance is incorrect?

• A trial balance is a test of the quality of the debit and credit balances in the ledger.

• A trial balance is a list of all of the open accounts in the ledger with their balances as of a given date.

• trial balance proves that no errors of any kind have been made in the accounts during the accounting period.

• A trial balance helps to localize errors within an identifiable time period.