Which is not an asset?

• a. cash

• b. inventory

• c. loans payable

• d. vehicle

Who is the Father of Modern Accounting?

• a. Luca Paciolli

• b. Lucca Pacioli

• c. Luca Pacioli

• d. Luca Pacilli

The bookkeeping system used up to today is called ____________.

• a. Single-bookkeeping

• b. Debit-credit bookkeeping

• c. Double-line bookkeeping

• d. Double-entry bookkeeping

If you purchased a land in account,

• a. Liabilities increase, assets decrease

• b. Debit-credit bookkeeping

• c. No effect

• d. Assets increase, liabilities increase

The accounting equation is defined as

• a. Assets = Liabilities - Equity

• b. Assets = Liabilities + Equity

• c. Assets + Liabilities = Equity

• d. Assets + Liabilities - Equity

What is the nationality of the Father of Modern Accounting?

• a. Italian

• b. Russian

• c. French

• d. British

Which is an equity account?  a.       Loan payable b.       Inventory c.       Petty cash d.       Owner’s drawings

• a.       Loan payable

• b.       Inventory

• c.       Petty cash

• d.       Owner’s drawings

8. Which is a liability account?  

• a.       Loan payable

• b.       Inventory

• c.       Petty cash

• d.       Owner’s drawings

9. A current asset is defined as any asset which can reasonably be expected to be sold, consumed, or exhausted through the normal operations of a business within the current fiscal year or operating cycle. Which of the following is a current asset?  a.       Land b.       Inventory c.       Vehicle d.       Machinery 

• a.       Land

•  b.       Inventory 

• c.       Vehicle

• d.       Machinery 

You purchased inventory worth P5,000, paying P2,500 cash and the other half on account. Which of the following is correct?  a.       Liabilities increase by P5,000 b.       Cash decrease by P5,000 c.       Inventory increase by P2,500 d.       Cash decrease by P2,500 

•  a.       Liabilities increase by P5,000

• b.       Cash decrease by P5,000

• c.       Inventory increase by P2,500

• d.       Cash decrease by P2,500