Module 2

Refer to the expenses that are already incurred, used, utilized or consumed but have not yeen been paid.

• Prepaid Expenses
• Unearned Expenses
• Accrued Expenses
• Accounts Expense

Refer to income or revenue already earned but has not yet been collected. 

• Unearned Revenue
• Accrued Income
• Prepaid Income
• Service Revenue

Represent revenue or income already collected but not yet earned; also referred to as advances from customers.

• Accrued Income
• Service Revenue
• Unearned Revenue
• Sales Revenue

Represent advance payments made for expenses which have not yet been incurred, used, utilized or consumed.

• Accrued Expenses
• Unearned Expenses
• Prepaid Expenses
• Accounts Expense

Refers to the allocation of the cost of the asset over its estimated useful life.

• Consumption
• Deterioration
• Contra Asset
• Depreciation

It is prepared after adjusting entries are made and posted in the ledger.

• Income Statement
• Balance Sheet
• Adjusted Trial Balance
• Unadjusted Trial Balance

The adjusting entry to record an accrued expense results in which of the following types of accounts being debited and credited?

• Asset/Revenue
• Asset/Liability
• Expense/Asset
• Expense/Liability

The adjusting entry to record an accrued revenue results in which of the following types of accounts being debited and credited?

• Asset/Revenue
• Asset/Liability
• Expense/Asset
• Expense/Liability

Office Equipment was purchased on May 1, 2017 at a cost of P 140,000 with a salvage value of P 20,000. The equipment’s useful life is five years. How much is the depreciation expense on December 31, 2017.

• Php 24,000
• Php 10,000
• Php 16,000
• Php 28,000

On September 1, 2017, the company collected  P72,000 rent in advance. A debit to Cash and a credit to Unearned Revenue was made. The tenant was paying for one year's rent. How much is the Rental Revenue to be recorded in the adjusting entry on Dec. 31, 2017?

• Php 6,000
• Php 24,000
• Php 30,000
• Php 36,000