Long Test in Fundamentals of Accounting 2

Properties and rights owned by the company.

• Liabilities

• Income

• Assets

• Expenses

A current asset that normally consists of coins and currencies on hand, money orders and deposits in bank account.

• Inventories

• Cash

• Receivables

• Prepaid Expenses

Plant and equipment are what type of accounts?

• Current Assets

• Non-current Liabilities

• Current Liabilities

• Non-current Assets

A present obligation of the enterprise arising from past events.

• Liabilities

• Assets

• Expenses

• Income

All are current liabilities, EXCEPT

• Taxes Payable

• Accrued Liabilities

• Short Term Loans

• Bonds Payable

What is a financial statement that shows the financial position of an enterprise at a particular point in time?

• Balance Sheet

• Cash Flow Statement

• Income Statement

• Statement of Changes in Equity

Which of the following transactions would increase cash as well as non-current liabilities?

• Payment from customer

• Payment to suppliers

• Long-term bank loan

• Purchasing equipment on credit

ABC Company has a non-current assets of Php 60000, current assets of Php 70000, current liabilities of Php 40000, and a long-term loan of Php 50000. How much is the owner's equity?

(a)  

Which is NOT true about permanent accounts?

• Will have a zero balances at the end of the accounting period.

• Balances remain intact from one accounting period to another.

• Accounts are retained permanently in the SFP until their balances become zero.

• Cash, Accounts receivable and capital are examples of this.

Accumulated Depreciation is the contra-asset of

• Accounts Receivable

• Plant and Equipment

• Accounts Payable

• Investment