FABM 1 - FINALS (REVIEW)

It is the book of final entry.

• Journal

• Ledger

• Worksheet

• Financial Statements

An equipment that costs P 100, 000 has a depreciation value of P 50, 000. How much is its carrying value?

• 50, 000

• 150, 000

• 20, 000

• 100, 000

Accounts Receivable has a balance of P 10, 000. It is estimated that 2% of this will be uncollectible. How much is the allowance for bad debts?

• 2000

• 10, 000

• 100

• 200

Which part of the trial balance is incorrect?

• Heading

• Accounts

• Totals

Which of the two entries should be reversed?

• First

• Second

This step would require the temporary accounts to have zero balances.

• Adjusting entries

• Closing entries

• Reversing entries

 It provides information about real accounts.

• Income Statement

• Capital Statement

• Balance Sheet

What prepayment method should be employed if the business would need to update the USED part of the account?

• Asset

• Expense

• Liability

How should the expense accounts be arranged in the income statement?

• Alphabetical

• Ascending

• Descending

An informal tool that helps the accountant in preparation of the financial 

          statements.

• Worksheet

• Trial Balance

• Ledger