ACCOUNTING JAM QUIZ BEE

EASY2. Adjustments are often prepared

a. After the statement of financial position date but dated as of that date

b. Before the statement of financial position date and dated after that date.

c. After the statement of financial position date and dated after that date

d. Before the statement of financial position date but dated as of that date

(letter only CAPITAL LETTER)

Which of the following is characteristic of a change in an accounting

estimate?

a. It should be reported through the restatement of the financial statements

b. It makes necessary the reporting of pro-forma amounts for prior periods

c. It usually need not be disclosed

d. It does not affect the financial statements of prior period

Which of the following statements is false?

a. A certified check should not be included in the outstanding check

b. A certified check is a liability of the bank certifying it

c. A certified check is one drawn by a bank upon itself

d. A certified check will be accepted by many persons who would riot otherwise

accept a personal check

These are accounting information users who are interested in information

that enables them to determine whether their loans, and the interest attaching to

them, will be paid when due.

a. General public

b. Shareholders

c. Customers

d. Lenders

At the beginning of the year, the assets of BigTime Services were P495,765

and its owner’s equity was P257,321. During the year, assets increased by

P123,456 and liabilities increased by P25699. What was the owner’s equity at the

end of the year?

The liabilities of Tanda Foods equal one-third of the total assets and the

owner’s equity is P3,563,211. What is the amount of the liabilities?

Leonardo Company started operations in 2013. For the year ended December

31, 2013, Leonardo had the following data:

Purchases for the year 8,000,000

Inventory at December 31, 2013 2,500,000

Collection from customers 3,000,000

Leonardo sold all of its products on credit and has a gross profit of 20% on

sales. What is the balance of Leonardo’s accounts receivable on December 31,

2013?

It is the first process used in accounting. It refers to the

identification of events as to whether they are recognized or not in the

financial statements

EASY10. Primary users of financial statements under the Conceptual Framework

include which of the following:

I. Existing and Potential Investors

II. Employees

III. Lenders and other Creditors

IV. Suppliers and other Trade Creditors

V. Customers

VI. Government and their agencies

VII. Public

VIII. Professional Accountants including auditors

Which of the concepts relates to using the allowance method in accounting

for accounts receivable?

a. Bad debt expense is based on the actual amounts determined to be uncollectible

b. Bad debt expense is an estimate that is based only on an aging of the accounts

receivable

c. Bad debt expense is an estimate that is based on historical and prospective

information

d. Bad debt expense is management's determination of which accounts will be sent

to the attorney for collection