ACCOUNTING QUIZ BEE EASY ROUND

Profit is the difference between

• assets and liabilities

• the incoming cash and outgoing cash

• the assets purchased with cash contributed by the owner and the cash spent to operate the business

• the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services.

All of the following are generalpurpose financial statements

EXCEPT

:

• STATEMENT OF FINANCIAL POSITION

• INCOME STATEMENT

• STATEMENT OF OWNERS EQUITY

• CASH BUDGET

Within the Philippines' the dominant body in the primary development of accounting principles is the

• Philippine !nstitute of Certified Public Accountants (PICPA

• Philippine Accounting Association (PAA)

• Financial Reporting Standards Council (FRSC)

• Institute of Management Accountants (IMA

The business entity concept means that

• the owner is part of the business entitY

• an entity is organiZed according to state or federal statute

• an entity is organiZed according to the rules set by the FASB

• the entity is an individual economic unit for which data are recorded' analyzed' and reported

Goods purchased on account for future use in the business' such as supplies' are called

• PREPAID LIABILITIES

• REVENUES

• PREPAID EXPENSE

• EXPENSE

The year-end balance of the owner's capital account appears in

•  both the statement of owner6s e#uity and the income statement

• only the statement of ownerS equity

• both the statement of owner's equity and the balance sheet

• both the statement of owner's equity and the statement of cash flow

In which of the following types of accounts are decreases recorded by credits?

• liabilities

• owner's capital

• drawing

• revenue

The account type and normal balance of UNEARENED REVENUE is

• REVENUE, CREDIT

• EXPENSE, DEBIT

• LIABILITIY, CREDIT

• ASSET, DEBIT

Using accrual accounting' revenue is recorded and reported only

• when cash is received without regard to when the services are rendered

• when the services are rendered without regard to when cash is received

• when cash is received at the time services are rendered

• if cash is received after the services are rendere

Adjusting entries always include

• ONLY INCOME STATEMENT ACCOUNTS

• ONLY BALANCE SHEET ACCOUNTS

• THE CASH ACCOUNT

• AT LEAST ONE INCOME STATEMENT AND ONE BALANCE SHEET ACCOUNT