2024-ACCOUNTING FAR QUIZ BOWL

Arid Company paid P1,704 on June 1, 2013, for a two-year insurance policy and recorded the entire amount as Insurance Expense. The December 31, 2013, adjusting entry is

a.debit Prepaid Insurance and credit Insurance Expense, P497.

b.debit Insurance Expense and credit Prepaid Insurance, P497.

c.debit Insurance Expense and credit Prepaid Insurance, P1,207.

d.debit Prepaid Insurance and credit Insurance Expense, P1,207

• A

• B

• C

• D

Iowa Cattle Company uses a periodic inventory system. Iowa purchased cattle from Big D Ranch at a cost of P27,000 on credit. The entry to record the receipt of the cattle would be

a.Debit: Purchases (27,000); Credit: Accounts Payable (27,000)

b.Debit: Inventory (27,000); Credit: Accounts Payable (27,000)

c.Debit: Purchases (27,000); Credit: Cash (27,000)

d.Debit: Inventory (27,000); Credit: Cash (27,000)

• A

• B

• C

• D

Crescent Corporation's interest revenue for 2013 was P13,100. Accrued interest receivable on December 31, 2013, was P2,275 and P1,875 on December 31, 2012. The cash received for interest during 2013 was

a.1,350

b.10,825

c.12,700

d.13,100

• A

• B

• C

• D

How would proceeds received in advance from the sale of nonrefundable tickets for the Super Bowl be reported in the seller’s financial statements published before the Super Bowl?

a.Revenue for the entire proceeds.

b.Revenue less related costs.

c.Unearned revenue less related costs.

d.Unearned revenue for the entire proceeds

• A

• B

• C

• D

Carbon Company’s accounting records provided the following information (all amounts in thousands of pesos):Balances 12/31/2012Balances 12/31/2013Current AssetsP240P?222Property, Plant, and Equipment1,6001,700Current Liabilities?130Long-term Liabilities580?All assets and liabilities of the firm are reported in the schedule above. Working capital of P92 remained unchanged from 2012 to 2013. Net income in 2011 was P64. No dividends were declared during 2013 and there were no other changes in owners’ equity. Total long-term liabilities at the end of 2013 would be

a.340

b.432

c.580

d.616

• A

• B

• C

• D

Which of the following characteristics may result in the classification of a liability as current?

a.Short-term obligations expected to be refinanced with long-term debt

b.Debts to be liquidated from funds that have been accumulated and are reported asPage 2of 6noncurrent assets

c.Violation of provisions of a debt agreement

d.Obligations for advance collections that involve long-term deferment of the delivery of goods or services

• A

• B

• C

• D

Which of the following would not be reported for capital stock in the contributed capital section of a classified balance sheet?

a.Dividends per share

b.Shares authorized

c.Shares issued

d.Shares outstanding

• A

• B

• C

• D

Southeast Company's adjusted trial balance at December 31, 2021, includes the following account balances:Common Stock, P3 par P300,000Additional Paid-In Capital 400,000Treasury Stock, at cost 25,000Net Unrealized Holding Loss onAvailable-For-SaleSecurities 10,000Retained Earnings-Appropriated for Uninsured EarthquakeLosses 75,000Retained Earnings-Unappropriated 100,000What amount should Southeast report as total owners' equity in its December 31, 2021, balance sheet?

a.840,000

b.860,000

c.890,000

d.910,000

• A

• B

• C

• D

Simultaneous recognition of both a revenue and an expense may result from certain transactions or events. An example of an expense so recognized may be

a.Expired portion of prepaid insurance.

b.Salespersons’ monthly salaries.

c.Transportation to customers.

d.Electricity used to light offices

• A

• B

• C

• D

UVW Broadcast Co. entered into a contract to exchange unsold advertising time for travel and lodging services with Hotel Co. As of June30, advertising commercials of P10,000 were used. However, travel and lodging services were not provided. How should UVW account for advertising in its June 30 financial statements?

a.Revenue and expense is recognized when the agreement is complete.

b.An asset and revenue for P10,000 is recognized.

c.Both the revenue and expense of P10,000 are recognized.

d.Not reported

• A

• B

• C

• D