FABM

Which of the following items has no effect on owner's equity?

• Expense

• Owner's withdrawal

• purchase of land

• revenue

The asset created by a business when it makes a sale on account is termed?

• Accounts payable

• Accounts Receivable

• Prepaid Expense

• Unearned Revenue

What is the law regulating the practice of Accountancy in the Philippines?

• R.A 9289

• R.A 9198

• R.A 9928

• R.A 9298

All of the following describe accounting, except

• a service activity

• an information system

• an exact science rather than an art

• a universal language of business

The overall objective of accounting is

• To provide the information that the managers of an entity need to control the operations

• To provide information that the creditors can use in deciding whether to make additional loans

• To measure the periodic income of the entity

• To provide quantitative financial information about an entity that is useful in making economic decision

Using accrual accounting, revenue is recorded and reported only ____

• if cash is received after the services are rendered

• when cash is received at the time services are rendered

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

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

On January 1, 2016, Potter Company bought a building for 2,750,000 to serve as the company's office. It was estimated that the said building will be useful for 20 years. After the end of its useful life, the building can still be sold for 250,000 . What is the amount of depreciation expense that should be recognized by Potter Company on December 31, 2016?

• 100,000

• 125,000

• 150,000

• 175,000

These users require information on risk and return on investment

• creditors

• investors

• lenders

• customers

Equipment with an estimated market value of 60,000 is offered for sale at 90,000. The equipment is acquired for 30,000 in cash and a note payable of 50,000 due in 30 days. The amount used in buyer's accounting records to record acquisition is?

• 80,000

• 60,000

• 90,000

• 30,000

Which of the following entries records the receipt of a utility bill from the water company?

• debit Accounts Payable, credit Cash

• debit Accounts Payable, credit Utilities Payable

• debit Utilities Expense, credit Accounts Payable

• debit Utilities Payable, credit Accounts Receivable