PBB 2

Owner invests ₱500,000 in cash as capital in the business.

What is the effect of the owner's investment of ₱500,000 in cash into the business?

• Increase Assets by ₱500,000, Increase Liabilities by ₱500,000

• Increase Assets by ₱500,000, Increase Owner's Equity by ₱500,000

• Decrease Assets by ₱500,000, Increase Liabilities by ₱500,000

• Decrease Liabilities by ₱500,000, Increase Owner's Equity by ₱500,000

The business purchases office supplies worth ₱10,000 on account.

What happens when the business purchases office supplies worth ₱10,000 on account?

• Decrease Assets by ₱10,000, Decrease Liabilities by ₱10,000

• Increase Liabilities by ₱10,000, Decrease Owner's Equity by ₱10,000

• Increase Assets by ₱10,000, Increase Liabilities by ₱10,000

• Increase Liabilities by ₱10,000, Decrease Assets by ₱10,000

Paid ₱5,000 for partial settlement of accounts payable.

What is the effect of paying ₱5,000 to settle accounts payable?

• Decrease Assets by ₱5,000, Increase Liabilities by ₱5,000

• Decrease Assets by ₱5,000, Decrease Liabilities by ₱5,000

• Increase Assets by ₱5,000, Increase Liabilities by ₱5,000

• Increase Liabilities by ₱5,000, Increase Owner's Equity by ₱5,000

Purchased office equipment for ₱150,000 in cash.

What is the effect of purchasing office equipment for ₱150,000 in cash?

• Increase Assets (Office Equipment) by ₱150,000, Decrease Assets (Cash) by ₱150,000

• Decrease Assets by ₱150,000, Increase Liabilities by ₱150,000

• Increase Liabilities by ₱150,000, Increase Assets by ₱150,000

• Increase Assets by ₱150,000, Increase Owner's Equity by ₱150,000

Owner withdraws ₱50,000 for personal use.

What happens when the owner withdraws ₱50,000 for personal use?

• Decrease Assets by ₱50,000, Decrease Owner's Equity by ₱50,000

• Increase Liabilities by ₱50,000, Decrease Owner's Equity by ₱50,000

• Increase Assets by ₱50,000, Increase Liabilities by ₱50,000

• Decrease Liabilities by ₱50,000, Increase Owner's Equity by ₱50,000

Purchased furniture for ₱80,000 on account.

What is the effect of purchasing furniture worth ₱80,000 on account?

• Increase Assets by ₱80,000, Increase Liabilities by ₱80,000

• Decrease Assets by ₱80,000, Decrease Liabilities by ₱80,000

• Increase Liabilities by ₱80,000, Increase Owner's Equity by ₱80,000

• Decrease Liabilities by ₱80,000, Decrease Owner's Equity by ₱80,000

Received service revenue of ₱120,000 in cash from clients.

What happens when the business receives service revenue of ₱120,000 in cash?

• Increase Assets by ₱120,000, Increase Liabilities by ₱120,000

• Increase Assets by ₱120,000, Increase Owner's Equity by ₱120,000

• Increase Liabilities by ₱120,000, Decrease Owner's Equity by ₱120,000

• Decrease Assets by ₱120,000, Increase Liabilities by ₱120,000

Paid salaries to employees amounting to ₱30,000 in cash.

What is the effect of paying ₱30,000 in salaries to employees?

• Decrease Assets by ₱30,000, Increase Liabilities by ₱30,000

• Increase Liabilities by ₱30,000, Decrease Owner's Equity by ₱30,000

• Decrease Assets by ₱30,000, Decrease Owner's Equity by ₱30,000

• Increase Assets by ₱30,000, Decrease Liabilities by ₱30,000

Paid ₱20,000 for office rent.

What happens when the business pays ₱20,000 for office rent?

• Decrease Assets by ₱20,000, Decrease Owner's Equity by ₱20,000

• Increase Liabilities by ₱20,000, Decrease Owner's Equity by ₱20,000

• Increase Assets by ₱20,000, Increase Liabilities by ₱20,000

• Increase Owner's Equity by ₱20,000, Decrease Liabilities by ₱20,000

Acquired additional office equipment worth ₱60,000 on account.

What is the effect of acquiring office equipment worth ₱60,000 on account?

• Decrease Assets by ₱60,000, Increase Liabilities by ₱60,000

• Increase Assets by ₱60,000, Increase Liabilities by ₱60,000

• Increase Liabilities by ₱60,000, Decrease Owner's Equity by ₱60,000

• Decrease Liabilities by ₱60,000, Increase Owner's Equity by ₱60,000