Accounting Easy

Which of the following statements about a journal is false?

• It is not a book of original entry

• It provides a chronological record of transactions

• It helps to locate errors because the debit and credit amounts for each entry can be readily compared

• It discloses in one place the complete effect of a transaction

What is a ledger?

• Ledger contains only asset and liability accounts

• Ledger shows accounts in alphabetical order

• Ledger is a collection of the entire group of accounts maintained by an entity

• Ledger is a book of original entry

Which item is not shown in a multi-step income statement?

• Gross Profit

• Cost of goods sold

• A sales revenue section

• Investing activities section

He is the father of accounting.

• Lucas Asuncion

• Luca Pacioli

• Pontius Pilate

• Augustu

What is the gross profit if sales revenues are P400,000, cost of goods sold is P310,000 and operating expenses are P60,000?

• 90,000

• 400,000

• 340,000

• 30,000

Recording of an expense could result in a corresponding increase in:

• An Asset

• Owner's Equity

• A liability

• Revenue

Accrued revenues

• decrease assets

• increase assets

• increase liabilities

• decrease liabilities

Accumulated Depreciation is reported in the:

• Statement of Financial Position

• Income Statement

• Statement of Comprehensive Income

• Both b and c

Adjusting entries involve:

• Only real accounts

• Only Nominal Accounts

• Only Capital Accounts

• At least one real and one nominal account

Which account will have a zero balance after closing entries have been journalized and posted?

• Allowance for Bad Debts

• Service Revenue

• Accrued Salaries Expense

• Prepaid Incurance