Quiz - FabM

What is an account?

• A. It is the basic storage of information in accounting.

• A. It is the resources you control that have resulted from past events.

• A. It is your present obligation that have resulted from past events.

• A. It is your present obligation that have resulted from past events.

What are the five major accounts?

I.  Asset II. Liabilities III. Equity IV. Income

V.Expense VI. Balance Sheet VII. Income Statement

• A. I,II,IV,V,VII

• B. I,II,III,IV,V

• C. I,IV,V,VI,VII

• D. I,II,III,IV,VI

If expenses are paid in cash, then:

• A. Assets will increase

• B. Assets will decrease

• C. Liabilities will decrease

• D. Owner’s equity will increase

If the owner makes a withdrawal of cash from his company bank account, then:

• A. Owners equity will increase.

• B. Owner’s equity will decrease.

• C. There has been a violation of accounting principles

• D. There will be a new a liability showing the owner owes money to the business

As of December 31, 2024, Regents Company has assets of P210,000 and owner’s equity of 120,000. What are the liabilities for Regents Company as of December 31, 2024?

• A. P60,000

• B. P90,000

• C. P120,000

• D. P330,000

A customer bought barbecue worth P1,000 from your barbecue business. He told you that he will pay for it next week. How should the P1,000 collectible from customers be recorded?

• A. Accounts Payable

• B. Accounts Receivable

• C. Sales Revenue

• D. Unearned Income

Your friend borrowed P2,000 from your barbecue business. You required from him a written promissory note to repay the money within 30 days plus a 2% monthly interest. How should the P2,000 collectible from your friend be recorded?

• A. Accounts Payable

• B. Accounts Receivable

• C. Notes Receivable

• D. Sales Renenue

You are renting space for your barbecue stand. The lease contract required you to pay P10,000 rent in advance. How should the rent in advance be recorded?

• A. Accounts Payable

• B. Notes Receivable

• C. Prepaid Rent

• D. Sales Revenue

You went to Mr. Porky’s Meat Shop to buy pork. You don’t have the available cash, so you promised orally that you will be paying for the pork worth P500, next week. How should the P500 be recorded?

• A. Accounts Payable

• B. Notes Payable

• C. Prepaid Rent

• A. D. Utilities Payable

Your electricity bill for the month of February amounted to P1,500. The bill is not yet paid. The unpaid utility already used but not yet paid should be recorded as?

• A. Accounts Payable

• B. Notes Payable

• C. Salaries Payable

• D. Utilities Payable