Fundamentals of Accountancy Quiz

Nakakaletu Company had ending total assets of ₱65,000, ending total liabilities of ₱25,000 and beginning equity of ₱23,000. If the total expenses for the period amount to ₱33,000, how much is the total income?

• ₱ 40,000

• ₱ 17,000

• ₱ 50,000

• Answer not given

Answer explanation

Ending total asset 65,000

less: ending total liabilities (25,000)

Ending equity 40,000

Beginning equity 23,000

vs. Ending equity 40,000

there is an increase of 17,000

the 17,000 increase of equity represents profit

to get the income,

profit 17,000

add back expenses 33,000

therefore, total income is 50,000

Cavite Institute, Inc. prepares annual financial statements with accounting year ending April 30. The company uses ___________.

• Fiscal year period

• Calendar year period

• Interim period

• Answer not given

Mass Production of goods is a characteristic of a __________ business.

• Service

• Manufacturing

• Merchandising

• Answer not given

What concept justifies the use of accrual basis and historical cost assumptions?

• Liquidating concern

• Going Concern

• To whom it may concern

• Answer not given

Gesku Corp. had ending total assets of ₱90,000, ending total liabilities of ₱45,000 & beginning equity is ₱20,000. If the total income for the period amount to ₱60,000, how much is the total expenses?

• ₱ 25,000

• ₱ 35,000

• ₱ 45,000

• Answer not given

Answer explanation

Ending total asset 90,000

less: ending total liabilities (45,000)

Ending equity 45,000

Beginning equity 20,000

vs. Ending equity 45,000

there is an increase of 25,000

the 25,000 increase of equity represents profit

to get the expenses, squeeze the formula (profit=total income less expenses),

total income 60,000

less: profit 25,000

therefore, total expense is 35,000

The owner withdrew cash from his business amounting ₱10,000. Provide the journal entry.

• Debit Owner's withdrawal and Credit Cash

• Debit Cash and Credit Owner's Capital

• Debit Owner's Capital and Credit Cash

• Answer not given

Last January 31, Idol Barbershop received ₱400 as an advance payment for repair services to be provided over the next two months as follows: ₱200 for February, ₱200 for March. Provide the journal entry for January 31, upon receipt of cash.

• Debit Service Revenue and Credit Cash - ₱ 400

• Debit Cash and Credit Unearned Service Revenue - ₱ 400

• Debit Cash and Credit Accounts payable - ₱ 400

• Answer not given

Mortgage payable is what type of account?

• Non-current Liability

• Current Liability

• Non-current Asset

• Answer not given

Intangible asset like Copyright is what type of account?

• Non-current Liability

• Current Liability

• Non-current Asset

• Answer not given

Unearned revenue is what type of account?

• Non-current Liability

• Current Liability

• Non-current Asset

• Answer not given