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far review

Total questions: 20

Worksheet time: 14mins

Name
Class
Date
1.

Accounting provides which type of information?

a)

Quantitative

b)

Qualitative

c)

Financial Information

d)

All of the above

2.

Under this concept, economic events are recorded in the period in which they occur rather than at the point in time when they affect cash.

a)

Separate Entity Concept

b)

Accrual Basis of Accounting

c)

Going Concern Assumption

d)

Time Period

3.

Which of the following would not give rise to income?

a)

Enhancement in the value of an asset

b)

Decrease in liabilities

c)

Investment by the business owner to the business

d)

All of the above

4.

Financial Accounting focuses on catering to the information needs of external users.

a)

TRUE

b)

FALSE

5.

Which of the ff would result to income of ₱320,000?

a)

Total expense of ₱280,000 and loss of ₱40,000

b)

Total expense of ₱360,000 and loss of ₱40,000

c)

Total expense of ₱220,000 and loss of ₱100,000

6.

The amount of estimated losses from uncollectible accounts receivable during the period.

a)

Allowance for Bad Debts

b)

Losses

c)

Depreciation Expense

d)

Bad Debts Expense

7.

Which of the ff is most likely considered an adjusting entry?

a)

Entry to record the payment of interest payble

b)

Entry to record the collection of accounts receivable

c)

Entry to record the purchase of equipment

d)

Entry to record bad debts expense for the period

8.

On October 1, Natoy Co. paid ₱135,000 for advertising to be provided for the next 9 months. What is the correct adjusting entry?

a)

DR Advertising Expense, CR Prepaid Advertising - ₱45,000

b)

DR Advertising Expense, CR Cash - ₱45,000

c)

DR Prepaid Advertising, CR Advertising Expense - ₱135,000

d)

DR Advertising Expense, CR Prepaid Advertising - ₱135,000

9.

A debit balance in retained earnings.

a)

Treasury shares

b)

Small stock dividends

c)

Deficit

d)

Stock Dividend

10.

In failing to adjust insurance expense of ₱16,000 related to future insurance coverage, which account/s will be understated?

a)

Assets

b)

Liabilities

c)

Expense

d)

Net Income

11.

Shareholder's equity is the residual interest in the assets of a corporation after deducting all its liabilities.

a)

TRUE

b)

FALSE

12.

Entity Z had total assets and total liabilities of ₱120M and ₱85M, respectively, at the beg. of the period. During the period, Entity Z earned a total income of ₱60M and incurred expenses of ₱45M. How much is Entity Z's total equity?

a)

₱60M

b)

₱90M

c)

₱50M

d)

₱120M

13.

It is committed when the number of digits in an amount is incorrectly decreased or increased.

a)

Transposition Error

b)

Transplacement Error

c)

Transformation Errror

d)

Error uyab not found

14.

The main purpose of preparing a trial balance is

a)

to determine whether the debits and credits in the journal are equal

b)

to try if total debits equal total credits in the ledger

c)

to determine whether transposition or transplacement errors have been committed

d)

to annihilate the accounts

15.

The PFRSs consist of all the following except

a)

PFRSs

b)

Interpretations

c)

PASs

d)

Conceptual Framework

16.

The balance sheet is useful for analyzing all of the following except

a)

Liquidity

b)

Profitability

c)

Solvency

d)

Financial Flexibility

17.

Revenues, gains and distribution to owners all increase equity.

a)

TRUE

b)

FALSE

18.

Failed to adjust the Unearned Revenue account to reflect that ₱40,000 was earned by the end of the year. Which account/s will be understated?

a)

Assets

b)

Liabilities

c)

Revenue

d)

Net Income

19.

The idea of consistency does not mean that companies cannot switch from one accounting method to another.

a)

TRUE

b)

FALSE

20.

He is the father of Modern Accounting.

(a)