WorksheetsFinacre - PQ1
Total questions: 15
Worksheet time: 5mins
The debit and credit analysis of a transaction normally takes place when the
entry is posted to a subsidiary ledger.
entry is recorded in a journal.
trial balance is prepared.
financial statements are prepared.
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.
Which of the following statements about an account is true?
In its simplest form, an account consists of 2 parts
An account is an individual accounting record of increases and decreases in specific asset, liability, and owner’s equity items
There are separate accounts for specific assets and liabilities but only one account for owner’s equity items.
The left side of an account is the credit or decrease side
A ledger
contains only asset and liability accounts
should show accounts in alphabetical order
is a collection of the entire group of accounts maintained by a company
is a book of original entry
Posting:
normally occurs before journalizing
transfers ledger transaction data to the journal
is an optional step in the recording process
transfers journal entries to ledger accounts.
The normal balance of Drawings is
Debit
Credit
The normal balance of Accrued Expenses is
Debit
Credit
The normal balance of a contra account is
the same as the normal balance of its related account
on the debit side
the opposite of the normal balance of its related account
on the credit side
If accounts payable has debit postings of P170.000, credit postings of P140,000, and a normal ending balance of P60,000, which of the following was its beginning balance?
P30,000 Cr.
P30,000 Dr.
P90,000 Cr.
P90,000 Dr.
Mr. AJ, a sole proprietor has the following: Cash: P100,000, Inventory: P 400,000 Building: P650,000, and Accounts Payable: P 50,000. What is the amount of capital?
P1,200,000
P1,100,000
P550,000
P1,150,000
Machinery that was purchased for P60,000 has an estimated residual value of P15,000. Its depreciable cost is
45,000
60,000
75,000
Cannot be determined based on the given facts
Over a period of time, if total assets increase by P270,000 and total liabilities increase by P70,000, then owner’s equity will be increased by
P70,000
P340,000
P200,000
P270,000
The owner of a business invested P50,000 in the business. What are the effects on the fundamental accounting equation?
Assets increase P50,000; liabilities, no effect; owner’s equity increase P50,000
Assets increase P50,000; liabilities decrease P50,000; owner’s equity increase P50,000
Assets increase P50,000; liabilities increase P50,000; owner’s equity no effect
Assets increase P50,000; liabilities no effect; owner’s equity decreases P50,000
The normal balance of an account is on the
Debit side of the account
Credit side of the account
Side represented by increases in the account balance
Side represented by decreases in the account balance
The total assets of Goon Tin Beauty Parlor is P500, 000. Twenty percent (20%) represents the claim of the owner. Its liability, therefore, is
P500,000
P400,000
P100,000
None
