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WorksheetsLive Quiz-Module 3
Total questions: 60
Worksheet time: 34mins
The owner invests personal cash in business.
Asset (Increase)
Liabilties (Increase)
Equity (No Effect)
The owner withdraws business assets for personal use.
Assets (Increase)
Liabilities (Decrease)
Equity (Decrease)
The company receives cash from a bank loan
Assets (Increase)
Liabilities (Decrease)
Equity (Decrease)
The company repays the bank that had lent money
Assets (Increase)
Liabilities (Decrease)
Equity (Decrease)
The company purchases equipment with its cash
Assets (No Effect)
Liabilities (Increase)
Equity (Increase)
The owner contributes her personal truck to the business
Assets (No Effect)
Liabilities (No Effect)
Equity (Decrease)
The company purchases supplies for use in the future on credit
Assets (Increase)
Liabilities (NE)
Equity (I)
The company purchases land by paying half in cash and signing a note
Assets (No Effect)
Liabilities (Increase)
Equity (Increase)
The owner withdraws cash for personal use
Assets (Decrease)
Liabilities (Decrease)
Equity (No Effect)
The company repays the suppliers
Assets (Decrease)
Liabilities (Increase)
Equity (Decrease)
The Accounting Equation must always be in balance?
True
False
Bought supplies inventory on account means Supplies has increased and ________________?
Cash has decreased
Account Payable has increased
Cash has Increased
Furniture is regarded as
Expense
Fixed Asset (Property Plant Equipment)
Liability
Current Liability
UND: Identify what the basic accounting equation is.
Assets= Owners Equity - Liabilities
Liabilities= Owners Equity + Assets
Assets= Owners Equity + Liabilities
Owners Equity= Assets + Liabilities
REM: Define what an asset is
The debt of the business.
The profit accumulated in the business.
The income and expenditure within the business.
The possessions owned and used by the business.
CRE: Make a list fixed assets (Property, Plant and Equipment) that is found in a business.
Land and buildings, Equipment, Vehicles
Capital, Drawings, Income
Trading inventory, Bank, Debtors
Loan Deposit, Interest
ANA: Classify the Owner's Equity accounts from below
Debtors control/ Petty cash
Land & Buildings/ Equipment
Interest on loan/ Trading stock
Capital/ drawings/ income/ expenses
EVA: Differentiate between Owners Equity and Liabilities
Owners Equity represents the possessions in a business and Liabilities represents income in the business.
Owners Equity represent the debts in a business and Liabilities represent the business's net worth.
Owners Equity represents the net worth of a business and Liabilities represent the debt in a business.
Owners Equity represent credit and Liabilities represent expenses.
APP: Solve the equation: Owner's Equity= Php 989,000 ; Liability= Php 565,750 ; A=________ ?
Assets= Php 1,554,750
Assets= Php 423,250
Assets= Php1,750,554
Assets= Php 1,455,057
REM: Describe the effect of the accounting equation on Assets.
Assets decrease on the debit side and increase on the credit side.
Assets increase on the debit side and decrease on the credit side.
Assets increase on the debit side as well as the credit side.
Assets decrease on the debit side and on the credit side.
REM: Define what a sole trader is
A business whose name ends in Pty [Ltd].
A business with more than 1 owner.
A business with one owner who takes full responsibility.
A business with a large number shareholders.
ANA: Differentiate between credit sales and credit purchases.
Credit sales= selling on credit & Credit purchases= buying on credit
Credit sales= buying on credit & Credit purchases = selling on credit
Credit sales= selling for cash & Credit purchases= buying with cash
All of the above
APP: Show the effect of the transaction- Sold goods worth Php 3,000 on credit.
Debit: Cash & Credit: Sales Php3,000
Debit: Sales & Credit: Accounts Receivable Php3,000
Debit: Accounts Receivable & Credit: Sales Php3,000
EVA: Recommend ways to increase capital in a business
Provide more discounts and promotions
Increase the advertising budget and methods
Improve debtors control measure to avoid losses
All of the above
REM: Define the term Bad Debts (Uncollectible accounts)
Money received from debtors
Profit accumulated from debtors control
Money that needs to be written off because debtors fail to settle their debts.
Debtors who are bad at repaying debts.
UND: Explain what measures could be implemented to minimize or prevent the theft of assets in a business.
Install cameras everywhere
Authorize 1-3 employees to manage assets in the business
Perform thorough criminal checks on employees
Keep and continuously update the business fixed asset register.
All of the above
Anything of value that is owned by the company (such as cash, accounts receivables, vehicles, etc.) are reported on the Statement of Financial position and are referred to as _______________.
assets
liabilities
profit
income
If the total liabilities is Php15, 000 and the total assets is Php 23,000, what is the total equity using the accounting equation?
Php 46,000
Php 8,000
Php 23,000
The owner invests personal cash in the business. What is the effect on accounting equation?
Inc. in Assets ; Inc. in Equity
Inc. in Liabilities ; Inc. in Assets
Dec. in Assets ; Inc. in Equity
In what accounting element can we classify SALARY EXPENSE (give the permanent account affected)?
Asset
Liabilities
Equity
Reports should be presented in a manner that makes it easy for the user to comprehend their meaning is:
Verifiability
Entity Assumption
Understandability
Bank overdraft can simply be defined as the amount of money that a customer owes his bank after having withdrawn more money than he had in his account. Bank Overdraft is classified as:
Current Asset
Non Current Asset
Current Liability
Non Current Liability
Calculate the missing information:
Assets Php ____________?
Owner’s equity Php 55,000
Liabilities Php 20,000
20,000
35,000
55,000
75,000
Calculate the missing information:
Assets: Php 74,000
Liabilities: Php 23,000
Owner’s equity: Php __________?
23,000
51,000
74,000
97,000
All of following are Assets except
A. Prepaid Rent
B. Goodwill
C. Unearned Income
B and C
Which of the following is an identifiable non-monetary asset without physical substance?
Tangible asset
Intangible asset
Current asset
Fixed asset
All economic costs that a business incur through its operation to earn revenues?
Asset
Drawing
Expense
Revenue
All of the following are Liabilities except
Notes Payable
Unearned Revenue
Service Revenue
Mortgage Payable
All are examples of intangible assets EXCEPT
Dividends
Copyright
Logo
Trademark
If Assets = Php 3,300
Liabilities = Php 700
Revenue= Php 2,500
Expenses= Php 1,050
Then Ending Capital is Php __________?
2,600
1,150
1,450
4,050
Asset and Equity balances have been decreased. Possible transaction is______________________?
Owner Withdrew cash from the business for personal use
Owner paid purchases on account
Owner received cash from credit customers
Owner invest cash to the business
These are assets that can be realized (collected, sold, used up) one year after year-end date
Current Assets
Non-current assets
Tangible Assets
Intangible Assets
If Liabilities = Php 500
Revenue= Php 1,100
Expenses= Php 850
Capital is =Php 1,000
Then Assets=Php __________?
1,750
2,600
3,450
1,250
These are expenses that are incurred but not yet paid
Accounts Payable
Unearned Income
Accrued Expenses
___________is a listing of the accounts used by companies in their financial records.
Chart of records
Chart of accounts
Chart of business
Modules of business
