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WorksheetsMidterm Quiz 1 - Part 2
Total questions: 10
Worksheet time: 5mins
The company issues P20,000 shares of common stock for cash.
Increase in asset; Increase in equity
Decrease in asset; Decrease in equity
Increase in asset; Increase in liability
Decrease in liability; Decrease in equity
Receipt of P4,000 cash in advance from a customer for services not yet rendered.
Increase in asset; Increase in equity
Decrease in asset; Decrease in equity
Increase in asset; Increase in liability
Decrease in liability; Decrease in equity
Provides P5,500 in services to a customer who asks to be billed for the services.
Increase in asset; Increase in equity
Decrease in asset; Decrease in equity
Increase in asset; Increase in liability
Decrease in liability; Decrease in equity
Distributed P100 cash in dividends to stockholders.
Increase in asset; Increase in equity
Decrease in asset; Decrease in equity
Increase in asset; Increase in liability
Decrease in liability; Decrease in equity
A company purchased a building twenty years ago for P150,000. The building currently has an appraised market value of P235,000. The company reports the building on its balance sheet atP235,000. What concept or principle has been violated?
separate entity concept
recognition principle
monetary measurement concept
cost principle
What is the impact on the accounting equation when a current month’s utility expense is paid?
both sides increase
both sides decrease
only the Asset side changes
neither side changes
What is the impact on the accounting equation when a payment of account payable is made?
both sides increase
both sides decrease
only the Asset side changes
neither side changes
What is the impact on the accounting equation when an accounts receivable is collected?
both sides increase
both sides decrease
only the Asset side changes
the total of neither side changes
What is the impact on the accounting equation when a sale occurs?
both sides increase
both sides decrease
only the Asset side changes
neither side changes
What is the impact on the accounting equation when stock is issued, in exchange for assets?
both sides increase
both sides increase
only the Asset side changes
neither side changes
