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Accounting Equation and Analyzing Transactions

Total questions: 12

Worksheet time: 5mins

Name
Class
Date
1.

Identify which type of account is affected: The owner invested PHP48,000 cash in the business.

a)

Assets and Liabilities

b)

Assets and Owner's Equity

c)

Owner's Equity and Personal Cash

d)

Assets and Cash Investment

2.

Identify which type of account is affected: Paid liabilities worth PHP53,000

a)

Assets and Liabilities

b)

Assets and Owner's Equity

c)

Owner's Equity

d)

Assets

3.

Identify which type of account is affected: The business purchase office supplies on account

a)

Assets and Liabilities

b)

Assets and Owner's Equity

c)

Owner's Equity and Supplies

d)

Assets and Purchasing

4.

Identify which type of account is affected: Purchased equipment at PHP20,000 for cash.

a)

Assets and Liabilities

b)

Assets and Owner's Equity

c)

Owner's Equity

d)

Assets

5.

Identify which type of account is affected: The owner withdrew supplies worth PHP5,000 or the business used supplies worth PHP8,000.

a)

Assets and Liabilities

b)

Assets and Owner's Equity

c)

Owner's Equity and Liability

d)

Liability and Owner's Equity

6.

The following are the types of major accounts except:

a)

Owner's Equity

b)

Liabilities

c)

Assets

d)

Withdrawal

7.

Statement 1: Accounting is useful in making economic decisions. Statement 2: Accounting concerns quantitative data that are measurable in terms of money.

a)

Only statement 1 is correct

b)

Only statement 2 is correct

c)

Both statements are correct

d)

Both statements are incorrect

8.

Identify which type of account is affected: Paid PHP340 cash for this month’s utility bill.

a)

Assets and Liabilities

b)

Assets and Owner's Equity

c)

Assets and Cash Account

d)

Owner's Equity and Liabilities

9.

The accounting equation is?

a)

Assets + Owner's equity = Liabilities

b)

Assets - Liabilities = Owner's equity

c)

Assets =Liabilities + Owner's equity

d)

Assets = Owner's equity - Liabilities

10.

Accounting information must be available on time when needed if it is to influence decisions.

a)

True

b)

False

11.

Financial reporting is possible without undergoing the process of collecting, recording, and organizing data.

a)

True

b)

False

12.

Identify which account is affected: The business rendered service amounting P5,000, the customer paid half and the other half is on the accounts payable.

a)

Assets and Liabilities

b)

Assets and Owner's Equity

c)

Assets and Accounts receivable

d)

Owner's Equity and Liabilities