WorksheetsFUNDA-average
Total questions: 10
Worksheet time: 6mins
1. What is an accrual basis of accounting?
A requirement of the government
A synonym for cash basis accounting
An adjustment only to statement of comprehensive income items
A generally accepted accounting principle
1. If the pre-collection is initially recorded as income, what will be the year-end adjustment?
Debit to income
Debit to liability
Credit to asset
Credit to expense
If an unpaid expense pertaining to consumption for the period is to be part of the year-end adjustments, what entry will it require?
Debit to asset
Debit to income
Credit to expense
Credit to liability
Which of the following will appear in the statement of comprehensive income?
Prepaid expense
Unearned rent
Unused supplies
Expired insurance
What kind of system of recording goods intended for sale maintains the merchandise inventory account in every transaction?
Periodic inventory
Perpetual inventory
Just-in-time inventory
Maintenance Inventory
Which of the following statements are true
Journals are used under both the double-entry system and single-entry system.
The accrual basis of accounting cannot be applied when using the single-entry system.
The cash basis and accrual basis of accounting can both be used under double-entry systems but not under single-entry systems.
Subsidiary ledgers are used under both double and single-entry systems.
Which of the following represents the expanded basic accounting equation?
Assets = Liabilities + Common Shares + Dividends – Income – Expenses
Assets + Dividends + Expenses = Liabilities + Equity + Income
Assets – Liabilities – Dividends = Equity + Income – Expense
Assets = Income + Expenses – Liabilities
Choose the incorrect statement
An accounting information system is designed to collect data about each transaction and event that should be recorded by an entity during a reporting year.
Posting is a transfer process which reclassifies chronological information into account classification format in the ledger
In recording transactions, an external transaction is more likely to be overlooked and not recorded than is an internal transaction
A trial balance is prepared after adjusting entries are recorded but before closing entries
The following information pertains to Arones Co. for the year:
Net assets, Jan 1, 2019 1,008,480
Net assets, Dec 31, 2019 2,112,960
Share capital issued in 2019 335,520
Dividends declared in 2019 195,120
How much is the profit(loss)?
964,800
573,840
964,080
674,040
Robert Co. recorded accrued salaries of P2,500 at Dec 31, 2018. During 2019, Robert paid salaries of P87,200. Unpaid salaries at Dec 31, 2019 amounted to P3,400. Robert prepared adjustments only at Dec. 31 and also reversing entries on Jan 1. The balance of the salaries expense account that would appear in the post-closing trial balance at Dec 31, 2019 is
88,100
87,200
86,300
Nil
