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WorksheetsBASIC ACCOUNTING CUP-easy
Total questions: 10
Worksheet time: 6mins
You are a business owner. Your business needed additional capital so you obtained a loan from a bank. the bank made you sign a contract promising to repay the loan after a year. Which of the following accounts is increased?
Accounts payable
Notes payable
Accounts receivable
Notes receivable
Which of the following is not a correct variation of the basic accounting equation?
Assets = Liabilities + Equity
Assets - Liabilities = Equity
Assets - Equity = Liabilities
Assets + Liabilities = Equity
Which of the following is an essential aspect in the definition of a liability?
a present right over the economic benefits that the economic resource may produce
potential of the economic resource to produce economic benefits for the entity
a present obligation that may arise from a future event
potential of the present obligation to cause a transfer of an economic resource from the entity
You acquired a cellphone through a monthly installment plan. According to your contact, you are required to return the cellphone to the supplier if you miss out two installment payments. upon signing the contract, the supplier gave you the cellphone. Which of the following statements is true?
The cellphone becomes your asset only after you have fully paid the installment price.
The cellphone is already your asset because you control the benefits from it. Legal ownership is not a necessary criterion when determining the existence of an asset.
the cellphone is the supplier's asset until you have fully paid the installment price.
All statements are true.
Which of the following statements is correct regarding financial accounting?
Financial accounting is mainly intended to provide financial information tailored to the needs of the entity's management.
information processed in financial accounting is no used in the other branches of accounting.
Financial accounting is the branch of accounting that deals with the inspection of an entity's financial statements for the purpose of expressing an opinion thereon.
Compared to the other branches of accounting, financial accounting necessarily needs to conform to the Philippine Financial Reporting Standards (PFRSs) for it to be able to produce useful information.
On March 1, Vicente purchased merchandise with an invoice price of P270,000 and 2/10, n/30 terms. On March 3, Troy paid P10,000 transportation cost on the purchased goods. On March 10, Vicente paid for the merchandise. What was Vicente's total cost of the purchased merchandise?
P270,000
P274,200
P274,600
P280,000
1. Gabriela uses the perpetual inventory system. Gabriela purchased merchandise with an invoice price of P80,000 terms 2/10, n/30. If Gabriela returned merchandise with an invoice price of P20,000 to the supplier, what should the journal entry to record the return include
Debit to Inventory P20,000
Debit to Inventory P19,600
Credit to Inventory P20,000
Credit to Inventory P10,000
Carl purchased P50,000 merchandise from Sartre with terms of 3/10, n/30. How much discount is Carl entitled to take if it paid within the allowed discount period of 10 days?
P500
P1,000
P1,500
P3,000
A physical count of inventory is usually taken
At the end of the fiscal year
At the peak of busy season
At the start of the fiscal year
In the middle of the fiscal year
Which of the following is not a component of the operating cycle?
Collection of cash from merchandise sales
Ordering of merchandise
Purchase of merchandise
Sale of merchandise
