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WorksheetsFundamentals of Accounting 2
Total questions: 50
Worksheet time: 25mins
A statement of financial position can be best described as a:
listing of money received and paid during the past year
summary of what happened last year
summary of all assets, expenses, liabilities, and revenues
summary of the position of an organization
Which of the following definition denotes an asset?
expense that will recur in more than one year
obligation to transfer benefits as a result of past transactions
interest of the owner in the business
any financial resources that is used by the business in its operation trade-offs
The Statement of Financial Position equation is:
A - C = L
L + C = A
A - L = C
all of the above
Brod Pete have non-current assets of 560,000, current assets of 570,000, current liabilities of 540,000,
and a long-term loan of 50,000; as such the owners’ equity will be:
540,000
550,000
560,000
570,000
What is a financial statement that shows the financial position of an enterprise at a particular
point in time?
Statement of Financial Position
Cash Flow Statement
Income Statement
Statement of Changes in Equity
A Statement of Financial Position
Shows the changes of the owners interest
Reports the assets and claims of an enterprise at a specified moment in time
Presents revenues and expenses of an enterprise
Reports the inflow and outflow of cash in an enterprise
Which of the following transactions would increase cash as well as non-current liabilities?
Long-term bank loan
Purchasing equipment on credit
Payment to suppliers
Payment from customers
Which of the following accounts is a current asset?
Bond Payable
Property, plant, and equipment
Trade and other payables
Trade and other receivables
Which of the following accounts is a non-current asset?
Accounts Payable
Capital
Cash
Trademarks
Which of the following accounts is a current liability?
Trade receivables
Retained earnings
Trade payables
Machineries
The business owner purchased some office equipment from the Jonathan Blaze Mudlong Store on credit, amounting 518,900
Increase in assets = Increase in liabilities
Increase in assets = Decrease in capital
Decrease in assets = Decrease in capital
None of the above
The business owner paid one-half of the amount due to Jonathan Blaze Mudlong Store.
Increase in assets = Increase in capital
Increase in assets = Increase in liabilities
Decrease in assets = Decrease in liabilities
None of the above
The business owner withdrew 515,500 from his business.
Increase in assets = Increase in capital
Increase in assets = Increase in liabilities
Decrease in assets = Decrease in capital
None of the above
The business owner received 540,000 from his various clients for the services he rendered to them.
Increase in assets = Increase in capital
Increase in assets = Increase in liabilities
Decrease in assets = Decrease in capital
None of the above
The business owner paid his current balance to the Jonathan Blaze Mudlong Store.
Increase in assets = Increase in capital
Decrease in assets = Decrease in capital
Decrease in assets = Decrease in liabilities
None of the above
The business owner sent a 517,000 bill for services rendered to Ms. Mikka Ella Joson.
Increase in assets = Increase in capital
Increase in assets = Increase in liabilities
Decrease in assets = Decrease in capital
None of the above
The business owner paid the salary of his two employees; each received 510,000.
Increase in assets = Increase in capital
Increase in assets = Increase in liabilities
Decrease in assets = Decrease in capital
None of the above
Atty. Joanne Dela Cruz invested 560,000 in a law office.
Increase in assets = Increase in capital
Increase in liabilities = Increase in capital
Increase in assets = Increase in liabilities
None of the above
The business owner purchased office supplies in cash.
Increase in assets = Increase in capital
Increase in one form of assets = Decrease in another form of assets
Increase in assets = Increase in liabilities
None of the above
Ms. Joson, a customer, paid her account in full.
Increase in assets = Increase in capital
Increase in one form of assets = Decrease in another form of assets
Increase in assets = Increase in liabilities
None of the above
The income statement heading specify a point of time, indicating “as of” or “as at.”
True
False
Revenue is the amount earned by a business in its main operating activities.
True
False
When a company disposes equipment and receives an amount more than the carrying value of asset in the accounting records, the company should record or report gain.
True
False
The multistep income statement shows gross profit in its presentation.
True
False
The single step income statement format segregates the operating revenues and expenses from the non-operating revenues.
True
False
Net sales minus the cost of goods sold equals to gross profit.
True
False
Gross profit minus operating expenses is best defined as net sales.
True
False
Gross profit is computed as the difference between the net sale and cost of sales.
True
False
The statement of comprehensive income informs the reader about the “performance” and activities of the company for a certain period.
True
False
Salary of personnel in the production department is considered to be operating expenses.
True
False
Increase in assets
Debit
Credit
Increase in liabilities
Debit
Credit
Increase in expenses
Debit
Credit
Increase in income
Debit
Credit
Increase in capital
Debit
Credit
Decrease in assets
Debit
Credit
Decrease in liabilities
Debit
Credit
Decrease in expenses
Debit
Credit
Decrease in income
Debit
Credit
Decrease in capital
Debit
Credit
Sales
Merchandising
Service
Consulting Revenue
Merchandising
Service
Purchases
Merchandising
Service
Cost of Sales
Merchandising
Service
Inventory-Beginning
Merchandising
Service
Referral Revenue
Merchandising
Service
Freight-in
Merchandising
Service
Purchase Returns and Allowances
Merchandising
Service
Advertising Revenue
Merchandising
Service
Service Revenue
Merchandising
Service
