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WorksheetsQ-Finacre-Mod1
Total questions: 10
Worksheet time: 6mins
Easy. The accounting equation can be stated as:
A – L – OE = 0
A – L + OE = 0
A + L + OE = 0
A + L – OE = 0
Easy. If assets total P850,000 and liabilities total P320,000, how much is the net asset?
P320,000
P850,000
P1,150,000
P530,000
Easy. What are increases in resources that a firm earns by selling goods or providing services?
Expense
Assets
Income
Liabilities
Easy. Which of the following statements is incorrect?
Liabilities represent amounts owed to creditors.
Assets are things of value owned by a business entity.
Capital represents the owner’s investment in a business.
The Withdrawals account is listed with the other expenses of a business.
Easy. Which of the following accounts is increased by a credit?
Accounts Payable
Accounts Receivable
Utilities Expense
Withdrawals
Easy. Which of the following accounts has a normal debit balance?
Notes Payable
Sales Revenue
Inventory
Unearned Revenue
Average. Loreto Delivery Services received cash from customers on account, P25,000. What is the effect of the transaction?
Decrease an asset, increase a liability
Increase an asset, increase a liability
Decrease an asset, decrease a liability
Increase an asset, decrease another asset
Easy. Received cash investment from the owner.
What is the type of the above transaction?
Exchange of assets (EA)
Exchange of claims (EC)
Source of assets (SA)
Use of assets (UA)
Average. Returned supplies purchased on account.
What is the effect of the above transaction to the (a) assets, (b) liabilities, and (c) owner’s equity?
(a) increase (b) increase (c) no effect
(a) increase (b) decrease (c) increase
(a) decrease (b) decrease (c) no effect
(a) decrease (b) increase (c) decrease
Difficult. Which of the following events would be recognized in the accounting records of Loreto HR Consultants on the date indicated?
I. Mar. 10 Received a notice of P10,000 increase for rentals effective next month.
II. Mar. 29 Received electricity bill for the month of March. The bill is due on April 9.
III. Apr. 15 Paid cash of P15,000 to the owner for personal use.
IV. Aug. 10 Purchased office equipment on account, P20,000.
IV only
III and IV
I and IV
I, III, IV
