WorksheetsBATTLE OF DESCENDANTS (Average Level)
Total questions: 10
Worksheet time: 10mins
Which of the following cannot be reversed?
Statement I: Prepaid expense under expense method.
Statement II: Prepaid expense under asset method.
Statement III: Deferred revenue under revenue method.
Statement IV: Deferred revenue under liability method.
Statement I and III
Statement I and IV
Statement II and III
Statement II and IV
Gain is
I. An increase in asset from primary operations resulting in an increase in equity.
II. An increase in asset from incidental transactions resulting in increase in equity.
III. A decrease in asset from primary operations resulting in increase in equity
IV. A decrease in asset from incidental transactions resulting in increase in equity.
V. An increase in liability from primary operations resulting in increase in equity.
VI. A decrease in liability from primary operations resulting in increase in equity.
VII. An increase in liability from primary operations resulting in increase in equity.
VIII. A decrease in liability from incidental transactions resulting in increase in equity.
I and VII
I and VIII
II and VII
II and VIII
Which of the following statements is incorrect concerning Materiality?
Materiality is dependent on professional judgment because no threshold limit is defined in the Conceptual Framework
Materiality is not a fundamental qualitative characteristic but rather a threshold or cut off point in determining useful information
Materiality depends on the absolute size of the item or error judged in the particular circumstances of the omission or misstatement
Information is material if the omission or misstatement could influence the economic decisions that users make on the basis of the financial information about entities
The failure to properly record an adjusting entry on unearned revenue using Income method results in
Overstatement of revenues and understatement of liabilities
Overstatement of liabilities and Understatement of Revenues
Overstatement of revenues and understatement of liabilities
Understatement of revenues and understatement of liabilities
The failure to properly record an adjusting entry to accrue an expense result in
overstatement of expense and an understatement of asset.
understatement of expense and an overstatement of asset.
understatement of expense and an overstatement of liability.
understatement of expenses and an understatement of liability
In recording transactions
assets, expenses and capital accounts are debited for increases.
assets, expenses and drawing accounts are debited for increases
Liabilities, revenue and drawing accounts are credited for increases.
the word "debit" means increase and the word "credit" means decrease
Cormack purchased merchandise with a list price of P60,000 from the Murray. Murray offers its customers credit terms of 2/10, n/30. What amount should Cormack pay if the cash discount is taken?
59,400
61,200
58,800
60,600
ABC Company uses a periodic inventory system. The beginning inventory of
P200,000, purchases of 1,200,000, and ending inventory of P150,000. What is the
ABC’s cost of goods sold?
1,550,000
1,400,000
1,250,000
1,200,000
Veronica Dizon Company bought building under a contract that required down payment of P200,000, plus 12 monthly payments of 200,000 each, for total cash payments of P2,600,000.
the cash price of the machinery was P2,200,000.
the machinery has a useful life of 20 years and residual value of P100,000. The entity used straight line depreciation.
What amount should be reported as depreciation for current year.
P105,000
P110,000
P125,000
P130,000
The trial balance of Leo’s Company on December 31, 2021 shows the following:
Purchases 50,000
Purchase Returns and Allowances 10,000
Transportation in 20,000
Ending Inventory 30,000
Cost of Goods Available for Sale 150,000
What is the cost of goods sold?
P 120,000
P 130,000
P 180,000
P 200,000
