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WorksheetsQ-Finacre-Mod3
Total questions: 15
Worksheet time: 20mins
Easy. Of the following errors, the one that will cause an inequality in the trial balance totals is
Failure to record a transaction
Incorrectly computing an account balance
Posting a transaction to the wrong account
Recording the same transaction more than once
Easy. A trial balance does not
Help in locating errors
Test the equality of the debit and credit balances
List all open accounts in the ledger with their respective balances
Prove the absence of errors
Average. Failure to record the unexpired portion of insurance premium paid would
Understate expense
Overstate Owner’s equity
Understate profit
Overstate total liabilities
Easy. Which of the following would normally be found on the credit side of the adjusted trial balance?
Reyes, Withdrawals
Prepaid Insurance
Depreciation Expense - Equipment
Accumulated Depreciation - Equipment
Average. Which of the following is an example of an accrual?
Salaries incurred but not yet paid
Payment of two years’ insurance in advance
Purchase of office supplies
Tuition revenue collected in advance
Average. Failure to adjust for accrued salaries at the end of the period will result in an
Overstatement of profit
Understatement of profit
Overstatement of assets
Overstatement of Liabilities
Average. Which of the following accounts could appear in an adjusting entry, closing entry, and reversing entry?
Salaries Payable
Interest Income
Depreciation Expense
Accumulated Depreciation
Easy. An important purpose of closing entries is to
Adjust the accounts in the ledger
Set nominal account balances to zero
Set real account balances to zero
Help in preparing financial statements
Easy. Which of the following accounts will appear on the post-closing trial balance?
Service Revenue
Owner’s Withdrawals
Building
Depreciation Expense - Building
Average. Which of the following statements is incorrect?
Supplies expense is a temporary account.
Reversing entries can be made for deferrals but not for accruals.
Balance sheet accounts are also known as real accounts.
The final trial balance will contain real accounts only.
Easy. An amount of P200,000 was received in 2020 and recorded in the consulting revenue account. It was discovered that an additional consulting revenue of P25,000 was not received yet as at Dec. 31, 2020. How much is the consulting revenue earned for the year ended, Dec. 31, 2020?
P200,000
P225,000
P175,000
P25,000
Easy. An entity that pays employees every two weeks has paid workers P265,000 in wages and salaries for work completed during 2020. In addition, the employees earned one week’s salary of P6,000 at the end of December that will be paid as part of the P12,000 payroll at the end of January 2021’s first week. How much should the company report for salaries and wages expense for 2020?
P265,000
P277,000
P259,000
P271,000
Easy. In January 2021, a P140,000 check was paid for rental expense of fourteen (14) months. The amount was recorded in the rent expense account. How much is the rent expense incurred for the year ended Dec. 31, 2021?
P120,000
P10,000
P140,000
P20,000
Average. At the beginning of the year, JPIA Company had a credit balance of P2,000 in the allowance for uncollectible accounts. Based on past experience, 3% of credit sales would be uncollectible. Net sales for the year totaled P250,000, 60% of which is cash sales.
What amount should be reported as uncollectible accounts expense?
P2,000
P3,000
P5,000
P1,000
Difficult. At the beginning of the year, JPIA Company had a credit balance of P2,000 in the allowance for uncollectible accounts. Based on past experience, 3% of credit sales would be uncollectible. Net sales for the year totaled P250,000, 60% of which is cash sales.
What amount should be reported as allowance for uncollectible accounts at year-end?
P1,000
P2,000
P5,000
P3,000
