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WorksheetsSECOND PRELIMINARY EXAM
Total questions: 24
Worksheet time: 13mins
An expense that is already incurred but not yet paid.
Accrued Income
Accrued Expense
Deferred Income
Prepaid Expense
Which of the following item is not included in the accounting cycle?
Recording
Decision Making
Classification
Interpreting
Which of the following is not a feature of the concept of a separate entity?
The company should not be dissolved anytime soon.
The owner's personal affairs should not be considered.
The business and its owner are treated as distinct entities.
This concept is followed in all types of businesses.
Which one of the following is not included in the matching concept?
The comparison of incomes and expenses of a period gives the net profit or loss for that particular period.
This concept also required allocation of cost on different accounting periods.
Revenues should only be recorded if there is reasonable certainty about its realization.
The revenues of a particular period must match with the expenses of that period.
Financial statements must be presented with supporting evidence. The statement exhibits what type of accounting principle?
Disclosure Principle
Objectivity Principle
Monetaty Unit Principle
Materiality Principle
Which of the following is the correct presentation for the Accounting Equation?
Assets = Liabilities – Shareholder’s Equity
Assets = Liabilities + Shareholder’s Equity
Liabilities = Assets + Shareholder’s Equity
Shareholder’s Equity = Assets + Liabilities
Based on the money measurement concept, which of the following transactions would be recorded in the accounting system?
The value of machinery and equipment of a company.
The health of the President of an organization.
The quality of a company’s product or service.
All of the Choices
Which of the following statements about the accounting equation is correct?
The accounting equation represents that the sources in a business are not equal to the resources of that business.
The accounting equation denotes that the sources in a business are equal to the business's resources.
The accounting equation represents the allocation of resources to the business at cost price.
None of the above
The assets which are convertible into cash or cash equivalents within a year are known as _________.
Fixed assets
Current Assets
Land
All of the Choices
These are assets or goods that are held for sale in the normal operations of the business.
(a)
It consists of costs already paid but are yet to be used or incurred. What is it?
(a)
They are usually issued by the government, banks, and huge corporations seeking huge financing resources.
Notes Payable
Share of Stock
Mortgages
Bonds Payable
The amounts received by a business earned as a result of selling something or rendering service.
Revenues
Profit
Expenses
Assets
Find out the value of assets if Liabilities are equals to P25,000 and Owner's Equity of P44,000.
P19,000
56.82%
P69,000
P44,000
Compute for Total Expenses. Given, (a) Utilities Expense - 3,000, (b) Prepaid Expense - 5,500, (c) Accrued Expense - 1400.
P6,900
P9,900
P8,500
P3,000
Revenue earned as a result of dividend declaration of accompany where in the business has investment in stocks.
Rental Income
Dividend Income
Preferred Income
Capital Revenue Income
Capital Increases if __________ increases.
Expenses
Interest
Assets
Revenue
Expenses paid by a business decrease:
Cash
Capital
Cash and Capital
Liabilities and Capital
Compute for total revenue. Given (a) Building - P500,000, (b) Rental Income - P32,000, (c) Depreciation - P13,000, (d) Repairs and Maintence - P15,000
P532,000
P504,000
P32,000
P4,000
Revenue earned by brokers and sales agents.
Sales Quota
Commission Income
Salary and Wage Income
Professional Fee
Why is the Accounting Equation Important?
Based on your own understanding, what is the difference between Capital Expenditures and Operating Expenses?
Give five (5) examples of fixed assets.
Give five (5) examples of expenses.
