WorksheetsKNOWLEDGE UNLEASHMENT IN BASIC ACCOUNTING
Total questions: 20
Worksheet time: 11mins
Received P 30,000 from a customer for a four-month service starting November 1, 2022. From that statement what will be the adjusting entry for December 31, 2022?
Credit: Unearned Professional Fees P 15,000
Debit: Professional Fees P 15,000
Debit : Unearned Professional Fees P 15,000
Credit: Professional Fees P 15,000
D is a service company that has P 1,000.00 gross profit which is 50% of sales and its expenses are 10% of sales. What will be its net income?
900
800
700
600
On March 20, 2022, Issa returned the part of merchandise worth P 1,500.00 with a cost of 600. What will be the accounting journal entry to be used under the perpetual inventory system of James?
Dr. Merchandise Inventory 600
Dr. Sales Return and Allowances 1,500
Cr. Receivable 1,500
Cr. Cost of Goods Sold 600
Dr. Sales Return and Allowances 1,500
Cr. Receivable 1,500
Dr. Receivable 1,500
Dr. Cost of Goods Sold 600
Cr. Sales Return and Allowances 1,500
Cr. Merchandise Inventory 600
Dr. Merchandise Inventory 600
Cr. Cost of Goods Sold 600
The economic resources, economic obligations, residual interest and changes in them –
Basic elements
Basic objectives
Basic principles
Basic concept
Imputing interest for certain assets and liabilities is primarily based on the concept of-
Stable monetary unit
Consistency
Conservatism
Valuation
Basic elements related to the measurement of financial position
Cash and Inventory
Assets, liabilities and equity
Revenue and expenses
Assets and liabilities
Purchased from M Store supplies worth P 3,000.00 on cash basis. Its accounting journal entry will be?
Debit Purchases 3,000.00 and Credit Cash 3,000
Debit Cash 3,000.00 and Credit Supplies 3,000
Debit Supplies 3,000.00 and Credit Purchases 3,000
Debit Supplies 3,000.00 and Credit Cash 3,000
Which of the following is an example of the expense recognition principle of associating cause and effect?
Allocation of insurance
Depreciation of property
Sales Commission
Officers' salaries
The principle that best describe the reason of matching depreciation with revenue
Cause and effect
Systematic allocation
Immediate recognition
Partial recognition
Which of the following are in accordance with generally accounting accepted accounting principles?
Cash basis of accounting
Accrual basis of accounting
Both cash and accrual basis of accounting
None of the above
Expenses paid and recorded asset before they used are called-
Unearned Expenses
Prepaid Expenses
Accrued Expenses
All of the above
If an adjusting entry is not made for an accrued revenue
Owners’ equity will be understated
Assets will be overstated
Revenue will be overstated
None of the above
Which of the following is the result of owner’s equity understatement?
Unrecorded of freight in
Uncollectible of account receivables
Unrecorded of supplies used
Understatement of accumulated depreciation
A system of updating inventory is done periodically which is usually once or twice a year through physical accounting.
Posting
Perpetual inventory system
Calendar system
Periodic inventory system
Lark Company will make a full payment of account within the discount period. What will its book accounting journal entry?
Debit Cash
Credit Purchase Discount
Credit Purchases
Debit Account Payable
Credit Cash
Credit Purchase Discount
Debit Cash
Debit Purchase Discount
Credit Accounts Payable
Debit Accounts Payable
Debit Purchase Discount
Credit Cash
The purchase of office supplies that were recorded in the Office Equipment account would require a correcting entry that:
Cr. Office Supplies
Cr. Cash
Dr. Office Equipment
Cr. Office Equipment
The owner contributes his personal truck in his business. What will be its effect in accounting equation?
Increased in Liabilities
Increased in Owner's equity
Increased in Asset
None of the above
If during the accounting period the asset increased by 35,000 and equity increased by 10,000 then how did the liabilities change?
Increased by 10,000
Increased by 25,000
Decreased by 25,000
Decreased by 45,000
Beginning Capital is P 10,000, withdrawal was P 24,000. The owner made additional investment during the year of 60,000. The ending capital was 90,000. What will be the net income and loss for the period?
Net Income of 56,000
Net Loss of 44,000
Net Income of 44,000
Net Income 30,000
In a service business, revenue is considered earned
when the service is performed
when the cash is received
at the end of the month
at the end of the year
