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WorksheetsFABM 2 SFP Q1
Total questions: 56
Worksheet time: 32mins
Include bills & coins on hand, bank accounts, and operating funds
Inventory
Account receivable
Cash and cash equivalents
Prepayments
Amount owed by the customer to the entity and are evidenced by a promissory note. (E.g. P5,000, 60 days at 6% interest rate)
Notes receivable
Notes payable
Interest expense
Accounts Receivable
Collectible amount due to the cost of borrowing money by the customers to the entity.
Interest Payable
Interest receivable
Interest expense
Accounts Receivable
Include goods for resell in the normal course of the business-like finished goods, goods in process, and raw materials available.
Supplies
inventory
Materials
Non current assets
Assets that cannot be realized on one year after year end date but for long period of time.
Noncurrent Assets
Current Assets
Owner’s Equity
Notes Receivable
Which of the account is not contra assets?
Accumulated Depreciation
Allowance for Doubtful Accounts
Cash
Allowance for Bad debts
What is a balance sheet?
A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure.
A Balance sheet is one of a company's core financial sheet that shows their profit and lossProfit and Loss
Property owned by an individual
Liability
Asset
Property
Net Worth
Debts and financial obligations (responsibilities).
Liabilities
Assets
Negative Net Worth
Property
Examples of Liabilities include which of the following:
Loans, credit cards, and real property
Loans, mortgage, and credit cards
Loans, Art collection, and savings account
Mortgage, credit card, and real property
Current Assets are cash or other assets that are expected to be converted to cash within a year
True
False
Which of the following is a Non current asset?
Furniture
Other Receivables
Trade payables
All the above are or can be non-current assets
Non current liability are financial obligations that are due for settlement within 1 year. True or False
True
False
Which one is right?
Asset = Owner's equity + Liability
Asset = Owner's equity - Liability
Asset + Owner's equity = Liability
Asset + Owner's equity = expense
Which of the following would normally be a current liability?
Note Payable Due In Two Years
Unearned Revenue
Mortgage Payable
Loans Payable
The balance sheet heading will specify a
Period Of Time
Point In Time
What is the normal balance for contra asset accounts?
Debit
Credit
The third line of the balance sheet at the end of the year should begin with "For the Year Ended".
True
False
Calculate the total assets.
Current Assets : Php 100.00
Fixed Assets : Php 200.00
Current Liabilities : Php 300.00
Capital : Php 100.00
Php 300.00
Php 400.00
Php 500.00
Php 200.00
Amount which the proprietor has invested in a business is known as ......
Capital
Liability
Asset
Expenses
Amount which the firm owes to outsiders is known as.....
Capital
Expenses
Liability
Asset
Assets held for continued use in the business and not meant for resale are termed as..........
Fixed asset
Current Asset
Tangible asset
Intangible Asset
.......... are those assets which have a physical existence and which can be seen or felt.
Current Asset
Wasteful Asset
Intangible Asset
Tangible Asset
Amount withdrawn by the owner for personal use......
Capital
Asset
Drawings
Liability
The persons who still owe some amount to the business are termed as ..........
Business men
Creditors
Debtors
Liabilities
The persons to whom money is owing by the firm are termed as ........
Debtors
Creditors
Business men
Assets
Expenses which are paid in advance is......
Prepaid Expenses
Postpaid Expenses
Outstanding Expenses
Accrued Expenses
Paid Rent results in
Increase in cash & capital
Decrease in cash & capital
Increase in cash & Decrease in capital
No Effect
Withdraw goods for personal use affects on
Cash and drawings
Cash only
Cash and capital
Capital only
Another name for the balance sheet is
Statement of Operations
Statement of Financial Position
The balance sheet heading will specify a
Period of Time
Point in Time
Which of the following is a category or element of the balance sheet?
Expenses
Gains
Liabilities
Losses
Which of the following is an asset account?
Accounts Payable
Prepaid Insurance
Unearned Revenue
Which of the following is a contra-account?
Accumulated Depreciation
Mary Smith, Capital
What is the normal balance for an asset account?
Debit
Credit
What is the normal balance for liability accounts?
Debit
Credit
What is the normal balance for Owner's Equity accounts?
Debit
Credit
What is a normal balance for an asset contra account?
Debit
Credit
What is a normal balance for a liability contra account?
Debit
Credit
Client Jay pays ABC Co. Php 1,000 in December for ABC to perform services for Jay in 45 days. ABC uses the accrual basis of accounting. In December ABC will debit cash for Php 1,000. What will be the other account involved in the December accounting entry prepared by ABC (and what type of account is it)?
Accounts Receivable (asset)
Prepaid Services (asset)
Service Revenues (revenue)
Unearned Revenues (liability)
ABC Co. performed services for Client Kay in December and billed Kay Php4,000 with terms of net 30 days. ABC follows the accrual basis of accounting. In January ABC received the Php 4,000 from Kay. In January ABC will debit Cash, since cash was received. What account should ABC credit in the January entry?
Accounts Receivable
Sales Revenue
Owner's Equity
No entry
ABC Co. follows the accrual basis of accounting and performs a service on account (on credit) in December. The service was billed at the agreed upon amount of Php 3,500. ABC Co. debited Accounts Receivable for Php 3,500 and credited Service Revenue for Php 3,500. The effect of this entry on the balance sheet of ABC is to increase assets by Php 3,500 and to...
Decrease Assets by Php 3,500
Increase Owner's Equity (Stockholders' Equity) by Php 3,500
Which of the following would not be a current asset?
Accounts Receivable
Land
Prepaid Insurance
Supplies
Which of the following would normally be a current liability?
Note Payable in Two Years
Unearned Revenue
Loans Payable
Mortgage Payable
ABC Co. incurs cleanup expense of Php 500 on December 30. The supplier's invoice states that the Php 500 is due by January 10 and ABC will pay the invoice on January 9. ABC follows the accrual basis of accounting and its accounting year ends on December 31. What is the effect of the cleanup service on the December balance sheet of ABC?
Assets Decreased
Liabilities Increased
No Effect on Owner's Equity
Expense Increased
Notes Payable could not appear as a line item on the balance sheet in which classification?
Current Assets
Current Liabilities
Long term Liabilities
On Dec 1, ABC Co. hired Juanita Perez to begin working on Jan 2 at a monthly salary of Php 4,000. ABC's balance sheet of Dec 31 will show liability of?
Php 4,000
Php 48,000
No Liability
Php 2,000
ABC Co has current assets of Php 50,000 and total assets of Php 150,000. ABC has current liabilities of Php 30,000 and total liabilities of Php 80,000. What is the amount of ABC's Owner's Equity?
Php 20,000
Php 30,000
Php 70,000
Php 120,000
Accounts Receivable
Current Assets
Accounts Payable
Current Liabilities
Prepaid Expense
Current Assets
Drawing
Equity
Mortgage Payable
Non current Liabilities
