This method relates to inventory valuation, specifically keeping track of each specific item in inventory and assigning costs individually instead of grouping items together.

Accounting method assumes that the oldest merchandise is sold first, with its associated costs being used to determine profitability.

Assume that sales are 500,000, sales discount is 20,000, net income if 25,000, and the cost of general merchandise sold is 380,000. Gross profit and operating expenses are, respectively.

Avellano Group of Companies purchase a generator that cost 100,000. It has an estimated life of five years and a residual value of 30,000. It is estimated that it will be good for 7,000 hours. Can you compute the depreciation expense for the first year using the units-of-activity method of depreciation assuming that the generator was used for 1,505 hours?

Generally, the older the information, the less useful it becomes. However, some information may continue to be timely long after the end of a reporting period because, for example, some users may need to identify and assess trends.

Financial statements are normally prepared on the assumption that business will continue in operation for the foreseeable future.

The information must be free of material error and bias, and not misleading.

The information must be comprehensible to users of the financial statements. This means that information must be clearly presented, with additional information supplied in the supporting footnotes as needed to assist in clarification.

This accounting assumption tells us to recognize revenues and expenses as they are earned or incurred, rather than recording them when payment is received or made.

This accounting assumption suggests that a unit of measurement must be set and that all transactions or economic events be recorded in the books of a business in monetary terms by a currency.

Transactions (like purchase of an asset) are required to be recorded at the cash amount or the equivalent at the time that it is required.

These are costs sacrificed to run the business operations that a company incurs to generate revenue.

A method used to account for inventory which the costs of the most recent products purchased (or produced) are the first to be expensed.

Equipment was purchased at a cost of 390,000. The equipment had an estimated useful life of five years and a residual value of 15,000. Assuming the equipment was sold at the end of Year 4 for 40,000, which of the following will be included in the journal entry. (Assume the straight-line depreciation method)

You've discovered that a check written for 6,200 was credited in error to account receivable, rather than to cash for 2,600. The other portion of the entry included a debit to Supplies Expense for 2,600. The correcting entry should include which of the following.

A technique for evaluating a series of financial statement data over a period of time.

Expresses the relationship among selected items of financial statement data.

A technique for evaluating financial statement data that expresses each item in a financial statement in terms of a percent of a base amount.

Who is the Patron Saint of Accountants?

Salvino Company owns a small retail clothing store in a shopping center downtown Daet. This store has been reporting a loss in recent years because it is in an unoccupied location. The store cost 1,200,000 but its book value has been reduced to 500,000 as the result of the depreciation over the years. Cash flows remain positive at 40,000 per year. The store has several uses and it could be sold for 530,000. Or the company could continue to hold it for 12 additional years until its utility is consumed. What loss, if any, should the company report at the current time because of the impairment to the value of this asset?

Don Philip's statement of profit or loss for the year ended 31 October 2023 showed a net profit of 83,600. It was later found that 18,000 paid for the purchased of a motor van had been debited to the motor expense account. It is the company's policy to depreciate motor vans at 25% per year on a straight-line basis, with a full year's charge in the year of acquisition. What would the net profit be after adjusting for this error?

What method uses the price of the first batch received for costing all units of sales until all units from this batch have been sold; after which the price of the next batch received is used for costing purposes?

This method assigns a cost to inventory items based on the total cost of goods purchased or produced in a period divided by the total number of items purchased or produced.

What represent the carrying value of asset reported on the balance sheet, and is calculated by subtracting accumulated depreciation from the original purchased cost of the asset?

The price an asset would sell for on the open market when certain conditions are met.

The estimated value of a fixed asset at the end of its lease term or useful life.

The amount that an object loses in value over time.

Information is said to be __________ if omitting it or misstating it could influence decisions that the primary users of general-purpose financial reports make based on those reports.

Jeremy has not kept accounting records during the financial year. He had an opening inventory of 6,700 and purchased goods costing 84,000 during the year. At the year-end, he had 5,400 left in inventory. All sales are made at a mark up on a cost of 20%. What is the gross profit for the year?

It is the qualitative characteristic of a financial information that enables users to identify and understand similarities in, and differences among items, amount or nature.

It indicates the amount of money a company brings in from its ongoing, regular business activities, such as manufacturing and selling goods or providing a service to customers.

It is a section of the cash flow statement that shows the cash generated or spent relating to investment activities.

This section of a company's cash flow statement, which shows the net flows of cash that are used to fund the company.

A cash equivalent is a short term, highly liquid investment that is readily convertible into known amount cash and ______________.

A cash equivalent is a short term, highly liquid investment that is readily convertible into known amount cash and ______________.

The selection of an inventory costing method by management does not usually depend on

Segundo Company gathered the following reconciling information in preparing its July bank reconciliation:

Cash balance per book, 7/31 5,500

Deposit in transit 150

Notes receivable 850

Bank charge for check printing 20

Outstanding check 2,000

NSF Check 170

The adjusted cash balance per book on July 31 is

Which of the following items should be included in the accounts receivable reported on the statement of financial positions?

A restriction of retained earnings is most likely to be required by

ABCD Company introduced a new product that carried a 2 year warranty against defects. The estimated warranty cost related to sales is 4% in the year of sale and 5% in the year after sale. Sales are 3,000,800 for 2021 and 4,500,000 for 2022. Actual warranty expenditures are 150,000 for 2021 and 400,000 for 2022. What amount should be reported as estimated warranty liability on December 31, 2022?

The acquisition of treasury shares by a corporation

If the company purchases merchandise on terms of 1/10, n/30, the cash discount available is equivalent to what effective annual rate of interest (assuming a 360-day year)?

Which of the following is not considered a part of the definition of a liability?

Having one person responsible for the related activities of ordering merchandise, receiving goods and paying for them

Related buying activities include

Which account is associated with cost of goods sold?

The term used for bonds that are unsecured is:

Bonds that can be redeemed or paid off by the issuer prior to the bonds' maturity date.

A contract that describes information related specifically to the issuance or usage of bonds.

A fixed-income corporate debt security that yields interest payments, but can be converted into a predetermined number of common stock or equity shares.

During the current year, Meg store had net sales of 500 million, a cost of good sold at 400 million, average account receivable of 60 million, and average inventory of 50 million. Meg store's inventory turnover rate is:

Dividends predominantly paid in:

Regular dividends are declared out of:

The temporary account balances ultimately wind up in what account?

The final step in the accounting cycle is to prepare:

Orpiada company obtain a loan to finance the development of new manufacturing plant. The loan amount is expected to be fully repaid in 7 years. In this circumstance, what term is used to describe a company's ability to meet its non-current obligations?

During period of rising prices, and being primarily concerned with tax implications, most of the company would select:

Expenses that are incurred directly or entirely in connection with the sale of merchandise are classified as:

Which of the following would not reported on the statement of financial position as a cash equivalent?

Which of the following would not reported on the statement of financial position as a cash equivalent?

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet:

Accumulated Depreciation P 6,000

Fees Earned 25,000

Depreciation Expense 1,500

Insurance Expense 1,000

Prepaid Insurance 4,000

Supplies 500

Supplies Expenses 4,500

Net income for the period is:

After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the Debit and Credit columns are P39,750 and P21,750, respectively. What is the amount of net income or net

loss for the period?

After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the debit and credit columns are P89,900 and P67,600, respectively. What is the amount of the net income or net loss for the period?

The following accounts were taken from the Adjusted Trial Balance columns of the worksheet:

Accumulated Depreciation P 3,000

Fees Earned 20,000

Depreciation Expense 3,500

Insurance Expense 1,000

Prepaid Rent 4,000

Supplies 500

Net income for the period is:

If assets increase by P100,000 and Liabilities increase by P30,000, owner’s equity must:

The ending balance of the accounts receivable account was P180,000. Services billed to customers for the period were P270, 000 and collections on account from customers were P268, 000. What was the beginning balance of accounts receivable?

A supplier offers the following discounts: Trade discounts of 10% at list price and another cash discount of 5% if paid in full before the due date. How much is to be paid if a customer pays before due date at a list price of P16,000?

After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the debit and credit columns are P92,300 and P67,600, respectively. What is the amount of the net income or net loss for the period?

Under the double-entry system, what is the value of X if assets, current liabilities, non-current liabilities and capital are X, P40,000, P60,000 and P350,000 respectively?

Suppose a debtor repays his debt of P50,000 by transferring the money into the bank account of the business. The effect of the transaction on the accounting equation would be:

A P100 petty cash fund has a cash of P17 and a receipt of P80. The journal entry to replenish the account would include a:

Accounts receivable are subsequently measured at their recoverable historical cost. Which of the following methods of estimating uncollectible accounts is in conformance with the PFRSs?

Jerave Corp. has an 8% notes receivable dated June 30, 2024, in the original amount of P150,000. Payments of P50,000 in principal plus accrued interest are due annually on July 1, 2025, 2026 and 2027. In its June 30, 2026 balance sheet, what amount should Jerave Corp. report as a current asset for interest on the note receivable?

In a bank reconciliation, if the book error is an overstatement in book credit, the effect on the ending balance of cash is:

In a bank reconciliation, if the book error is an overstatement in book credit, the effect on the ending balance of cash is:

It is daily collection of business transactions entered into by an entity.

It presents transactions in relation to the accounts they affect.

Received cash for delivery of services rendered Php22,000.

Paid advertising expenses, Php10,000

Received cash from customers on account, Php6,500.

Which of the following is not presented in an income statement?

A business has net sales of P 100 000, cost of sales of P 60, 000 and other operating expenses of P 40 000. What is the gross profit of the business?

The income statement of ABC company shows gross profit. ABC Company's income statement is most likely to have bee prepared using what method?

Which of the following statements is correct regarding an income statement prepared using the single step method?