WorksheetsMidterm Examination on Accounting
Total questions: 47
Worksheet time: 22mins
The accounting cycle begins with:
Posting to the ledger
Preparing trial balance
Analyzing business transactions
Closing entries
A source document is important because it:
Provides proof of a transaction
Serves as a journal entry
Is required only for cash sales
Is optional in accounting
The process of transferring journal entry amounts to ledger accounts is called:
Posting
Closing
Adjusting
Summarizing
Which of the following is prepared first in the accounting cycle?
Income statement
Journal entry
Balance sheet
Trial balance
The main purpose of a trial balance is to:
Show net income
Verify debit = credit
Prepare financial statements
Close accounts
Adjusting entries are made:
Before preparing the trial balance
After financial statements are prepared
At the end of the accounting period
At the beginning of the accounting period
Which of the following accounts would require an adjusting entry?
Cash
Prepaid Rent
Owner's Capital
Accounts Payable
The income statement is prepared from:
Owner's Capital
Trial Balance
Adjusted Trial Balance
Closing Entries
Closing entries are prepared to:
Adjust cash
Prepare a trial balance
Transfer balances to capital
Prepare adjusting entries
Which account is not closed at the end of the accounting period?
Rent Expense
Service Revenue
Drawing
Cash
Which of the following is the correct order in the accounting cycle?
Journalize, Adjust, Post, Close
Post, Journalize, Adjust, Close
Journalize, Post, Adjust, Close
Journalize, Post, Adjust, Financial statements, Close
Which account is temporary?
Cash
Rent Expense
Accounts Receivable
Equipment
The adjusted trial balance is prepared:
Before adjustments
After closing entries
After adjustments
After posting but before adjustments
Depreciation is recorded through:
Accumulated Expense
Cash Payment
Adjusting Entry
Closing Entry
Which document is used to prepare financial statements?
General Ledger
Trial Balance
Adjusted Trial Balance
Journal
The balance sheet reports:
Assets, liabilities, equity
Revenues and expenses
Owner's withdrawals
Cash inflows only
The main purpose of closing entries is:
To update cash
To prepare trial balance
To reset temporary accounts
To post transactions
Posting is done from:
Journal to Ledger
Ledger to Journal
Ledger to Trial Balance
Trial Balance to Journal
Which of the following is a permanent account?
Rent Expense
Accounts Receivable
Service Revenue
Salaries Expense
Which of the following appears in the income statement?
Equipment
Capital
Utilities Expense
Notes Payable
Unearned Revenue is classified as:
Revenue
Expense
Liability
Asset
Which is prepared last?
Balance Sheet
Trial Balance
Adjusted Trial Balance
Income Statement
Which is not a step in the accounting cycle?
Posting
Analyzing transactions
Preparing bank reconciliation
Journalizing
Which accounts are closed to the Income Summary?
Assets
Liabilities
Revenues and Expenses
Owner's Capital
The drawing account is closed to:
Owner's Capital
Cash
Income Summary
Revenue
Which error will the trial balance detect?
Omission
Reversal
Compensating error
Posting unequal debits and credits
The worksheet is:
An optional tool
A required financial statement
Posted in the ledger
A substitute for journal
Prepaid Rent appears on the:
Balance Sheet
Income Statement
Statement of Owner's Equity
Closing Entries
Which of the following must balance?
Debit = Credit
Assets = Liabilities only
Revenue = Expenses
Cash inflows = outflows
Which step follows preparing adjusting entries?
Prepare adjusted trial balance
Prepare closing entries
Prepare post-closing trial balance
Prepare journal entries
Paid rent expense ₱10,000 in cash.
Debit Rent Expense ₱10,000 / Credit Cash ₱10,000
Debit Prepaid Rent ₱10,000 / Credit Cash ₱10,000
Debit Cash ₱10,000 / Credit Rent Expense ₱10,000
Debit Rent Payable ₱10,000 / Credit Cash ₱10,000
Received ₱20,000 cash for services rendered.
Debit Cash ₱20,000 / Credit Service Revenue ₱20,000
Debit Accounts Receivable ₱20,000 / Credit Service Revenue ₱20,000
Debit Cash ₱20,000 / Credit Unearned Revenue ₱20,000
Debit Service Revenue ₱20,000 / Credit Cash ₱20,000
Provided services on account worth ₱15,000.
Debit Cash ₱15,000 / Credit Service Revenue ₱15,000
Debit Accounts Receivable ₱15,000 / Credit Service Revenue ₱15,000
Debit Service Revenue ₱15,000 / Credit Accounts Receivable ₱15,000
Debit Accounts Receivable ₱15,000 / Credit Unearned Revenue ₱15,000
Paid salaries ₱8,000 in cash.
Debit Salaries Expense ₱8,000 / Credit Cash ₱8,000
Debit Cash ₱8,000 / Credit Salaries Expense ₱8,000
Debit Salaries Payable ₱8,000 / Credit Cash ₱8,000
Debit Salaries Expense ₱8,000 / Credit Salaries Payable ₱8,000
Collected ₱10,000 cash from accounts receivable.
Debit Cash ₱10,000 / Credit Accounts Receivable ₱10,000
Debit Accounts Receivable ₱10,000 / Credit Cash ₱10,000
Debit Cash ₱10,000 / Credit Service Revenue ₱10,000
Debit Accounts Receivable ₱10,000 / Credit Service Revenue ₱10,000
Paid ₱3,000 to settle accounts payable.
Debit Accounts Payable ₱3,000 / Credit Cash ₱3,000
Debit Cash ₱3,000 / Credit Accounts Payable ₱3,000
Debit Accounts Payable ₱3,000 / Credit Purchases ₱3,000
Debit Purchases ₱3,000 / Credit Cash ₱3,000
Incurred utilities expense ₱2,500 on account.
Debit Utilities Expense ₱2,500 / Credit Cash ₱2,500
Debit Utilities Expense ₱2,500 / Credit Accounts Payable ₱2,500
Debit Accounts Payable ₱2,500 / Credit Utilities Expense ₱2,500
Debit Utilities Payable ₱2,500 / Credit Cash ₱2,500
Paid ₱2,500 cash to settle utilities payable.
Debit Utilities Payable ₱2,500 / Credit Cash ₱2,500
Debit Utilities Expense ₱2,500 / Credit Cash ₱2,500
Debit Cash ₱2,500 / Credit Utilities Payable ₱2,500
Debit Utilities Payable ₱2,500 / Credit Utilities Expense ₱2,500
Owner withdrew ₱5,000 cash for personal use.
Debit Owner's Capital ₱5,000 / Credit Cash ₱5,000
Debit Owner's Drawing ₱5,000 / Credit Cash ₱5,000
Debit Cash ₱5,000 / Credit Owner's Drawing ₱5,000
Debit Owner's Drawing ₱5,000 / Credit Owner's Capital ₱5,000
Paid advertising expense ₱7,000 in cash.
Debit Advertising Expense ₱7,000 / Credit Cash ₱7,000
Debit Prepaid Advertising ₱7,000 / Credit Cash ₱7,000
Debit Cash ₱7,000 / Credit Advertising Expense ₱7,000
Debit Advertising Expense ₱7,000 / Credit Accounts Payable ₱7,000
Borrowed ₱30,000 cash by signing a note payable.
Debit Cash ₱30,000 / Credit Notes Payable ₱30,000
Debit Notes Payable ₱30,000 / Credit Cash ₱30,000
Debit Cash ₱30,000 / Credit Accounts Payable ₱30,000
Debit Accounts Payable ₱30,000 / Credit Cash ₱30,000
Purchased supplies on account worth ₱12,000.
Debit Supplies ₱12,000 / Credit Accounts Payable ₱12,000
Debit Supplies Expense ₱12,000 / Credit Cash ₱12,000
Debit Accounts Payable ₱12,000 / Credit Supplies ₱12,000
Debit Supplies ₱12,000 / Credit Cash ₱12,000
Received ₱8,000 cash in advance for services to be provided later.
Debit Cash ₱8,000 / Credit Service Revenue ₱8,000
Debit Unearned Revenue ₱8,000 / Credit Cash ₱8,000
Debit Cash ₱8,000 / Credit Unearned Revenue ₱8,000
Debit Accounts Receivable ₱8,000 / Credit Unearned Revenue ₱8,000
Paid ₱20,000 cash to settle accounts payable.
Debit Accounts Payable ₱20,000 / Credit Cash ₱20,000
Debit Cash ₱20,000 / Credit Accounts Payable ₱20,000
Debit Accounts Payable ₱20,000 / Credit Purchases ₱20,000
Debit Purchases ₱20,000 / Credit Cash ₱20,000
Billed a customer ₱6,000 for services performed on account.
Debit Accounts Receivable ₱6,000 / Credit Service Revenue ₱6,000
Debit Service Revenue ₱6,000 / Credit Accounts Receivable ₱6,000
Debit Cash ₱6,000 / Credit Service Revenue ₱6,000
Debit Accounts Receivable ₱6,000 / Credit Unearned Revenue ₱6,000
Recorded depreciation expense ₱4,000 for equipment.
Debit Depreciation Expense ₱4,000 / Credit Accumulated Depreciation-Equipment ₱4,000
Debit Accumulated Depreciation-Equipment ₱4,000 / Credit Depreciation Expense ₱4,000
Debit Depreciation Expense ₱4,000 / Credit Equipment ₱4,000
Debit Equipment ₱4,000 / Credit Accumulated Depreciation-Equipment ₱4,000
Paid ₱2,000 cash for prepaid insurance.
Debit Insurance Expense ₱2,000 / Credit Cash ₱2,000
Debit Prepaid Insurance ₱2,000 / Credit Cash ₱2,000
Debit Cash ₱2,000 / Credit Prepaid Insurance ₱2,000
Debit Prepaid Insurance ₱2,000 / Credit Insurance Expense ₱2,000
