WorksheetsAccounting Multiple Choice Questions 1-20
Total questions: 20
Worksheet time: 12mins
Which of the following is an application of the science aspect of accounting?
Interpreting the information presented in the financial statements through ratios and trend analysis
Attesting to the fairness of presentation of financial condition and operating results
Exercise of creative skill and judgment
Applying the rules of debit and credit
Adjusting entries are needed because an entity:
Has expenses
Uses the accrual basis of accounting
Uses the cash basis of accounting rather than the accrual basis
Has earned revenue during the period by selling products from its central operations
In the accounting cycle, a worksheet is prepared:
After adjusting entries are entered in the journal and posted to the ledger
Before adjusting entries are entered in the journal and posted to the ledger
As a substitute for financial statements
Only for the purpose of preparing reversing entries
The adjusting entry at the end of the accounting year to reflect revenues earned but not yet collected or recorded will:
Decrease liabilities
Not affect assets
Not affect income for the current period
Increase assets
The ultimate effect of closing entries is to:
Change assets
Change liabilities
Change owner’s equity (capital)
Change debit balances of all accounts into credits and vice-versa
An appropriate reversing entry:
Must be made because they are required by accounting standards
Is dated the first day of the next accounting period
Is usually made for adjusting entries that affect deferred items only
Is often used to correct entries which were initially based on estimates
As a general rule, which of the following is not subject to reversal?
Accrued expenses
Accrued revenues
Prepaid expenses recorded as assets upon payments
Deferred revenues recorded as revenue upon receipt
Accrual basis accounting
Omits adjusting at the end of the period
Leads to the reporting of more complete information than cash-basis accounting
Is not acceptable under PFRS
Results in higher income than cash basis accounting
Which of the following is not one of the balance sheet (statement of financial position) accounts?
Assets
Equity
Liabilities
Income
The unused portion of rent paid in advance.
Prepaid rent
Accrued Rent
Rent expense
Unearned Rent
Salaries earned by employees but not yet paid.
Salaries expense
Employee Advances
Salaries payable (Accrued salaries expense)
Unearned Salaries
Salaries earned by employees, whether paid or not.
Salaries expense
Employee Advances
Salaries payable (Accrued Salaries)
Unearned Salaries
Income collected in advance but not yet earned.
Accrued income
Unearned (Deferred) income
Early income
Service fees
The amount of estimated loss from uncollectible accounts receivable during the period.
Depreciation expense
Bad debts (Doubtful accounts) expense
Ugly expense
Accrued Bad expense
The portion of the cost of a building that is already recognized as expenses since the building was acquired and made available for use.
Allowance for Depreciation
Accumulated Depreciation—building
Accumulated Maintenance
Repairs and maintenance expense
Interest earned by a lender but not yet collected.
Unearned interest
Interest receivable
Interest income
Interest payable
Entity A’s total assets are ₱120M, while its total liabilities are ₱90M. Entity A’s total equity is
₱210M
₱90M
₱50M
₱30M
Entity A earned a total income of ₱60M and incurred total expenses of ₱44M. Entity A’s total expenses were
₱104M
(₱16M)
₱16M
₱12M
Entity A incurred total expenses of ₱40M and reported a loss of ₱12M. Entity A’s total income was
₱42M
₱52M
₱28M
Sorry, I don’t know.
A Company provided the following information for the current year: Cash received from customers 87,000 Cash received from rental income 1,000 Cash paid to suppliers and employees 51,000 Cash paid for other expenses 11,000 Cash withdrawals by owner 3,000 What is the net cash provided by operating activities?
₱26,000
₱25,000
₱23,000
₱22,000
