WorksheetsAcc Fundamentals Final Exam
Total questions: 45
Worksheet time: 2hrs 47mins
The accounting equation must be in balance throughout the accounting process.
True
False
Every business transaction affects a minimum of one account.
True
False
Unearned revenue is an income statement account.
True
False
An adjusted trial balance is a listing of all business accounts that are going to appear in the financial statements at year-end after adjusting entries are made.
True
False
The income statement shows the results of business operations for a given period of time.
True
False
The most important output of the accounting cycle is the post-closing trial balance.
True
False
The excess of expenses over revenues is called net loss.
True
False
Allowance for doubtful (uncollectible) accounts is a contra-asset account.
True
False
All accounts will be closed at the end of the accounting period.
True
False
The worksheet is a working paper that can be used to summarize adjusting entries and the account balances for the preparation of financial statements.
True
False
The chart of accounts, the journal, and the ledger are essential parts of the accounting system.
True
False
In the preparation of the worksheet, if the total debits are greater than total credits under the income statement column, there is net profit.
True
False
The income statement is generally prepared first among the financial statements.
True
False
In making closing entries, nominal/temporary accounts are closed to the income summary account which is then close to the capital account.
True
False
Reversing entries are done at the start of the new accounting period.
True
False
Arrange the following steps in the accounting process in its proper order.
A. VIII, II, IV, III, V, IX, X, VI, VII, I
B. VIII, II, IV, III, V, IX, VI, X, I, VII
C. VIII, II, IV, III, IX, V, VI, X, VII, I
D. VIII, II, IV, IX, III, II, VI, X, VII, I
Posting is the process of transferring information from the
Journal to the trial balance
Ledger to the trial balance
Journal to the ledger
Journal to the financial statements
The purchase of equipment for cash is recorded by a
Debit to Equipment and debit to Cash
Credit to Cash and credit to Equipment
Debit to Equipment and credit to Cash
Debit to Cash and debit to equipment
X Company earned revenue on account. The journal entry to record this transaction is a
Accounts receivable — debit; Service revenue — credit
Cash — debit; Service revenue — credit
Accounts payable — credit; Service revenue — credit
Service revenue — debit; Accounts receivable — credit
The primary purpose of a trial balance is to test the
Analysis of transactions
Recording of transactions
Equality of debit and credit entries in the journal
Equality of the debit and credit balances in the ledger
Which of the following functions do financial statements serve in the accounting process?
Recording
Classifying
Summarizing
Communicating/ Reporting
The proper journal entry to record the receipt of supplies purchased on account under the asset method would be
Supplies Expense — debit; Accounts Payable — credit
Supplies Expense — debit; Cash — credit
Supplies — debit; Cash — credit
Supplies — debit; Accounts payable — credit
Which of the following describes the classification and normal balance of Withdrawals?
Equity, debit
Equity, credit
Asset, debit
Liability, credit
When a T-account has several items on both (debit and credit) sides, the ending balance of the account is written
On the side with the smaller total
On the side with the larger total
On the side with the greatest number of items
On the side with the least number of items
Adjusting entries are necessary to
Measure properly the income for the period
Update the balance of the asset accounts
Update the balance of the liability accounts
Measure properly the income for the period and update the balances of asset and liability accounts
If an income has been earned but not yet recorded because it is not received yet, the adjusting entry involves
A receivable and an income
An expense and a liability
An expense and an asset
An asset and a liability
The adjusting entry to accrue salaries expense:
Debit Salaries expense and credit Salaries payable
Debit Salaries expense and credit Cash
Debit Salaries payable and credit Cash
Debit Salaries payable and credit Salaries expense
Which of the accounts below would appear on an adjusted trial balance but probably would not appear on the unadjusted trial balance?
Depreciation Expense
Fees Earned
Accounts Receivable
Unearned Fees
An adjusted trial balance is prepared to
Facilitate preparation of adjusting entries
Facilitate preparation of financial statements
Test the ledger is still in balance after the accounts have been adjusted
Both test if the ledger is still in balance after the accounts have been adjusted and facilitate preparation of the financial statements
Which of the following accounts would normally be found on the credit side of the adjusted trial balance?
Depreciation expense – equipment
Allowance for Doubtful Accounts
Andy Lim, Withdrawals
Prepaid insurance
When an entity has earned a profit, the profit amount is entered on the worksheet on the (1) Income statement column; and (2) Balance sheet column
Debit side; Credit side
Credit side; Debit side
Debit side; Debit side
Credit side; Credit side
After totaling all of the columns in the worksheet, the income statement columns show debits of P356,780 and credits of P399,010. This indicates that
Neither net income nor loss can be calculated because that is found on the income statement
The amounts are out of balance and need to be corrected
The company recorded a net loss of P42,230
The company recorded a net income of P42,230
Which of the following sequences of documents or records describes the proper sequence in the accounting cycle?
Source documents, journal, ledger, financial statements
Source documents, ledger, journal, financial statements
Journal, source documents, ledger, financial statements
Ledger, source documents, journal, financial statements
A business has: Cash of P40,000; Note payable of P25,000; Accounts payable of P43,000; Rent Revenue of P70,000; Unearned Rent Revenue of P30,000; and Rent expense of P18,000. On the basis of this data, how much are its total liabilities?
P168,000
P98,000
P68,000
P43,000
What is the ending balance of Cash?
82,500
97,500
107,500
92,500
77,500
Prepare a trial balance. The total of the debits is
P 4,300
P 5,400
P 6,100
P 6,300
Prepaid Insurance of P72,000 in the unadjusted trial balance represents payment for 2 years starting June 1, 20x4. The adjustment on December 31, 20x4 will be
Insurance Expense — 21,000; Prepaid Insurance — 21,000
Prepaid Insurance — 51,000; Insurance Expense — 51,000
Prepaid Insurance — 21,000; Insurance Expense — 21,000
Prepaid Insurance — 54,000; Insurance Expense — 54,000
Prepaid Insurance of P72,000 in the unadjusted trial balance represents payment for 2 years starting June 1, 20x4. The adjusted balance on December 31, 20x4 will be
72,000
54,000
51,000
21,000
What is El Grande’s net income (net profit)?
P50,000
P70,000
P90,000
P100,000
Determine the net income (loss) for the period.
Net Loss of P3,550
Net Profit P3,550
Net Loss P870
Net profit of P26,500
Determine the Total Assets at December 31, 20x4 based on Hyun-woo Enterprises’ adjusted trial balance
P26,500
P15,380
P21,380
P22,580
Determine the Total Liabilities at December 31, 20x4 based on Hyun-woo Enterprises’ adjusted trial balance:
P6,700
P1,700
P5,000
P18,700
Determine the Owner’s Equity (Hyun-woo, Capital) ending balance
P2,680
P11,130
P15,550
P14,680
What is the amount of Trumpo’s total assets?
P83,500
P68,500
P82,500
P81,500
Mud 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
2,5,000
23,000
22,000
