ACCOUNTANCY AND BUSINESS MANAGEMENT ___20. Which of the following transactions results in an increase in revenues?

FUNDAMENTALS OF ACCOUNTANCY, BUSNIESS AND MANAGEMENT II a. Collection of cash on account c. Sale of land at cost for cash
b. Receipt of cash from bank loan d. Services rendered on credit
UNIT TEST PART 4 ___21. An item that represents services received by the firm for which it will pay for in the future is called
a. Accrued expense b. Accrued revenue c. Unearned revenue d. Prepaid expense
NAME: ___________________________________________________________ GRADE&SECTION __________________________ ___22. An item that represents services provided by a firm for which it will received payment in the future is called
a. Accrued expense b. Accrued revenue c. Unearned revenue d. Prepaid expense
___23. Which of the following is an example of an adjusting entry?
MULTIPLE CHOICE: Choose the best answer and write your answer on the space provided before each number. a. Recording depreciation expense on a truck c. Recording the payment of salaries to employees
___1. The decrease in usefulness of property and equipment as time passes is b. Recording the billing of customers for services rendered d. Recording the purchased of supplies on account
a. Consumption b. Contra asset c. Depreciation d. Deterioration ___24. Which of the following is an example of a deferral?
___2. A business pays weekly salaries of P200,000 on Friday for a five-day week ending on that day. If the fiscal period end on Wednesday, the a. Legal fees already earned but not yet collected c. The accumulation of interest in a bank account
adjusting entry is b. Property taxes accrued but not yet collected d. The purchase of an entity vehicle
a. Dr Salaries Expense, P120,000; Cr Salaries Payable, P120,000. c. Dr Salaries Payable, P120,000; Cr Salaries Expense, P120,000. ___25.When a sale takes place
b. Dr Salaries Expense, P120,000; Cr Withdrawals, P120,000. d. Dr Withdrawals, P120,000; Cr Salaries Payable, P120,000. a. A revenue account will increase c. Liabilities will increase
___3. The balance in prepaid insurance account before adjustment at the end of the year is P7,200, which represents twelve month’s insurance b. Assets will be unaffected d. One asset account will increase and another will decrease
purchased on December 1, the adjusting entry required on Dec. 31 2017 is
a. Dr insurance expense P600; cr insurance payable, P600 c. Dr insurance expense P6,600; cr prepaid insurance, P6,600 TEST II. IDENTIFICATION: Identify the following accounting terminologies and concepts. Choose the best answer from the choices provided
b. Dr insurance expenseP600; cr prepaid insurance, P600 d. Dr prepaid insurance P600; cr insurance expense, P600 below: Write your answer on the space provided before each number.
___4. Depreciation is
a. added to a cost of equipment on the balance sheet c. a method of saving cash to replace plant assets
b. a decrease in the fair market value of an asset d. an expense that is incurred during an accounting period. Fiscal Year Accrued Assets Adjusting Entries Depreciation Expense Unearned Revenue
___5. The adjusting entry to record depreciation of equipment is
a. Debit Accumulated Depreciation; credit Depreciation Expense c. Debit Depreciation Expense; Credit Accumulated Depreciation Accumulated Estimated
Accounting Period Asset Cost Estimated Useful Life
Depreciation Residual Value
b. Debit Accumulated Depreciation; Credit Equipment d. Debit Depreciation Expense; Credit Depreciation Payable
___6. Which of the following is NOT adjusted?
a. Accumulated Depreciation c. Owner’s Capital ______________________________1. The amount of assets cost assigned as an expense to a particular
b. Depreciation Expense d. Prepaid Insurance period of time.
___7. If equipment cost P200,000 and accumulated depreciation amounts to P60,000, the book value of the equipment is
a. P260,000 b. P60,000 c. 140,000 d. P200,000 ______________________________2. An accounting period of one year, which may or may not coincide
___8. Assume you prepay Joseph Gym for a package of six physical training session. Which type of account should you have in your records? D with the calendar year.
a. Prepaid Expense b, Accrued Expense c. Accrued Revenues d. Unearned Revenues __________________ ____________3. A time period normally of one month, one quarter, or one year into
___9. Mr. Collado Gym gains a client who prepays P6,000 for a package of six physical training sessions. Mr Collado Gym collects the P6,000 in
advance and will provide the training later. After two training sessions, what should Mr. Collado Gym report on its Income Statement? which an entity’s life is arbitrarily divided for financial reporting purposes.
a. Cash of P4,000 c. Service Revenue of P6,000 _______________________________4. The estimated number of periods that a company can make use
b. Service Revenue of P2,000 d. Unearned Service Revenues of P2,000
___10. Wilcom Breeders bought equipment on January 3 of this year for P100,000. At the time of purchase, the equipment was estimated to have
of an asset.
a useful life of nine years and a trade in value of P10,000 at the end of nine years. Using the straight line method, the amount of one year’s ________________________________5. Assets received from customers before services are performed
depreciation is D for them. Since the revenue has not been earned, it is a liability.
a. P11,110 b. P12,200 c. P90,000 d. P10,000
___11. Unearned revenues is always a (an) C ________________________________6. The amount for which an asset can probably be sold at the end
a. Asset b. Revenues c. Liability d. Owner’s Equity of its estimated useful life.
___12. A service vehicle might be depreciated over 5 years because _________________________________7. Entries made at the end of the accounting period to bring the
a. Income tax provisions require depreciation over the next 5 years c. It will help generate revenue for the company over the next 5 years
b. It will be paid for in 5 years d. It will lose most of its market value in 5 years accounts to their proper balances before financial statements are prepared.
___13. The amount of accrued but unpaid expenses at the end of the period is both an expense and _________________________________8. Cost of depreciable asset less its accumulated depreciation
a. A deferral b. a liability c. an asset d. an income
___14. Accrued revenues
__________________________________9. Assets and liabilities that exist at the end of an accounting
a. Decrease assets b. Decrease liabilities c. Increase assets d. Increase liabilities period, they represent rights to receive or obligations to make, payments that are not legally due at the
___15. Accumulated depreciation is reported in the balance sheet date.
a. Balance sheet b. Income statement c. Statement of owner’s equity d. A and B
___16. Which of the following accounts is an income statement account? _________________________________10. A contra-asset account that shows the total of all depreciation
a. Accounts Receivable b. Owner’s Capital c. Salaries Expense d. Salaries Payable on the asset up to the balance sheet date.
___17. Which of the following assets is NOT subject to depreciation?
b. Art equipment b. Computers c. Land d. Store fixture
___18. Accrued expenses
a. Decrease assets b. Decrease liabilities c. Increase assets d. Increase liabilities
___19. The word “accrued” implies which of the following?
a. Money has been paid and the service has been provided c. Money has been paid for a service to be performed during the next period.
b. Money has been paid but no services have been provided d. Money has not been paid or received but the service has already
been performed or rendered.