Reference no: EM132518634
Question 1. Over the period of time, if total assets increase by P274,637 and total liabilities increase from P38,080 to 106,869, then how much will be the increase of owner's equity?
Question 2. The following information pertains to Burgos Company's 2018 cost of sales:
Inventory, 12/30/2018 P 3,254,252
Purchases 9,567,807
Write-off of obsolete inventory 1,050,806
Inventory, 12/30/2017 909,086
What amount should the company report as cost of sales?
Question 3. ABC Corporation's trial balance contained the following account balances at December 31,2016:
Trading Securities 150,000
Prepaid Insurance 30,040
Cash 330,000
Inventory 900,900
Equipment and furniture, net 990,000
Patent 120,000
Accounts Receivable, net 408,484
Land (held for capital appreciaition) 990,687
How much is the total current assets of ABC's December 31, 2016 balance sheet?
Question 4. Statement I: A fiscal year is a 12-month period from January 1 to December 31.
Statement II: A calendar period is a 12-month period which starts at any time of the year depending on the preference of the business entity.
Statement III: Applying accrual accounting results in a more accurate measurement of profit for the period than does the cash basis accounting.
a. Statements I and II are true. Statement III is false.
b. Statements II and III are false. Statement I is true.
c. Statement I and II are false. Statement III is true.
d. All statements are false.
Question 5. The accounts and balances shown below were taken from Basic Company's trial balance on December 31, 2016. All adjusting entries have been made.
Wages Payable, P250,000;
Cash, P175,000;
Bonds Payable, P600,000;
Dividends Payable, P140,000;
Prepaid Rent, P136,000;
Inventory, P820,000;
Sinking Fund Assets, P525,000;
Trading Securities, P153,000;
Premium on Bonds Payable, P48,000;
Investment in Subsidiary, P1,020,0000;
Taxes Payable, P228,000;
Accounts Payable, P248,000;
Accounts Receivable, P336,000;
Fixed Assets, P1,200,000;
Patents-net, P150,000;
Accumulated Depreciation- FA, P400,000;
Land held for future business site, P900,000.
How much should be reported in Basic's December 31,2016 balance sheet as current and non-current assets, respectively?
Question 6. The future economic benefits embodied in an asset may flow to the enterprise in a number of ways. Which is the exception?
a. An asset may be used singly or in combination with other assets in the production of goods or services to be sold by the enterprise.
b. An asset may be exchanged for other assets.
c. An asset may be distributed to the owners of the enterprise.
d. An asset may be used tom convert an obligation to equity
Question 7. The expectation of a future payment from a customer for goods sold is
a. A prepaid expense
b. A notes receivable
c. An accounts receivable
d. All of the above
Question 8. When the proprietor withdraws cash or other assets, the withdrawal account is
a. Debited
b. Credited
c. Debited and credited
d. Not affected
Question 9. The accounting equation
a. Is used to determine the amount of liabilities owed.
b. Is used to determine the amount of income earned during the period
c. Shows the claims on the entity's assets by both creditors and owners.
d. Shows the claims on the owner's equity by the creditors
Question 10. The financial accounting process provides information about economic activities of an enterprise for a specified accounting period that is shorter than the life of the enterprise.
a. Time period
b. Going concern
c. Measurement of economic resources and obligations
d. Measurement in terms of money
Question 11. Which of the following events does not require an entity in journal form?
a. Payment for a service performed previously
b. Purchase of one-year insurance policy
c. Agreement to perform a service at a future date
d. Performance of a service agreed at a past date
Question 12. Deferred revenues should be reported as
a. Income on the income statement
b. Contributed capital on the balance sheet
c. Liabilities on the balance sheet
d. Expense on the income statement