Quiz #3

• Each of the ff. statement about an account is true except:

  1. There are separate accounts for specific assets and liabilities.
  2. Accounting record of increases & decreases in specific asset, liability and owner's equity
  3. In the simplest form, an account consists of two parts
  4. The left side of an account is the credit or decrease side
• A revenue account is 

  1. decreased by credits
  2. increased by debits
  3. an account with a normal balance of debit
  4. increased by credits
• Which of the following accounts have normal debit balances:

  1. Assets, Expenses and Revenues
  2. Assets, Owner's drawing and expenses
  3. Asset, Expenses and Owner's Equity
  4. Assets, Liabilities and Owner's drawing
• The income statement reports

  1. financial position on a specific date
  2. financial position for a specific period
  3. results of operations on a specific date
  4. results of operations for a specific period
• Each of the ff. statement about journal is true except:

  1. Book of Original Entry
  2. Provides an alphabetical record of transactions
  3. Discloses in one place the complete effect of a transaction
  4. Basis of posting into the ledger
• A ledger

  1. contains only asset and liability accounts
  2. is a book for journalizing entries
  3. should show accounts alphabetically
  4. is a collection of the entire group of accounts maintained by the company
• Which of the following pertains to a trial balance:

  1. Is a list of accounts with their balances at a given time
  2. Proves that all transactions have been recorded
  3. will not balance if a correct journal entry is posted twice
  4. book of final entry
• Trial Balance will be out of balance if

  1. Purchase of supplies is debited to supplies and credited to cash
  2. Correct journal entry is posted twice
  3. P 5,000 payment on account is recorded to its right accounts for P 500
  4. P 1,000 cash drawing is debited to Owner's drawing P 100 & credited to Cash P 1,000
• Erroneous rearrangement of digits like writing P 613 as P 631

  1. posting error
  2. footing error
  3. slide
  4. transposition
• Posting is the process of transferring entries

  1. reconciling entries from ledger to journal
  2. reconciling entries from journal to ledger
  3. transferring entries from ledger to journal
  4. transferring entries from journal to ledger
• Received cash from customers billed last month P 12,600*

  1. Debit Cash, Credit Sales
  2. Debit Cash, Credit Service Revenue
  3. Debit Cash, Credit Accounts Receivable
  4. Debit Accounts Receivable Credit Cash
• Initial Investment of P 50,000 Cash

  1. Debit Equipment , Credit Owner's Equity
  2. Debit Owner's Equity , Credit Cash
  3. Debit Cash , Credit Owner's Drawing
  4. Debit Cash , Credit Owner's Equity
• Initial Investment of P 10,000 cash and P 25,000 Supplies

  1. Debit Owner's Equity, Credit Cash and supplies
  2. Debit Cash and supplies, credit Owner's Equity
  3. Debit Cash, Credit Owner's equity
  4. Debit Supplies, Credit Owner's equity
• Paid last month's electricity and water bill P 4,650

  1. Debit Utilities Expense, Credit Cash
  2. Debit Utilities Expense, Credit Utilities Payable
  3. Debit Utilities Payable, Credit Cash
  4. Debit Cash, Credit Utilities Payable
• Fees earned on account P 25,000

  1. Debit Cash, Credit Service Revenue
  2. Debit Service Revenue, Credit Cash
  3. Debit Accounts Receivable, Credit Service Revenue
  4. Debit Service Revenue, Credit Accounts Receivable
• Paid a three year insurance policy starting next month

  1. Debit Cash, Credit Prepaid Insurance
  2. Debit Cash, Credit Insurance Expense
  3. Debit Prepaid Rent, Credit Cash
  4. Debit Prepaid Insurance, Credit Cash
• Paid office rent for the month

  1. Debit Cash, Credit Rent Payable
  2. Debit Cash, Credit Rent Expense
  3. Debit Rent Payable, Credit Cash
  4. Debit Rent Expense, Credit Cash
• Owner withdrew his invested Supplies for Personal Use

  1. Debit Owner's Drawing, Credit Cash
  2. Debit Owner's Drawing, Credit Supplies
  3. Debit Owner's Capital, Credit Cash
  4. Debit Owner's Capital, Credit Supplies
• Received cash from a loan made to a lending institution.

  1. Debit Cash Credit Loan Payable
  2. Debit Loan Payable Credit Cash
  3. Debit Cash Credit Loan Receivable
  4. Debit Loan Receivable Credit Cash
• Recorded unpaid bills for the month

  1. Debit Utilities Payable, Credit Cash
  2. Debit Cash, Credit Utilities Payable
  3. Debit Utilities Expense, Credit Utilities Payable
  4. Debit Utilities Payable, Credit Utilities Expense
• A cash receipt of P 4,800 from a customer on account has been recorded by crediting Service Revenue

  1. Debit Cash Credit Service Revenue
  2. Debit Cash Credit Account Receivable
  3. Debit Account Receivable Credit Service Revenue
  4. Debit Service Revenue Credit Account Receivable
• Equipment purchased on account P 15,000 was recorded by Debit to Supplies and Credit to Cash

  1. Debit Equipment Credit Accounts payable
  2. Debit Equipment & Cash, Credit Supplies & Accounts payable
  3. Debit Supplies Credit Cash
  4. Debit Equipment Credit Accounts Payable
• Payment received for services rendered for cash P 8,700 was recorded for P 7,800

  1. Debit Cash 900 Credit Service Revenue 900
  2. Debit Service Revenue 900 Credit Cash 900
  3. Debit Cash 8,700 Credit Service Revenue 8,700
  4. Debit Cash 7,800 Credit Service Revenue 7,800
• Payment to creditors for P 2,000 has been recorded by a debit to cash and credit to accounts payable P 200

  1. Debit Accounts Payable 1,800 Credit Cash 1,800
  2. Debit Accounts Payable 2,000 Credit Cash 2,000
  3. Debit Accounts Payable 2,200 Credit Cash 2,200
  4. Cannot be determined from the given data
  5. Debit Accounts Payable 2,000 Credit 2,000
  6. Debit Accounts Payable 2,200 Credit 2,200
  7. Debit Accounts Payable 1,800 Credit 1,800
• Cash of P 450 received from a customer on account has been erroneously recorded as P 4,500.

  1. Debit Cash 4,500 Credit Accounts Receivable 4,500
  2. Debit Accounts Receivable 4,500 Credit Cash 4,500
  3. Debit Cash 4,050 Credit Accounts Receivable 4,050
  4. Debit Accounts Receivable 4,050 Credit Cash 4,050