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- 1. Multiple Choice
Refer to the expenses that are already incurred, used, utilized or consumed but have not yeen been paid.Prepaid ExpensesUnearned ExpensesAccrued ExpensesAccounts Expense - 2. Multiple ChoiceRefer to income or revenue already earned but has not yet been collected.Unearned RevenueAccrued IncomePrepaid IncomeService Revenue
- 3. Multiple ChoiceRepresent revenue or income already collected but not yet earned; also referred to as advances from customers.Accrued IncomeService RevenueUnearned RevenueSales Revenue
- 4. Multiple ChoiceRepresent advance payments made for expenses which have not yet been incurred, used, utilized or consumed.Accrued ExpensesUnearned ExpensesPrepaid ExpensesAccounts Expense
- 5. Multiple ChoiceThe accounting concept which states that income is recognized when earned regardless of when collected and expense is recognized when incurred regardless of when paid.Matching PrincipleTime PeriodAccrualDeferral
- 6. Multiple ChoiceRefers to the allocation of the cost of the asset over its estimated useful life.ConsumptionDeteriorationContra AssetDepreciation
- 7. Multiple ChoiceAdjusting entries are necessary toUpdate and correct the accounts at the end of the periodbalance the books at the end of the periodrecord the sales of the periodensure the equality of the debits and credits
- 8. Multiple ChoiceIt is prepared after adjusting entries are made and posted in the ledger.Income StatementBalance SheetAdjusted Trial BalanceUnadjusted Trial Balance
- 9. Multiple ChoiceThe adjusting entry to record an accrued expense results in which of the following types of accounts being debited and credited?Asset/RevenueAsset/LiabilityExpense/AssetExpense/Liability
- 10. Multiple ChoiceThe adjusting entry to record an accrued revenue results in which of the following types of accounts being debited and credited?Asset/RevenueAsset/LiabilityExpense/AssetExpense/Liability
- 11. Multiple ChoiceOffice Equipment was purchased on May 1, 2017 at a cost of P 140,000 with a salvage value of P 20,000. The equipment’s useful life is five years. How much is the depreciation expense on December 31, 2017.Php 24,000Php 10,000Php 16,000Php 28,000
- 12. Multiple ChoiceOn September 1, 2017, the company collected P72,000 rent in advance. A debit to Cash and a credit to Unearned Revenue was made. The tenant was paying for one year's rent. How much is the Rental Revenue to be recorded in the adjusting entry on Dec. 31, 2017?Php 6,000Php 24,000Php 30,000Php 36,000
- 13. Multiple ChoiceCHS Hardware borrowed P 120,000 at 12% interest on February 1, 2017. The amount will be paid after 1 year. No entry was entered in the journal to take up the interest. How much is the interest expense to be recorded on Dec. 31, 2017.Php 14,400Php 10,800Php 12,000Php 13,200
- 14. Multiple ChoiceOn October 1, 2017 the company paid P 18,000 for a one-year insurance policy. Insurance Expense was debited and Cash was credited. The account to be debited and its amount to be recorded on Dec. 31, 2017 isInsurance Expense/ Php 13,500Prepaid Insurance/ Php 13,500Insurance Expense/ Php 4,500Prepaid Insurance/ Php 4,500
- 15. Multiple ChoiceOn Nov. 1, 2017, Ms. Cruz, owner of Labada Express, received P 60,000 as advance payment from Hotel Dolores for laundry of assorted garments. Assuming, 60% of the unearned revenue has been rended on Dec. 31, 2017, what is the account to be credited and its amount?Unearned Revenue/ Php 36,000Laundry Revenue/ Php 36,000Unearned Revenue/ Php 24,000Laundry Revenue/ Php 24,000
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