Have an account?
Skip to Content
Build your own quiz
Suggestions for you
25 questions
Show Answers
See Preview
- 1. Multiple Choice
On January 14, Maxine Industries purchased supplies of P900 on account. The entry to record the purchase will include
a debit to Supplies and a credit to Accounts Payable.
a debit to Supplies Expense and a credit to Accounts Receivable.
a debit to Supplies and a credit to Cash
a debit to Accounts Receivable and a credit to Supplies.
- 2. Multiple Choice
Phast Mail Service purchased equipment for P 2,000. Phast paid P 500 in cash and signed a note for the balance. Phast debited the Equipment account, credited Cash and
nothing further must be done.
debited the Capital account for P 1,500.
credited another asset account for P 500.
credited a liability account for P 1,500.
- 3. Multiple Choice
The usual sequence of steps in the transaction recording process is:
journal - analyze - ledger.
analyze- journal - ledger.
journal -ledger -analyze.
ledger - journal - analyze.
- 4. Multiple Choice
The procedure of transferring journal entries to the ledger accounts is called
journalizing.
analyzing.
reporting.
posting.
- 5. Multiple Choice
A trial balance is a listing of
transactions in a journal.
the chart of accounts.
general ledger accounts and balances.
the totals from the journal pages.
- 6. Multiple Choice
Asset, liability and equity accounts are extended to
balance sheet section
income statement section
retained earnings
trial balance
- 7. Multiple Choice
When revenue > expenses, then there is a
Net Loss
mistake in the math
Net Income
transposition error
- 8. Multiple Choice
A double ruled line under a balance means
My pencil is broken
There is no more to be done on this balance
adding and subtracting is needed
accounts payable
- 9. Multiple ChoiceReporting income when it is earned and expenses when they are incurred.cash basis of accountingaccrual basis of accountingincome basis of accountingbalance basis of accounting
- 10. Multiple ChoiceReporting income when cash is received and expenses when cash is paid.income statementnet incomeaccrual basis of accountingcash basis of accounting
- 11. Multiple ChoiceA financial statement showing the revenue and expenses for a fiscal period.balance sheetincome statementworksheetfiscal period
- 12. Multiple ChoiceA proof of the equality of debits and credits in a general ledger.net incometrial entryincome statementtrial balance
- 13. Multiple ChoiceThe difference between total revenue and total expenses when total expenses are greater.income statementnet incomenet losswork sheet
- 14. Multiple ChoiceCreditsdecrease both assets and liabilities.decrease assets and increase liabilities.increase both assets and liabilities.increase assets and decrease liabilities.
- 15. Multiple ChoiceThe double-entry system requires that each transaction must be recordedin at least two different accounts.in two sets of books.in a journal and in a ledger.first as a revenue and then as an expense.
- 16. Multiple ChoiceThe normal balance of any account is theleft side.right side.side which increases that account.side which decreases that account.
- 17. Multiple ChoiceA debit is not the normal balance for which account listed below?DrawingCashAccounts ReceivableService Revenue
- 18. Multiple ChoiceAn awareness of the normal balances of accounts would help you spot which of the following as an error in recording?A debit balance in the drawing accountA credit balance in an expense accountA credit balance in a liabilities accountA credit balance in a revenue account
- 19. Multiple Choice
In the first month of operations, the total of the debit entries to the cash account amounted to P900 and the total of the credit entries to the cash account amounted to P500. The cash account has a(n)
P500 credit balance.
P800 debit balance.
P400 debit balance.
P400 credit balance.
- 20. Multiple Choice
Dawson’s Delivery Service purchased equipment for P 2,500. Dawson paid P 500 in cash and signed a note for the balance. Dawson debited the Equipment account, credited Cash and
nothing further must be done.
debited the Dawson, Capital account for P2,000.
credited another asset account for P500.
credited a liability account for P2,000.
- 21. Multiple Choice
You start a business with the idea that it will...
Go bankrupt next week
Go on forever
- 22. Multiple Choice
A withdrawal account has a normal debit balance.
False
Maybe
True
- 23. Multiple Choice
In what order are transactions recorded in a journal?
alphabetical
chronological
numerical
reverse
- 24. Multiple Choice
What is a ledger?
A group of charts
A group of accounts
An account of groups
A chart of groups
- 25. Multiple Choice
Accounts Receivable has a debit balance of P1,500. You are posting a credit of P500. What is the new account balance?
P2,000 Debit
P1,000 Debit
P1,000 Credit
P2,000 Credit
- Answer choicesTagsAnswer choicesTags