FABM 1

Question 1

Prepaid Insurance

Answer 1

Assets Dr

Question 2

Accounts Payable

Answer 2

Liabilities Cr

Question 3

CM, Capital

Answer 3

Capital Cr

Question 4

Professional Fee Income

Answer 4

Income Cr

Question 5

Taxes and Licenses Expenses

Answer 5

Expense Dr

Question 6

are amounts due or payable to, suppliers for good purchased on account

Answer 6

Accounts Payable

Question 7

are amounts due from customers arising identify what is being described

Answer 7

Accounts Receivable

Question 8

VALUE of cash and other assets invested in the business by the owner of the business

Answer 8

Capital

Question 9

Money on hand or in banks and other items considered as medium if exchange in business transactions

Answer 9

Cash

Question 10

Assets that can be realized (collected, sold, used up) one year after year-end date

Answer 10

Current Assets

Question 11

liabilities that fall due (paid, recognized as revenue) within one year after year-end date

Answer 11

Current Liabilities

Question 12

non-physical assets such as patents and trademarks

Answer 12

Intangible Assets

Question 13

assets held for resale

Answer 13

Inventories

Question 14

Are debts and obligation of the company to another entity

Answer 14

Liabilities

Question 15

Assets that cannot be realized (collected, sold, used-up) one year after year-end date

Answer 15

Non- Current Assets

Question 16

Liabilities that do not fall due (paid, recognized as revenue) within one year after year-end date

Answer 16

Non-Current Liabilities

Question 17

Are Amounts due to third parties supported by the promissory notes

Answer 17

Notes Payable

Question 18

are amounts due from clients supported by promissory notes

Answer 18

Notes Receivable

Question 19

are items purchased by an enterprise which are unused as of the reporting date and are intended to be sold immediately

Answer 19

Supplies

Question 20

Physical assets such as cash, supplies, and furniture and fixtures

Answer 20

Tangible Assets

Question 21

10 steps in accounting cycle

Answer 21

1. Transaction Analysis
2. Journalizing
3. Posting
4. Trial Balance
5. Adjusting Entries
6. Worksheet
7. Financial Statements
8. Closing Entries
9. Post-Closing Trial Balance
10. Reversing Entries

Question 22

Rules for Debit

Answer 22

A +
L -
C -
I -
E +

Question 23

Rules for Credit

Answer 23

A -
L +
C +
I +
E -