fm ngani

Question 1

Involves the analysis of the accounting statement such as percentages and ratios, to determine how the business is performing compared to prior years and other similar businesses.

Answer 1

interpreting

Question 2

a firm is faced with the problem of declaring dividend or postponing dividend declaration, this is a problem of internal financing.

Answer 2

dividend decision

Question 3

He has an important role
to contribute to good decision-making on issues that involve all the
functional areas of the business.

Answer 3

chief financial officer

Question 4

Is the amount of money charged to the borrower for the use of borrowed funds.

Answer 4

interest expense

Question 5

Are goods held for sale.

Answer 5

merchandise inventories

Question 6

Are amounts due to creditors evidenced by a written promise to pay.

Answer 6

notes payable

Question 7

typically handles the accounting activities such as corporate accounting, tax management, financial accounting and cost accounting.

Answer 7

control function

Question 8

Covers office supplies used by the business in the conduct of its daily
operations.

Answer 8

supplies expense

Question 9

A process by which a firm determines the price, input and output levels that will lead to the highest possible profit

Answer 9

profit maximization

Question 10

the process of providing funds for business activities, making purchases, or investing.

Answer 10

financing

Question 11

commonly responsible the handling financial activities, such as financial planning and fund raising, making capital expenditures

Answer 11

treasury function

Question 12

Are claims against debtors evidenced by a written promise to pay.

Answer 12

notes receivable

Question 13

a form used for recording increases and decreases in each individual asset, liabilities, capital, revenue and expense.

Answer 13

account

Question 14

Are goods used in the operations of the business.

Answer 14

supplies

Question 15

the annual portion of the cost of a tangible asset such as
buildings, machineries, and equipment charged as expense for the year.

Answer 15

depreciation expense

Question 16

the placing of the account number of the ledger account in the general journal and
the general journal page number in the ledger account.

Answer 16

cross indexing

Question 17

Are groups such as employees, customers, suppliers, creditors, owners and others who have a direct economic link to the firm.

Answer 17

stakeholders

Question 18

Is recording in the ledger the information contained in the journal.

Answer 18

posting

Question 19

The journal entry for this transaction will involve more that one debit
and/or credit.

Answer 19

compound journal entry

Question 20

concerned with the acquisition, financing and management of assets with some overall goals in mind.

Answer 20

financial management

Question 21

Involves the commitment of funds to acquire or develop assets, expand operations, conduct research and development, or invest in human capital.

Answer 21

investing

Question 22

list of the accounts with debit or credit balance to determine that debit equals
credits in the recording process.

Answer 22

trial balance

Question 23

Is the complete collection of all the accounts of a company

Answer 23

ledger (general ledger)

Question 24

purchased supplies for cash

Answer 24

increase and decrease in asset

Question 25

purchased equipment on account

Answer 25

increase in asset, increase in liabilities

Question 26

the owner invested cash in the business

Answer 26

increase in asset, increase in capital

Question 27

paid the equipment purchased in (2)

Answer 27

decrease in assset, decrease in liabilities

Question 28

borrowed money from the bank to be used in the business

Answer 28

increase in asset, increase in liabilities

Question 29

the owner withdrew cash for his personal use

Answer 29

decrease in asset, decrease in capital

Question 30

purchase furniture and fixtures purchased on account

Answer 30

increase in asset, increase in liabilities

Question 31

returned defective furniture and fixtures purchased in (7)

Answer 31

decrease in asset, decrease in liabilities

Question 32

purchased additional supplies on account

Answer 32

increase in asset, increase in liabilities

Question 33

paid half of the loan in (5)

Answer 33

decrease in asset, decrease in liabilities

Question 34

A new business has the following transactions: (2) the owner invested P5,000; (2) P3,000 of supplies were purchased for cash: (3) P2,400 was received in payment for services rendered by the business; (40 a salary of P1,800 was paid to an employee; and (5) P4,000 was borrowed from the bank, after these transactions were completed, the total assets, total liabilities, and total owners' equity of the business are:

Answer 34

9,600; 4,000; 5,600

Question 35

On May 1, RT Enterprises had cash of 18,000. It also had a truck valued at P210,000. The owner borrowed P114,000 from a bank. How much are the company's total assets, total labilities, and total owner's equity?

Answer 35

32,000; 114,000; 228,000

Question 36

The assets of Sunshine Company amounted to P540,000 on December 31, 19A but increase to P870,000 by December 31, 19B, During the same period, liabilities increased by P180,000. Owner's equity on Dec. 1, 19A amounted to P330,000. What was the amount of the owner's equity on December 31, 19B?

Answer 36

690,000

Question 37

At June 1, 19A, the Sunset Company had cash amounting to P36,000. It also had office equipment for which it recently had paid P48,000. The owner just organized the company a few days ago; and he invested P60,000 in the firm. He borrowed another P24,000 from the bank. What are the firm's total asset, total liabilities and owner's equity as of June 1, 19A.

Answer 37

120,000; 24,000; 96,000

Question 38

Sunrays Corporation purchased P650,000 of land with a P500,000 cash down payment and the balance taken as a note payable. How much did total assets change?

Answer 38

+150,000

Question 39

Sunlight Company has permed P17,000 of legal services for a client. The client has paid P6,000, with the balance to be paid later. This transaction would.

Answer 39

increase owner's equity by 17,000

Question 40

Sunday Company has P40,000 in revenues, P88,000 in expenses, P24,000 in owner investment, P6,000 in owner's withdrawals, and P30,000 in liabilities paid off. Owner's equity changes by:

Answer 40

-30,000

Question 41

Sunny Dela Cruz, a CPA has performed P20,000 of accounting services for a client. The client has paid P6,000 with the balance to be paid later. This transaction would:

Answer 41

increase owner's equity by 14,000

Question 42

automobile

Answer 42

assets

Question 43

advertising expense

Answer 43

expenses

Question 44

commissions income

Answer 44

revenue

Question 45

machineries

Answer 45

assets

Question 46

notes payable

Answer 46

liabilities

Question 47

office supplies

Answer 47

assets

Question 48

prepaid advertising

Answer 48

assets

Question 49

sales

Answer 49

revenue