INTACC - Identification Flashcards
- What is the traditional accounting period?
**12 months”*
- Posting refers to the process of transferring information from:
journals to general ledger accounts
- During the lifetime of an entity, accountants produce financial statements at arbitrary points in time in accordance
with which basic accounting concept?
Periodicity
- The financial statements should be stated in terms of a common financial denominator.
Monetary unit
- Which of the following is not among the economic resources of a business enterprise?
Obligations to pay money
- Which of the following is an example of a deferral?
Recording prepaid rent
- Normally, revenue is recognized:
when the title of the goods changed
- Jim is the sole owner and manager of Clean Laundry Service. Jim purchased a car for personal use. Jim uses a van in the business. Which of the following is violated if Jim recorded the cost of the car as an asset of the business?
Separate entity assumption
- The total credits in the balance sheet column of the worksheet amounted P1,440,800 while the total debits in the
income statement columns is P493,600. If the total debits in ths adjusted trial balance is P1,980,000, how much is the profit/(loss) for the period?
45,600
- Poison Co. received a P1,000,000, 15%, 4-year note on September 1, 200A. Principal, on equal annual installments,
plus interest is collected every September 1. At year-end, an adjusting entry was made to take up accrued interest. Poison Co. records all collections using nominal accounts. If reversing entries were made, what is the beginning balance of the interest income account in 200B?
0
- Consider the following:
Cash in Bank – checking account of $13,500 Cash on hand of $1,000
Post-dated checks received totaling $3,500 &
Certificates of deposit totaling $124,000.
How much should be reported as cash in the following sheet?
$14,500
- In which account are postage stamps classified?
Office Supplies
- Dwight Company has the following item at year-end:
Cash in bank $40,000
Petty Cash 600
Short-term paper
with maturity of
2 months 11,000
Dwight should report cash and cash equivalents of:
$51,600
- All of the following may be included under the heading of “cash” except:
money market funds
- Under which section of the balance sheet is “cash restricted for factory expansion” reported?
Non-current assets
- A process of classifying accounts receivable in terms of how long they have been outstanding is called a/an ___ of
accounts receivable.
Aging
- When a firm writes off a bad debt under the allowance method of accounting for bad debts:
the realizable value of accounts receivable will not change
- If the ___method id used, the accounts receivable would be recorded by deducting first the discount whether it is
availed of or not by the customer.
Net
- True or False
Statement 1: In order to meet the requirements of the matching principle, the direct write-off method of recording
bad debts should be used.
Statement 2: Estimating bad debts by focusing on the income statement would involve the determination of bad
debts based on the history of uncollected credit sales.
False
True
- A 90-day, 11%, promissory note that is dated June 24 will have a maturity date of:
September 22
- Under a perpetual inventory system, part of the merchandise purchased on account at an earlier time is now being
returned. None of the goods have been paid for. The current journal entry for this return will be a:
debit to Accounts Payable and a credit to Merchandise Inventory
- A method of accounting that records the cost of inventory purchased but does not track the quantity on hand or sold to customers is called a ___ inventory system.
Periodic
- An item of merchandise was sold for $800 cash by a business using the perpetual inventory system. The product sold cost the business $600. After the sale entry has been recorded, a second entry will:
debit Cost of Goods and credit Merchandise Inventory $600
- The Sun Set Shade Company purchased three pieces of office equipment for a total price of P2,100. One piece of equipment costing P800 was damaged on delivery and was returned to the vendor. The invoice has not been paid. The proper journal entry for the return is:
Accounts Payable, debit P800;
Office Equipment, credit, P800
- Which of the following is considered as inventory?
Apartment housed being sold by Camella Homes
- When using the double balance method in computing depreciation, which of the following is not used?
Depreciable amount
- Which among the following is not a capitalizable cost?
Ordinary Repairs
- Ukraine Company had the following costs in relation to its PPE for 2022: Fee for title search P12,345; Cash price of land and dilapidated building purchased P789,012; Cost of razing dilapidated building P34,567; Cost of constructed building P2,345,678; Cost of open house party P23,456; Cost of grading, leveling and landfill P10,987; Cost of temporary fence during building construction P5,678; Cost of permanent fence around the building P123,456; Salvage proceeds from razed building P34,567; Driveways and parking lots P234,567; Delinquent property taxes paid on purchased land P21,098.
What is the cost to be capitalized on the land account?
P 822,455
- True or False
Statement 1: If land and building are acquired on a lump-sum basis, the assessed value of the land and building may be used as the basis for allocation.
Statement 2: If the equipment is purchased inclusive of VAT, the capitalizable cost of the equipment will be the cost
exclusive of VAT.
Both TRUE
- Which of the following is true with regards to PPE?
None of these
- J Company had the following information regarding its biological assets:
Advertising costs P120,000
Cost to sell 60,000
Est. selling price 500,000
Historical cost 340,000
a. How much is the fair value of the biological assets?
b. How much is the fair value less cost to sell of the biological assets?
a. 500,000
b. 440,000
- Sky Company had the following info regarding its biological assets:
Beginning balance P375,000
Purch. of biological assets 130,000
Gain due to Price Change 60,000
Gain due to Physical Change 80,000
How much is the total value of biological assets of Sky Co.?
645,000
- J Company had the following assets:
Land $35
Trees on land $50
Cash $40
Inventory $25
Picked fruits $10
Elephants $90
Sheep $70
Wool $20
How much is the total value of the biological assets?
210
