Multiple

Question 1

1. The first step in the accounting process is –

a. record transactions in the journal
b. post journal entries to the ledger
c. correcting a journal entry
d. prepare a trial balance.

Answer 1

a. record transactions in the journal

Question 2

2. Transactions and events happened or took place within the business enterprise best describe the –

a. external transactions​​​
b. internal transactions​​​
c. occurrence of a transaction
d. eventual transactions

Answer 2

c. occurrence of a transaction

Question 3

The source document evidencing that goods have been delivered by the supplier to the customer-

a. supplier’s sales invoice
b. customer’s sales invoice
​​​c. vale slip
​​​d. customer’s delivery receipt

Answer 3

d. customer’s delivery receipt

Question 4

The source document issued by the supplier acknowledging that payment has been received from the customer –

a. official receipt​​​​
b. deposit slip
c. check
​​​​d. voucher

Answer 4

a. official receipt​​​​

Question 5

5. A source document which accompanies a check when payment is made –

a. cash voucher​​​​
b. check voucher​​​​
c. purchase voucher
d. all of the above

Answer 5

b. check voucher​​​​

Question 6

6. Which is not true concerning a Journal?

a. journal is a book of original entry​
b. a journal is similar to ledger​​
c. recording is done chronologically
d. a journal entry may be simple or compound

Answer 6

b. a journal is similar to ledger​​

Question 7

7. What function doo accounting journal serve in the accounting process?

a. classifying​​​​​
b. recording
c. reporting
​​​​​d. summarizing

Answer 7

b. recording

Question 8

Which is not true concerning compound journal entry?

a. contains two items in both sides​
b. contains one debit item and one credit item​
c. contains two credit items and three credit items
d. contains one debit items and two credit items

Answer 8

b. contains one debit item and one credit item​

Question 9

Which of the following account titles that is differently classified from the others listed?

a. Unearned Service Income ​​
b. Accounts Payable​​​​
c. Notes Payable
d. Prepaid Expense

Answer 9

d. Prepaid Expense

Question 10

Which of the following account titles that is differently classified from the others listed?
a. Cash in Bank​​​​
b. Accounts Receivable​​​
c. Supplies Inventory
d. Prepaid Expenses

Answer 10

Bonus: Owner’s Equity

Question 11

11. Which of the following account titles that is differently classified from the others listed?
    a. Service Income​​​​
    b. Depreciation Expense
    c. Supplies Inventory
    ​​​d. Uncollectible Account

Answer 11

c. Supplies Inventory

Question 12

12. A chart of accounts begins with –
    a. Owner’s Equity​​​​
    b. Liabilities​​​​​
    c. Assets
    d. Expense

Answer 12

c. Assets

Question 13

Explanation of what transactions are all about is found in the –
a. Journal
b. Ledger​​​​​
​​​​​c. Chart of Accounts
d. Trial Balance

Answer 13

a. Journal

Question 14

To guide a bookkeeper of the correct description of an account title –
a. Journal​​​​​
b. Chart of accounts​​​​
c. Ledger
d. Trial Balance

Answer 14

b. Chart of accounts​​​​

Question 15

Unearned Service Income account ia a/an –
a. Asset
b. Liability
​​​​​c. Income
​​​​​d. Owner’s Equity

Answer 15

b. Liability

Question 16

1. A company buys a P30,000 equipment on credit. This transaction will affect the –
   ​a. Income Statement only​​
   ​b. Balance Sheet only​​
   c. both the Income Statement and Balance Sheet
   d. no effect on both statement

Answer 16

​b. Balance Sheet only​​

Question 17

2. A collection from customer’s account may result to a –
   ​a. credit, accounts receivable
   ​b. debit, account receivable​​
   ​​c. credit, cash
   d. none of these

Answer 17

a. credit, accounts receivable

Question 18

Withdrawal of cash by the owner may result to –
​a. owner’ capital debit​​​
​b. cash account debit​​​
c. owner’s drawing debit
d. owner’s capital credit

Answer 18

a. owner’ capital debit​​​

Question 19

Payment to supplier’s account may result to –
​a. debit to payable account​​​
​b. debit receivable account
c. debit to cash account
​​​d. debit to supplier’s account

Answer 19

a. debit to payable account​​​

Question 20

When services are rendered for cash –
​a. cash will increase​​​​
​b. cash will decrease
c. no effect in cash
​​​d. service income will decrease

Answer 20

a. cash will increase​​​​

Question 21

A P100,000 cost of machine was purchased on account, gave a P20,000 down payment and a note was issued for a balance. The credit entry will include –
a. cash, P20,000 and accounts payable, P80,000​
b. cash, P20,000 and notes payable, P80,000
c. cash, P20,000 and discount, P80,000
​​d. cash, P20,000 and machine, P80,000

Answer 21

b. cash, P20,000 and notes payable, P80,000

Question 22

An account to be debited should be firstly determined in recording transactions. Which of the following should come first?
a. cash, when the balance decreases​​
b. accounts payable, when the balance increases​
c. accounts receivable, when the balance decreases
d. rent expense, when the balance increases

Answer 22

d. rent expense, when the balance increases

Question 23

When payment is made on supplies inventory previously purchased on account, the credit is –
​a. supplies inventory​​​
​b. accounts payable​​​​
c. cash
d. none of the above

Answer 23

c. cash

Question 24

Unearned Income is recorded by companies that –
a. pay money in advance before performance of service
b. receive money in advance before performance of service
c. pay money after performance of service
d. none of these

Answer 24

b. receive money in advance before performance of service

Question 25

When supplies inventory account is debited instead of supplies expense account, the result would be –
a. asset is overstated and expense is understated
b. asset is understated and expense is overstated
c. no effect in asset and expense is understated
d. no effect in expense and asset is overstated

Answer 25

a. asset is overstated and expense is understated

Question 26

What functions to general ledger served in the accounting process?
a. summarizing​​​​
b. classifying
c. journalizing
​​​​​d. interpreting

Answer 26

b. classifying

Question 27

. If a person wants to know the balances of a certain account, he should refer to the –
a. book of original entry​​​
b. book of final entry​​​
c. book of accounts
d. none of these

Answer 27

b. book of final entry​​​

Question 28

If the total of the debit entries exceeds to the total of the credit entries after footing the account-
a. the account is said to be in-balance​
b. the account is said to be a credit balance​
c. the account is said to be out of balance
d. the account is said to be in a debit balance

Answer 28

d. the account is said to be in a debit balance

Question 29

If the total of a credit entries exceed the total of the debit entries after footing the account –
a. the account is said to be in-balance​
b. the account is said to in a credit balance
c. the account is said to be out of balance
​d. the account is said to be in a debit balance

Answer 29

b. the account is said to in a credit balance

Question 30

A trial balance will record –
a. the account balance of the general ledger
b. accounts with zero balances in the ledger
c. the Balance Sheet Accounts
d. the Income Statements Accounts
​

Answer 30

a. the account balance of the general ledger