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Assignment 1

The document is an accounting exam containing multiple choice and fill-in-the-blank questions about basic accounting concepts and analyzing business transactions. It tests the student's knowledge of topics like the different types of business entities, the components of the accounting equation, and how to record increases and decreases to assets, liabilities, and owner's equity. The exam contains 50 multiple choice questions worth 2% each and 27 fill-in-the-blank questions to be answered based on accounting principles.

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Marianne Agunoy
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133 views12 pages

Assignment 1

The document is an accounting exam containing multiple choice and fill-in-the-blank questions about basic accounting concepts and analyzing business transactions. It tests the student's knowledge of topics like the different types of business entities, the components of the accounting equation, and how to record increases and decreases to assets, liabilities, and owner's equity. The exam contains 50 multiple choice questions worth 2% each and 27 fill-in-the-blank questions to be answered based on accounting principles.

Uploaded by

Marianne Agunoy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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ACCOUNTING 10

Assignment 1

Score
%
Name Marianne Carmel B. Agunoy
Course BS LMSection Acc 10- I
NOTE: Each of the 50 correct answers is
assigned a weight of 2%.

89

TEST 1A (Concluded)

PROBLEMSANALYSIS OF TRANSACTIONS48%
INSTRUCTIONS: Indicate the effect of each of the following transactions for the current month on assets, liabilities, and
owners equity by inserting + for increase and for decrease in the appropriate columns at the right.
Answers
A

90

OE

For
Scoring

0.

Received cash from owner as original investment .....................................

1.

Received cash on account from customers ...............................................

-,+

1. ____

2.

Purchased land for cash ............................................................................

-,+

2. ____

3.

Paid rent for month .....................................................................................

4.

Paid creditors on account ...........................................................................

5.

Received cash for fees earned from cash customers ...............................

6.

Purchased equipment by signing a six-month, non-interest-bearing


note payable ...............................................................................................

+
+

0. ____

3. ____

4. ____

5. ____
6. ____

91

TEST 1A (Concluded)

7.

Charged customers for fees earned on account .......................................

7. ____

8.

Paid miscellaneous expenses ....................................................................

8. ____

9.

Paid first installment due on the non-interest-bearing note payable ..........

9. ____

10.

Purchased supplies on account .................................................................

10. ____

11.

Paid cash to owner on withdrawal ..............................................................

11. ____

12.

Recorded cost of supplies used during the month ....................................

12. ____

NOTE: Each + or is assigned a weight of 2%.

92

FILL-IN-THE-BLANKPRINCIPLES AND TERMINOLOGY52%


INSTRUCTIONS: Answer the following questions or complete the statements by writing the appropriate words or
amounts in the Answers column.

Answers

For
Scoring

93

TEST 1A (Concluded)

0.

A business entity owned by two or more individuals is referred to as a ....

Partnership

0. ____

1.

A business entity owned entirely by one individual is referred to as a ......

Sole proprietorship

1. ____

2.

The most common form of business entity is a .........................................

Sole proprietorship

2. ____

3.

If expenses exceed revenues, the difference is called ..............................

Net Income

3. ____

4.

The properties owned by a business are called ........................................

Assets

4. ____
continued

94

Answers

For
Scoring

5.

The equity of the owner of a business is called .........................................

Owners Equity

5. ____

6.

The authoritative body that currently has primary responsibility for


the development of accounting principles is ..............................................

Financial Accounting
Standards board

6. ____

7.

The excess of revenues over expenses is referred to as ..........................

Net Loss

7. ____

8.

Debts owed by a business are referred to as ............................................

Accounts Payable

8. ____

95

TEST 1A (Concluded)

9.

Assets consumed or services used in the process of earning


revenue are called ......................................................................................

10.

Land was offered for sale at $50,000. If you paid $45,000 for the land,
the amount that you would record for the purchase of the land in the
accounting records is .................................................................................

Expenses

$45,000

11.

Consumable commodities purchased, such as supplies, are


considered to be assets and are called .....................................................

Expenses

12.

Equities of a business may be subdivided into two principal types:


(1) owners equity and (2) ..........................................................................

Business Equities

13.

The liabilities that result from purchases on account are referred to as ....

Accounts Payable

96

9. ____

10. ____
11. ____
12. ____
13. ____

14.

15.

If operations for an accounting period resulted in fees for cash of


$10,000 and fees on account for $50,000, the amount of revenue
for the period was .......................................................................................

-$ 40,000

If operations for an accounting period resulted in fares for cash of


$30,000, fares on account of $5,000, and expenses paid in cash
of $100,000, did the business incur a net income or a net loss for
the period? .................................................................................................

Net loss

16.

What was the amount of net income or net loss indicated in Question 15?

-$75000

17.

A statement listing the assets, liabilities, and owners equity as of a


specific date is a .........................................................................................

General Journal

14. ____

15. ____
16. ____
17. ____

97

TEST 1A (Concluded)

18.

Moral principles that guide the conduct of individuals are referred to as . .

Ethics

18. ____

19.

In the accounting equation, assets minus liabilities equals .......................

Equity

19. ____

20.

The form of the balance sheet with the liability and owners equity
sections presented below the assets section is called ..............................

Posting entries

21.

If liabilities are $25,000 and owners equity is $40,000, the amount of


the assets is ...............................................................................................

$65000

21. ____

22.

If assets are $100,000 and owners equity is $20,000, the amount


of the liabilities is ........................................................................................

$80000

22. ____

23.

If total assets increased by $20,000 and liabilities increased by $9,000

98

20. ____

during the period, the amount and direction (increase or decrease) of


the periods change in owners equity was .................................................
24.

increase, $11000

The owners equity at the beginning of the period was $50,000; at the end
of the period, assets were $100,000 and liabilities were $61,000. If the
owner made no additional investments or withdrawals during the period,
did the business incur a net income or a net loss for the period? .............

Net loss

25.

What was the amount of net income or net loss indicated in Question 24?

$ 11000

26.

If assets are $100,000 and owners equity is $27,000, the amount


of liabilities is ..............................................................................................

23. ____

24. ____

$73000

25. ____
26. ____

99

TEST 1A (Concluded)

NOTE: No credit is given for a partially correct answer.

100

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