8/20/2018 Long Quiz 3

Question 1 Which of the following will not be reported in the statement of changes in equity?
Not yet
answered
Select one:
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a. Balance of capital at the end of the period.

b. Proceeds from the sale of the building

c. Net income during the period

d. Additional investment of the proprietor

Question 2 Which of the following is NOT a step in the summarizing phase of the accounting process?
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answered
Select one:
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a. Preparation of closing entries
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b. Analyzing business transactions

c. Preparation of the adjusted trial balance

d. Preparation of adjusting entries

Question 3 On September 1, 2003, Time Magazine sold 600 one-year subscriptions for P81 each. The total amount received was
Not yet credited to Unearned subscriptions revenue. What would be the required adjusting entry at December 31, 2015?
answered
Marked out of Select one:
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a. Unearned subscriptions revenue16,200
Subscriptions revenue16,200
b. Unearned subscriptions revenue32,400
Subscriptions revenue 32,400

c. Unearned subscriptions revenue16,200

Subscriptions payable16,200

d. Unearned subscriptions revenue48,600

Subscriptions revenue16,200
Prepaid subscriptions32,400

Question 4 Which of the following statements is false?

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Select one:
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a. Owner's equity cannot be bigger than the total assets.
b. Owner's equity can be bigger than the total assets.

c. Owner's equity can be bigger than the total liabilities

d. Total liabilities can be bigger than the total assets.

Question 5 A loan can be described as a short-term loan of the period is:

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answered
Select one:
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a. 3 years
b. Over 1 year

c. More than 2 years

d. Less than 1 year

Question 6 The debts which are to be repaid within a short period (year or less) are known as
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answered
Select one:
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a. Fixed liabilities

b. All of the answers correct

c. Contingent liabilities

d. Current liabilities

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8/20/2018 Long Quiz 3
Question 7 Which of the following is not true of a liability of the business?
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answered
Select one:
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a. The obligation involves a responsibility to settle with a definite or known party.

b. The past transaction or event has resulted in an obligation

c. A reliable estimated monetary value can be assigned to an obligation

d. The obligation to settle cannot be avoided.

Question 8 The elements of Accounting equation are

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answered
Select one:
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a. I, II, III
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b. I, II and IV

c. II, III and IV

d. I, II and IV

e. I. Assets
II. Liabilities
III. Trial balance
IV. Capital

Question 9 The long-term assets that have no physical existence but are right that have value is known as:
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answered
Select one:
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a. Intangible assets

b. Current assets

c. Fixed assets
d. Investments

Question 10 Pink Insurance collected premiums oP18,000,000 from its customers during the current year. The adjusted balance in the
Not yet Unearned premiums account increased from P6 million to P8 million dollars during the year. What was Pink's revenues from
answered
earned insurance premiums for the current year?
Marked out of
1.00
Select one:
a. P10,000,000.

b. P16,000,000.
c. P20,000,000.
d. P18,000,000.

Question 11 It is usually used in connection with activities and events that result to the inflow of assets and/or outflow of liabilities.
Not yet
answered
Select one:
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a. Income
b. Liabilities

c. Assets

d. Equity

Question 12 Blend Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2015, and charged the P4,200
Not yet premium to Insurance expense. At its December 31, 2015, year-end, Bland Foods would record which of the following
answered
adjusting entries?
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Select one:
a. Prepaid insurance3,325
Insurance expense3,325

b. Insurance expense875
Prepaid insurance875

c. Insurance expense875
Prepaid insurance3,325
Insurance payable4,200

d. Prepaid insurance875
Insurance expense875

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8/20/2018 Long Quiz 3
Question 13 Which of the following lists the steps of the accounting process in the correct order??
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answered
Select one:
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a. Recording, measuring, identifying, journalizing
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b. Journalizing, posting, preparing a trial balance, recording

c. Analyzing, measuring, posting, journalizing

d. Analyzing, journalizing, posting, preparing a trial a balance

Question 14 The account of a supplier would be found in:

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answered
Select one:
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a. Purchases day book
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b. General ledger

c. Sales day book

d. Purchases ledger

Question 15 Which of the following is NOT considered revenue?

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answered
Select one:
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a. Rent revenue
b. Ticket Sales Revenue

c. Deferred Revenue
d. Interest Revenue

Question 16 A process that involves transferring of journal entries to the ledger accounts in order to bring together the effect of the
Not yet transactions to the individual accounts of the company.
answered

Marked out of Select one:

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a. Journalizing

b. Identifying

c. Editing

d. Posting

Question 17 The process of incorporating an accounting element or item in the financial statements is called:
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answered
Select one:
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a. Measurement
b. Recognition

c. Recording

d. Realization

Question 18 General journals is a book of _____entities.

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answered
Select one:
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a. Generic

b. Secondary
c. First

d. Original

Question 19 _____these represents the present economic obligations of an entity that would require some form of future settlement.
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answered
Select one:
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a. Assets

b. Income

c. Equity

d. Liabilities

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8/20/2018 Long Quiz 3
Question 20 It is a good practice to post all the debits of all the journal entries of the month before posting all the credits of the same
Not yet period.
answered

Marked out of Select one:

1.00
a. False

b. True

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