Assignment 1

The following are the primary users of accounting data except. a. Government agencies

The organization responsible for the development and implementation of the accountants'
professional ethics and values is b. Philippine Institute of Certified Public Accountants

Management uses accounting and financial data in marketing strategy. b. True

The Philippine Institute of Certified Public Accountants devised the compilation of accounting
guidelines called Generally Accepted Accounting Principles. False

Andrea Bargarigo is called the father of modern accounting. False

Also called the measurability accounting principle, materiality principle states that only transactions
that can be expressed in money should be recorded. False

Management accounting is the branch of accounting that concentrates on the information needed by
external users. False

To meet the objectives of the accountancy profession to work to the highest standards and attain the
highest level of performance, the following are required except c. Subjectivity

The accounting concept that requires that the revenues and expenses should be recognized in the
accounting period when they are actually earned and incurred is called conservatism principle. False

A technique in determining the costs of the products, projects or any business activity. d. Cost
Accounting

Quiz 1

Their services include budgeting, general accounting and internal auditing in a firm. c. Private
Accountants

Measuring and reporting the cost and value of people in an organization. c. Human Resource
Accounting

Branch of accounting that undertakes the examination and verification of a firm's accounts and
internal control system. d. Auditing

This principle pertains to the charging of expenses incurred by the firm tothe income statement for a
particular period in which the revenues related to them (expenses) are earned. c. Matching Principle

The branch of accounting that deals with the implementation of a complete and consistent
accounting principles and techniques in measuring the country's economic activities.

Recording business transactions, Classifying, Summarizing, and interpreting the results. a. Phases
of Accounting

Concept that asserts that the business transactions of an entity are separated from the owner's
personal transactions. a. Economic Entity Principle

Father of modern accounting. c. Luca Pacioli

It is the systematic and comprehensive recording of financial transactions pertaining to a business,

and it also refers to the process of summarizing, analyzing and reporting these transactions to
oversight agencies and tax collection entities. a. Accounting
Accountants performing consultancy, auditing, and tax services. b. Public Accountants

Assignment 2

A single proprietorship is. b. An unincorporated owned an individual.

Materials, labor and overhead are outputs in a manufacturing type of business. False

A business that buys goods in finished form and sells it to customer in the same form. c.
Merchandising companies

It is the kind of corporation whose owners are called members. c. Non-stock corporation

A partnership is. b. An unincorporated business owned by two or more persons associated as

partners.

It is a type of business involved in converting raw materials to a finished product. d. Manufacturing

Selling of plant assets is what category of business activity? d. Investing activities

This is the category of activities pertaining to acquisition of long term loans and issuance of equities
to fund or sustain a business. b. Financing activities

Borrowing funds is a financing activity and payment of corresponding interest is an operating activity.
True

Payment of dividends is a financing activity. True

Quiz 2

Following are operating activities except b. Payment of dividends

Issuance of Stocks and bonds is a c. Financing Activity

Sole proprietorship are not subject to business income taxes. a. True

Which of the following should be registered with the Securities and Exchange Commission? c. Both
Partnership and Corporation

Smart Telecommunications is a business entity with business activity of___________. a. Services

Acquisition of non-current assets is a Acquisition of non-current assets is a

It is added to raw materials and overhead to produce a finished product. d. Salaries of factory
workers

Payment of salaries and wages for employees is a form of __________. b. Operating Activities

ABC Company is buying fruits and vegetables in Baguio and sell in a higher price in Metro manila.
Their nature of business is _____________. d. Merchandising

What types of business entity is Jollibee? b. Corporation

Assignment 3

The principle of AIS that states that restricted information should be protected from unauthorized
exposure. a. Confidentiality

It refers to data from different source documents. b. Inputs

Accounting Information System is generally a computer-based way of monitoring accounting
activities. True

It refers to the hardware components of AIS. d. Information Technology Infrastructure

The objectiveof an accounting system is to record financial data and turn it into a useful financial

information. True

It is that assures the achievement of organization’s objectives in operational effectiveness and

efficiency, reliable financial reporting and compliance with laws, regulations and policies.
b. Internal control

In computerized AIS, a list of selections in choosing computer functions is called tools. False

It is the AIS that employs computers and software in the process of recording data. d. Computerized

The AIS users are referred to as the people component. True

The AIS users are referred to as what component? People

Quiz 3

____ refers to data from different source documents. d. Input

_____________ of AIS pertains to the security measures that will protect sensitive data. a. Internal
controls

In a computerized accounting system, the ______ are primarily used to translate accounts and their
balances to financial reports. d. Account numbers

Only authorized person should have access to the system and the data is a the _____ feature of AIS
identified by AICPA. c. Security

_______requires source-transactions documents, general journal, general ledger, and special

journals. a. Manual AIS

Positive cost-benefit analysis feature of Accounting information system means the benefits it will
generate should outscore its _____. a. Cost

_____ refers to the accounting reports which are considered the final stage of data processing. a.
Outputs

AIS warrants the accurate recording and processing of financial data in accordance with the
_______ principles. c. Accounting

Manual and computerized accounting systems cannot perform the same accounting and financial
processes and apply the same accounting principles and concepts. b. False

In computerized accounting system, if a transaction needs correction, it is easily done, with reports
generated afterward at speeds never possible with manual accounting systems. b. True

Assignment 4

Real accounts are found in the Statement of Financial Position. True

Accounting entries involve a minimum of how many accounts? a. Two

Expenses decrease the assets of the business. True

When a company pays a bill, the account Cash will be a. Credited

The statement of cash flow is also directly related to the balance sheet as it details the change in
cash during the period as it affects the other components of the balance sheet like other assets,
liabilities and equity. True

The Statement of Financial position is important in evaluating the liquidity of the firm. True

It is the financial statement that is prepared first because its bottom line figure will be used in the
other financial statements. b. Income Statement

It refers to the recognition of all income for the whole accounting period regardless of whether cash
payments are received or not. d. Accrual of income

Under the accrual basis of accounting, expenses are reported in the accounting period when the. b.
Expense matches the revenue

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a
specific date is the. b. Balance sheet

Quiz 4

Following are the other titles for Income Statement except c. Statement of Cash flows

The total assets of the firm on December 31, 2016 is P345,000. Total liabilities is P40,000, non
current assets is three times the amount of liabilities, net income is P120,000, Drawing is P10,000.
How much is the capital balance on January 1, 2016? c. P195,000

The statement of financial position includes the following except b. Total Revenues

Give the following for RST Trading: Gross profit, P400,000 which is 40% of net sales , sales discount
is 5%, sales returns and allowances is 7.5% Sales Returns and Allowances is(round-off your
answers to the nearest peso) d. P85,714

Non-current assets are only intangible assets of which without physical substance. b. False

Gross Profit = ________ - Cost of sales. b. Sales

Following are intangible assets except b. Accounts Receivable

Which of the following statements is correct? b. The standard presentation of the Financial
statements for businesses should conform with the generally accepted accounting principles.

Which account does not below to the group? b. Prepaid expense

Activities consist of cash receipts from income or revenues and cash payments on expenses. d.
Operating Activities

Long Quiz week 5

Business obligations d. Liability

The following are examples of intangible assets except d. Cash in Bank

Users of financial information whose interest in the financial position and results of operations of the
business will be their basis of asking wage increases and benefits. d. Employees
Financial Accounting is the branch of accounting that caters to the needs for accounting information
by internal users. False

Merchandising is also called trading. True

The Venetian approach of reporting records debits on the left side of the page across the credits.
True

Which of the following is not a current asset? c. Cash kept for future use.

Private accountants perform consultancy services, auditing and tax accounting of firms where the
accountant is not a direct hired employee. False

In a manual accounting system, computers and software are not used. True

An accounting principle that is similar to matching principle. a. Accrual Principle

In a computerized accounting system, the process includes journalizing business transactions and
posting the same to the ledger. False

Luca Pacioli is called the father of modern accounting. True

Business obligations which are expected to be settled within the accounting period or within a year
from the reporting date. c. Short term liability

The principle referring to charging expenses incurred by an entity to the income statement for a
given period in which the revenues are earned is called matching principle. True

Accrued interest expense is an example of b. None of these

Manufacturing type of business involves conversion of inputs into outputs. True

Human Resource Accounting is a process of communicating the effects of an organization's

business activities on society and environment to interested parties. False

Following are the services performed by public accountants except c. Cost Accounting

In merchandising type of business, the owner has dual personality, buyer and seller at the same
time. True

Balance Sheet is also called Statement of Changes in Owner's Equity. False

Accounting is a(n) a. All of these.

Investing Cash inflows include the following except b. Proceeds from the issuance of stocks

The term equity refers to a. Sources of assets

It pertains to all relevant financial information of the business events and practices. a. Data

Accounting is a means and an end in every business organization. False

Issuance of stocks is an investing activity. False

Sole proprietorship is suitable for high risk businesses. False

Information Technology Infrastructure refers to the computer programs used to store, retrieve,
process, and analyze financial data. False
Partnership is more advantageous than corporation in terms of capital and management. False

Following are types of income earned in the ordinary course of business except b. Interest income
received on a bank deposit

Assignment 5

The following are true about journalizing except b. A general journal entry with two or more debits or
credits is called a simple journal entry.

The ledger is called the book of original entry while the journal is the book of final entry. False

It is that portion of an accounting entry that either increases an asset or expense account, or
decreases a liability or equity account. It is positioned to the left in an accounting entry. d. Debit

Copying or transferring the information from the journal to the ledger is called a. Posting

An accounting practice that a record keeping system done when transaction is recorded in at least

two accounts. b. Double entry accounting

It is the asset pertaining to the collectibles from customers arising from sale of goods or services in
exchange for an oral or implied promise to pay at a future date. d. Accounts Receivable

Investment of Cash in a business would require an entry debiting Capital and crediting Cash. False

Following are financial statements except c. Worksheet

General journal entries and adjusting entries are both done during the accounting period. False

Income Statement consists of temporary accounts while Balance Sheet presents permanent
accounts. True

Quiz 5

It pertains to the owner's claim over the total assets of the business. a. Owner's Equity

It is an individual record of an account. b. Ledger

It is the financial statement that shows the results of operations of the business c. Income Statement

If the T-account is for Capital, increases are posted on the right side or credit side; while on the left
side or debit side are the decreases. a. True

These are anything that the business owns and with economic value to the firm and can be tangible
or intangible. c. Asset

It is the book of accounts where the business transactions are first recorded chronologically. d.
General Journal

It is the proof of the equality of debits and credits. d. Trial Balance

The credit side or column of a trial balance shows the normal balances of capital, liability, revenues,
and what other type of account? d. Contra account

In recording expense assume that on June 1 the company paid PHP800 to the landlord for the June
rent. What is the debit entry? d. Rent expense
The trial balance prepared before recording and posting the adjusting entries. a. Unadjusted Trial
Balance

Assignment 6

When a customer paid the massage service but the firm has not yet performed the service, the
transaction will result to a. a. Unearned revenue

Consider the scenario under Accrual principle. Customer pays ABC Company for service. What will
be entry? b. Debit: Cash, Credit: Accounts Receivable

Adjusting entries can have a debit or a credit to cash account. False

In accrual basis of accounting, revenue is recorded in income statement when cash is receive from
customer. False

Consider the scenario under Accrual principle. Company ABC renders services to customer.What
will be entry? a. Debit: Accounts Receivable, Credit: Sales

Select the phrase that doesn't belong to the group a. Prepaid Advertising Expense

Select the phrase that doesn't belong to the group a. Materiality principle

Expenses has a normal Debit account therefore accrued expense also have a normal debit account.
False

Select the phrase that doesn't belong to the group c. Direct write off method

The two methods in adjusting unearned revenue, the income method and the ______ method.
c. Liability method

Quiz 6
Income earned but not yet collected. c. Accrued Revenue

The following are subject for depreciation except. a. Land

Accounting principles stating that recording of income should be recorded on time they earned. d.
Revenue principle

Accounting method that records the transactions only when cash is received. a. Cash Basis
Accounting

Shows the changes in the capital account of the owner at the end of the period. d. Statement of
changes in Owner's Equity

The Office Supplies account has a balance of P1, 000 on April 1, 2017. During the month, P 2,500
worth of supplies was purchased. At the end of the month, the office supplies on hand amounted to
P 1,200. The Office Supplies Expense on April 30, 2017 is ______________. a. P 2,300

Recording of entries made at the end of accounting period by reporting revenue on the time they
were earned and expenses when they are incurred. c. Adjusting entry

The business purchased and occupied a building on March 31, 2017. The cost of the building is P
500,000, with an estimated useful life of 20 years and salvage value of P100, 000. The Depreciation
expense on December 31, 2017 is __________. d. P 15,000
Allocation of cost of a plant asset over its useful life. b. Depreciation Accounting

The balance of Unearned Service Income on December 31, 2017 is P 25,000. Of this amount, 1/2 is
still unearned. Service Income to be recognized is __________. b. P 12,500

Assignment 7

It involves routine performances of the different phases of accounting for a given period of time. b.
Accounting cycle

This is the category of accounts listed in the income statement. d. Nominal accounts or temporary
accounts

XPost-closing trial balance contains nominal accounts. False

These are the entries done at the beginning of the next accounting period to undo some adjusting
entries made. b. Reversing entries

The accounting cycle starts with journalizing the business transactions and ends on the closing
entries preparation and posting to the ledger. False

Quiz

The following are can be found in a worksheet except. b. Cash flow

The account Revenue and Expense Summary is a controlling account where revenues and
expenses are closed. True

Profit and Loss Summary is a nominal account. True

It is a list of accounts with their adjusted balances after the closing entries are recorded and posted
in the ledger. d. Trial Balance

The balance of Revenue and Expense Summary can also be closed to the owner's Drawing
account. True

The unpaid expenses incurred by a company for which no invoice has been received from its
suppliers and vendors is referred to as ________. b. Accrued expenses

Post-closing Trial Balance is a tool to determine if the ledger accounts are in balance before the start
of the new accounting period. True

Temporary accounts refer to contra-accounts. False

Permanent accounts are accounts that can be found in Income statement. False

Nominal accounts are the revenue and expense accounts related to a particular accounting period.
True

Long quiz 2

Certificates of deposits and checks are part of the Cash on Hand and in Banks or simply, Cash
account. True

A trial balance is also a tool in checking whether the journal entries are accurately done and posted
in the ledger. True
The expanded accounting equation is Assets = Liabilities + Capital - Revenues - Expenses -
Drawing. False

Accounts Receivable is an asset pertaining to collectibles from customers out of sale of goods or
services in exchange for a written promise to pay at a future date. False

The transaction: Mr. A invested P20, 000 cash and equipment worth P30, 000 in a laundry shop
business, will result to an increase in assets and increase in capital for the business. True

Accumulated Depreciation or Allowance for Depreciation is a contra account of Accounts

Receivable. False

The trial balance of Maria Clara Parlor has a total debit balance of P 300,000. Among the accounts
listed are Accounts Payable, P 3,500; Notes Payable, P10,000;Maria Clara, Capital, P180,000. The
parlor's revenue is c. P 106,500

The account to be credited is indented following the account debited and the corresponding amount
is placed on the extreme right money column of the journal. True

A's Laundry Shop T-accounts for A, Capital, Laundry Income, Laundry Expenses have normal
balances of P 200,000, P 180,000, and P80,000, respectively. What is the new balance for A,
Capital at the end of the period? c. P 300,000

Using the allowance method, the Accounts Receivable account is credited for the estimated
uncollectible from customers. False

The normal balance of an account is always on its right side. False

The credit side of T-account is used to record increases in liability and capital. True

The process of transferring the journal entries to the ledger is called posting the accounts. True

A T-account is a representation of the ledger. True

Writing the general journal page number in the F column of the ledger and the account number to
the F column of the general journal during the posting process is called cross-referencing. True

At the end of the month, Maria Clara Parlor's total Liabilities and Owner's Equity is P 250,000. One
fifth of which is the liability. The parlor's total assets is d. P 250, 000

Mr. X's Capital account has a balance of P 100,000 on March 31, 2017. Withdrawals for personal
expenses during April amounted to P 15,000. At the end of April, the Capital account has a balance
of P135, 000. Mr. X's net income for April is b. P 50,000

A non-exchange business transaction does not involve changes in quantifiable monetary values.
False

Maria Clara rendered parlor services during the month: P 5,000 cash basis and P 3,500 on account.
The amount to be credited to Service Income is d. P 8,500

At all times, if the total of the debit and credit columns of the trial balance are balanced, there is no
possible error that occurred during the journalizing and posting stages. False

The amount corresponding to a debited account can be written on the credit money column of the
journal. False

Assets are anything of economic value and owned by the business entity. True
The account number is written in the ledger posting reference column during the process of posting.
False

A business transaction can have dual effect on a single accounting element or value. True

The debit and the credit columns of the journal are totaled. False

Businesses have a common annual accounting period. False

Maria Clara has the following transactions during the month of March: paid salaries of house helper,
P 3,500; paid utility expenses of the parlor, P 2,500; at the end of month, hired a parlor helper with a
monthly salary of P5, 000. The total expenditures that should be reported for the month of March isd.
P 6,000

A business transaction to be recognized in accounting should involve exchange of values and

quantifiable in terms of money True

The difference, if any, between the total debits and total credits of the Cash account should always
be shown on the debit side. True

A chart of accounts presents a list of account titles, its definition, description of when to debit or
credit and its corresponding account numbers. True