Name of Learner: _______________________________

Grade & Section: _____________________________

Direction: Encircle the letter of your chosen answer.

1. A customer bought goods from your business on credit. The customer promised to pay it after a week. Which of the
following accounts is increased by this transaction?
a. Accounts Payable c. Accounts Receivable
b. Notes Payable d. Notes Receivable
2. If the total assets of a business is P2,500,000.00. The liability of the business is 550,000.00. How much is the equity invested
by the owners of the business?
a. 2,500,000.00 c. 1,950,000.00
b. 3,050,000.00 d. None of the above
3. Which of the following is example of Assets?
a. Prepaid Expense c. Rent Expense
b. Accounts Payable d. None of the above
4. Gina Dy put up her law office. She invested P175,000.00 to the business. What account is increased in the law office?
a.Asset and Equity c. Asset and Liability
b. Liability and Capital d. None of the above
5. If are a business owner. Your business needs additional capital so you borrowed from a bank. You signed a promissory note
to pay the loan after a year. Which of the following accounts is increased by the transaction?

a. Accounts Payable c. Accounts Receivable

b. Notes Payable d. Notes Receivable

5. Collection from the customers of a business is result in an increase to what account?

a. Accounts Payable c. Capital

b. Cash d. None of the above

7. Nerry, the owner of ER’s Company, paid rent to ABC Realty in advance for three months. What account on Nerry’s book will
be increased?
a. Cash c. Accounts Payable
b. Prepaid Rent d. None

8. You purchased a computer for 75,000.00. Which of the following account is decreased?

a. cash c. Capital
b.computer equipment d. None of the above

9. If the total asset of a business is 3,075,000.00 and the equity is 1,025,000. How much is the liability of a business?
a. 3,075,000.00 c. 1,025,000.00
b.2,050,000.00 d. None of the above

10. If a business owns a Computer Equipment P56,000.00, cash of P246,745.00 and a service equipment of P345,000.00 and the
business owes Chinabank P300,000.00. How much is the total equity of the business?

a. 347,745.00 c. P300,000.00
b. 647,745.00 d. None of the above
11. These are cash and other assets that are expected to be converted to cash within a year.

a. Noncurrent assets c. Noncurrent Liabilities

b.Current assets d. None of the above

12. These are short—term investments that are readily convertible to known amounts of cash which are subject to an insignificant
risk to changes in value.

a. Cash c. Marketable Securities

b. Cash Equivalent d. None of the above

13. Amount collectible from the customer to whom sales have been made or services have been rendered on account or credit.

a. Notes Payable c. Accounts Receivable

b. Accounts Payable d. None of the above

14. These are income already earned but not yet received.

a. Accrued Income c. Accrued Expenses

b. Prepaid Expenses d. None of the above

15. Which of the following is a Revenue or Income account?

a. Land c. Sales
b. Purchases d. None of the above

16. These are tangible assets that are held by an enterprise for use in the production or supply of goods or services, or for
administrative purposes.

a. Furnitures and Fixtures c. Land

b. Property, Plant & Equipment d. None of the above

17. These are liabilities that are expected to be settled in the entity’s normal operating cycle.

a. Accounts Payable c. Accounts Receivable

b. Notes Payable d. None of the above

18. These includes debts arising from the purchase of an asset or the acquisition of services on account evidenced by a promissory
note.

a. Accounts Payable c. Accounts Receivable

b. Notes Payable d. None of the above

19. It represents obligations of the business arising from advance payments received before goods or services are provided to the
customer. This will be settled when certain goods or services are delivered or rendered.

a. Accrued liabilities c. Prepaid Expenses

b. Unearned Income d. None of the above

20. is the annual portion of the cost of tangible assets such as buildings, machineries, and equipment charged as expense for the
year.

a. Depreciation c. Interest Expense

b. Allowance for doubtful accounts d. None of the above
Direction: Indicate the classification of the accounts listed below as an ASSET, LIABILITY, EQUITY, INCOME , or EXPENSE
under Column A and as either a Balance Sheet or an Income Statement account under Column B

Column A Column B
1.Supplies Expense
2.Notes Receivable
3.Sales, Capital
4.Sales
5.Interest Expense
6.Service Income
7.Unearned Income
8.Accrued Expenses
9.Notes Payable
10.Accounts Receivable