FABM WEEK 11-20

The accounting cycle begins by recording _____________ in the form of journal entries.

Answer=Business Transactions

A chart of accounts is limited to 50 accounts.

Answer= True

Which is NOT a type of adjusting entry?

Answer = Unearned expenses

Rent is prepaid for an office for the business, is the accounting entry to the to the prepaid rent account a debit or a credit?

Answer = debit

Debit and credit rules for accounts on one side of the accounting equation are mirror images of those on the

Answer = True

Which of the following is never debited when making closing entries?

Answer = Expenses

Supplies are purchased for cash, is the double entry posting to the supplies on hand account a debit or credit entry?

Answer = debit

The payment of a liability is recorded by a debit to the liability account and a credit to the owner's capital account.

Answer = False

The business carried out work for a customer and was paid in cash, is the entry to the revenue account a debit or a credit?

Answer = Credit

Cash paid to a supplier for goods supplied by them on credit terms, is the entry to accounts payable a debit or credit entry?

Answer = debit

A form of discount granted by a retailer to encourage a customer to buy the goods is called:

Answer = b. Sales discount

Which of the following accounts is not an asset?

Answer = b. Unearned commission

Information is cost effective when:

Answer = The value of the information exceeds the cost of producing it.

Accounting involves communication.

Answer = True

Which of the following is not an acceptable basis of recognizing expenses?

Answer = Critical measurement

A supporting document prepared by a seller that is used as an evidence of a downward adjustment in the amount that is due from a customer is known as:

Answer = Credit Memorandum.

Work was completed and invoiced to a customer for payment within 30 days, is the posting to accounts receivable a debit or a credit?

Answer = Credit

Person who manages all of a firm's accounting activities.

Answer = Controller

Which of the following expenses is recognized under the direct association with revenue criterion?

Answer = Salesmen's commission

Which of the following is an asset account?

Answer =Prepaid Insurance

Accounting provides information on

Answer = Financial conditions of an institution

Government agency gives a CPA certificate to an accountant after he passes a series of rigorous examinations administered by the Board of Accountancy (BOA).

Answer = PRC

Equity is shown in which financial statement?

Answer = Balance Sheet

The income statement shows which of the following?

Answer= Income and expenses

Which of the following account titles will not appear in the balance sheet of a single proprietorship?

Answer = C. Share capital appears in the Balance Sheet of a corporation

The purchase of a new delivery truck to be used in the business?

Answer = a. Investing

Which of the following is an asset account?

Answer = Prepaid insurance

Which of these is not a Financial Statement?

Answer = Cash book

An increase in the balance in Accounts payable.

Answer = Operating

Which of the following is a current asset

Answer = B. All other choices are non-current or fixed assets.

The term operating, financing and investing as used to categorized what type of item?

Answer = Cash flow

Inventory and accounts receivable are classified in the balance sheet as?

Answer = Current assets

Which of the following is NOT part of the cost of inventory purchased?

Answer = Freight out

Which of the following accounts will normally appear in the ledger of a merchandising company that uses a perpetual inventory system?

Answer = Cost of goods sold

Noted: yong iba na hindi lalabas nasa brainly or commonsense lang ang tanong na iba binabago kasi yong tanong

Which of the following is NOT considered revenue?

Select one:

a. Interest Revenue

b. Ticket Sales Revenue

c. Deferred Revenue 

d. Rent revenue

Feedback

The correct answer is: Deferred Revenue

Comments

Make comment or override mark

Response history

Question 2

Correct

Mark 1.00 out of 1.00

Question text

The business carried out work for a customer and was paid in cash, is the entry to the revenue account a debit or a credit?

Select one:

a. Debit

b. Credit 

Feedback

The correct answer is: Credit

Comments

Make comment or override mark

Response history

Question 3

Correct

Mark 1.00 out of 1.00

Question text

Information is material if:

Select one:

a. It corresponds to financial variables

b. Its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements. 

c. None of the previous answers.

d. It is recorded on the basis of concrete documents.

Feedback

The correct answer is: Its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements.

Comments

Make comment or override mark

Response history

Question 4

Correct

Mark 1.00 out of 1.00

Question text

The accounting cycle begins by recording _____________ in the form of journal entries.

Select one:

a. Business Contracts

b. Financial Information

c. Corporate minutes

d. Business Transactions 

Feedback

The correct answer is: Business Transactions

Comments

Make comment or override mark

Response history

Question 5

Correct

Mark 1.00 out of 1.00

Question text

Accounting is the language of business.

Select one:

a. False

b. True 

Feedback

The correct answer is: True

Comments

Make comment or override mark

Response history

Question 6

Correct

Mark 1.00 out of 1.00

Question text

Which of the following statements is?incorrect?

Select one:

a. The business enterprise must have ownership over the items reported as business assets. 

b. An asset has future usefulness or service potential

c. An asset does not always have physical attributes.

d. A reliable monetary value must be assignable to the reported asset items.

Feedback

The correct answer is: The business enterprise must have ownership over the items reported as business assets.

Comments

Make comment or override mark

Response history

Question 7

Correct

Mark 1.00 out of 1.00

Question text

When does an accountant record a transaction?

Select one:

a. On manager's demand

b. No correct answer

c. If it has a tax implication

d. If it is materialized by a concrete document 

Feedback

The correct answer is: If it is materialized by a concrete document

Comments

Make comment or override mark

Response history

Question 8

Correct

Mark 1.00 out of 1.00

Question text

Financial statements are prepared:

Select one:

a. For corporations, but not for sole proprietorship or partnership.

b. Only for publicly owned business organizations.

c. In either monetary or non-monetary terms, depending upon the need of the decision-maker.

d. Primarily for the benefit of persons outside of the business organizations 

Feedback

The correct answer is: Primarily for the benefit of persons outside of the business organizations

Comments

Make comment or override mark

Response history

Question 9

Correct

Mark 1.00 out of 1.00

Question text

Information is cost effective when:

Select one:

a. The value of the information exceeds the cost of producing it. 

b. The information aids management in controlling costs.

c. The information is generated by a computer-based system.

d. The information is based upon the historical costs, rather than upon?

Feedback

The correct answer is: The value of the information exceeds the cost of producing it.

Comments

Make comment or override mark

Response history

Question 10

Correct

Mark 1.00 out of 1.00

Question text

Which financial statement is used to show what the firm owns?

Select one:

a. Income statement

b. Balance sheet 

c. Cash flow statement

d. Statement of retained earnings

Feedback

The correct answer is: Balance sheet

Comments

Make comment or override mark

Response history

Question 11

Correct

Mark 1.00 out of 1.00

Question text

Which is the last step of accounting as a process of information?

Select one:

a. Communication of information

b. Analysis and interpretation of information

c. Preparation of financial statement 

d. Recording the transaction

Feedback

The correct answer is: Preparation of financial statement

Comments

Make comment or override mark

Response history

Question 12

Correct

Mark 1.00 out of 1.00

Question text

Probable future sacrifices of economic benefits arising from past transactions are known as:

Select one:

a. Expenses

b. Assets

c. Liabilities 

d. Income

Feedback

The correct answer is: Liabilities

Comments

Make comment or override mark

Response history

Question 13

Correct

Mark 1.00 out of 1.00

Question text

All entries must be supported by a source document.

Select one:

a. True 

b. False

Feedback

The correct answer is: True

Comments

Make comment or override mark

Response history

Question 14

Correct

Mark 1.00 out of 1.00

Question text

Government agency gives a CPA certificate to an accountant after he passes a series of rigorous examinations administered by the Board of Accountancy (BOA).

Select one:

a. BIR

b. Civil Service Commission

c. PRC 

d. School Registrar

Feedback

The correct answer is: PRC

Comments

Make comment or override mark

Response history

Question 15

Correct

Mark 1.00 out of 1.00

Question text

What are the accounting standards issued by the IASB called?

Select one:

a. Internationally Accepted Accounting Standards

b. International Financial Accounting Standards

c. International Accounting Principles

d. International Financial Reporting Standards 

Feedback

The correct answer is: International Financial Reporting Standards

Comments

Make comment or override mark

Response history

Question 16

Correct

Mark 1.00 out of 1.00

Question text

The basic function of financial accounting is to

Select one:

a. No correct answer

b. Interpret financial data 

c. Record all business transactions

d. Assist the management in performing functions effectively

Feedback

The correct answer is: Interpret financial data

Comments

Make comment or override mark

Response history

Question 17

Correct

Mark 1.00 out of 1.00

Question text

Which is the last step of accounting as a process of information?

Select one:

a. Preparation of financial statement 

b. Communication of information

c. Recording the transaction

d. Analysis and interpretation of information

Feedback

The correct answer is: Preparation of financial statement

Comments

Make comment or override mark

Response history

Question 18

Correct

Mark 1.00 out of 1.00

Question text

Which of the following is more appropriate definition for Accountancy?

Select one:

a. Accountancy refers to the process of recording financial transactions in the order of their occurrence

b. Accountancy refers to the art of communicating the financial transactions to accounting users

c. Accountancy refers to the art of classifying the recorded transactions under their respective accounts 

d. Accountancy refers to the systematic knowledge of accounting.

Feedback

The correct answer is: Accountancy refers to the art of classifying the recorded transactions under their respective accounts

Comments

Make comment or override mark

Response history

Question 19

Correct

Mark 1.00 out of 1.00

Question text

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

Select one:

a. 3 years

b. Less than 1 year 

c. More than 2 years

d. Over 1 year

Feedback

The correct answer is: Less than 1 year

Comments

Make comment or override mark

Response history

Question 20

Correct

Mark 1.00 out of 1.00

Question text

The basic purpose of accounting is to:

Select one:

a. Develop financial statements in conformity with generally accepted?

b. Provide as much useful information to decision makers as possible, regardless of cost.

c. Meet an organization's need for accounting information as efficiently as possible. 

d. Record changes in the financial position of an organizations by applying the concepts of double-entry accounting.

Feedback

The correct answer is: Meet an organization's need for accounting information as efficiently as possible.

Comments

Make comment or override mark

Response history

Question 21

Correct

Mark 1.00 out of 1.00

Question text

A one year reporting period that begins on January 1 ends on December 31 is:

Select one:

a. Semester reporting period

b. Calendar year reporting period 

c. Fiscal year reporting period

d. Quarterly reporting period

Feedback

The correct answer is: Calendar year reporting period

Comments

Make comment or override mark

Response history

Question 22

Correct

Mark 1.00 out of 1.00

Question text

A business transaction can affect two accounts on the same side of the accounting equation and still leave the equation in balance.

Select one:

a. True 

b. False

Feedback

The correct answer is: True

Comments

Make comment or override mark

Response history

Question 23

Correct

Mark 1.00 out of 1.00

Question text

The type of accounting which reports on the performance of the firm to essential external users.

Select one:

a. Internal auditing

b. Managerial accounting

c. Financial accounting 

d. External accounting

Feedback

The correct answer is: Financial accounting

Comments

Make comment or override mark

Response history

Question 24

Correct

Mark 1.00 out of 1.00

Question text

Which of the following is not a characteristics of an economic resource so that it could be classified as an asset of the business?

Select one:

a. The resource has future resource has future service potential.

b. The economic resource has physical existence. 

c. The resource was acquired as a result of a past transaction.

d. The business entity has control over the usefulness of the economic resource.

Feedback

The correct answer is: The economic resource has physical existence.

Comments

Make comment or override mark

Response history

Question 25

Correct

Mark 1.00 out of 1.00

Question text

Although accounting information is used by a wide variety of external parties, financial reporting is primarily directed toward the information needs of:

Select one:

a. Investors and creditors 

b. Customers

c. Government agencies such as the Internal Revenue Service.

Feedback

The correct answer is: Investors and creditors

Comments

Make comment or override mark

Response history

Question 26

Correct

Mark 1.00 out of 1.00

Question text

Financially, shareholders are rewarded by

Select one:

a. Profits

b. Dividends 

c. No correct answer

d. Interest

Feedback

The correct answer is: Dividends

Comments

Make comment or override mark

Response history

Question 27

Correct

Mark 1.00 out of 1.00

Question text

The four principal qualitative characteristics of useful financial statements are:

Select one:

a. Understandability, relevance, accuracy, comparability

b. Understandability, relevance, reliability, simplicity

c. Understandability, relevance, reliability, comparability 

d. Timeliness, relevance, reliability, comparability

Feedback

The correct answer is: Understandability, relevance, reliability, comparability

Comments

Make comment or override mark

Response history

Question 28

Correct

Mark 1.00 out of 1.00

Question text

The top of the T account is used for account titles. Credits are entered on the left side of the T; debits, on the right.

Select one:

a. True

b. False 

Feedback

The correct answer is: False

Comments

Make comment or override mark

Response history

Question 29

Correct

Mark 1.00 out of 1.00

Question text

Every transaction affects two or more accounts and is recorded by equal amounts of debits and credits.

Select one:

a. True 

b. False

Feedback

The correct answer is: True

Comments

Make comment or override mark

Response history

Question 30

Correct

Mark 1.00 out of 1.00

Question text

Which of the following groups use financial accounting?

Select one:

a. All of the answers correct 

b. Tax authorities, government and general public

c. Suppliers, customers and competitors

d. Management, employees, shareholders, and lenders

Feedback

The correct answer is: All of the answers correct

Comments

Make comment or override mark

Response history

Question 31

Correct

Mark 1.00 out of 1.00

Question text

Which of the following is never debited when making closing entries?

Select one:

a. Revenue

b. Owner's Drawings

c. Expenses 

d. Income summary?

Feedback

The correct answer is: Expenses

Comments

Make comment or override mark

Response history

Question 32

Correct

Mark 1.00 out of 1.00

Question text

An asset account appears on the right side of the accounting equation and is also increased on the right side of its T account.

Select one:

a. True

b. False 

Feedback

The correct answer is: False

Comments

Make comment or override mark

Response history

Question 33

Correct

Mark 1.00 out of 1.00

Question text

Accounting aims to communicate financial information to investors only.

Select one:

a. True

b. False 

Feedback

The correct answer is: False

Comments

Make comment or override mark

Response history

Question 34

Correct

Mark 1.00 out of 1.00

Question text

Accounting involves communication.

Select one:

a. True 

b. False

Feedback

The correct answer is: True

Comments

Make comment or override mark

Response history

Question 35

Correct

Mark 1.00 out of 1.00

Question text

Cash paid to a supplier for goods supplied by them on credit terms, is the entry to accounts payable a debit or credit entry?

Select one:

a. Credit

b. Debit 

Feedback

The correct answer is: Debit

Comments

Make comment or override mark

Response history

Question 36

Correct

Mark 1.00 out of 1.00

Question text

Which financial statement displays the revenues and expenses of a company for a period of time?

Select one:

a. Cash Flow

b. Balance sheet

c. Statement of Owner's Equity

d. Income Statement 

Feedback

The correct answer is: Income Statement

Comments

Make comment or override mark

Response history

Question 37

Correct

Mark 1.00 out of 1.00

Question text

Accounting deals with quantifiable information.

Select one:

a. True 

b. False

Feedback

The correct answer is: True

Comments

Make comment or override mark

Response history

Question 38

Correct

Mark 1.00 out of 1.00

Question text

The liabilities that are payable in more than a year and are not be liquidated from current assets.

Select one:

a. Current liabilities

b. All of the answers correct

c. Contingent liabilities

d. Fixed liabilities 

Feedback

The correct answer is: Fixed liabilities

Comments

Make comment or override mark

Response history

Question 39

Correct

Mark 1.00 out of 1.00

Question text

Which of the following statements is false?

Select one:

a. Owner's equity can be bigger than the total assets. 

b. Owner's equity cannot be bigger than the total assets.

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

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

Feedback

The correct answer is: Owner's equity can be bigger than the total assets.

Comments

Make comment or override mark

Response history

Question 40

Correct

Mark 1.00 out of 1.00

Question text

Temporary accounts would include:

Select one:

a. Drawing, income and expenses 

b. Capital, income and expenses

c. Capital, drawing and expenses

d. Capital, drawing and income

Feedback

The correct answer is: Drawing, income and expenses

Comments

Make comment or override mark

Response history

Question 41

Correct

Mark 1.00 out of 1.00

Question text

Accounting provides information on

Select one:

a. Financial conditions of an institution

b. All of the answers correct 

c. Company's tax liability for a particular year

d. Cost and income for managers

Feedback

The correct answer is: All of the answers correct

Comments

Make comment or override mark

Response history

Question 42

Correct

Mark 1.00 out of 1.00

Question text

Amount generated from sales in a business is called:

Select one:

a. Income 

b. Operating profit

c. Net income

d. Gross Profit

Feedback

The correct answer is: Income

Comments

Make comment or override mark

Response history

Question 43

Correct

Mark 1.00 out of 1.00

Question text

The debts which are to be repaid within a short period (year or less) are known as

Select one:

a. Contingent liabilities

b. Current liabilities 

c. All of the answers correct

d. Fixed liabilities

Feedback

The correct answer is: Current liabilities

Comments

Make comment or override mark

Response history

Question 44

Correct

Mark 1.00 out of 1.00

Question text

Which of the following will not be reported in the statement of changes in equity?

Select one:

a. Additional investment of the proprietor

b. Balance of capital at the end of the period.

c. Net income during the period

d. Proceeds from the sale of the building 

Feedback

The correct answer is: Proceeds from the sale of the building

Comments

Make comment or override mark

Response history

Question 45

Correct

Mark 1.00 out of 1.00

Question text

All of the following are characteristics of managerial accounting, except:

Select one:

a. Reports are used primarily by insiders rather than by persons outside of the business entity.

b. Information may be tailored to assist in specific managerial decisions.
Answer: C

c. Information must be developed in conformity with generally accepted accounting principles or with income tax regulations. 

d. Its purpose is to assist managers in planning and controlling business operations.

Feedback

The correct answer is: Information must be developed in conformity with generally accepted accounting principles or with income tax regulations.

Comments

Make comment or override mark

Response history

Question 46

Correct

Mark 1.00 out of 1.00

Question text

A credit to an account always increases it: a debit to an account always deceases it.

Select one:

a. False 

b. True

Feedback

The correct answer is: False

Comments

Make comment or override mark

Response history

Question 47

Correct

Mark 1.00 out of 1.00

Question text

Person who manages all of a firm's accounting activities.

Select one:

a. Accounting staff

b. Payroll manager

c. Controller 

Feedback

The correct answer is: Controller

Comments

Make comment or override mark

Response history

Question 48

Correct

Mark 1.00 out of 1.00

Question text

It is usually used in connection with activities and events that result to the inflow of assets and/or outflow of liabilities.

Select one:

a. Equity

b. Liabilities

c. Assets

d. Income 

Feedback

The correct answer is: Income

Comments

Make comment or override mark

Response history

Question 49

Correct

Mark 1.00 out of 1.00

Question text

The term book keeping and accountancy can be used interchangeably.

Select one:

a. False

b. True 

Feedback

The correct answer is: True

Comments

Make comment or override mark

Response history

Question 50

Correct

Mark 1.00 out of 1.00

Question text

The basic function of financial accounting is to

Select one:

a. Record all business transactions

b. Interpret financial data 

c. Assist the management in performing functions effectively

d. No correct answer

Feedback

The correct answer is: Interpret financial data