.The purpose of posting journal entries to the ledger A. So that trial balance can be prepared. B. To make sure that debit and credit are equal. C. To prove the equality of debit and credit. D. To obtain updated account balance
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
1.The purpose of posting journal entries to the ledger
A. So that
B. To make sure that debit and credit are equal.
C. To prove the equality of debit and credit.
D. To obtain updated account balance
2.Which of the following account title that is differently classified from the other
listed?
A. Service revenue
B. Depreciation expense
C. Supplies inventory
D. Uncollectible account
3. Sissy Store has a P50,000.00 receivable from Samantha. On September 5, Samantha makes a partial payment of P30,000.00 to Sissy Store. The
A. Debit: Cash. Credit:
B. Debt: Accounts Receivable: Credit Service Revenue, P50,000.
C. Debit: Cash. Credit: Accounts Receivable, P50.000
D. Debit: Cash, Credit Accounts Receivable, P20.000.
4. Mr. A received an advancement payment for wedding services worthP10,000. This
will result to-
A. Debit: Unearned Revenue, P10,000.
B. Credit: Cash, P10,606.
C. Credit: Unearned Revenue P 10,0103.
D. Debit: Accounts Receivable P10.000
6. The main output of the financial accounting cycie
A. Financial statements,
B. Board of Director's report.
C. Trial balances.
D. Balance Sheet.
7. On December 1, 2021, ABC sells items to their customer with a trade discount af 1096 and sales discount of 2/10, 1/15, n/30. Which of the following observations Is WRONG?
A. If the customer pays on December 11, 2021, the customer avails the 1 percent discount.
B. In computing the invoice price, the trade discount is deducted thus, it is not recorded in the books of accounts.
C. The credit term of the supplier is until December 31. 2021 and when it reaches January 1,2021 It becomes overdue.
D. If the customer will pay on December 5, 2021, the customer avails the 2 percent
Discount
8. Which of the following account titles would NOT normally appear in the accounting titleslin recording merchandise transactions under periodic inventory system?
A. Merchandise Inventory.
B. Purchase Discounts
C. Purchase Refürns and Allowances
D. Freight In.
9. Which account title has the normal balance of credit?
A. Sales Returns and Allowances
B. Purchase Discounts,
C. Purchases.
D. Freight In.
10. How to compute the cost of goods sold?
A. Beginning Inventory plus Net Purchases minus ending inventory
B. Beginning inventory plus cost of goods sold minus ending inventory
C. Beginning Inventory plus Purchases less Purchase discounts minus ending inventory.
D. Beginning inventory plus gross purchases plus Freight in minus ending inventory
11. Statement 1: The determination of cost of purchases would include addition of transportation out.
Statement 2: There is no sales return and allowances account title if the company
A. Both statements are false,
B. Both statements are true.
C. Only statement 1 is true.
D. Only statement 2 is true.
14. Statement 1: Under perpetual inventory system, Inventory account is included in the closing entry
Statement 2: Under periodic inventory system, cost of goods sold is adjusted for inventory losses.
A. Both statements are false,
B. Both statements are true.
C. Only statement 1 is true.
D. Only statement 2 is true.
15. ABC company pays its obligation to its supplier at P98,000 mel of 2% discount. ABC company is using perpetual inventory system. Which of the following entry may appear
correct?
A. Credit Purchase Discounts P2,000.
B. Credit Inventory P2,000.
G. Credit Cost of Goods Sold P2,000
D. Credit Purchases P2.000
16.A component of the financial statements that shows the stability, capital structure. financial flexibility and adaptability of the enterprise
A.
B. Income Statement.
C. Statement of Cash Flows.
D. Statement of Changes in Equity.
17. Statement 1: The statement of changes in equity discloses the withdrawals during the
period.
Statement 2: The heading for an income statement might include As of December 31, 2020*
A. Both statements are false.
B. Both statements are true
C. Only statement 1 is true.
D. Only statement 2 is true.
18. Consider the steps in the accounting cycle. Which part of the accounting cycle provides information to help business decide whether to expand its operation?
A. Post-Closing Tral Balance
B. Adjusting Entries.
C. Closing Entries.
D. Financial Statements
19. Which situations indicates a loss on the income statement?
A. Total debits equal total credits.
B. Total credits exceed total debits
C. Total debits exceed total credits.
D. None of these.
20. The statement of changes in equity would not show
A. Revenues and expenses.
B. The owner's ending capital balance.
C. The owner's initial capital balance.
D. The owner's withdrawal for the period
21.If the income statement debit and credit columns in the worksheet are not equal after adding the respective columns:
A. An error has been made.
B. The entity either generated a profit or incurred a loss.
C. The entity generated a profit
D. The entity generated a loss
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