1. Deferred revenues occur when: A. Goods or services are available B. Cash already received but not yet earned C. Expense has been incurred D. You paid it already
1. Deferred revenues occur when: A. Goods or services are available B. Cash already received but not yet earned C. Expense has been incurred D. You paid it already
1. Deferred revenues occur when: A. Goods or services are available B. Cash already received but not yet earned C. Expense has been incurred D. You paid it already
3. When a lessor paid an advance payment to a lessee for two years rent and records this using the expense method, what should be the credited account at year end (first year)?
A. Debit cash
B. Debit an expense account
C. Debit a liability account
D. Credit an expense account
4. When a business makes an adjusting entry at year-end with a debit to supplies, the usual credit entry is made to:
A. Accounts receivable
B. Cash
C. Supplies expense
D. Income summary
5. The adjusting entry required to record accrued liability includes:
A. A credit to liability
B. A debit to an asset
C. A credit to an cash
D. A debit to liability
6. When a newspaper sells subscriptions to customers, it is an example of:
A. Accrued liability
B. Accrued revenue
C. Prepaid expense
D. Unearned revenue
7. Making rent payment in advance is an example of:
A. Accrued liability
B. Accrued revenue
C. Prepaid expense
D. Unearned revenue
8. It is the exact opposite of a related adjusting entry made at the end of accounting period?
A. Correcting Entry
B. Closing Entry
C. Initial Entry
D. Reversing Entry
9. Aside from accruals, which of the following can be reversed?
A. Deferrals initially recorded in the income statement (income or expense)
B. All deferrals
C. Accounts that have been closed
D. All temporary accounts
10. Reversing entry should be made for any adjusting entry that?
A. Increased an asset account only
B. All temporary accounts
C. Increased a liability account only
D. Increased an asset or a liability
11. ABM company purchased 800,000 in supplies this year. Supplies account increased by ₱200,000 during the year. ₱160,000 remained at year-end. What was supplies expense for ABM company during the year?
A. ₱300,000
B. ₱760,000
C. ₱200,000
D. ₱840,000
12. On December 31, 20XX, the recorded ending accounts receivable of ABM company was ₱150,000 with an estimated of ₱36,000 receivables which will not be collected. Accounts receivable in the 2019 Statement of Financial Position will be valued at:
A. ₱114,000
B. ₱186,000
C. ₱150,000
D. ₱36,000
13. ABM company reported supplies of ₱500,000 this year. In which ₱336,000 of supplies was used. At year-end the remaining supplies is ₱400,000. What was the cost of supplies purchased during the year?
A. ₱236,000
B. ₱164,000
C. ₱400,000
D. ₱0
14. ABM company purchased a two-year fire insurance coverage policy on June 1, 20XX with a cost of ₱200,000. At its December 31, 20XX, how much should be recorded as an expense?
A. ₱100,000
B. ₱50,000
C. ₱200,000
D. ₱0
15. On March 1, 20XX, ABM company sold 300 one-year subscriptions for ₱15 each. The total amount received was credited to subscriptions revenue. How much should be recorded as liability?
A. ₱750
B. ₱4,500
C. ₱3,750
D. ₱0
16. It contains all the accounts (assets, liabilities, owner’s equity, revenues, and expenses) maintained by the business.
A. journal
B. ledger
C. worksheet
D. receipt
17. It pertains to the initial recording of transactions that occurred. This includes the date, the account debited or credited, and its short description written chronologically.
A. posting
B. journalizing
C. adjusting
D. analyzing
18. It refers to the procedure of transferring information from the journal to the ledger.
A. posting
B. journalizing
C. transaction analysis
D. adjusting
19. It is called the book of final entry.
A. ledger
B. worksheet
C. journal
D. receipt
20. This is what the line items of the ledger are called.
A. ledger entries
B. adjusting entries
C. journal entries
D. original entries
21. This is the book of original entry.
A. ledger
B. special journal
C. subsidiary ledger
D. general journal
22. This is the book of final entry.
A. general journal
B. general ledger
C. subsidiary ledger
D. special journals
23. This is used to record purchases on account.
A. sales journal
B. purchase journal
C. general journal
D. cash receipts journal
24. This is used to record sales on credit.
A. cash disbursement journal
B. purchase journal
C. sales journal
D. ledger
25. This is used to record cash receipts.
A. ledger
B. cash receipts journal
C. cash disbursement journal
D. journal
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
