16. A medical clinic recorded cash received for services rendered. The effect of this transaction in the Accounting equation is: a. Increase asset and owner’s equity (revenues) b. Increase both assets and liabilities c. Increase liabilities and owner’s equity d. Increase asset and decrease another form of asset.
16. A medical clinic recorded cash received for services rendered. The effect of this transaction in the
a. Increase asset and owner’s equity (revenues)
b. Increase both assets and liabilities
c. Increase liabilities and owner’s equity
d. Increase asset and decrease another form of asset.
17. A medical clinic recorded cash received for services rendered. The effect of this transaction in the
accounting equation is:
a. Increase asset and owner's equity (revenues)
b. Increase both assets and liabilities
C. Increase liabilities and owner's equity
d. Increase asset and decrease another form of asset.
18. B Company reported the following unadjusted balances at year-end:
Allowance for doubtful accounts 125,000
Net credit sales 8,500,000
The company estimates that 3.2% of the net credit sales would become uncollectible.
What amount should be reported as doubtful accounts expense for the current year?
a. P272,000
b. P11,000
c. P136,000
d. P147,000
19, An asset has been acquired for P200,000. It is estimated to have a useful life of 10 years and salvage value of P40,000. How much is the annual
a. P16,000
b. P24,000
c. P12,000
d. P20,000
20. Which of the following does not affect owner’s equity?
a. Results of operation for the period
b. Owner’s additional investment
c. Payments to creditors
d. Withdrawal by the owner
21. When a customer returns merchandise purchased on cash basis, in recording the transaction, the Account debited is
a. Cash
b. Sales returns and allowances
c. Accounts receivable
d. Purchase returns and allowances
22. To record the transaction of purchasing merchandise inventory, the accounts to be debited using the Periodic and perpetual inventory method are
a. Periodic: Purchases
Perpetual: Merchandise Inventory
b. Periodic: Merchandise Inventory
Perpetual: Purchases
c. Periodic: Purchases
Perpetual: Purchases
d. Periodic: Merchandise Inventory
Perpetual: Merchandise Inventory
23. Closing entries are recorded due to the following purposes, except
a. To apply the concept of time period
b. To properly record the unrecognized revenues and expenses during the accounting period
c. To zero-out the balances of all temporary or nominal accounts
d. To close temporary or nominal accounts so that the revenues and expenses in the current period will not be mixed with the revenues and expenses in the next accounting period.
24. In a perpetual inventory system, recording a sale on account involves debiting
a. Accounts receivable and cost of goods sold
b. Only accounts receivable
c. Accounts receivable and merchandise inventory
d. Accounts receivable, cost of goods sold and merchandise inventory
25. A corporation must register with the
a. Department of Business and Management
b. Department of Trade and Industry
c. Cooperative Development Authority
d. Securities and Exchange Commission
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