Accrued Revenue

45. It is a revenue not yet earned but is collected in advance.
A. Accrued Expense.
B. Accrued Revenue
C. Deferred Expense
D. Deferred Revenue

46. Accrued revenues should be reported as:
A. Assets on the balance sheet.
B. Expenses on the income statement.
C. Liabilities on the balance sheet.
D. Revenues on the income statement.
C. Received a bill from Campus News for P300 for advertising in the campus newspaper.
D. Billed the Tiger Football Team P200 for cleaning and laundry services.

45. It is a revenue not yet earned but is collected in advance.
A. Accrued Expense.
B. Accrued Revenue
C. Deferred Expense
D. Deferred Revenue

46. Accrued revenues should be reported as:
A. Assets on the balance sheet.
B. Expenses on the income statement.
C. Liabilities on the balance sheet.
D. Revenues on the income statement.

47.A deferred revenue should be recorded by a:
A. Buyer when a service is received on payment of cash...
B. Seller when a customer pays for a service before the service is rendered
C. Seller when a service is rendered before receipt of cash
D. Seller when a service is rendered on receipt of cash

48. On November 25, 2021, cash is received in advance of rendering services. Assuming that the services have been performed by December 31, 2021, the adjusting entry would be a debit to:
A. Cash and a credit to Service Revenues.
B. Service Revenues and a credit to Accounts Receivable.
C. Unearned Revenues and a credit to Cash.
D. Unearned Revenues and a credit to Service Revenue.

49. The XYZ Garments have P15,000 adjustments for depreciation that is omitted, which of the following financial statement errors will occur?
A. Assets will be understated.
B. Expenses will be overstated.
C. Owner's equity will be overstated.
D. Profit will be understated

50. An adjusting entry cannot include a debit to a(n):
A. Asset and a credit to a liability.
B. Asset and a credit to a revenue.
C. Expense and a credit to an asset.
D. Liability and a credit to a revenue.

51. Which of the following transactions will not result in the recognition of an expense?
A. A cash withdrawal by the owner.
B. Expiration of prepaid insurance.
C. Interest accrued on a bank loan.
D. Use of machinery during the period

52. Which of the following accounts would likely not need to be adjusted at year-end?
A. Land
B. Prepaid Advertising
C. Office Supplies
D. Unearned Revenues

53. Skye Company have a P375,000 equipment used for its operation. The machinery's useful life is determined for only 12 years. At the end of its useful life, its salvage value is P15,000. How much should Skye Company record as its annual depreciation
expense?
A. P31,250
B. P32,500
C. P30,000
D. P37,500

54. The payment of the P19,000 insurance premium for two years in advance was originally recorded as Prepaid Insurance. One year of the policy has now expired. How much is the expired portion?
A. P9,500
B. P10,000
C. P19,000
D. P12,000

55. The payment of the P19,000 insurance premium for two years in advance was originally recorded as Prepaid Insurance. One year of the policy has now expired.
What is the adjusting entry?
A. Debit: Prepaid Insurance and Credit: Insurance Expense P9,500
B. Debit: Insurance Expense and Credit Prepaid Insurance P9,500
C. Debit: Prepaid Insurance and Credit: Insurance Expense P10,000
D. Debit: Insurance Expense and Credit Prepaid Insurance P10,000

56. All employees earn a total of P10,000 per day for a five-day week beginning on Monday and ending Friday. They were paid for the work-week ending December 26.
They worked on Monday, Dec. 29, Tuesday, Dec. 30 and Wednesday, Dec.31. How much is the accrued salary expense?
A. P30,000
B. P40,000
C. P20,000
D. P10,000

57. All employees earn a total of P10,000 per day for a five-day week beginning on Monday and ending Friday. They were paid for the work-week ending December 26.
They worked on Monday, Dec. 29, Tuesday, Dec. 30 and Wednesday, Dec. 31. What is the adjusting entry for the accrued salary?
A. Debit: Salaries Expense and Credit: Salaries Payable P30,000
B. Debit: Salaries Expense and Credit: Salates Payable P20,000
C. Debit: Salaries Expense and Credit: Salaries Payable P40,000
D. Debit: Salaries Expense and Credit: Salaries Payable P10,000

58. The supplies account had a balance of P4,480 on January 1. During the year, P11,000 of supplies were bought. A year-end inventory showed that P6,400 worth of supplies are still on hand. How much is the consumed portion of the supplies?

A. P9,080
B. P4,480
C. P12,920
DP11.000

59. The supplies account had a balance of P4,480 on January 1. During the year, P11,000 of supplies were bought. A year-end inventory showed that P6,400 worth of supplies are still on hand. What is the adjusting entry?
A. Debit: Supplies Expense and Credit Supplies P9,080
B. Debit: Supplies Expense and Credit Supplies P4,480
C. Debit: Supplies Expense and Credit Supplies P12,920
D. Debit: Supplies Expense and Credit Supplies P11,000