An economic transaction orevent that affects an entity’s assets, liability, equity, income or expense is
Question 17Answer a. recorded in the books of accounts. b. posted in the ledger. c. an accountable
event. d. all of these
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An economic transaction or event that affects an entity’s assets, liability, equity, income, or expense is:
c. an accountable event.
When payment is made to a supplier for goods previously purchased on account, the debit is to:
Question 18Answer a. an owner’s equity account b. an owner’s equity account c. an asset account d. a
liability account
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When payment is made to a supplier for goods previously purchased on account, the debit is to:
d. a liability account
The complete sequence of accounting procedures for an accounting period is frequently called the:
Question 19Answer a. work sheet process b. opening and closing cycle c. accounting cycle d. fiscal cycle
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The complete sequence of accounting procedures for an accounting period is frequently called the:
c. accounting cycle
If assets are P 98,000 and liabilities are P 32,500, the amount of owner’s equity is Question 20Answer a.
P98,000 b. P130,500 c. P65,500 d. P32,500
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To calculate the amount of owner’s equity, use the accounting equation:
Owner’s Equity=Assets−Liabilities\text{Owner's Equity} = \text{Assets} - \
text{Liabilities}Owner’s Equity=Assets−Liabilities
Given:
Assets = P 98,000
Liabilities = P 32,500
Owner’s Equity=P98,000−P32,500=P65,500\text{Owner's Equity} = P 98,000 - P 32,500 = P
65,500Owner’s Equity=P98,000−P32,500=P65,500
So, the amount of owner’s equity is:
c. P 65,500
Amounts entered on the left side of an account are Question 21Answer a. abnormal balances. b. credits.
c. leftists. d. debits.
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Amounts entered on the left side of an account are:
d. debits.
Which of the following statements is correct? Question 22Answer a. A group of accounts for a business
entity is called a Journal. b. The process of recording a transaction in a journal is called posting. c. A
listing of all the accounts in a ledger is called a chart of accounts. d. All the statements above are correct.
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The correct statement is:
c. A listing of all the accounts in a ledger is called a chart of accounts.
it is list of all the accounts used by a business. Question 23Answer a. T-account b. organizational chart c.
ledger d. chart of accounts
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It is a list of all the accounts used by a business:
d. chart of accounts
Unsold goods at the end of an accounting period are reported in the balance sheet as Question
24Answer a. inventory. b. cost of goods sold. c. accounts payable. d. accounts receivable
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Unsold goods at the end of an accounting period are reported in the balance sheet as:
a. inventory.
