Which of the following correctly describes revenues?

Select one:
a.Economic claims of the owners to a business
b.Amount charged to the capital as cost of rendering services to a client
c. Increase in owner’s equity due to rendering service to a client
d.Properties or resources owned by the business
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Your answer is incorrect.
The correct answer is: Increase in owner’s equity due to rendering service to
a client
Question 2
Question text
Which of the following is an operating cash flow?
Select one:
a.Payments to suppliers
b.Withdrawals of cash by owners
c.Payment for purchased equipment
d.Payments to banks for loan borrowings
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Your answer is correct.
The correct answer is: Payments to suppliers
Question 3
Incorrect
Mark 0.00 out of 1.00
Question text
An adjusting entry is erroneously recorded twice. Which of the following
statements will occur?
a.Equity will be overstated
b.Net income will be understated
c.Expenses will be understated
d.Assets will be overstated
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Your answer is incorrect.
The correct answer is:
Net income will be understated
Question 4
Incorrect
Mark 0.00 out of 1.00
Question text
All of the following are uses of cash in investing activities, except
Select one:
a.Cash withdrawals by the business owner
b.Cash payment for construction of building
c.Cash payment to acquire furniture and fixtures
d.Cash payment to acquire equipment
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Your answer is incorrect.
The correct answer is: Cash withdrawals by the business owner
Question 5
Correct
Question text
The bookkeeper is
a.the recording of financial transactions and is part of the process of
accounting in business.
b.the process of recording, classifying and summarizing business
transactions for the proper determination of correct tax declarations and
payments.
c.the artist of recording, classifying, and summarizing in a significant
manner and in terms of money, transactions and events which are, in part at
least of financial character, and interpreting the results thereof.
d.the person who keeps and maintains the books of accounts of the
business organization, and is responsible for recording the transactions of
the business.
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Your answer is correct.
The correct answer is:
the person who keeps and maintains the books of accounts of the business
organization, and is responsible for recording the transactions of the
business.
Question 6
Correct
Question text
Which one of the following statements is correct?
Select one:
a.Assets and revenues normally have credit balances
b.Assets and liabilities normally have credit balances
c.Assets and expenses normally have debit balances
d.Liabilities and revenues normally have debit balances
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Your answer is correct.
The correct answer is: Assets and expenses normally have debit balances
Question 7
Correct
Question text
Adjust DoIt Company reported the following unadjusted balances at year-
end:
Debit Credit
Accounts Receivable P8,000,000
Allowance for doubtful accounts 16,000
Net credit sales 7,500,000

The company estimates that 3% of the net credit sales would become
uncollectible.

What amount should be reported as doubtful accounts expense for the

a.P240,000
b.P225,000
c.P160,000
d.P224,000
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Your answer is correct.
The correct answer is:
P225,000
Question 8
Incorrect
Question text
The purpose of adjusting entry is to
a.Prove that total debits and total credits are equal
b.Detect and correct an erroneous recording of transactions
c.Properly match the expenses and revenues
d.Facilitate the preparation of financial statements
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Your answer is incorrect.
The correct answer is:
Properly match the expenses and revenues
Question 9
Correct
Question text
Businesses must register in the following except
a.Department of Business and Management
b.Department of Trade and Industry
c.Securities and Exchange Commission
d.Cooperative Development Authority
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Your answer is correct.
The correct answer is:
Department of Business and Management
Question 10
Correct
Question text
A trial balance will not disclose that an error has been made in
Select one:
a.Posting amount to the wrong ledger account
b.Entering an amount on the wrong side of an account
c.Transferring an account balance from the ledger to the trial balance
d.Computing the balance of an account
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Your answer is correct.
The correct answer is: Posting amount to the wrong ledger account
Question 11
Incorrect
Question text
All of the following are cash flows in the financing activities of a business,
except
Select one:
a.Cash withdrawals by owners
b.Cash payment to suppliers
c.Cash proceeds and payments to bank borrowings
d.Cash investment by owners
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Your answer is incorrect.
The correct answer is: Cash payment to suppliers
Question 12
Correct
Question text
Gross profit is calculated as
Select one:
 a.Net sales less goods available for sale
b.Gross sales less sales returns and discounts less merchandise inventory
at the end of the period
c.Net sales less cost of goods sold
d.Net sales less merchandise inventory purchased
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Your answer is correct.
The correct answer is: Net sales less cost of goods sold
Question 13
Correct
Question text
In the accounting process, which step follows journalizing?
Select one:
a.Posting to the ledger
b.Preparation of trial balance
c.Preparation of financial statements
d.Documentation
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Your answer is correct.
The correct answer is: Posting to the ledger
Question 14
Correct
Question text
A prepaid expense is a/an
a.Revenue
b.Expense
c.Equity
d.Asset
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Your answer is correct.
The correct answer is:
Asset
Question 15
Correct
Question text
A statement that shows the listings of assets, liabilities and equity of an
entity
Select one:
a.Balance sheet
 b.Income statement
c.Notes to the financial statements
d.Statement of cash flows
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Your answer is correct.
The correct answer is: Balance sheet
Question 16
Correct
Question text
The obligations of an enterprise to non-owners
Select one:
a.Expenses
b.Liabilities
c.Revenues
d.Assets
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Your answer is correct.
The correct answer is: Liabilities
Question 17
Incorrect
Question text
All of the following are sources of cash from operating activities, except
Select one:
a.Cash receipts from rendering services
b.Cash collection from customers
c.Cash proceeds from bank borrowings
d.Cash receipts from sale of goods
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Your answer is incorrect.
The correct answer is: Cash proceeds from bank borrowings
Question 18
Incorrect
Question text
Which of the following would appear in a balance sheet?
Select one:
a.Cash receipts during the period
b.Cash balance at the end of the period
c.Cash balance at the beginning of a period
 d.Cash payments during the period
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Your answer is incorrect.
The correct answer is: Cash balance at the end of the period
Question 19
Incorrect
Question text
Which of the following would appear in an income statement?
Select one:
a.Cash receipts from revenues
b.Revenue whether collected or not
c.Revenues that are collected
d.Revenues that are not yet collected
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Your answer is incorrect.
The correct answer is: Revenue whether collected or not
Question 20
Correct
Question text
Which of the following gives the best definition of bookkeeping?
a.To record, classify and summarize financial transactions and events.
b.To calculate the amount of tax to be paid to BIR.
c.To calculate the amount of profit to be paid to investors.
d.To provide financial information to users.
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Your answer is correct.
The correct answer is:
To record, classify and summarize financial transactions and events.