Quiz 1
Determine if the account is Asset, Liabilities, Equity, Income, Expense and determine which Financial Statement will the account appear: Statement of Financial Position (SFP), Income Statement (IS)
Element Financial Statement
(1) Cash -
(2) Accounts Payable -
(3) D. Capital -
(4) Loans Payable -
(5) Notes Receivables -
(6) Inventories -
(7) Sales -
(8) Service Income -
(9) Utilities Expense -
(10) Supplies Expense -
(11) Inventories -
(12) Accounts Receivables -
(13) Prepaid Expense -
(14) Unearned Income -
(15) Accrued Expense -
Quiz 2
Accounting Equation. Identify the missing item in the equation.
1. The assets of Lee Company are P120,000 and the liabilities are P30,000. What is the amount of the owner's equity?
2. A real estate agency has liabilities of P530,000 and owner's equity of P410,000. What is the total assets?
3. The assets of Ellice are P240,000 and the owner's equity is P50,000. What is the amount of the liabilities?
4. The liabilities of Lea Bakeshop equal 1/5 of the total assets. The owner's equity is P40,000. What is the amount of liabilities?
5. At the beginning of the year, Lebron Internet Café's assets were P45,000, and its equity was P25,000. During the year, assets were increased by P30,000 and liabilities increased by P5,000. What was the owner's equity at the end of the year?
6. At the beginning of the year, Gian Travel had liabilities of P50,000 and owner's equity of P96,000. If assets increased by P40,000 and liabilities decreased by P30,000, what was the owner's equity at the end of the year?
7. Bill, a grocer, had assets as listed: Cash, P5,000; Merchandise Inventory, P35,165; Furniture and Fixtures, P15,280; Store Equipment, P12,800. The only liability is Accounts Payable P38,600. What was his total owner's equity?
8. Total assets of Harold Hercules equal P1,800,000 and owner has a 80% interest over it. What is the amount of his liabilities?
9. Gia opened a travel agency by investing cash of P50,000 and a car worth P750,000. She also borrowed P100,000 from the bank for use in her business. What is the amount of total equity?
10. Total assets of Moon River Co. amounts to P2,550,000 and total liabilities of P1,020,000. What is the percentage of the total equity as to the total assets (Round to nearest whole number)
EXAM
Part I. True or False
1. Accounting is a service activity. Its function is to provide quantitative information about economic entities that is intended to be useful in making economic decisions.
2. Accounting is often characterized as the language of business
3. A partnership is always owned by two individuals.
4. A separate legal entity organized in accordance with codes and laws and in which ownership is divided into shares of stock is referred to as a partnership.
5. The time period concept requires all companies to use an accounting period ending December 31.
6. Asset is a resource controlled by the enterprise as a result of past events and from which future economic benefits are expected to flow to the enterprise.
7. Assets can be found in the income statement
8. Accounts Receivable is an example of liability account.
9. From the accounting viewpoint, the sole proprietorship is generally distinct from its proprietor. There are instances that the proprietor's personal financial statements are considered in the sole proprietorship.
10. A corporation is a business owned by its stockholders.
11. Unit of Measure is stating assets and liabilities and changes in them in terms of a common financial denominator is a prerequisite in measuring financial position and periodic net income.
12. Going concern assumes that the business is a continuing concern or that it has an indefinite existence.
13. When a company uses cash basis method of accounting, the company will record an income when it rendered service on account.
14. Income is the residual interest in the assets of the enterprise after deducting all its liabilities.
15. Cost concept is a principle that assets should be recorded based on cash which is the amount exchanged at the time purchase or equal to cash basis if no amount was exchanged at the time of acquisition.
Part II. Identification
1. These users need financial information because they have interest in information about the continuance of an enterprise, especially when they have a long-term involvement with, or are dependent on, the enterprise
2. The components of the balance sheet are ____________, ________________, _________________.
3. This financial statement shows the income and expenses of the company
4. These users are interested on the return on their investment and determine whether they should invest further, or sell their investment
5. This is a type of business organization wherein two or more persons bind themselves to contribute money, property, industry to a common fund with the intention of dividing the profits among themselves.
6. This business document is issued when a company collected cash from its customers for the services rendered.
7. This user of financial statements wants to know first where you are going to use the money, whether the project you presented is feasible or not and whether you will be able to pay the loan on its due date.
8. Identify the accounting principle applied in the situation. Melvin Balbi owns both A+ Gym and Bayside Restaurant. In recording the assets, Melvin makes sure that the assets of A+ Gym are kept separate from the assets of Bayside.
9. Identify the accounting principle. All business transactions are measured and recorded using only one unit of measure.
10. This principle requires that financial data entered in the records must be verifiable and substantiated by documents such as invoices, vouchers or official receipts.
11. This is a type of business activity that companies purchase goods that are ready for sale and then sell these to customers
12. In the time concept of accounting, this is a twelve month accounting period that ends other than December 31.
13. This business document is issued by the company to the customer for service rendered or merchandise given for which payment is demandable.
14. These users are interested in information about the ability of the enterprise to provide salaries, retirement benefits and job security.
15. The business activity that companies buy raw materials, convert them into products and then sell the products to other companies or to final consumers.
Part III. Accounting Equation
1. At the beginning of the year, Cio's assets were P45,000, and its equity was P25,000. During the year, assets were increased by P30,000 and liabilities increased by P5,000. What was the owner's equity at the end of the year?
2. Total assets of Justin Su equal P2,000,000 and owner has a 70% interest over it. What is the amount of his liabilities?
3. Gerry had assets as listed: Cash, P5,000; Merchandise Inventory, P40,000; Furniture and Fixtures, P15,000; Store Equipment, P12,000. The only liability is Accounts Payable P40,000. What was his total assets?
4 . Bing opened a dental clinic by investing cash of P50,000. She also borrowed P100,000 from the bank for use in her business. She purchased office equipment in cash amount to P25,000. What is the amount of total assets?
5. The liabilities of G Corp. equal 1/3 of the total assets, and the owner's equity is P480,000. What is the amount of liabilities?
Part IV. Prepare Financial Worksheet
10/1 Jack Gaspar invested P200,000 cash as initial capital and formed JG. JG is engaged in
rendering accounting services
10/3 Borrowed cash from the bank, P38,800.00
10/10 Purchased office supplies to Rose Office Supply on account amounting to P19,100.00
10/15 Paid for Furniture and Fixtures, P21,500 and Office Equipment set amounting to P20,000 to Jack's Appliances
10/20 Bought vehicle amounting to P267,000.00. The company paid P40,000.00 cash and the
balance is through loan.
10/25 Partially paid Rose Office Supply for the office supplies purchased, P6,100.00
10/31 Withdraw P2,000 from the business for personal use
Requirements:
- Prepare a Financial Worksheet (use the following accounts: Cash, Office Supplies, Furniture and Fixtures, Office Equipment, Vehicle, Accounts Payable, Loans Payable Gaspar, Capital