True or False Identification

Transactions are recorded first in the A balance sheet account that is used in
ledger and then transferred to the general combination with another balance sheet
journal. account in order to report the carrying amount
Easy – 2 pts. of an asset.
Identification Average – 3 pts.
What do you call the listing of all the accounts Choose the best answer
with account numbers a business use to record On January 10, Decoy received advance
economic transactions? payment of services. The required services
Easy – 2 pts. were performed in February and the actual
Identification billing, accounting for the amount of services
What is the 1st step in the Accounting Cycle? rendered were sent to client in March. The
Easy – 2 pts. revenue under accrual should be included in
Identification the report for
Value received is recorded in what side of the  January
account?  February
Easy – 2 pts.  March
Choose the best answer  Either January or February
The following are at their normal balances, Average – 3 pts.
except: Choose the letter of the best answer
Dr. Cr. Which of the following errors are not detected
 Notes Payable Yes by a trial balance:
 Cost of Sales Yes a. Erroneous amount was posted to the
 Accounts Receivable Yes account
 Depreciation Expense Yes b. A balance was entered in the wrong
Easy – 2 pts. balance column
Choose the letter of the best answer c. Recording an entry but with the same
The business deposited to the bank its cash erroneous debit and credit amounts
collection from outstanding accounts d. A debit balance was recorded on the
receivable from customer. Which of the trial balance as a credit or vice versa, or
following could best describe the effect of the a balance was omitted entirely
transaction? Difficult – 5 pts.
a. Increase in asset, decrease in payable Choose the best answer
b. Increase in asset, decrease in another The precollection is P600. This is applicable for
asset six-month rental period ending January 31,
c. Increase in asset, increase in liabilities 2017. The Statement of Financial Position to
d. Increase in asset, decrease in liabilities be prepared is dated December 31, 2016. If
Average – 3 pts. the precollection was recorded under the
Identification income method, the liability to be recorded
What do you call the changing or reversing the would be
order of numbers that causes a discrepancy in  500
the total debits and credits of a trial balance?  50
Average – 3 pts.  550
Modified True or False  100
The process of transferring the debit Difficult – 5 pts.
and credit values in the journal to their
respective account in the ledger is journalizing.
Average – 3 pts.
Choose the letter of the best answer Bonus Question
If an accountant fails to make an adjusting If you can move 2 matches, what’s the biggest
entry at the end of a fiscal period to record possible number? (Clue: More than 3-digits)
expired insurance, the omission will cause
a. Liabilities to be overstated
b. Liabilities to be understated
c. Total assets to be understated
d. Total expenses to be understated
e. Total revenue to be understated
Difficult – 5 pts.
Prepare adjusting entry
X Co. acquired a building on July 31, 2016 at a
cost of P5,500,000. The building has an
estimated useful life of 40 years and an
estimated salvage value of 10% of cost.
Difficult – 5 pts.
Read the statement carefully
The company estimates that 5% of accounts
receivable will be uncollectible. The total credit
sales for the year 2017 were P1,000,000. The
company recorded a provision for the
estimated uncollectible accounts.
Difficult – 5 pts.
Bonus Question
Find z.
1=5
2 = 10
3 = 15
4 = 10
5=z
Bonus Question
Which city has 3/7 of a chicken, 2/3 of a cat
and half a goat?
 London
 Taipei
 Berlin
 Rome
 Chicago
 Paris
Bonus Question
Which statement here is true?
 One Statement here is False
 Two Statements here are False
 Three Statements here are False
 Four Statements here are False