Week 13: Long Quiz 002

1 Adjusting and closing entries are prepared at the end of the accounting period. TRUE
2 Certificates of deposits and checks are part of the Cash on Hand and in Banks or simply, Cash account. TRUE

3 A trial balance is also a tool in checking whether the journal entries are accurately done and posted in the TRUE
ledger.
4 The trial balance extracted from the ledger before the adjusting entries are posted in called the adjusted trial FALSE
balance.

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5 Assets are anything of economic value and owned by the business entity. TRUE

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6 The account number is written in the ledger posting reference column during the process of posting. FALSE

7 Maria Clara invested the following in a Parlor: Cash P 60,000, parlor equipment originally costing P 20,000, with P 78,000
a fair market value of P 18,000. Maria Clara's Capital account should be credited for

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8 The summarizing phase of the accounting cycle ends with the preparation of the financial statements. TRUE

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9 Maria Clara rendered parlor services during the month: P 5,000 cash basis and P 3,500 on account. The amount P 8,500

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to be credited to Service Income is

10 The trial balance of Maria Clara Parlor has a total debit balance of P 300,000. Among the accounts listed are P 106,500

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Accounts Payable, P 3,500; Notes Payable, P10,000;Maria Clara, Capital, P180,000. The parlor's revenue is

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11 Using the allowance method, the Accounts Receivable account is credited for the estimated uncollectible from FALSE
customers.

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12 The transaction: Mr. A bought supplies worth P5,000 on credit, will be recorded by an entry debiting Supplies FALSE
P5,000 and crediting Accounts Receivable P5,000.

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13 At all times, if the total of the debit and credit columns of the trial balance are balanced, there is no possible FALSE
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error that occurred during the journalizing and posting stages.
14 A business transaction can have dual effect on a single accounting element or value. TRUE
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15 FALSE
The amount corresponding to a debited account can be written on the credit money column of the journal.
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16 A T-account is a representation of the ledger. TRUE

The parlor's gross revenue for the month is P 100,000 and expenses incurred are 30%. Maria also earned a
17 broker's fee of P 20,000 for selling a real property. The amount of net income that should be reported by the P 70,000
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parlor is
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 18 The process of transferring the journal entries to the ledger is called posting the accounts. TRUE

19 A chart of accounts presents a list of account titles, its definition, description of when to debit or credit and its TRUE
corresponding account numbers.
Mr. X's Capital account has a balance of P 100,000 on March 31, 2017. Withdrawals for personal expenses
20 during April amounted to P 15,000. At the end of April, the Capital account has a balance of P135, 000. Mr. X's P 50,000
net income for April is
21 At the end of the month, Maria Clara Parlor's total Liabilities and Owner's Equity is P 250,000. One fifth of which P 250, 000
is the liability. The parlor's total assets is

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The following information were taken from the balance sheet of Juan Repair shop as of March 31, 2017: Cash

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22 P70,000; Notes Receivable, P10,000; supplies, P5,000; Prepaid Rent,P20,000; total non-current assets, P80,000; P 15,000
Total Liabilities and Capital, P200,000. How much is the Accounts Receivable?

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23 Accumulated Depreciation or Allowance for Depreciation is a contra account of Accounts Receivable. FALSE

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Notes Receivable P 3,500
24 Maria Clara rendered parlor services during the month: P 5,000 cash basis and P 3,500 on account. The service

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Accounts Receivable P3, 500
on credit was converted by the customer to a non-interest bearing note. The entry to record this is

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25 Writing the general journal page number in the F column of the ledger and the account number to the F column TRUE
of the general journal during the posting process is called cross-referencing.

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26 A business transaction to be recognized in accounting should involve exchange of values and quantifiable in TRUE
terms of money

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27 Accounts Receivable is an asset pertaining to collectibles from customers out of sale of goods or services in FALSE
exchange for a written promise to pay at a future date.

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28 The debit and the credit columns of the journal are totaled. FALSE
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29 A's Laundry Shop T-accounts for A, Capital, Laundry Income, Laundry Expenses have normal balances of P P 300,000
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200,000, P 180,000, and P80,000, respectively. What is the new balance for A, Capital at the end of the period?
30 In recording in the general journal, the year and month of the transaction are written once in every page of the
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TRUE
journal.
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