ACCOUNTING FLOW
Quiz by Leila Mari Mera
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20 questions
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- Q1The debit side of a trial balance totals P800 more than the credit side. Which one of the following errors would fully account for the difference?A receipt of P800 for commission receivable has been omitted from the recordsP400 paid for plant maintenance has been correctly entered in the cash book and credited to the plant asset accountDiscount received P400 has been debited to discount allowed accountThe petty cash balance of P800 has been omitted from the trial balance30s
- Q2In relation to accounting cycle and accounting documents, which of the following is correct?Adjusting entries, closing entries and reversing entries are recorded in the general ledgerSales journal records the sale or disposal of land on cash basisA general journal chronologically lists transactions and other events expressed in terms of debit and creditAll purchases, whether cash or on account, are recorded on the purchases journal30s
- Q3At the end of the current year, the prepaid insurance account showed a debit balance of P5,000; the balance at the beginning of the year was P6,000, and during the year, the insurance premiums paid amounted to P8,000. Assuming insurance premium payments are initially entered in the prepaid insurance account, the adjusting entry at the end of the year would include:Debit prepaid insurance P9,000Debit insurance expense P7,000Credit prepaid insurance P1,000Debit insurance expense P9,00060s
- Q4The following adjusting journal entry was found on page 7 of the journal. Select the best explanation for the entry.Record payment of the fees earnedRecord the payment of fees earnedRecord fees earned at the end of the monthRecord fees that have not been earned at the end of the month30s
- Q5The business pays weekly salaries of P20,000.00 on friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on thursday isDebit salary expense P16,000; credit salaries payable, P16,000.00Debit salaries payable, P16,000.00; credit cash, P16,000.00Debit drawing P16,000.00; credit cash, P16,000.00Debit salary expense P16,000; credit dividends, P16,000.0060s
- Q6A P4,650.00 debit to utilities expense was incorrectly posted as a P465.00 debit. What is the effect of this error on the trial balance and the utilities expense account?Debit column of trial balance - p 4,185.00 understated; utilities expense - understated by p 4,185.00Debit column of trial balance - p 4,185.00 overstated; utilities expense - overstated by p 4,185.00Debit column of trial balance - p 4,185.00 understated; utilities expense - overstated by p 4,185.00Debit column of trial balance - p 4,185.00 overstated; utilities expense - understated by p 4,185.0045s
- Q7Which of the following is a real account?III AND IVI AND IVII AND IVI , III, AND IV30s
- Q8Which of the following is a temporary or nominal account?I AND IVIII AND IVII AND IIII AND II30s
- Q9Which of the following is an example of an accrued expense?Rent earned during the current year to be received at the end of next yearEquipment purchased at the beginning of the year and debited to an expense accountDepreciation expenseProperty tax incurred during the year to be paid next year30s
- Q10If, during an account period, an expense item has been incurred and consumed but not yet paid for or recorded, then the end-of-period- adjusting entry would involveA receivable account and a revenue accountAn asset or contra asset account and an expense accountA liability account and an expense accountA liability account and an asset account30s
- Q11In replenishing a petty cash fund, which one of the following entries required?Debit cash in bank, credit petty cashDebit petty cash, credit individual expense accountDebit petty cash, credit cash in bankDebit individual expense accounts, credit cash in bank30s
- Q12What is the major purpose of an imprest petty cash fund?To effectively plan cash inflows and outflowsTo effectively control cash disbursementsTo ease the payment of cash to vendorsTo determine the honesty of the petty cashier30s
- Q13When a petty cash fund is used, which of the following statements is true?The cashier's summary of petty cash payments serves as a journal entry that is posted to the appropriate general ledger accountThe reimbursement of the petty cash fund should be credited to the cash accountEntries that include a credit to the cash account should be recorded at the time the payments from the petty cash fund are madeThe reimbursement of the petty cash fund should be credited to the cash account30s
- Q14The voucher system isRequires the preparation of monthly bank statementAn internal control over cash disbursements which require that every disbursement should be supported by a written authorization embodied in a document called voucherAn internal control over cash receipts and disbursements which require that all cash transactions should be supported by written authorization embodied in a document called voucherRequires debiting voucher every time cash disbursements are made60s
- Q15Doms Corp. reported petty cash fund with the following details: A sheet of paper with the names of several employees together with contribution for a birthday gift of a co-employee. Attached to the sheet of paper is a currency of p 5,000.00. The petty cash general ledger account has an imprest balance of p 50,000.00. What is the amount of petty cash fund that should be reported in that statement of financial position?P 27,000.00P 42,000.00P 22,000.00P 37,000.0060s
