1) In the accounting cycle, which of the following is considered the output document?

a. Worksheet

b. Journal

c. Ledger

d. Financial Statements

2) A companyborrowed P60,000 from the bank and used all of the money to re-design its new store.BTS'balance sheet would show this as:

a. P60,000 underFurnishings & Equipment and P60,000 under Notes Payable.

b. P60,000 under Prepaid Expenses and P60,000 under Accrued Liabilities.

c. P60,000 under Supplies and P60,000 under Accounts Payable.

d. P60,000 under Other Assets and P60,000 under Other Liabilities.

3) If a P5,000 adjustment for bad debts expense is omitted, which of the following financial statement errors will occur?

a. Net income will be understated

b. Expenses will be overstated

c. Assets will be understated

d. Owner's equitywill be overstated

4) How would the proceeds received from the advance sale of non-refundable tickets for a theatrical performance be reported in the seller's financial statements before the performance?

a. Unearned revenue to the extent of related costs expended.

b. Revenue to the extent of related costs expended.

c. Revenue for the entire proceeds

d. Unearned revenue for the entire proceeds

5) At the end of the month, the adjusting journal entry relating to the use of supplies under the asset method would include a:

a. debit to Supplies and a credit to a revenue account.

b. credit to Supplies and a debit to Supplies Expense.

c. debit to Supplies and a credit to Supplies Expense.

d. credit to Supplies and a debit to Cash.

6) The following adjustment items need reversing entries, which is the exception?

a. Accrued Salaries Expense

b. Prepaid Insurance( Asset Method )

c. Unearned Advertising ( Income Method

d. Accrued Rent Income

7) Accounting information serves a governance function when it is used by:

a. managers to make a business decision.

b. investors to vote on company policies.

c. government officials to regulate the business and its financial records.

d. directors to oversee the business.