1. Mr. Palomar, owner of Auto Repair Shop, has a customer who made an advance payment for the services not yet rendered. What amount he will be using in recording this transaction A Cash C. Accrued Income B. Unearned Income D. Prepaid Expenses 2. This refers to advance payment made by the customers for goods and services not yet delivered A Notes Payable C. Prepaid Expense B. Accrued Expenses D. Unearned Income 3. This is supported by an oral promise to pay by the business, normally for a short term liability A. Accounts Payable B. Loan Payable 4. An account that decreases owner's equity. C. Notes Payables D. Mortgage Payable A. Withdrawals B. Income C. Payables D. Receivables 5. Company's Total Liabilities and Equity amounted to Php 485,000. Total noncurrent assets ended at Php 95,000 Cash totaled Php40.000. Inventory amounted to Php200.000. Assuming the company had no other assets, how much is Accounts Receivable? A P 185.000 C. P 50,000 B. P 150.000 D. P 130,000 6. This account refers to the money readily available to be used in the company's operation. A. Inventory C. Payable B. Receivable D. Cash 7. Mr. Cruz has unsold merchandise that the company purchased for the purpose of reselling to its customers. This account refers to as A. Inventory C. Cash B. Supplies D. Receivable 8. These are resources that are within the control of the company and have future benefits. A. Liabilities C. Equity B. Capital D. Assets 9. A statement that reports the sources available for the company to use, obligation that the company is required to settle and the equity that belongs to the owners of the company. A. Statement of Financial Position B. Statement of Comprehensive Income C. Auditor's Report D. Statement of Management's Responsibility 10. It is equal to the net assets of the business. A. Inventory B. Cash C. Equity D. Account Receivable