1. Which of the following assets is NOT subject to depreciation?

A. art equipment B. computer C. landD. store furniture

2. Which of the following is example of accrual?

A. Collected tuition fees.

B. Payment of electric bill.

C. Salaries incurred but not yet paid.

D. Three years insurance paid in advance.

3. Which of the following statement/s is/are NOT correct for application of accrual accounting?

I. Adjusting unearned advertising revenues to the proper balance at the of the month.

II. Recording advertising revenues at the time the cash payment is received.

III. Recording advertising revenues at the time the work is done.

IV. Recording telephone expense when the monthly bill is received.

A. I

B. II

C. III, IV

D. I, III, IV

4. Maria recorded unpaid salaries worth Php10,000.00 last May 5, 2020. At the end of the month, she finds out the recorded salaries expense was overstating of Php2,000.00. Which of the following adjustment of salaries expense to correct the entry of Maria at the end of the month?

A. Dr. Salaries Expense Php8,000.00 and Cr. Cash Php8,000.00

B. Dr. Salaries Expense Php8,000.00 and Cr. Salaries Payable Php8,000.00

C. Dr. Salaries Payable Php2,000.00 and Cr. Cash Php2,000.00

D. Dr. Salaries Payable Php2,000.00 and Cr. Salaries Expense Php2,000.00

5. For the year 2019, MCP radio station received Php14,000.00 in advertising fees, which was recorded as advertising income account. For the month of May 31, 2019, how much is the amount of advertising income of the company?

A. 1,666.67 B. 3,500.00 C. 5,833.33 D. 14,000.00

6. Which of the following transactions results an increase in expense?

A. payment on accounts payable

B. payment of bank loans

C. payment of rent

D. purchase of office equipment

7. Chrisma Ganda borrowed Php100,000.00 by issuing a 1 - year note with 7% annual interest to Carolina Saving Bank on October 1, 2019. Using the accrual method, what should be the adjusting entry of Chrisma Ganda for the year ended of December 31, 2019?

A. Dr. Interest Expense Php583.33 and Cr. Cash Php 583.33.

B. Dr. Interest Payable Php1,750.00 and Cr. Cash Php 1,750.00.

C. Dr. Interest Payable Php 583.33 and Cr. Interest Expense Php 583.33.

D. Dr. Interest Expense Php1,750.00 and Cr. Interest Payable Php1,750.00

8. Rio received an Php18,000.00 cash advance for a contract to provide services in the future. The contract required a 1-year commitment starting April 1, 2020. If you are the bookkeeper of Rio, what do you think is the correct adjusting entry on December 31,2020 using the liability method?

A. Dr. Cash Php18,000.00 and Cr. Unearned Service Income Php18,000.00.

B. Dr. Accounts Receivable Php18,000.00and Cr. Unearned Service Income Php18,000.00.

C. Dr. Service Income Php13,500.00 and Cr. Unearned Service Income Php13,500.00.

D. Dr. Unearned Service Income Php13,500.00 and Cr. Service Income Php13,500.00.

9. Assume that Jiho acquired cleaning supplies in the amount of Php260,000.00. At the end of December 31, 2020, the supplies amounted to Php110,000.00. Using the asset method, how do you record the adjusting entry of Jio at the end of December 31, 2020?

A. Dr. Office Supplies Php260,000.00 and Cr. Cash Php260,000.00.

B. Dr. Office Supplies Expense Php110,000.00 and Cr. Office Supplies

Php110,000.00.

C. Dr. Office Supplies Php150,000.00 and Cr. Accounts Payable Php150,000.00.

D. Dr. Office Supplies Expense Php150,000.00and Cr. Office Supplies Php150,000.00.

10. Last August 2, 2020, Cedric Cleaners Company received Php360,000.00 from Cenric Manpower janitorial uniforms over the next 3 years. What should be the correct adjusting entry of Cedric Cleaners Company for the year ended December 31,2020 using the revenue method?

A. Dr. Cleaning Revenues Php310,000.00 and Cr. Unearned Cleaning Revenues Php310,000.00.

B. Dr. Unearned Cleaning Revenues Php310,000.00 and Cr. Cleaning Revenues Php310,000.00.

C. Dr. Cleaning Revenues Php50,000.00 and Cr. Unearned Cleaning Revenues Php50,000.00.

D. Dr. Unearned Cleaning Revenues Php10,000.00 and Cr. Cleaning Revenues Php10,000.00.