1.. Which of the following is a cash inflow from financing activities a. Receipt from collection on notes receivable b. Receipt from interest on notes payable c. Receipt from issuance of notes payable d. Receipt from sale of property and equipment

2. If the income statement debit and credit columns are not equal after adding the respective columns, a. an error has been made. b. the company generated a profit. c. the company incurred a loss. d. the liabilities must exceed the assets. e. the company either generated a profit or incurred a loss. 3. Maria Company bought equipment on January 3 of this year for P100,000. At the time of purchase, the equipment was estimated to have a useful life of nine years and a trade-in value of P10,000 at the end of nine years. Using the straight-line method, the amount of one year's depreciation is a. P11, 110. c. P90,000 b. P12, 220. d. P10, 000

4. Which of the following accounts is not adjusted?

a. Accumulated Depreciation

c. Salaries Payable

b. Depreciation Expense

d. Owner's Capital

e. Prepaid Insurance

5. Withdrawals by the proprietor has all of the following effects except

a. Reduction of cash balance

b. Reduction of owner's equity

c. Reduction of profit for the period

d. Reduction of total assets