1.The entity assumption holds that an organization must be viewed as a unit that is. Single choice. (2 Points) part of its owner separate from its owner owned partially by creditors and partially by owners owned exclusively by one owner 2.Posting is the process of transferring information from. Single choice. (2 Points) ledger to the trial balance. journal to the trial balance. ledger to the financial statements. journal to ledger. 3.Which of the financial statement "details" the accounting equation?. Single choice. (2 Points) Statement of Cash Flows Statement of Financial Position Statement of Owner's Equity Income Statement 4.The collection of an accounts receivable will. Single choice. (2 Points) decrease total assets have no effect in total assets increase total revenues increase total assets 5.The balance sheet of Sunshine Company shows that capital is P540,000 that is equal to 1/3 of its total assets. How much are the total liabilities?. Single choice. (2 Points) P1,080,000 P1,620,000 P180,000 P720,000 6.Which type of business organization is owned by the stockholders?. Single choice. (2 Points) Sole Proprietorship Partnership Cooperative Corporation 7.Which of the following transactions causes total assets to increase?. Single choice. (2 Points) Payment of Salaries to employees. Collection of Accounts Receivable from the debtor. Purchase of Supplies on account All of the given 8.Quarter Post Services purchased three computers and three printers for the total cost of P50,000 cash. This transaction had the following effects on Quarter Post Services accounting equation:. Single choice. (2 Points) Assets: Increased P50,000; Liabilities: Increased P60,000; Capital: Decreased P10,000 No Assets: Increased P50,000; Liabilities: No change; Capital: Decreased P50,000 Assets: No change; Liabilities: No change; Owner's Equity: No Change Assets: Increased P50,000; Liabilities: No change; Owner's Equity: Increased P50,000 9.The following adjusted balances were taken from the records of Sunny Co. as of December 31, 2020. Cash 5,000.00 Sunny, Capital 32,000.00 Sunny, Drawing 3,500.00 Taxes Expense 2,200.00 Accounts Receivable 6,500.00 Fees Earned 45,000.00 Salaries Expense 12,000.00 Notes Receivable 4,500.00 Equipment 28,500.00 Rent Expense 8,500.00 Utilities Expense 3,200.00 Supplies 3,000.00 Accounts Payable 7,000.00 Furniture & Fixtures 22,000.00 Notes Payable 3,000.00 Representation Expense 3,500.00 Accrued Interest 2,000.00 Miscellaneous 1,600.00 How much is the total Liabilities. Single choice. (3 Points) P10,000.00 P9,000.00 P12,000.00 P11,500.00 10.A collection of P3,000 from a customer on account was recorded as a debit __________ and as a credit to _____________.. Single choice. (2 Points) Accounts Receivable ; Cash Cash; Accounts Payable Cash; Accounts Receivable Accounts Payable; Cash 11.On March 31, the ledger for Malinis Cleaning Service consists of the following Cleaning Equipment P2,780 Accounts Receivable P2,100 Accounts Payable 1,570 Cash 690 Max, Capital 3,500 Salaries Payable 960 Office Equipment 1,200 Cleaning Supplies 260 Commissions Payable 1,000 In a trial balance prepared on March 31, the total of the credit column is. Single choice. (3 Points) P3,530 P7,030 P10,530 9,560 12.Compiling adjusting data is the process of. Single choice. (2 Points) Recording transactions as they occur during the period. Recording entries to bring the balances of nominal accounts to zero balances. Recording entries to correct erroneous entries made in the previous period. Gathering and putting together data necessary to update the balances of some ledger accounts. 13.An owner invested P500,000 cash in a business. As a result. Single choice. (2 Points) total owner's equity is unchanged liabilities increased by P500,000 revenues decreased by P500,000 assets increased by P500,000 14.Using the accounting equation, if the total liabilities is P30,000 and the total capital is P70,000, what would be the total assets of the business?. Single choice. (2 Points) P70,000 P40,000 P100,000 answer not given 15.The Accounts Receivable ledger shows the following postings: Beginning balance of P10,000, Service rendered on account P22,000; Balance at the end of P17,000. How much is the amount collected from the customer.. Single choice. (3 Points) P10,000.00 P17,000.00 P15,000.00 P29,000.00 16.A business has Cash of P6,000, Notes Payable of P5,000, Accounts Payable of P8,600, Service Revenue of P14,000, and Rent Expense of P3,600. Based on these data, how much are its total liabilities?. Single choice. (2 Points) P27,000 19,600 P13,600 P11,000 17.The following balances were taken from the ledger of Shell Co. as of December 31, 2020. Cash 5,000.00 Shell, Capital 32,000.00 Shell, Drawing 3,500.00 Taxes Expense 2,200.00 Accounts Receivable 6,500.00 Fees Earned 45,000.00 Salaries Expense 12,000.00 Notes Receivable 4,500.00 Equipment 28,500.00 Rent Expense 8,500.00 Utilities Expense 3,200.00 Supplies 3,000.00 Accounts Payable 7,000.00 Furniture & Fixtures 22,000.00 Notes Payable 3,000.00 Representation Expense 3,500.00 Accrued Interest 2,000.00 Miscellaneous 1,600.00 In the preparation of a trial balance the total debit amounted to how much?. Single choice. (3 Points) P101,000 P106,000.00 P104,000.00 P102,500.00 18.The entry to record the proceeds from a collateralled bank loan is a debit to CASH account while the account that must be credited is. Single choice. (2 Points) Accounts Payable Mortgage Payable Accounts Receivable Interest Expense 19.The purpose of trial balance is to. Single choice. (2 Points) ensure that all transactions have been recorded indicate whether total debits equal total credits prove that recording and postings are free from error gather erroneous data for correcting entry 20.Failure to record Fees Earned on account during the period will affect the assets, liabilities and owner's equity as follows:. Single choice. (2 Points) Assets: Decrease; Liabilities: NO Effect; Owner's Equity Decrease Assets: No Effect; Liabilities: Decrease; Owner's Equity Increase Assets: Increase; Liabilities: NO Effect; Owner's Equity Increase Assets: Increase; Liabilities: Decrease; Owner's Equity Increase 21.The financial statement that shows the liquidity and solvency of the firm.. Single choice. (2 Points) Statement of Owner's Equity Statement of Changes in Cash Flows Statement of Comprehensive Income Statement of Financial Position 22.Proceeds from selling of productive assets, proceeds from collecting the principal amount of loans, payments to purchased property, plant and equipment are included in the cash flows from what activity?. Single choice. (2 Points) Lending Investing Operating Financing 23.The Union Co. purchased the following items for office use: 2 units of computer P 30,000 1 unit Fax Machine P 4,000 2 units of printer 8,000 I unit Aircon 15,000 Terms: Paid a down payment of 60% and the balance payable in 60days. What is the correct journal entry to record the above transaction?. Single choice. (2 Points) Dr. Office Equipment, P57,000; Credit: Cash, P 34,200; Credit: Accounts Payable P22,800 Dr. Office Equipment P57,000; Cr. Accounts Payable Dr. Office Supplies 57,000; Cr. Accounts Payable 57,000 Dr, Office Supplies 57,000; Cr. Cash34,200; Cr. Accounts Payable 22,800 24.Maganda Co. reported total revenues of P84,000 for 2020 as well as: Total liabilities as of December 31, 2020 P140,000 2020 Net Loss 18,000 2020 Total cash payments 4,000 The company's total expenses must have been. Single choice. (2 Points) P 124,000 P102,000 P74,000 P66,000 25.An owner paid P10,000 of personal expenses by using his company's cash. The company's. Single choice. (2 Points) expenses increased by P10,000. revenues decreased by P10,000. assets decreased by P10,000. liabilities decreased by P10,000. 26.Which of the following concepts supports that expenses related to revenue be reported at the same time?Required to answer. Single choice. (2 Points) Matching Concept Business Entity Concept MAteriality Concept Continuity Concept 27.All of the following would be considered revenue except. Single choice. (2 Points) Cash received from a customer for a service to be performed next period Services performed for which cash was previously received Services performed on a cash basis. Services performed on account. 28.Received telephone bill for April in the amount of P1,200 and payable next month. Give the correct journal entry.. Single choice. (2 Points) Debit: Utilities Expense P1,200; Credit: Cash P1,200 Debit: Accounts Payable P1,200; Cash P1,2000.00 Debit: Cash P1,200; Credit: Utilities Expense P1,200 3 Debit: Utilities Expense P1,200; Credit: Accounts Payable P1,200 29.The following adjusted balances were taken from the records of Sunny Co. as of December 31, 2020. Cash 5,000.00 Sunny, Capital 39,000.00 Sunny, Drawing 3,500.00 Taxes Expense 2,200.00 Accounts Receivable 6,500.00 Fees Earned 45,000.00 Salaries Expense 12,000.00 Notes Receivable 4,500.00 Equipment 28,500.00 Rent Expense 8,500.00 Utilities Expense 3,200.00 Supplies 3,000.00 Accounts Payable 2,000.00 Furniture & Fixtures 22,000.00 Notes Payable 1,000.00 Representation Expense 3,500.00 Miscellaneous 1,600.00 How much is the total Assets?. Single choice. (3 Points) P72,500.00 P61,500.00 P 69,500.00 P70,000.00 30.Which of the following items does not affect owner's equity?. Single choice. (2 Points) Owner investments in the business Collection from the debtors Net loss Net income 31.On December 31, 2020, ABC Company had total assets of P160,000 and total liabilities of P40,000. During 2021, the company had total revenues of P140,000 and total expenses of P100,000. Also, during 2021, the owner withdrew P20,000. On December 31,2021, total assets were P300,000. Compute for the owner's equity on December 31, 2021.. Single choice. (3 Points) P160,000.00 P140,000.00 P120,000.00 P260,000.00 32.The following adjusted balances were taken from the records of Sunny Co. as of December 31, 2020. Cash 5,000.00 Sunny, Capital 32,000.00 Sunny, Drawing 3,500.00 Taxes Expense 2,200.00 Accounts Receivable 6,500.00 Fees Earned 45,000.00 Salaries Expense 12,000.00 Notes Receivable 4,500.00 Equipment 28,500.00 Rent Expense 8,500.00 Utilities Expense 3,200.00 Supplies 3,000.00 Accounts Payable 7,000.00 Furniture & Fixtures 22,000.00 Notes Payable 3,000.00 Representation Expense 3,500.00 Accrued Interest 2,000.00 Miscellaneous 1,600.00 How much is the result in the operations of the business during the year?. Single choice. (3 Points) P15,600.00 P12,000.00 P14,000.00 P17,600 33.Payment of P2,500 on account to a supplier will cause. Single choice. (2 Points) liabilities to increase by P2,500 expenses to increase by P2,500 expenses to decrease by 2,500 liabilities to decrease by P2,500 34.On December 31, 2020, ABC Company had total assets of P160,000 and total liabilities of P40,000. During 2021, the company had total revenues of P140,000 and total expenses of P100,000. Also, during 2021, the owner withdrew P20,000. On December 31,2021, total assets were P300,000. Determine the net income for the year 2021.. Single choice. (3 Points) P140,000.00 P40,000.00 P60,000.00 P20,000.00 35.A business has Cash of P6,000, Accounts Payable P2,000, Accounts Receivable of 4,000, Supplies of P1,500, Notes Payable of P5,000, Service Revenue of P14,000, Salaries Expense of 4,400 and Rent Expense of P3,600. Based on these date, how much are its total assets?. Single choice. (3 Points) P13,500 P27,600 P11,500 P19,600 36.An information possesses this characteristic if it is relatively free from error and represents what it claims to represents. Single choice. (2 Points) relevance reliability Understandability comparability 37.. Normal balance of revenue account is. Single choice. (2 Points) debit & credit credit debit answer not given 38.If the activity of the Cash account indicates a beginning balance of P19,500, a collection of receivable of P10,500, and payment of expenses of P12,000, then the cash balance at the end is:. Single choice. (2 Points) A credit balance of P22,000. A debit balance of P22,000 a debit balance of P18,000 a credit balance of P8,000 39.If the business pay their creditors on account, the entry would be:. Single choice. (2 Points) Debit: Accounts Payable; Credit Cash Debit: Accounts Receivable; Credit: Cash Debit: Cash; Credit; Accounts Receivable Debit: Cash; Credit; Accounts Payable 40.A debit to cash account indicates. Single choice. (2 Points) the billing of client for services rendered the payment to creditor the withdrawal of funds from the business the borrowing of money from the bank