Explain each item, please for my guidance thank you

1. Which of the following is not an application of accrual accounting?

a. Adjusting the accounts

b. Applying the cash basis of accounting

C. Applying the matching rule

d. Recognizing revenues when earned and expenses when incurred

2. The matching rule is applied

a. because it is required by the Tax Code.

b. by expensing certain items immediately and in their entirety.

C. to help make the bookkeeper's job easier.

d. to help produce a more accurate measurement of an entity's performance.

3. The going concern assumption is not applied to

a. entities about to file for bankruptcy.

b. entities that have been in existence for less than a year.

C. entities that have sustained losses for the previous two years.

d. the partnership form of business.

4. A service vehicle might be depreciated over 5 years because

a. income tax provisions require depreciation over the next 5 years.

b. it will be paid for in 5 years.

C. it will help generate revenue for the company over the next 5 years.

d. it will lose most of its market value in 5 years.

5. The journal entry to record an accrued expense results in which of the following

types of accounts being debited and credited?

a. asset and income

b. asset and liability

C. expense and asset

d. expense and liability

6. Ifa P2,500 adjustment for depreciation is omitted, which of the following financial

statement errors will occur?

a. assets will be understated

b. expenses will be overstated

C. owner's equity will be overstated

d. profit will be understated

7. The amount of accrued but unpaid expenses at the end of the period is both an

expense and

a deferral

b. a liability.

C.an asset.

d. an income.

8. Accrued revenues

a. decrease assets.

b. decrease liabilities.

C. increase assets.

d. increase liabilities.

9. Accrued expenses

a. decrease assets.

b. decrease liabilities.

increase assets.

d. increase liabilities.

10. The word "accrued" implies which of the following8?

aMoney has been paid and the service has been provided.

b. Money has been paid but no services have been provided.

C. Money has been paid for a service to be performed during the next period.

d. Money has not been paid or received but the service has already been

performed or rendered.

11. If an adjusting entry were not made at the end of a period to remove the earned

revenue from the Unearned Revenues account,

a. assets would be understated.

b. liabilities would be overstated.

C.liabilities would be understated.

d. owner's equity would be overstated.

12. Which of the following transactions results in an increase in revenues?

a. Collection of cash on account

b. Receipt of cash from bank loan

C. Sale of land at cost for cash

d. Services rendered on credit

13. The cost of doing business is also known as

a. a liability.

b. an asset.

C. an expense.

d. revenue.

14. An item that represents services received by the firm for which it will pay for in the

future is called

a. an accrued expense.

b. an accrued revenue.

C. an unearned revenue.

d. a prepaid expense.

15. An item that represents services provided by a firm for which it will receive payment

in the future is called

a. a prepaid expense.

b. an accrued expense.

C. an accrued revenue.

d. an unearned revenue.

16. Which of the following is an example of an adjusting entry?

a. recording depreciation expense on a truck

b. recording the billing of customers for services rendered

C. recording the payment of salaries to employees

d. recording the purchase of supplies on account

17. Which of the following transactions results in an increase in expenses?

a. Cost of employee salaries

b. Payment on accounts payable

C. Purchase of office equipment on credit

d. Repayment of principal of bank loan

18. Which of the following pairs of accounts would not appear in the same adjusting

entry?

a. Interest Revenues and Interest Payable

b. Rent Expense and Rent Payable

C. Service Revenues and Accounts Receivable

d. Service Revenues and Unearned Revenues

19 The Supplies account had a P2,800 debit balance at the end of the accounting

period before adjustment for supplies used, and an inventory of P600 worth of

unused supplies was on hand. Which of the following is the required adjusting

entry?

a. Debit Supplies Expense P600 and credit Supplies P600.

b. Debit Supplies P600 and credit Supplies Expense P600.

C. Debit Supplies P2,200 and credit Supplies Expense D2 P2,200. 200.

d. Debit Supplies Expense P2,200 and credit Supplies P2,200.

20. A law firm began November with office supplies of P16,000. During the month, firm purchased supplies of P29,000. On November 30, supplies on hand totaled the P21,000. Supplies expense for the periodis totaled

a. P24,000.

b. P29,000.

C. P45,000.

d. P21,000.

21. The adjusting entry to accrue salaries expense

a. debits salaries expense and credits cash.

b. debits salaries expense and credits salaries payable.

C. debits salaries payable and credits cash.

d. debits salaries payable and credits salaries expense.

22. Adjusting entries involve

a. at least one real and one nominal account.

b. only capital accounts.

C. only nominal accounts.

d. only real accounts.

23. 'A prepaid expense is not an

a. asset.

b. economic resource.

C. expired cost.

d. unexpired cost.

24. The decrease in usefulness of property and equipment as time passes is called

a. consumption.

b. contra asset.

C. depreciation.

d. deterioration.

25. Accumulated Depreciation is reported in thee

a. balance sheet.

b. income statement.

C.statement of owner's equity.

d. both a and b.

26. dar the revenue recognition principle, revenue is recorded

a. after it has been earned, but not before.

b at the earliest acceptable time.

c. at the end of the accounting period.

d. at the latest acceptable time.

27 The broad classification of adjusting entries are

a. accruals and closing.

b. accrual and deferrals.

C. closing and trials.

d. trials and deferrals.

28.On Nov. 15, 2018, cash is received in advance of rendering services. Assuming that the services have been performed by Dec. 31, 2018, the adjusting entry would be a

debit to

a. Cash and a credit to Service Revenues.

a. Service Revenues and a credit to Accounts Receivable.

C. Unearned Revenues and a credit to Cash.

d. Unearned Revenues and a credit to Service Revenues.

29 Which of the following pairs of accounts could not be included in the same adjusting

entry?

a. Interest Expense and Interest Receivable

b. Rent Expense and Rent Payable

C. Salaries Expense and Salaries Payable

d. Unearned Revenues and Service Revenues

30. Which of the following is an example of an accrual?

a.Payment of two years' insurance in advance

b. Salaries incurred but not yet paid

C. The purchase of office supplies

dTuition revenue collected in advance

31. An adjusted trial balance is prepared to

a.Doth test that the ledger is still in balance after the accounts have been adjusted

and facilitate preparation of the financial statements.

b.Facilitate preparation of the adjusting entries.

c.Facllitate preparation of the financial statements.

d. test that the ledger is still in balance after the accounts have been adjusted.

32. Which of the following accounts would normally be found on the credit side of t.

side of the

adjusted trial balance?

a. Accumulated Depreciation-Equipment

b. Depreciation Expense-Equipment

C. Janet Matuguinas, Withdrawals

d. Prepaid Insurance

33. Which of the following is not an application of accrual accounting

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

b..Kecording advertising revenues at the time the cash payment is received

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

d. Recording telephone expense when the monthly billis received

34. Which of the following accounts is an income statement account

a. Accounts Receivable

b. Owner's Capital

C. Salaries Expense

d. Salaries Payable

35. Which of the following is an example ofa deferral?

a. Legal fees already earned but not yet collected

b. Property taxes accrued but not yet paid

C. The accumulation of interest in a bank account

d. The purchase of an entity vehicle

36. Which of the following situations involves a deferral?

a. Recording accrued interest

b. Recording depreciation

C. Recording unrecorded revenue

d. Recording unrecorded salaries

37. When a sale takes place

a. a revenue account will increase.

b. assets will be unaffected.

C. liabilities will increase.

d. one asset account will increase and another will decrease.

38. Which of the following accounts is a contra account?

a Accumulated Depreciation-office Equipment

b. Depreciation Expense-Office Equipment

C. Office Equipment

d. Unearned Revenues

39 Which of the following situations is an example of an accrual?

a. Recording depreciation

b. Recording supplies consumed

C. Recording the portion of prepaid rent that has expired

d. Recording unrecorded revenues

40. Failure to adjust for accrued salaries at the end of the period will result in an

a. overstatement of assets.

b. overstatement of liabilities.

C.overstatement of profit for the period.

d. understatement of profit for the period.

41. Companies usually choose a fiscal year that ends

a. at different times each year, depending on the tax consequences.

b. during the peak of the busy season.

C. during the slack season.

d. on July 31.

42. Expenses are incurred

a. only during the adjustment process.

b. to generate revenue.

C. to produce assets.

d. to produce liabilities.

43. The matching rule relates the least to

a. accrual accounting.

b. cause-and-effect relationships.

C.systematic and rational allocation.

d. the cash basis of accounting.

44. Which of the following assets is not subject to depreciation?

a. Art equipment

b. Computers

C. Land

d. Store fixtures

45. The carrying value of a depreciable asset equals

a. the estimated amount for which the asset could be sold.

b. the estimated cost to replace the asset.

C.the original cost minus accumulated depreciation.

d.the orginal cost minus depreciation expense for the current peri0d.

46. Which of the following transactions is the most difficult to assign to specific time

periods?

a. The accrual of interest

b. The expiration of insurance

C. The incurrence of salaries

d. The use of equipment

47. Financial statement time periods should be of equal length

a. and should correspond with the calendar year.

b. and should end during the peak season.

C. to comply with loan agreements.

d. to make comparison meaningful.

48. An entity recorded office supplies in an asset account when the supplies were

purchased. Failure to take an inventory and make an adjusting entry will result in an

a. overstatement of owner's equity.

b. understatement of assets.

C. understatement of liabilities.

d. understatement of owner's equity.

49. Which of the following is an application of accrual accounting?

a. Depreciating a building as quickly as allowed by income tax regulations

b. Expensing a' machine in its entirety when purchased

C. Recording revenue at the time payment is received

d. Recording utilities expense when the monthly bill is received

50. An entity's weekly payroll of P5,000 is paid on Fridays. Assume that the last day of

the month falls on Wednesday. Which of the following is the required adjustin

entry?

a. Debit Salaries Expense P3,000 and credit Salaries Payable P3,000

b. a. Debit Salaries Expense P2,000 and credit Salaries Payable P2.oo0

C. Debit Salaries Payable P3,00 and credit Salaries Expense P3.oo0

d. Debit Unpaid Salaries P3,000 and credit Salaries Payable P3.00oo

51 Which of the following transactions resuits in the recognition of an expense?

a. Fxniration of usefulness or equpment during the accounting period

b. Payment of the principal of a loan

C. Payment on accounts payable

d. Withdrawal of cash by the owner

52. A customer's promise to pay for goods or services

a. creates a liability for the company.

b. decreases the company's liabilities.

C. increases th assets of the company.

d. increases the company's Cash account.

53. The journal entry to record an accrued revenue results in which of the following

types of accounts being debited and credited?

a. asset and income

b. asset and liability

C. expense and asset 130

d. expense and liability

54. A business received cash of P30,000 in advance for revenue that will be earned

later. The cash receipt entry debited cash and credited unearned revenues for

P30,000. At the end of the period, P11,000 is still unearned. The adjusting entry for

this situation will

a. debit revenues and credit unearned revenues for P19,000.

b. debit revenues and credit unearned revenues for P11,000.

C. debit unearned revenues and credit revenues for P19,000.

d. debit unearned revenues and credit revenues for P11,000.

55. As the usefulness of the asset Property and Equipment expires,

a. a liability is created.

b. an amount is transferred from one asset account to another.

C. a related expense account is reduced.

d. the cost of the asset is allocated to an expense account.

56. Which of the following accounts could not be credited in an adjusting entry?

a. Interest Receivable

b. Office Supplies

C. Prepaid Rent

d. Service Revenues

57. The principal difference between depreciation and most other types of expenses s

that depreciation

a. can be avoided if the asset is in as good condition as when it was purchased.

b. does not require an immediate cash outlay.

C. is not deductible if it will cause a loss.

d. is subject to more precise measurement.