General Instruction: Please Provide an Explanation/Solution on how it came up with that answer. Much Appreciated and for my Guidance :) Thanks

3. affect both the income statement and balance sheet.

14.A worksheet is a(n) report.

16The reports how well a business performs for a period of a time.

TRUE OR FALSE Please put some explanation in each item

4. The statement of changes in equity relates the income statement to the balance sheet by showing how the owner's Capital account changed during the accounting period.

5. The statement of changes in equity discloses the withdrawals during the period.

7. Financial statements cannot be prepared correctly until all the accounts have been

adjusted.

9. The worksheet is prepared after the formal adjusting and closing entries.

11. When the Balance Sheet columns of the worksheet are initially footed, they should be in balance.

15. The worksheet is a type of accountant's working paper.

16. The amount placed opposite the owner's Capital account in the Balance Sheet

columns of the worksheet is the amount to be reflected for owner's Capital on the

balance sheet.

18. The amount of owner's withdrawals can be found on the worksheet.

19. The balance sheet may be prepared by referring solely to the Balance Sheet

columns of the worksheet.

27.When the Income Statement columns of the worksheet are initially footed, they should be out of balance by the amount of profit or loss. TRUE

28 The account Commissions Earned would appear on the balance sheet.

29. The account Wages Payable would appear on the income statement.

30.A worksheet is more useful for a small entity than for a large one.

Multiple Choice: Please put some explanation in each items

1. which of the following types of information is not found in financial statements?

a. Profits

b. Revenue

C. Selling prices

d. Assets

2. Accounting data flow from the

a. Balance sheet to the income statement

b. Income statement to the statement of owner's equit

C. Statement of owner's equity to the balance sheet

d. Both b and c are correct

3. Consider the steps in the accounting cycle. Which part of the accounting cycle provides information to help a business decide whether to expand its operations?

a. Post-Closing Trial Balance

b. Adjusting Entries

C. Closing Entries

d. Financial Statements

4. Which columns of the accounting worksheet show unadjusted amounts?

a. Trial Balance

b. Adjustments

C. Income Statement

d. Balance Sheet

5. Which columns of the worksheet show profit?

a. Trial Balance

b. Adjustments

C. Income Statement

d. Both b and c

6. Which situation indicates a loss on the income statement?

a. Total debits equal total credits

b. Total credits exceed total debits

C. Total debits exceed total credits

d. None of the above

7. Supplies has a P60,000 unadjusted balance on your trial balance. At year-end you

count supplies of P20,000. What adjustment will appear on your work sheet.

a.Supplies 40,000

Supplies Expense 40,000

b. Supplies Expense 20,000

Supplies 20,000

c. Supplies Expense 40,000

Supplies 40,000

d. No adjustment is needed because the Supplies account already has a correct balance.

9 In the adjusted trial balance, the owner's equity account reflects

a. the beginning-of-the-period balance.

b. the increase to income and expense.

C. the period ending balance.

d. the results of adjusting entries.

10. Which of the following steps comes first in worksheet preparation?

a. Compute each account's adjusted balance by combining the trial balance and adjustment figures.

b. Compute profit or loss as the difference between total revenues and total expenses on the income statement.

C. Enter the account balances in the unadjusted trial balance columns and total

d. Enter the adjusting entries in the adjustment columns and total the amounts.

11.If the income statement debit and credit columns are not equal after adding the respective columns,

a. an error has been made.

b. the entity either generated a profit or incurred a loss.

C.the entity generated a profit

d. the entity incurred a loss.

e. the liabilities must exceed the assets.

12. The income Statement Debit column of the worksheet contains

a. asset account balances.

b. expense account balances.

C.contra asset account balances.

d. liability account balances.

e. revenue account balances.

13. The amount of profit will appear on the debit side of the Income Statement columns on a worksheet

a. if profit exceeds the owner's withdrawals. ent columns

b. if total assets exceeded total liabilities for the period.

C.if total expenses exceeded total revenue for the period.

d. if total revenue exceeded total expenses for the period.

e. if withdrawals have been made during the period.

14. If total credits exceed total debits in the Balance Sheet columns of a worksheet,

a. a loss has occurred.

b. a mistake has been made.

C. a profit has occurred.

d. assets exceed liabilities.

e. no conclusion can be drawn until the closing entries have been made.

15. In which columns of a worksheet would the adjusted balance of Accumulated

Depreciation appear?

a. Adjusted Trial Balance Credit, Balance Sheet Debit

b. Adjusted Trial Balance Credit, Income Statement Credit

C. Adjusted Trial Balance Debit, Balance Sheet Debit

d. Trial Balance Credit, Adjustments Credit, Adjusted Trial Balance Credit, and

Balance Sheet Credit

e. Trial Balance Debit, Adjusted Trial Balance Debit

16. Worksheets are prepared because

a. they aid in the preparation of the financial statements, adjusting entries, and closing entries.

b. they are necessary for the preparation of the financial statements.

c. they are required by generally accepted accounting principles.

d. they constitute a permanent record of all adjusting entries

17. Assuming an entity is profitable in the current period the total of the balance sheet credit column in the worksheet will be,

a. larger than the balance sheet debit column.

b. larger than the income statement credit column.

C. larger than the income statement debit column.

d. smaller than the balance sheet debit column.

18. The usefulness of the worksheet is in

a. aiding the preparation of financial statements.

b. identifying the accounts that need to be adjusted.

C. summarizing the effects of all the transactions of the period.

d. all of the above.

19. If the initial sum of the balance sheet credit column on a worksheet is greater than

the initial sum of the balance sheet debit column, then

a. a loss occurred during the period.

b. an error was made on the worksheet.

C. the sum of the income statement credit column must exceed the sum of the

income statement debit column.

d. all of the above.

20. A statement of changes in equity

a. has no relationship with the balance sheet.

b. indicates whether the cash position of the entity will permit withdrawals by the

owner.

C.provides a link between the income statement and the balance sheet.

d. shows the income and expenses of the entity for a given period.

21. Which of the following is an example of an investing activity?

a. Obtaining a bank loan

b. Paying taxes to the government

C. Producing goods and services

d. Purchasing a building

22. Which of the following is an example of a financing activity?

a. Acquiring land

b. Employing workers

C.Paying off a loan

d. Selling equipment

23. The statement of changes in equity would not show

a. revenues and expenses.

b. the owner's ending capital balance.

C. the owner's initial capital balance.

d. the owner's withdrawals for the period.

24. The profit figure appears in all the following financial statements except the

a. balance sheet.

b. income statement.

C.statement of cash flows.

d. statement of changes in equity.

25. The statement of cash flows would disclose the withdrawal of cash by the owner

a. in the financing activities section.

b. in the investing activities section.

C. in the notes to the financial statements.

d. in the operating activities section.

26. Which of the following is an example of an operating activity?

a. Obtaining capital from owners

b. Purchasing equipment

C. Selling goods and services to customers

d. Selling land

27. The owner's Capital account is found on the

a. balance sheet debit column and nowhere else.

b. trial balance credit column, adjusted trial balance credit column, and balance

sheet credit column of a worksheet.

C. trial balance credit column, adjustments credit column, adjusted trial balance

credit column, and balance sheet credit column of a worksheet.

d. trial balance credit column and income statement debit column of a worksheet.

e. trial balance debit column, adjustments debit column, adjusted trial balance

credit column, and income statement credit column of a worksheet.

28. If the amount of profit for the current period is less than the amount of the owners

withdrawals, there will be a(n)

a. decrease in the Cash account.

. decrease in the owner's Capital account.

C. increase in liabilities on the balance sheet.

d. increase in the Cash account.

e. increase in the owner's Capital account.

29. Profit for Jeffrey Franco's Treasures is P250,000 for the current year. The owner

withdrew P30,000 per month for personal living expenses. The owner's Capital account will show a net

a. decrease of P110,000.

b. decrease of P360,000.

C. increase of P610,000.

d. increase of P110,000

e. increase of P360,000.

20 Which of the following is a cash outflow from operating activities

a. Payment for interest expense.

b. Payment to acquire property and equipment

C. Payment to settle notes payable.

d. Payment to owners in the form of withdrawals.

31. The trial balance debit or credit amount of each account is combined with the amount of any debit or credit adjustment to that account to determine the new balance of the account. This process is known as

a. Balancing. C. footing.

b. cross-footing. d. totaling.

32. Which of the following comes first in the accounting process?

a. journalizing external transactions

b. preparation of an adjusted trial balance

c. preparation of an unadjusted trial balance

d. worksheet preparation

33. Which two steps in the accounting cycle are aided by the preparation of a

worksheet?

a. adjusting the accounts and preparing financial statements

b. analyze source documents and preparing financial statements

C. posting journal entries and adjusting the accounts

d. journalizing transactions and closing the accounts

34. Posting a P3,000 debit as a credit causes an error

a. in the journal. C. that is divisible by 9.

b. known as transposition. d. that is divisible by2.

Use the following information to answer questions 35 to 39 below. Villanueva Realty

nad the following balance sheet accounts and balances:

Please provide solution for my guidance ;)

Use the following information to answer questions 35 to 39 below. Villanueva Realty had the following balance sheet accounts and balances:

Accounts Payable P60,000 Equipment P70,000

Accounts Receivable 10,000 Arlyn Villanueva, Capital ?

Building ? Land 70,000

Cash 30,000

35. It the balance of the Villanueva, Capital account was P210,000, wnat would be the balance of the Building account?

a. P250,000

b. P40,000

c. P90,000

d. P210,000

36. If the balance of the Building account was P170,000, what would be the total of

liabilities and owner's equity?

a. P170,000

b. P270,000

C. P320,000

d. P350,000

37. If the balance of the Building account was P150,000 and the equipment was sold for

P70,000, what would be the total of owner's equity?

a. P150,000

b. P160,000

C. P270,000

d. P330,000

38. If the balance of the Building account was P140,000 and P30,000 of Accounts

Payable were paid in cash, what would be the balance of the Villanueva, Capital account?

a. P210,000

b. P260,000

C. P320,000

d. P340,000

39. If the balance of the Building account was P80,000 and P30,000 of Accounts Payable

were paid in cash, what would be the total liabilities and owner's equityv?

a. P140,000

b. P180,000

C. P190,000

d. P230,000