multiple choice

NAME: SECTION: SCORE: PROFESSOR: Multiple Choice 1. a. owner. a. A statement of changes in equity has no relationship with the balance sheet. b. indicates whether the cash position of the entity will permit withdrawals by the 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. 2. Which of the following is an example of an investing activity? Obtaining a bank loan b. Paying taxes to the government Producing goods and services d. Purchasing a building 3. Which of the following is an example of a financing activity? a. Acquiring land b. Employing workers Paying off a loan d. Selling equipment c. C. 4. The statement of changes in equity would not show a. revenues and expenses. b. the owner's ending capital balance. the owner's initial capital balance. d. the owner's withdrawals for the period. C. 5. 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, 6. 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. Worksheet and Financial Statements I 245 trial balance credit column, adjustments credit column, adjusted trial balance Which of the following is an example of an operating activity? Obtaining capital from owners Selling goods and services to customers 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. 9. If the amount of profit for the current period is less than the amount of the owner's withdrawals, there will be a(n) d. Selling land 7. a. b. Purchasing equipment C. 8. C. 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. a. decrease in the Cash account. b. decrease in the owner's Capital account increase in liabilities on the balance sheet. d. increase in the Cash account. increase in the owner's Capital account. C. e. 10. 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. 11. 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. of withdrawals. 246 Basic Financial Accounting and Reporting 2021 Edition by Prof. WIN Ballada 12. 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 c. footing d. totaling C. a. balancing b. cross-footing. 13. Which of the following comes first in the accounting process? a. journalizing external transactions b. preparation of an adjusted trial balance preparation of an unadjusted trial balance d. worksheet preparation 14. 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 posting journal entries and adjusting the accounts d. journalizing transactions and closing the accounts C. 15. Posting a P3,000 debit as a credit causes an error a. in the journal. b. known as transposition. c. that is divisible by 9. d. that is divisible by 2. Use the following information to answer questions 16 to 20 below. Villanueva Realty had the following balance sheet accounts and balances: P70,000 Accounts Payable Accounts Receivable Building Cash P60,000 Equipment 10,000 Arlyn Villanueva, Capital ? Land 30,000 70,000 balance of the Building account? anueva, Capital account was P210,000, what would If the balance of the Building account was P170,000, what would be the total of liabilities and owner's equity? 18. 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? 16. a. P250,000 b. P40,000 c. P90,000 d. P210,000 17. a. P170,000 b. P270,000 P320,000 d. P350,000 C. a. P150,000 b. P160,000 C. P270,000 d. P330,000 19. 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 20. 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 equity? a. P140,000 b. P180,000 c. P190,000 d. P230,000