The summarizing phase of the accounting cycle ends with the preparation of the financial statements.

Select one:

True

False

Question 2

At the end of the month, Maria Clara Parlor's total Liabilities and Owner's Equity is P 250,000. One fifth of which is the liability. The parlor's total assets is

Select one:

a. Answer not given

b. P 250, 000

c. P 50, 000

d. P 200, 000

Question 3

A non-exchange business transaction does not involve changes in quantifiable monetary values.

Select one:

True

False

Question 4

The transaction: Mr. A invested P20, 000 cash and equipment worth P30, 000 in a laundry shop business, will result to an increase in assets and increase in capital for the business.

Select one:

True

False

Question 5

Assets are anything of economic value and owned by the business entity.

Select one:

True

False

Question 6

Mr. X's Capital account has a balance of P 100,000 on March 31, 2017. Withdrawals for personal expenses during April amounted to P 15,000. At the end of April, the Capital account has a balance of P135, 000. Mr. X's net income for April is

Select one:

a. P 35,000

b. P 50,000

c. P 20,000

d. P 85,000

Question 7

Maria Clara has the following transactions during the month of March: paid salaries of house helper, P 3,500; paid utility expenses of the parlor, P 2,500; at the end of month, hired a parlor helper with a monthly salary of P5, 000. The total expenditures that should be reported for the month of March is

Select one:

a. P 7,500

b. P 11,000

c. P 6,000

d. P 2,500

Question 8

The credit side of T-account is used to record increases in liability and capital.

Select one:

True

False

Question 9

The account to be credited is indented following the account debited and the corresponding amount is placed on the extreme right money column of the journal.

Select one:

True

False

Question 10

The right or claim of the owner over the assets of the firm is called liabilities.

Select one:

True

False