First Statement: Journal entries are used to check whether ledger accounts are balanced and adjusted. Second Statement: After transactions are recorded in the general journal, the next step is to prepare the trial balance.

The first statement is true while the second statement is false

The first statement is false while the second statement is true

An accrued expense can best be described as an amount:

Not paid and currently matched with earnings.

Paid and not currently matched with earnings.

Not paid and not currently matched with earnings.

Paid and currently matched with earnings.

C Company has an outstanding balance of P65,000 due to A Company which C Company paid 40% during May. What will be the entry for this transaction?

Debit Cash P5,000 ; Credit accounts receivable P5,000

Debit accounts receivable P5,000 ; Credit Cash P5,000

Debit accounts payable P5,000 ; Credit Cash P5,000

Debit Cash P5,000 ; Credit accounts payable P5,000

Purchased Equipment from JG Company on credit for P15,000

Debit Equipment P15,000, Credit Accounts Payable P15,000

Debit Accounts Payable P15,000, Credit Equipment P15,000

Debit Accounts Payable P15,000, Credit Purchases P15,000

Debit Purchases P15,000, Credit Accounts Payable P15,000

Among all of the statements, which is true about accrual accounting?

If the business has provided the goods or services and can reasonably expect to receive cash, it can recognize the revenue in that period

Revenue is recorded only when payments are received, while expenses are recognized when they're incurred.

All revenue from prepayments should be recognized when the payment is received, while expenses accrue over the life of the obligation.

The matching principle dictates that expenses should be recognized when they are incurred, regardless of when revenue is recognized.

First Statement: Increasing an asset involves crediting the account. Second Statement: A company that uses the cash basis of accounting will record revenue when it is collected.

The first statement is false while the second statement is true

The first statement is true while the second statement is false

Which of the following is true?

Accounts receivable are found in the current asset section of a balance sheet.

Accounts receivable increase by credits.

Accounts receivable are generated when a customer makes payments.

Accounts receivable become more valuable over time.

If a company has assets amounting to P85,000, no liabilities, and equity amounting to P85,000 then buys office equipment amounting to P10,000 on credit, what effect will this transaction have?

assets and liabilities increase by P10,000

both assets and equity increase by P10,000

both assets and equity decrease by P10,000

assets remain the same and equity increases by P10,000

assets and liabilities decrease by P10,000

The recording phase of accounting covers the following steps, except:

financial statements are prepared

business documents are received and prepared

transactions are posted to the ledger

When a business lacks capital, it incurs a loan from a bank. What will be the overall effect of this transaction on the business?

Receives cash and incurs a liability

A drawing account is debited when:

The owner withdraws cash from the business

The owner invests cash/property

When collections are made in accounts receivable:

Total assets will remain the same

FINAL EXAMINATION : TOURISM (TRIMEX COLLEGES INC)

Authored by christina ambas

Business

University

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FINAL EXAMINATION : TOURISM (TRIMEX COLLEGES INC)

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MULTIPLE CHOICE QUESTION

2 mins • 3 pts

If Cash has debit postings of P85,000, credit postings of P55,000, and a normal ending balance of P100,000, which of the following was its beginning balance?

P70,000 debit

P130,000 credit

P70,000 credit

P130,000 debit

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The kind of debts which are needed to be repaid in a long term is known as?

Fixed Liabilities

Non - Current Liabilities

Current Liabilities

Intangible Assets

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

These are present obligations arising from past events which are to be settled in the future.

Liability

Assets

Equity

Cash

MULTIPLE CHOICE QUESTION

1 min • 2 pts

A P20,000 credit item is accidentally posted as a debit. The trial balance column totals will therefore differ by

P15,000

P20,000

P25,000

MULTIPLE CHOICE QUESTION

1 min • 2 pts

A collection of services rendered on account should be recorded as

a debit to Cash and credit to Accounts Receivable

a debit to Accounts Receivable and credit to Cash

a debit to Cash and credit to Service Revenue

a debit to Service Revenue and credit to Cash

a debit to Service Revenue and credit to Accounts Receivable

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

When does the capital of a company increases?

Drawings Decrease

Liabilities Decrease

Revenue Increases

Interest on capital increases

MULTIPLE CHOICE QUESTION

30 sec • 2 pts

Purchases are Debited when?

Goods are purchased on cash

Goods are sold at a discount

Goods are purchased on credit

Goods are lost

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FINAL EXAMINATION : TOURISM (TRIMEX COLLEGES INC)

If Cash has debit postings of P85,000, credit postings of P55,000, and a normal ending balance of P100,000, which of the following was its beginning balance?

The kind of debts which are needed to be repaid in a long term is known as?

These are present obligations arising from past events which are to be settled in the future.

A P20,000 credit item is accidentally posted as a debit. The trial balance column totals will therefore differ by

A collection of services rendered on account should be recorded as

When does the capital of a company increases?

Purchases are Debited when?

First Statement: Journal entries are used to check whether ledger accounts are balanced and adjusted. Second Statement: After transactions are recorded in the general journal, the next step is to prepare the trial balance.

It is used to record transaction involving receipt or collection of cash.

An accrued expense can best be described as an amount:

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First Statement: Journal entries are used to check whether ledger accounts are balanced and adjusted.
Second Statement: After transactions are recorded in the general journal, the next step is to prepare the trial balance.