Question 1 Question text Assets Liabilities Capital Feedback The correct answer is: P7,850 P1,250 P6,600 Question 2 Question text The accounting equation Feedback The correct answer is: shows the claims on the entity’s assets by both the creditors and owner Question 3 Question text Paid DEF Store the full amount due to it. Feedback The correct answer is: Decrease in One Liability = Increase in One Liability Question 4 Question text When a company receives a product previously ordered, a recordable event has occurred. Feedback The correct answer is: True Question 5 Question text Expenses represent the cash paid for goods sold or services rendered in the process of generating revenue. Feedback The correct answer is: True Question 6 Question text Which of the following transactions does not include an increase to expenses? Feedback The correct answer is: Received cash for services performed Question 7 Question text Withdrew cash of P600 for personal use. Feedback The correct answer is: Decrease in Assets = Decrease in Capital Question 8 Question text Settlement of a present obligation may occur in a number of ways, for example, by a.Transfer of other assets b.All of the above c.Payment of cash d.Replacement of that obligation with another obligation e.Conversion of the obligation to equity f.Provision of services Feedback The correct answer is: All of the above Question 9 Question text A cash acquisition of a laptop computer will cause total assets to increase. Feedback The correct answer is: False Question 10 Question text Payment of a liability will not affect total assets but will cause total liabilities to decrease. Feedback The correct answer is: False Question 11 Question text Purchased office tables and chairs and filing cabinets from Cruz Furniture on credit, P6,000. Feedback The correct answer is: Decrease in Capital = Increase in Liabilities Question 12 Question text Withdrawals by the proprietor has all of the following effects except. Feedback The correct answer is: reduction of profit for the period Question 13 Question text Office Supplies are classified as expense. Feedback The correct answer is: False Question 14 Question text Gil paid her account. Feedback The correct answer is: Increase in One Asset = Decrease in One Asset Question 15 Question text Which of the following is not considered an account? Feedback The correct answer is: Revenues Question 16 Question text Completed repair work for Gil on credit, P2,000. Feedback The correct answer is: Increase in Assets = Increase in Capital Question 17 Question text Another way of stating the accounting equation is Feedback The correct answer is: Assets – Liabilities = Capital Question 18 Question text Paid the wages of the shop helper, P500. Feedback The correct answer is: Decrease in Assets = Decrease in Capital Question 19 Question text The future economic benefits embodied in an asset may flow to the enterprise in a number of ways. which is the exception? Feedback The correct answer is: An asset maybe distributed to the owners of the enterprise Question 20 Question text Received monthly utility bills from DIGITEL, P500. Feedback The correct answer is: Increase in Liabilities = Decrease in Capital Question 21 Question text Bought office supplies from DEF Store, P1,000 on credit. Feedback The correct answer is: Increase in Assets = Increase in Liabilities Question 22 Question text Wages Payable is a type of expense. Feedback The correct answer is: False Question 23 Question text Alajar opened a television repair shop by investing P10,000 cash and equipment,P5,000. Feedback The correct answer is: Increase in Assets = Increase in Capital Question 24 Question text Feedback The correct answer is: payment of a liability Question 25 Question text The concept of equality of the value received and value given up assumes that all business transactions have two-fold effects. Feedback The correct answer is: True Question 26 Question text In the accounting equation, an increase in asset can be associated with Feedback The correct answer is: an increase in a liability Question 27 Question text For every transaction, there is at least one account affected. Feedback The correct answer is: False Question 28 Question text Paid P500 for newspaper advertising announcing the opening of her shop. Feedback The correct answer is: Decrease in Assets = Decrease in Capital Question 29 Question text Income is increases in economic benefits during the accounting period that increases equity which may have resulted from the sale of goods or rendering of services by the business. Feedback The correct answer is: True Question 30 Question text Another word for expense is debt. Feedback The correct answer is: False
