When was the year that accountancy profession was first recognized through the passing of accountancy law?

a. 1910 b. 1923 c. 1945 d. 1975
Click the card to flip 👆
1 / 69
Terms in this set (69)
The period covered in this income statement may be- a. For the month ended b. For the year ended c. For the quarter ended d. All of the aboved. All of the aboveFinancial statements are prepared on a quarterly basis. The quarterly report covers- a. One month b. Three months c. Six months d. Twelve monthsb. Three monthsThe financial information must be available at the time of need or else it will defeat the purpose a. Correctness b. Timeliness c. Completeness d. Understandabilityb. TimelinessA type of accounting information that concerns primarily in describing the financial resources, obligations and activities of an economic entity resulting to the preparation of general-purpose ad operating results- a. Management accounting b. Financial accounting c. Cost accounting d. Financial managementb. Financial accountingIt is the biggest and the most complicated form of business organization. It is organized by at least five but not more than fifteen persons- a. Partnership b. Corporation c. Proprietorship d. Cooperativeb. CorporationIt is the assigning of peso or monetary values involved in a transaction. a. Classifying b. Identifying c. Measuring d. Summarizingc. MeasuringThe right-hand side of an account refers to- a. Debit entry b. Credit entry c. Credit side d. Debit sideb. Credit entryThe accounts that are used to effect reduction of capital other than drawing are- a. Income and expense account b. Only income accounts c. Only expense accounts d. All of the abovec. Only expense accountsWhat is the appropriate account title for money that has been received in advance, but services are to be rendered in the future? a. Unearned Income b. Accrued Income c. Income d. Accrued Expensea. Unearned IncomeThe anticipated loss that the business may incur arising from uncollectible accounts- a. Uncollectible Accounts b. Accounts Receivable c. Provision for Doubtful Accounts d. Allowance for Doubtful AccountsA liability account has a normal balance of a. Debit balance b. Credit balance c. Debit entry d. Credit entryb. Credit balanceAn account is said to have a debit balance when- a. Total debit and total credit are equal b. Total credit exceeds total debit c. Total debit exceeds total credit d. When they are "in balance"c. Total debit exceeds total creditA debit entry may signify decrease in- a. Asset b. Liability c. Expense d. Drawingb. LiabilityWhich of the following best describes bookkeeping? a. Clerical part of accounting b. Analytical part of accounting c. Identifying part of accounting d. Summarizing part of accountinga. Clerical part of accountingAccrued income is a. An income already earned but not yet collected b. An income already collected but not yet earned c. An income matched with expense d. None of the abovea. An income already earned but not yet collectedBalance sheet accounts are also called- a. Nominal accounts b. Real accounts c. Temporary accounts d. Accrued expenseb. Real accountsAccrued expense has a semblance of a. Accounts payable b. Accounts receivable c. Prepaid expense d. Deferred expensea. Accounts payablePrepaid expense is not an a. Expired cost or expense b. Asset c. Unexpired cost d. None of thesea. Expired cost or expensePre-collected income account is normally a. An income earned b. A liability incurred c. An asset recognized d. An expense recognizedb. A liability incurredAn accrued expense adjustments would require a a. Debit to liability and credit to expense b. Debit to expense and credit to liability c. Debit to asset and credit to liability d. Debit to expense and credit to owner's equityb. Debit to expense and credit to liabilityUnder expense method of recording prepayment, the account credited is always a. Accounts receivable b. Expense account c. Cash d. Accounts payablec. CashWhich of the following is reported in the Statement of Financial Position (Balance sheet) a. Estimated uncollectible account b. Provision for depreciation c. Expired portion of prepayment d. Earned portion of pre-collected incomea. Estimated uncollectible accountA method of providing uncollectible accounts which will not pass through the estimated uncollectible accounts- a. Uncollectible accounts recovery method b. Allowance method c. Direct write-off d. Direct recovery methodc. Direct write-offA. All of the following are adjustments not based on estimates, except a. Prepaymen b. Pre-collection c. Accrual of income d. Provision for depreciationd. Provision for depreciationWhat is the possible effect in the Balance sheet if recording of depreciation expense is omitted? a. Net income is overstated b. Depreciation expense is understated d. Non-current asset section is overstated d. Non-current asset section is understatedd. Non-current asset section is overstatedIf advanced collection for services to be rendered in the later date of P2,500 was erroneously recorded at P250, the adjusting entry require in the book of Dennis Garcia Co. would require a credit to a. Unearned service income of P2,250 b. Service income of P2,250 c. Accrued service income of P2,250 d. Answer not givena. Unearned service income of P2,250A machine costing P350,000 was purchased on account with a given term. If upon payment, a 20% discount was availed, the credit entry will include- a Cash of P280,000 and machine of P70,000 b. Cash of P280,000 and purchase discount of P70,000 c. Accounts payable of P280,000 and machine of P70,000 d. Machine of P280,000 and purchase discount of P70,000b. Cash of P280,000 and purchase discount of P70,000Which of the following is not needed in computing depreciation under straight-line method? a Cost of the asset ' b. Estimated life of the asset c. Scrap value of the asset d. Book value of the assetd. Book value of the assetRevenue and expense recognition principles are the combined concept of a. materiality b. matching c. periodicity d. consistencyb. matchingThe segregation of all elements or accounts belonging to a particular period only- a. time-period b. end of the period c. end of the year d. cut-off periodd. cut-off periodAn expense that is already incurred by the business but not yet paid when accounting period ends a. accrued expense b. prepaid expense c. deferred expense d. none of the abovea. accrued expenseAccrued income is- a. an income already earned but not yet collected b. an income already collected but not yet earned c. an income matched with expense d. none of the abovea. an income already earned but not yet collectedPrepaid expenses are- a. assets b. expenses c. liabilities d. incomea. assetsNominal accounts are composed of- a. income accounts b. expense accounts c. income and expense accounts d. all of the abovec. income and expense accountsReal accounts are composed of a. assets, liabilities and owner's equity b. assets, liabilities and income c. assets, liabilities and expense d. assets, liabilities and drawing c. liabilities d. incomea. assets, liabilities and owner's equityBalance Sheet accounts are also called a. nominal accounts b. real accounts c. temporary accounts d. accrued accountsb. real accountsIncome Statement accounts are also called a. permanent accounts b. nominal accounts c. real accounts d. adjustments accountsb. nominal accountsAccrued expense has a semblance of a a. accounts payable b. accounts receivable c. prepaid expense d. deferred expensea. accounts payableAccrued income has a semblance of a a. unearned income b. accounts receivable c. pre-collected income d. deferred incomeb. accounts receivableIf no adjusting entry is prepared payment of expense using the nominal approach, expense account will- a. be understated b. be overstated c. not affectced d. none of the aboveb. be overstatedIf no adjusting entry is prepared on pre-collection of income using the real approach, the income account will — a. not be affected b. be overstated c. understated d. none of thesec. understatedException of depreciable assets which are subject to depreciation is — a. building b. furniture and fixtures c. land d. equipmentc. landThe portion of the property and equipment that have been allocated to the number of years is called — a. appreciation b. depreciation c. deterioration d. consumptionb. depreciationThe difference between cost of the asset and its related valuation account is called- a. replacement value b. current value c. net book value d. market valuec. net book valueThe wear and tear due to frequent use of the asset and passage of time due to non-usage is an example of a. physical depreciation b. functional depreciation c. accumulated depreciation d. depreciation expensea. physical depreciationAccumulated depreciation is a valuation account of the property and equipment or fixed asset. valuation account is sometimes referred to as- a. depreciation expense b. contra-asset c. net book value b. contra-asset d. net realizable valueb. contra-assetThe anticipated loss that the business may incur arising from doubtful account is known as- a. uncollectible account b. realization loss c. estimated uncollectible accounts d. depreciationc. estimated uncollectible accountsThe difference between Accounts Receivable and the related Estimated Uncollectible Accounts is known as- a. net book value b. net realizable value c. net gain d. net of allowance methodb. net realizable valueAll of the following are adjustments based on estimate, except — a. accrual b. depreciation c. uncollectible accounts d. amortizationd. amortizationWhen an Accumulated Depreciation account is overstated because of an overstatement in depreciation expense by same amount, how will the balance sheet be affected by this error? Asset liability Owner's Equity a. understated no effect overstated b. overstated no effect understated c. understated no effect understated d. overstated no effect overstatedc. understated no effect understatedThe assets that are needed to be replaced because they can no longer meet the required production due to growth in business, the assets are said to be — a. for sale b. obsolete c. fully depreciated d. terminatec. fully depreciatedAn expense incurred which does not require a cash outlay- a. depreciation expense b. rental expense c. supplies used d. insurance expensea. depreciation expenseWhich of the following account titles that is differently classified from the others? a. account payable b. unearned income c. prepaid expenses d. accrued expensesa. account payableWhich of the following account titles that is differently classified from the others? a. accrued income b. prepaid expenses c. unearned income d. cash or cash equivalentsc. unearned incomeWhich of the following is considered an expense account? a. prepaid expense b. accrued expense c. unearned income d. uncollectible accountd. uncollectible accountThe business derived its income from rendering of services to its clients or customers. a. merchandise company b. service concern c. sole proprietorship d. hybrid companyb. service concernIt generates income from buying and selling of merchandise. a. Merchandising business b. Manufacturing business c. partnership business d. Sole Proprietorship businessa. Merchandising businessAside from selling activity, what other activity can a merchandising business perform? a. manufacturing activity b. purchasing activity c. buy and sell d. none of theseb. purchasing activityA method of inventory keeping where it is characterized by the use of stock card. a. periodic inventory b. perpetual inventory c. calendar inventory d. merchandise inventoryb. perpetual inventor