ASSESSMENT REVIEW

1. Which of the following comes last in the accounting process?

a. Journalizing external transactions
b. Worksheet Preparation
c. Preparation of an adjusted trial balance
d. Preparation of a post-closing trial balance.
2. The carrying value of a depreciable asset equals;
a. The original cost minus depreciation expense for the current period
b. The original cost minus accumulated depreciation
c. The estimated amount for which the asset could be sold.
d. The estimates cost to replace the asset
3. When merchandise is returned or a price adjustment is granted, an entry is made
in the;
a. Cash receipts journal
b. Purchase journal
c. General journal
d. Adjustments journal
4. Suppose XYZ Trading has completed the following transactions in September
2019: Sales of goods of P10,000 to Company A on credit, Purchase of goods of
P20,000 from Company B on credit, Purchase of goods of P25,000 from Company C
on credit, Sales of office-use computer of P10,000 to Company D on credit. Which of
the following shows the correct journal entry for transaction 1?
a. Debit accounts receivable and credit sales
b. Debit sales and credit Accounts Receivable
c. Debit accounts payable and credit sales
d. Debit Cash and credit Sales

5. Which of the following accounts will appear on the post-closing trial balance?
a. depreciation expense-building
b. owner’s withdrawals
c. service revenues
d. building
6. When a trading concern earn an operating profit equal to zero, which of the
following
situation is present?
a. Operating expenses equals net sales.
b. Net sales equals cost of sales.
c. Cost of sales equals gross margin.
d. Gross margin equals operating expenses
7. Which of the following pairs of accounts would not appear in the same adjusting
entry?
a. Rent Expense and Rent Payable
b. Interest Revenues and Interest Payable
c. Services Revenues and Accounts Receivable
d. Service Revenues and Unearned Revenues
8. An entry debit cash and credit loans payable would likely be recorded in what
journal?
a. Cash receipts journal
b. Purchase journal
c. Cash disbursement journal
d. Sales journal
9. Failure to adjust for accrued salaries at the end of the period will result in an;
a. Overstatement of liabilities
b. Overstatement of profit for the period
c. Overstatement of assets
d. Understatement of profit for the period
10. When “direct extension method” is used in showing inventories in the worksheet,
the MDSE inventory, end is extended to:
a. credit, income statement and credit balance sheet
b. debit, balance sheet and credit balance sheet
c. debit, income statement and debit, balance sheet
d. credit, Income statement and debit, balance sheet
11. Unused Supplies is normally extended to:
a. income statement, credit column
b. balance sheet, credit column
c. income statement, debit column
d. balance sheet, debit column
12. When an entity has earned a profit, the profit amount is entered on the work
sheet on the;
a. Credit side of both the Income statement and the balance sheet columns
b. Debit side of both the Income statement and the balance sheet columns
c. Credit side of the Income statement columns and the debit side of the balance
sheet columns
d. Debit side of the income statement columns and the credit side of the balance
sheet columns.
13. The purpose of the post-closing trial balance is to:
a. aid the journalizing and posting of the closing entries.
b. ensure that the ledger is in balance for the start of the next period.
c. provide the account balances for the preparation of the balance sheet
d. ensure that the ledger is in balance for completion of the worksheet
14. In what book will this be recorded: Issued charge invoice to customers on credit.
a. Sales journal
b. General journal
c. Cash receipts journal
d. Not given
15. Closing entries ultimately will affect:
a. total liabilities
b. the owner’s capital account
c. total assets
d. the cash account
16. Which of the following transactions results in an increase of expenses?
a. Repayment of principal of bank loan
b. Cost of employee salaries
c. Purchase of office equipment on credit
d. Payment on accounts Payable
17. On the completed worksheet, which set of columns usually should be out of
balance after the initial footing?
a. Adjusted trial balance columns only
b. Income Statement columns only
c. Both Income Statement and Balance Sheet Columns
d. Balance Sheet columns only
18. If an owner invests a non-cash assets such as land, bldg. or equipment, these
assets are normally credited to:
a. Owner’s drawing account
b. Owner’s accounts receivable
c. Owner’s capital
d. Owner’s accounts payable
19. In preparing closing entries, which of the following columns of the worksheet are
the most helpful?
a. Adjusted trial balance columns
b. Adjustments columns
c. Balance Sheet Columns
d. Income Statement Columns
20. When an entity borrowed money from the bank, it is an increase to:
a. Cash and Notes Payable
b. Cash and Accounts Payable
c. Cash and Capital
d. Cash and Accounts Receivable
21. On Nov. 15, 2019, cash is received in advance of rendering services and was
credited to unearned revenues. Assuming that the services have been performed in
Dec. 31, 2019, the adjusting entry would be a debit to;
Select one:
a. Cash and credit to Service Revenues
b. Unearned Revenues and a credit to Cash
c. Service Revenues and credit to Accounts Receivable
d. Unearned Revenues and a credit to Service Revenues
22. All of the following are revenue transactions except?
Select one:
a. An entity received cash for services performed.
b. An entity delivers goods to a customer.
c. An entity received note in exchange of goods delivered.
d. An entity receives payment before delivering the goods.
23. In what book will this be recorded: Issued a check to an employee in payment for
his/her
salaries.
Select one:
a. General journal
b. Cash disbursements journal
c. Payroll journal
d. Purchases journal
24. All of the following would appear in the worksheet that uses periodic system of
recording
inventory except;
Select one:
a. Cost of Goods Sold
b. Income Summary
c. Purchase returns and allow
d. Sales discount
25. If a P2,500 adjustment for depreciation is omitted, which of the following financial
statement errors will occur?
Select one:
a. Assets will be understated
b. Owner’s equity will be overstated
c. Expenses will be overstated
d. Profit will understated
26. Which of the following is a revenue?
Select one:
a. The entity collected cash from owner as initial investment.
b. The entity received cash as proceeds of the loan.
c. The entity received cash for sale of merchandise.
d. The entity collected cash from customer for services rendered previous month

27. When an entity has suffered a loss, the loss amount is entered on the worksheet
on the;
Select one:
a. Credit side of the Income statement columns and the debit side of the Balance
sheet columns
b. Debit side of the Income statement columns and the credit side of the Balance
Sheet columns
c. Credit side of both the Income Statement and the Balance Sheet columns.
d. Debit side of both the Income Statement and the Balance Sheet columns

28. On the completed worksheet, if the total of the credit column of the income
statement is
P4,500,000 and the debit has a total of P5,000,000 in which column is the difference
of
P500,000 appears?
Select one:
a. Debit side of the income statement and debit side of the balance sheet
b. Credit side of the income statement and debit side of the balance sheet
c. Debit side of the income statement and credit side of the balance sheet.
d. Credit side of the income statement and credit side of the balance sheet
29. Which of the following accounts could not be credited in an adjusting entry?
Select one:
a. Prepaid Rent
b. Interest Receivable
c. Service Revenues
d. Office Supplies

30. The controlling account in the general ledger that summarizes the individual
accounts
with creditors in a subsidiary ledger is called;
Select one:
a. Purchases
b. Accounts payable
c. Accounts receivable
d. Sales returns and allowances

31. A special journal that contained columns for cash, purchase discount, accounts
payable,
expenses and other payables is;
Select one:
a. Cash receipts journal
b. General journal
c. Sales journal
d. Cash disbursement journal
32. Salaries payable is normally extended to:
Select one:
a. balance sheet, credit column
b. income statement, debit column
c. balance sheet, debit column
d. income statement, credit column
33. Which of the following statements is/are correct regarding post-closing trial
balance?
Statement No. 1: There is sufficient information on a post-closing trial balance to
prepare a balance sheet.
Statement No. 2: The post-closing trial balance will have fewer accounts than the
adjusted trial balance.
Statement No. 3: The post-closing trial balance contains Asset, Liability, Withdrawal
and Capital accounts.

Select one:
a. Statement no. 1 and 2 only
b. Statement no. 1 only
c. Statement no.1 and 3
d. Statement no 3 only
34. Closing entries reduce the following type of accounts to a zero balance at the
end of the
period.
Select one:
a. income and expenses
b. income summary
c. all of the above
d. withdrawals
35. A firm that uses special journals acquired merchandise for P5,000, giving a
P5,000 note
payable. In which would the transaction be recorded?
Select one:
a. General journal
b. Purchase journal
c. Cash receipts journal
d. Cash disbursement journal
36. The purpose of the post-closing trial balance is to:
Select one:
a. ensure that the ledger is in balance for completion of the worksheet
b. aid the journalizing and posting of the closing entries.
c. provide the account balances for the preparation of the balance sheet
d. ensure that the ledge is in balance for the start of the next period.

37. Suppose an entity recorded an expense when it was paid, but the expense was
incurred
or happened one year before the payment date. Which of the following accounting
principles has been violated?
Select one:
a. Historical cost concept
b. Accrual concept
c. Entity concept
d. Consistency concept

38. Which of the following is a correct definition of gross profit?

Select one:
a. Profit – Other Expenses
b. Gross Profit
c. Net Sales – Net Purchases
d. Net Sales – Cost of Good Sold
e. Gross Profit
f. Net Purchases + Cost of Good Sold
g. Gross Profit
h. Gross Profit
39. What function do general ledgers serve in the accounting process?
Select one:
a. Classifying
b. Summarizing
c. Recording
d. Reporting
40. If a trial balance were to be prepared on the first day of the new year, and the
account
Salaries expense had a credit balance, you would know that;
Select one:
a. The adjusting entries have been recorded
b. A reversing entry has been made.
c. The trial balance is a post-closing trial balance.
d. The trial balance is an adjusted trial balance
41. An items that represents services received by the firm for which it will pay for in
the
future is called;
Select one:
a. An unearned revenue
b. An accrued revenue
c. An accrued expense
d. A prepaid expense
42. Which of the following accounts is not closed during the closing process?
Select one:
a. commissions revenues
b. owner’s capital
c. income summary
d. owner’s withdrawals
43. Failure to record the entry for accrued interest on notes receivable results in;
Select one:
a. Interest expense being understated.
b. Net Profit being understated.
c. Interest payable being overstated.
d. Total assets being overstated.
44. If the last item on a trial balance reads “OWNER’S EQUITY”, this must be the:
Select one:
a. reversed trial balance
b. post-closing trial balance
c. unadjusted trial balance
d. adjusted trial balance
45. Which of the following items would be recorded in the purchase journal?
Select one:
a. Supplies purchased on account
b. Merchandise purchased on account
c. Equipment purchased on account
d. All of the above
46. A listing of all the accounts contained in the general ledger is called:
Select one:
a. trial balance
b. general journal
c. chart of accounts
d. general ledger

47. In what book will this be recorded: Issued a check to an employee in payment for
his/her salaries.
Select one:
a. General journal
b. Purchases journal
c. Cash disbursements journal
d. Payroll journal

48. In what book will this be recorded: Issued charge invoice to customers on credit.
Select one:
a. General journal
b. Sales journal
c. Cash receipts journal
d. Not given

49. In what book will this be recorded: Received cash from the owner for his her
investment.
Select one:
a. General journal
b. Purchases journal
c. Cash receipts journal
d. Cash disbursements journal

50. In what book will this be recorded: Received invoice from the supplier for the
merchandise bought from them on credit.
Select one:
a. Sales journal
b. Cash receipts journal
c. Cash disbursements journal
d. Purchases journal

51. Adjusting entries are normally recorded on what book?In what book will this be
recorded: Received invoice from the supplier for the equipment bought on credit for
the use of the business-
{~Sales journal
~Cash receipts journal
~Cash disbursements journal
=Purchases journal}
Select one:
a. General journal
b. Purchases journal
c. Cash receipts journal
d. Cash disbursements journal

52. In what book will this be recorded: Received from the supplier for the equipment
bought on credit for the use of the business?
Select one:
a. Sales journal
b. Cash Disbursements journal
c. Cash receipts journal
d. Purchases journal

53. In what book will this be recorded: The customer returned a defective computer
purchased on account.
Select one:
a. General journal
b. Cash disbursements journal
c. Sales returns and allowances journal
d. Purchases returns and allowances journal

54. Which of the following accounts would not appear on a worksheet for a
merchandising entity that uses the periodic inventory system?
Select one:
a. Cost of goods sold
b. Purchases
c. Sales Returns and allowances
d. Transportation in

55. Closing entries are recorded in what special journal?

Select one:
a. sales journal
b. general journal
c. purchases journal
d. closing journal

56. In what book will this be recorded: Received a contract to sell 10 computers to a
new customer
Select one:
a. general journal
b. sales journal
c. cash receipts journal
d. not given
57. In what book will this be recorded: Hired 2 new sales clerks.
Select one:
a. cash disbursements journal
b. payroll journal
c. general journal
d. not given

58. Which of the following is closed by debiting the account?

Select one:
a. Purchases
b. sales returns and allowances
c. Purchase returns and allowances
d. Transportation in

59. Suppose Gevera Boutique had sales of P300,000 and sales returns of P40,000.
The cost of good sold was P160,000. How much gross profit did Gevera Boutique
should report?
Select one:
a. P 160,000
b. P100,000
c. P180,000
d. P260,000

60. Charge invoice issued by a supplier is recorded in what special journal of the
buyer?
Select one:
a. Sales journal
b. Cash disbursement journal
c. Cash receipts journal
d. Purchases journal