This document provides a series of questions and activities related to accounting fundamentals. It includes true/false questions about the income statement, filling in a missing income statement, classifying balance sheet accounts as current assets, current liabilities, noncurrent assets or noncurrent liabilities, multiple choice questions about balance sheet presentation and asset/liability classification, selecting the type of business organization being described, and identifying sole proprietorships. The document contains exercises to test understanding of key accounting concepts.
This document provides a series of questions and activities related to accounting fundamentals. It includes true/false questions about the income statement, filling in a missing income statement, classifying balance sheet accounts as current assets, current liabilities, noncurrent assets or noncurrent liabilities, multiple choice questions about balance sheet presentation and asset/liability classification, selecting the type of business organization being described, and identifying sole proprietorships. The document contains exercises to test understanding of key accounting concepts.
This document provides a series of questions and activities related to accounting fundamentals. It includes true/false questions about the income statement, filling in a missing income statement, classifying balance sheet accounts as current assets, current liabilities, noncurrent assets or noncurrent liabilities, multiple choice questions about balance sheet presentation and asset/liability classification, selecting the type of business organization being described, and identifying sole proprietorships. The document contains exercises to test understanding of key accounting concepts.
This document provides a series of questions and activities related to accounting fundamentals. It includes true/false questions about the income statement, filling in a missing income statement, classifying balance sheet accounts as current assets, current liabilities, noncurrent assets or noncurrent liabilities, multiple choice questions about balance sheet presentation and asset/liability classification, selecting the type of business organization being described, and identifying sole proprietorships. The document contains exercises to test understanding of key accounting concepts.
I. TRUE or FALSE Write TRUE if the statement is correct, and FALSE if it is not. THE INCOME STATEMENT II. COPY & FILL OUT Find the missing figures in the Income Statement by filling it out. COPY the income statement. Note that gross profit is 40% of net sales and profit is 10% of net sales. THE BALANCE SHEET III. IDENTIFICATION Below are balance sheet accounts. Classify these accounts by writing (CA) for current assets, (CL) for current liabilities, (NCA) for noncurrent assets, and (NCL) for noncurrent liabilities.
THE BALANCE SHEET
IV. MULTIPLE CHOICE
Choose the letter of the best answer to each item.
1. In presenting a statement of financial position, an entity a. Must make the current and noncurrent presentation. b. Must present assets and liabilities in order of liquidity. c. Must choose either the current and noncurrent or the liquidity presentation, meaning free choice presentation. d. Must make the current and noncurrent presentation, except when a presentation based on liquidity provides information that is reliable and more relevant. 2. Assets to be sold, consumed or realized as part of the normal operating cycle are a. Current assets b. Noncurrent assets c. Classified as current or noncurrent in accordance with other criteria d. Noncurrent investments 3. Liabilities that an entity expects to settle within the normal operating cycle are classified as a. Noncurrent liabilities b. Current or noncurrent liabilities in accordance with other criteria c. Current liabilities d. Equity 4. In which section of the statement of financial position should cash that is restricted for the settlement of a liability due 18 months after the reporting period be presented? a. Current assets c. Noncurrent liabilities b. Equity d. Noncurrent assets 5. An entity has a loan due for repayment in six months’ time but the entity has the option to refinance for repayment two years later. The entity plans to refinance this loan. In which sect ion of the statement of financial position should this loan be presented? a. Current liabilities c. Noncurrent liabilities b. Current assets d. Noncurrent assets
TYPES OF BUSINESS ORGANIZATION
V. SELECT Read each item very carefully. The following describes several different business organizations. write: A - if the description refers to a sole proprietorship B - if the description refers to partnership C - if the description refers to corporation D - if the description refers to a cooperative
1. Benedict San Jose, owner of San Jose Landscaping Services, renders services for a fee for Scholastica. 2. The ownership of Manila Electric Company is divided into 200,000 shares of stock. 3. Tom and Jerry own and manage a catering service business. 4. Rosario’s Dress Shop is owned by Charito Deang, who is personally liable for the debts of the business. 5. Romy makes an educational loan to an organization where he is a member because it charges low interest rates. 6. Jose, Evelyn, Luz, Efren, and Rene own Prosperity Development Rural Bank. Neither one of the owner has personal responsibility for the liabilities of the bank. 7. Organic Farm produce is an organization which supplies its members with agricultural component such as seeds, fertilizers, and the like. 8. Ultra Clean Laundry Services does not have a separate legal existence apart from the one person who owns it. 9. Micro-Computer Enterprises does not pay taxes and has one owner. 10. Magnificent Consulting Firm pays its own taxes and has two owners
