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Cash, Accrual and Hybrid Method of Accounting

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Gletzmar Igcasama

This document contains 10 multiple choice questions related to accounting concepts. The questions cover topics like cash basis accounting, accrual basis accounting, the hybrid accounting method, recognizing income and expenses, and accounting for accounts payable and receivable. The answers provided are: 1) C, 2) B, 3) A, 4) C, 5) A, 6) D, 7) B, 8) B, 9) A, 10) C.

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Cash, Accrual and Hybrid Method of Accounting

Uploaded by

Gletzmar Igcasama
98 views2 pages
This document contains 10 multiple choice questions related to accounting concepts. The questions cover topics like cash basis accounting, accrual basis accounting, the hybrid accounting method, recognizing income and expenses, and accounting for accounts payable and receivable. The answers provided are: 1) C, 2) B, 3) A, 4) C, 5) A, 6) D, 7) B, 8) B, 9) A, 10) C.

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Multiple choice questions with answer key

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Cash, Accrual and Hybrid method of accounting

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This document contains 10 multiple choice questions related to accounting concepts. The questions cover topics like cash basis accounting, accrual basis accounting, the hybrid accounting method, recognizing income and expenses, and accounting for accounts payable and receivable. The answers provided are: 1) C, 2) B, 3) A, 4) C, 5) A, 6) D, 7) B, 8) B, 9) A, 10) C.

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© All Rights Reserved
Download as DOCX, PDF, TXT or read online from Scribd
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98 views2 pages

Cash, Accrual and Hybrid Method of Accounting

Uploaded by

Gletzmar Igcasama
This document contains 10 multiple choice questions related to accounting concepts. The questions cover topics like cash basis accounting, accrual basis accounting, the hybrid accounting method, recognizing income and expenses, and accounting for accounts payable and receivable. The answers provided are: 1) C, 2) B, 3) A, 4) C, 5) A, 6) D, 7) B, 8) B, 9) A, 10) C.

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LEROS,Ariel A.

BSA-3

If a business commenced the day with P3,400 in hand, receives and pays out P42,800 and
P44,200 respectively during the day, the cash in hand at the end of the day would be:

A. P 46,200 B. P 1,400

C. P 2,000 D. P 4,800

2. If a business commenced the day with P14,200, paid out P58,900 during the day and has
P22,900 by the end of the day, it should have received ______ during the day.

P 50,200
P 67,600
P 21,800
P 1,400

3. The Cash account has recorded the sales as P216,480 and the purchases as P196,475 in
the first year of business. Sales are always made at cost plus 20% and no inventory remains
unsold at the year-end. The owner suspects that the part of the amount receive from sales has
been misappropriated by the manager who has now registered. What is the extent of the
suspected misappropriation?

23,291
20,005
19,290
21,290

4. Which one of the following basis of income and expenses recognition is acceptable for
financial reporting under current GAAP?

Cash basis
Modified cash basis
Accrual basis
All of these

5. Which of the following terms best describes financial statements whose basis of
accounting recognizes transactions and other events when they occur?
a. Accrual basis
b. Going concern basis
c. Cash basis
d. Invoice basis

6. Under accrual-basis accounting


net income is calculated by matching cash outflows against cash inflows.
the ledger accounts must be adjusted to reflect a cash basis of accounting before financial
statements are prepared under generally accepted accounting principles.
cash must be received before revenue is recognized.
events that change a company's financial statements are recognized in the period they occur
rather than in the period in which cash is paid or received.
7. What is the purpose of using the hybrid method of accounting?

To comply with tax laws and regulations.


To provide a more accurate picture of a company's financial position.
To simplify the accounting process.

8. Can a company switch from one accounting method to another, such as from cash to accrual
accounting or vice versa?

A) No, once a company has chosen an accounting method, it must stick to it.
B) Yes, a company can switch accounting methods, but only with the approval of its
shareholders.
C) Yes, a company can switch accounting methods, but only with the approval of its accountant.

9.What is the primary difference between cash and accrual accounting methods in the hybrid
method of accounting?

A) Cash accounting only records transactions when payment is received, while accrual
accounting records transactions when they occur.
B) Accrual accounting only records transactions when payment is received, while cash
accounting records transactions when they occur.
C) Both cash and accrual accounting methods record transactions when payment is received.

10. In the hybrid method of accounting, how are accounts payable and accounts receivable
recorded?

A) They are recorded using the cash method.


B) They are recorded using the accrual method.
C) They are recorded using both the cash and accrual methods.

Answer

1.C
2. B
3. A.
4. C
5. A
6. D
7. B
8. B
9. A
10. C

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