ACCOUNTING

Practice Quiz 1- Account Titles

This will test what you really understand. Review lang po, kung gusto niyo lang naman. Walang sapilitan dito bes! ^_^

Choose the letter of the correct answer.

1. Present economic resources controlled by the entity as a result of past events

a. Income
b. Liabilities
c. Equity
d. Capital
e. Assets
f. Expenses

2. The portion of the cost of a tangible assets allocated or charged as expense during an accounting period

a. Interest Expense
b. Mortgage Payable
c. Salaries Expense
d. Depreciation Expense
e. Utilities Expense
f. Rent Expense

3. A present obligation of the entity to transfer an economic resources as a result of past events.

a. Income
b. Liabilities
c. Equity
d. Capital
e. Assets
f. Expenses

4. The residual interest in the asset of the entity after deducting all its liabilities.

a. Income
b. Liabilities
c. Equity
d. Capital
e. Assets
f. Expenses

5. An expense related to use of borrowed funds

a. Interest Expense
b. Mortgage Payable
c. Salaries Expense
d. Depreciation Expense
e. Utilities Expense
f. Rent Expense

6. Increase in assets, or decreases in liabilities, that result in increase in equity, other than those relating to contributions from holders of equity claims

a. Income
b. Liabilities
c. Equity
d. Capital
e. Assets
f. Expenses

7. Decrease in assets, increase in liabilities, that result in decrease in equity, other than those relating to distributions to holders of equity claims

a. Income
b. Liabilities
c. Equity
d. Capital
e. Assets
f. Expense

8. Any medium of exchange that a bank will accept for deposit at face value. It includes coins, currency, checks, money orders, bank deposits and drafts.

a. Accounts Receivable
b. Accounts Payable
c. Capital
d. Cash
e. Cash equivalents
f. Inventories

9. Per PAS (Philippine Accounting Standards) No. 7 , these are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subjects to an insignificant risk of changes in value.

a. Accounts Receivable
b. Accounts Payable
c. Capital
d. Cash
e. Cash equivalents
f. Inventories
g. Notes Receivable

10. A written pledge that a customer will pay the business fixed amount of money on a certain date

a. Accounts Receivable
b. Accounts Payable
c. Capital
d. Cash
e. Cash equivalents
f. Inventories
g. Notes Receivable

11. These are claims against customers arising from a sale of services or goods on credit. This type of receivable offers less security than a promissory note

a. Accounts Receivable
b. Accounts Payable
c. Capital
d. Cash
e. Cash equivalents
f. Inventories
g. Notes Receivable

12. Per PAS No. 2 , these are assets which are
(1) held for sale in the ordinary course of business; (2) in the process of production for such sale; (3) in the form of materials or supplies to be consumed in the production process or in the rendering of services

a. Accounts Receivable
b. Accounts Payable
c. Capital
d. Cash
e. Cash equivalents
f. Inventories
g. Notes Receivable

13. These are expenses paid for by the business in advance. It is an asset because the business avoids having to pay cash in the future for a specific expense