Accounting

Question 1

refers to the major tax incurred by the company for conducting its business.

Answer 1

Income tax

Question 2

are costs arising from transactions other than the ordinary business activities

Answer 2

Losses

Question 3

is the amount incurred for borrowed funds

Answer 3

Interest cost

Question 4

are costs to restore an asset to its previous condition.

Answer 4

Repair and maintenance

Question 5

is cost of advertising attributable to the accounting period.

Answer 5

Advertising

Question 6

is lease attributable to the accounting period.

Answer 6

Rental cost

Question 7

is lapsed portion of insurance paid attributable to the accounting period

Answer 7

Insurance

Question 8

is allocation of cost of tangible and long term assets to the accounting period.

Answer 8

Depreciation

Question 9

are consumed part of supplies asset.

Answer 9

Supplies

Question 10

are cost of using electricity, water and telephone charges.

Answer 10

Utilities

Question 11

are compensation due to employees for service rendered.

Answer 11

Salaries and wages

Question 12

are the expenses of the business incurs during its normal business operations.

Answer 12

Operating expense

Question 13

are the expenses of the business incurs during its normal business operations.

Answer 13

Operating expense

Question 14

is the additional cost in the delivery of the goods and products from the supplier.

Answer 14

Freight in

Question 15

are the return merchandise due to valid reasons, as provided in the purchase agreement.

Answer 15

Purchase return

Question 16

is the decrease of the purchase price of the merchandise by paying within a period of time.

Answer 16

Purchase discount

Question 17

are the acquired goods and products from its suppliers for what it will sell to the customers

Answer 17

Purchases

Question 18

are expensed part of the inventory sold to customers.

Answer 18

Cost of Goods Sold

Question 19

It is any decrease in assets or a increase in liabilities, resulting in decrease in equity.

Answer 19

Expenses

Question 20

are income arising from transactions other than ordinary activities.

Answer 20

Gains

Question 21

is the delivery charge in delivering the products to the customers.

Answer 21

Freight out

Question 22

is the return of the merchandise due to valid reasons.

Answer 22

Sales return

Question 23

is a unit of recording that is used to sort and store transactions.

Answer 23

Account

Question 24

present economic resource controlled by the entity as result of past events.

Answer 24

assets

Question 25

are assets that are expected to be realized within the normal cycle or one year, whichever is longer.

Answer 25

Current assets

Question 26

money on hand,

Answer 26

Cash

Question 27

are amounts due from customer arising from credit sales or services

Answer 27

Accounts receivable

Question 28

are amounts due from debtors supported by formal promissory notes.

Answer 28

Notes receivable

Question 29

are investments made that are intended to be sold or traded immediately.

Answer 29

Short-term investments

Question 30

are living plants or animals with certain exceptions.

Answer 30

Biological Assets

Question 31

are (1) held for sale in the ordinary course of business (2) process of production (3) materials and supplies.

Answer 31

Inventories

Question 32

are expenses paid in advance.

Answer 32

Prepaid Expense

Question 33

are assets that are expected to be realized beyond the business or one year, whichever is longer.

Answer 33

Noncurrent Assets

Question 34

are durable assets that have been acquired for use in operations and administration.

Answer 34

Property, Plant and Equipment

Question 35

is a contra-asset account that shows the depreciated value of an asset

Answer 35

Accumulated depreciation

Question 36

. is durable assets held either for rentals or capital appreciation

Answer 36

Investment Property

Question 37

are investments to other companies that are intended to be held more than one year.

Answer 37

Long-term Investment

Question 38

are identifiable, non monetary assets without physical substance and expected to provide future benefits

Answer 38

Intangible Assets

Question 39

It is a present obligation of the entity to transfer economic resource because of past events.

Answer 39

Liabilities

Question 40

are amounts due to suppliers for goods purchased on account.

Answer 40

Accounts Payable

Question 41

are amounts due to creditors as evidenced by promissory note.

Answer 41

Notes Payable

Question 42

are expenses that are incurred but not yet paid.

Answer 42

Accrued Expenses

Question 43

is cash collected in advance for services to be performed or goods to be delivered in the future.

Answer 43

Unearned Income

Question 44

are amounts due to creditors usually banks or other lending institutions, evidenced by a loan contract.

Answer 44

Loans Payable

Question 45

are amounts due to creditors secured by borrower’s asset (collateral)

Answer 45

Mortgage Payable

Question 46

It represents the owner’s claim in the business at a specific date.

Answer 46

Owners equity

Question 47

the value of cash and other assets invested in the business by the owner.

Answer 47

Capital represents

Question 48

is a temporary account representing cash or other assets withdrawn from the business.

Answer 48

Drawing

Question 49

It is any increase in assets or a decrease in liabilities, resulting in increase in equity.

Answer 49

Income

Question 50

is an income arising in the course of an entity’s ordinary activities.

Answer 50

Service Revenue

Question 51

is an income arising in the selling merchandises.

Answer 51

Sales Revenue

Question 52

Also known as the Statement of Owner’s Equity, shows the changes in the capital account due to contributions, withdrawals and net income or net loss.

Answer 52

Statement of changes in equity

Question 53

This is prepared for the sole proprietorship type of business and shows the movement in the capital.

Answer 53

Statement of changes in equity

Question 54

It reports the cash generated and used during the time interval specified in the heading.

Answer 54

Cash flow statement

Question 55

It organizes and reports cash generated and used in the following categories:

Answer 55

Cash flow statement

Question 56

– converts the items reported on the income statement from the accrual basis of accounting to cash.

Answer 56

Operating Expense

Question 57

– reports the purchase and sale of long term investments and fixed assets or the property, plant and equipment.

Answer 57

Investing Activities

Question 58

reports the borrowing, payments of borrowing, investment and withdrawal of the owner.

Answer 58

Financing Activities –

Question 59

Also known as the Balance Sheet, presents the financial position of an entity at a given date. It has three main components: assets, liabilities and equity.

Answer 59

Statement of financial position