FABM
investing
Acquisition of new property Operating Administering Financing Investing
false
Asset is an element of the Statement of Financial Position that has a normal balance of credit. true false
true
Cash equivalents are not cash because it is not immediately available for use. true false
true
Consigned items are not part of the sellers inventory account. true false
false
Cost of sales/cost of goods sold is computed as cost of goods available for sale less beginning Inventory. true false
financing
Declaration and payment of dividends on company's stock. Operating Administering Financing Investing
operating
Gain on sale of equipment Operating Administering Financing Investing
false
Goods delivered "Free-on-Board" (FOB) shipping point is part of the sellers inventory account true false
false
One of the elements of Statement of Comprehensive Income is Unearned Revenue. true false
false
Prepaid expense refers to the unpaid expenses of the company as of the cut-off date of the Statement of Financial Position. true false
financing
Proceeds from issuing bonds payable Operating Administering Financing Investing
investing
Proceeds from the sale of equipment used in the business. Operating Administering Financing Investing
False
Statement of Financial Position shows the financial performance of the business. True False
False
The account holder may issue a bank check from a savings account. True False
conservatism
When the accountant has to choose between two acceptable alternatives, the accountant should select the alternative that will report less profit, less asset amount, or a greater liability amount. This is based upon which principle/guideline? Cost Monetary unit Materiality Conservatism
Bank Statement
Which statement shows the movement of the depositor's money in the bank? Withdrawal slip Statement of Cash Flow Statement of Financial Position Bank Statement
adjusting
Which type of journal entries are made at the end of each accounting period so that the financial statements better reflect the accrual method of accounting? Closing Adjusting Opening Reversing
false
Expenses decrease assets and therefore have a credit normal balance true false
true
Adjusting journal entries are prepared based on the reconciling items on the bank side of the bank reconciliation. true false
Operating
Amortization of patent Operating Administering Financing Investing
cost
Assets are usually reported on the balance sheet at which amount? Cost Fair market value Expected selling price Discounted price
operating
Depreciation Expense Operating Administering Financing Investing
true
Income tax is a tax on the net income, or the entire income realized in one taxable year. true false
operating
Increase in Accounts Receivable Operating Administering Financing Investing
operating
Increase in Assets Operating Administering Financing Investing
operating
Increase in Prepaid Insurance Operating Administering Financing Investing
true
Knowledge of accounting helps investors determine an assets' value, understand a company's financing sources, calculate profitability, and estimate risks embedded in a company's Statement of Profit and Loss. true false
investing
Loss on sale of equipment Operating Administering Financing Investing
True
Owners invest capital to start and run business with the primary objective to earn profit. True False
financing
Proceeds of bank loan Operating Administering Financing Investing
true
Promissory note is a document that expresses the borrower's promise to pay. true false
net income/loss
Revenues minus expenses equals __________. Capital Net Income/Loss Liabilities Assets
true
The estimated useful life of an assets is used to compute for the net book value of an asset. true false
financing
The exchange/conversion of long-term bonds into common stock. Operating Administering Financing Investing
Bank load due after 2 years
The following are current liabilities, EXCEPT: Accounts payable Notes payable due within the year Bank load due after 2 years Income tax payable within a month
Administering
The following are the classification of activities in the Statement of Cash Flow EXCEPT: Operating Administering Investing Financing
True
The main objectives of Accounting is to safeguard the interests of the business, its proprietors and others connected with the business transactions. True False
investing
The purchase of a new delivery truck to be used in the business
true
The salvage value of an asset is deducted from the cost of the asset in computing for depreciation expense. true false
true
The time deposit accounts are investment accounts in nature. true false
Statement of Profit and Loss
Which financial statement reports the revenues and expenses for a period of time such as a year or a month? Statement of Financial Position Statement of Profit and Loss Statement of Changes in Equity Statement of Cash Flows
statement of profit and loss
Which financial statement will allow you to determine the gross margin for a retailer or manufacturer? Statement of Profit and Loss Statement of Cash Flow Statement of Financial Position Statement of Retained Earnings
statement of financial position
Which financial statement's structure is closest to that of the basic accounting equation? Statement of Profit and Loss Statement of Cash Flow Statement of Financial Position Statement of Retained Earnings
statement of profit and loss
Which financial statement's structure shows the financial performance of the company? Statement of Profit and Loss Statement of Cash Flow Statement of Financial Position Statement of Changes in Equity
Statement of Changes in Equity
Which financial statement's structure shows the movements in the equity accounts? Statement of Profit and Loss Statement of Cash Flow Statement of Financial Position Statement of Changes in Equity
debit memo
Which of the following form is issued by the bank notifying the depositor that his/her account has been deducted a certain amount? bank order credit memo debit memo bank statement
Liabilities
Which of the following is a category, classification, or element of the Statement of Financial Position? Gains Losses Expenses Liabilities
receivables
Which of the following is referred to as the company's right to collect or claim payment? Cash on hand Receivables Investments Inventory