Elimination Questions PDF

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Which of the following transactions increases both assets and owner’s equity? a. Owner withdrawal of cash b. Payment received from a credit customer c. Received a bank loan d. Rendered services; payment not yet received When an entity pays for goods and services before actual receipt, the payment sh...

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Which of the following transactions increases both assets and owner’s equity? a. Owner withdrawal of cash b. Payment received from a credit customer c. Received a bank loan d. Rendered services; payment not yet received When an entity pays for goods and services before actual receipt, the payment should be recorded as a decrease in Cash and an increase in a. A liability. c. an expense. b. An asset. d. an owner’s equity account. A ledger is defined as a collection of a. Account titles – asset, liability, equity, income and expense accounts. b. All income statement accounts. c. All statement of financial position accounts. d. Transactions. When owner’s equity decreases, one of the ff must occur: a. A liability increases c. an income increases. b. An asset increases d. withdrawals decreases. Which of the following transactions correctly maintains the equality in the accounting equation? a. To record collections on account, cash and accounts receivable are increased by P160,000. b. To record payment of notes, notes payable is decreased and cash is increased by P70,000. c. To record payment of rent, rent expense and cash are increased by P8,000. d. To record the purchase of computer equipment, computer equipment is increased and cash is decreased by P46,000. Which of the following combinations of trial balance totals suggest the presence of either a transposition error or a number slide? a. P65,470 debit and P68,170 credit b. P33,220 debit and P35,420 credit c. P25,670 debit and P26,670 credit d. P14,517 debit and P15,477 credit The Supplies account had a P2,800 debit balance at the end of the accounting period before adjustment for supplies used, and an inventory of P600worth of unused supplies was on hand. Which of the following is the required adjusting entry? a. Debit Supplies Expense P600 and Credit Supplies P600 b. Debit Supplies P600 and Credit Supplies Expense P600 c. Debit Supplies P2,200 and Credit Supplies Expense P2,200 d. Debit Supplies Expense P2,200 and Credit Supplies P2,200 Which of the following transactions does not

affect the balance sheet totals? a. Collecting 40,000 from customers on account b. Paying a P300,000 note payable c. Purchasing P50,000 supplies on account d. Withdrawal of 80,000 by the firm’s owner 9.

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A Company that pays employees every two weeks has paid workers P375,000 in wages and salaries for work completed during 2018. In addition, the employees earned one week’s salary of P7,200 at the end of December that will be paid as part of the P14,400 payroll at the end of the first week of January in 2019. How much should the company report for salaries and wages expense for 2013? a. P367,800 c. P389,400 b. P375,000 d. P382,200 A business received cash of P30,000 in advance for revenue that will be earned later. The cash receipt entry debited cash and credited unearned revenues for P30,000. At the end of the period, P11,000 is still unearned. The adjusting entry for this situation will a. Debit revenues and credit unearned revenues for P19,000 b. Debit revenues and credit unearned revenues for P11,000 c. Debit unearned revenues and credit revenues for P19,000 d. Debit unearned revenues and credit revenues for P11,000 Office Supplies were P9,000 at the end of January and P11,400 at the end of February. During February, Office Supplies Expense equaled P3,000. How much cash was paid for office supplies during February? a. P2,400 c. P17,400 b. P14,400 d. P5,400 Salaries Payable were P3,500 at the end of September and P2,800 at the end of October. Salaries Expense for October was P18,000. How much cash was paid for salaries during October? a. P18,700 c. P17,300 b. P24,100 d. 11,700 Which of the following errors will not cause the debit and credit columns of the trial balance to be unequal? a. A debit entry was recorded in the wrong account. b. A debit was entered in an account as a credit. c. The account balance was carried to the wrong column of the trial balance. d. The balance of an account was incorrectly computed. On Nov 1, Yuki repair shop received 10,000 cash for services to be rendered on the month of December. At year-end, only 60% was rendered. The company follows the revenue method. What is the adjusting entry at

December 31? a. Debit Service Revenue 4000, credit Unearned revenue 4000 b. Debit Service Revenue 6000 credit unearned revenue 6000 c. Debit Service Revenue 6000 credit unearned revenue 6000 d. Debit Unearned Revenue 4000 credit Service Revenue 4K 15. If a P4,700 cash purchase of supplies is recorded as a P5,700 debit to Supplies Expense and a P5,700 credit to Cash, the result will be that, a. Supplies Expense will be overstated and cash will be understated. b. The cash account will be overstated. c. The Supplies Expense account will be understated. d. The trial balance will be out of balance. 16. If Accounts Receivable has debit postings of P580,000, credit postings of P440,000, and a normal ending balance of P480,000,which of the following was its beginning balance? a. P620,000 Cr. c. P620,000 Dr. b. P340,000 Cr. d. P340,000 Dr. 17. When collections are made on Accounts Receivable, a. Owner’s equity increases. b. Total assets decrease. c. Total assets increase. d. Total assets remain the same. 18. When a company has performed a service but has not yet received payment, it a. Debits Accounts Receivable and credits Service Revenues. b. Debits Service Revenues and credits Accounts Payable. c. Debits Service Revenues and credits Accounts Receivable. d. Makes no entry until the cash is received. 19. If Accounts Receivable has debit posting of P580,000, credit postings of 440,000, and a normal ending balance of P480,000, which of the following was its beginning balance? a. P620,000 Cr. b. P340,000 Cr. c. P620,000 Dr. d. P340,000 Dr. 20. Proponents of historical costs maintain that in comparison with all other valuation alternatives for general purpose financial reporting, statements prepared using historical costs are more a. Conservative b. Indicative of the entity’s purchasing power c. Objective d. Relevant 21. Which pair of accounts follows the rules of debit and credit?

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Advertising Expense and Land Interest Payable and Owner’s Capital Owner’s Withdrawals and Medical Revenues d. Prepaid Insurance and Owner’s Withdrawals 22. If Accounts Payable has debit postings of P170,000, credit postings of P140,000, and a normal ending balance of P60,000, which of the following was its beginning balance? a. P30,000 Cr. c. P90,000 Cr. b. P30,000 Dr. d. P90,000 Dr. 23. When a T-account has several items on both sides, the balance of the account is written a. On the side with the greatest number of items. b. On the side with the larger total. c. On the side with the least number of items. d. On the side with the smaller total. 24. A P1,000 debit item is accidentally posted as a credit. The trial balance column totals therefore will differ by a. P0. c. P1,000. b. P500. d. P2,000.

25. The Recording a single transaction in the double-entry accounting records may A. Decrease the balance on a liability account by a given amount and decrease the balance on an asset account by the same amount. B. Decrease the balance on an asset account by a given amount and increase the balance on a liability account by the same amount. C. Increase the balance on an asset account by a given amount and decrease the balance on a liability account by the same amount. D. Increase the balance on one asset account by a given amount and increase the balance on another asset account by the same amount 26. Detoya Company must determine the Dec. 31, 2016 year-end accruals for advertising and rent expenses. A P5,000 advertising bill was received Jan. 7, 2017. It related to cost of P3,750 for advertisements in Dec. 2016 issues and P1,250 for advertisements in Jan. 2015 issues of newspaper. A store lease, effective Dec. 16 2015 calls for fixed rent of P12,000 per month, payable one month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P3,000,000 per calendar year is payable on Jan.31 of the following year. Net sales for 2016 were P5,500,000. In its Dec 31,2016 balance sheet, Detoya should report accrued liabilities of a. P125,000 b. P128,750 c. P131,000 d. P134,750 27. The account format that displays debits, credits, balances, and headings a. General journal b. General ledger c. T-account d. Ledger account 28. Entries made to transfer temporary account

balances to permanent accounts. a. Journal entries b. Adjusting entries c. Reversing entries d. Closing entries 29. Accounts with balances that are carried over to future years. a. Temporary accounts b. Permanent accounts c. Expense accounts d. Withdrawal accounts 30. Client Jay pays ABC Co. $1,000 in December for ABC to perform services for Jay in 45 days. ABC uses the accrual basis of accounting. In December ABC will debit Cash for $1,000. What will be the other account involved in the December accounting entry prepared by ABC (and what type of account is it)? a. Accounts Receivable (asset) b.

Prepaid Services (asset)

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Service Revenues (revenue)

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Unearned Revenues (liability)...