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FINAL EXAM
I. Multiple choice
1. The data recorded in the accounting books are called
a. Asset
b. Transactions
c. Liability
d. T accounts
5. it is a business obligation
a. asset
b. liability
c. capital
d. equity
FINAL EXAM
10. a journal entry with two or more debit and credit accounts
a. single entry
b. simple entry
c. double entry system
d. compound entry
12. When the entity receives cash for the services performed,
a. asset is decreased
b. liability is increased
c. total assets remained unchanged
d. asset is increased
13. When the entity pays employees for their services, the effect is increased in
a. asset
b. liability
c. income
d. expenses
FINAL EXAM
b. current asset
c. capital
d. investment
22. Aim to transfer the information from the journal to the ledger for classification
a. identification of events to be recorded
b. transactions are recorded in the journal
c. journal entries are posted to the ledger
d. preparation of trial balance
24. Occurrence of an event or a condition that affects financial position and can be reliably recorded.
a. business transaction
b. financial worksheet
c. income statement
d. journal entry
d. cash 350,000
Medina Capital 350,000
INTERNATIONAL COLLEGE OF BUSINESS & ECONOMICS
K OF C BLDG. #578 BURGOS AVE., CABANATUAN CITY
FINAL EXAM
II. IDENTIFICATION
1. Is any medium of exchange that a bank will accept for deposit at face value. Includes coins,
currency, checks, money orders, and drafts.
2. These are claims against customers arising from sale of services or goods on credit.
3. These are tangible assets that are held by an enterprise for use in the production or supply of
goods and services.
4. This account represents the reverse relationship of the accounts receivable. The buyer agrees
to pay for them in the future.
5. This account is used to record the original and additional investments of the owner of the
business entity.
8. When the account is entered on the left side. The account is?
9. Accounting Equation = ?
10. Increase in economic benefits during the accounting period in the form of inflows or
enhancements of assets or decreases of liabilities that result in increase in equity.
11. In this type and effect of transaction, an asset account increases and corresponding claims
account increases.
12. In this type and effect of transaction, one asset account increases and another asset account
decreases.
13. In this type and effect of transaction, an asset account decreases and a corresponding claims
account decreases.
14. In this type and effect of transaction, one claims account increases and another claims
account decreases.
15. solve : 1. XO company bought a packaging machinery worth P700,000 with a scrap value of
P35,000. The equipment has an estimated useful life of 25 years. Calculate the annual and
monthly depreciation of the equipment.