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CABAS

The document is a final exam for a fundamentals of accounting course. It contains multiple choice questions, problems to solve involving the accounting equation, and questions about the effect of transactions on the accounting equation. The problems require calculating missing values in the accounting equation and determining the effect of business transactions on assets, liabilities, and equity.

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Donabel Cabato
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185 views3 pages

CABAS

The document is a final exam for a fundamentals of accounting course. It contains multiple choice questions, problems to solve involving the accounting equation, and questions about the effect of transactions on the accounting equation. The problems require calculating missing values in the accounting equation and determining the effect of business transactions on assets, liabilities, and equity.

Uploaded by

Donabel Cabato
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Final Examination

Fundamentals of Accounting: Theory & Practice

MULTIPLE CHOICE. Read and analyze each item. Circle the letter of the best answer.

1. A
2. B
3. C
4. B
5. D
6. C
7. B
8. A
9. D
10. A

PROBLEM SOLVING. Solve the following problems. Show your solutions in good
form.

A.
1. A = L + E
P200,000 = P100,000 +?

E=A-L
= P200,000 - P100,000
= P100,000
The total equity of Aizha Company is P100,000

To check the given equity:


Asset = Liabilities + Equity
P200,000 = P100,000 + P100,000
P200,000 = P200,000

2. Asset = Liabilities + Equity


= P200,000 + half of total asset
=P200,000 ÷ (.50)
=P400,000

E=A-L
=P400,000 - P200,000
=P200,000
The total equity of Jerome Company is P200,000

To check the given equity:


Asset = Liabilities + Equity
P400,000 = P200,000 + P200,000
P400,000 = P400,000
3. Asset = Liabilities + Equity
= 1/3 of half is 1/6
= P200,000 ÷ 1/6
= P1,200,000

L=A-E
= P1,200,000 - P200,000
= P1,000,000
The total liabilities of El John Company is P1,000,000

To check the given liability:


Asset = Liabilities + Equity
P1,200,000 = P1,000,000 + P200,000
= P1,000,000 + P200,000
= P1,200,000

Checking:
Asset = Liabilities + Equity
P600,000 = P400,000 + P200,000
P600,000 = P600,000

4. Asset = Liabilities + Equity


? = 1/5 of total assets + P125,000
A = P125,000 + .80
A = P156,250
L=A-E
= P156,250 - P125,000
= P31,250

To check the given equity:


Asset = Liabilities + Equity
P156,250 = P31,250 + P125,000
P156,250 = P156,250

5. Asset = Liabilities + Equity


= P400,000 x 1/3
= P400,000 x 0.33
= P132,000

E=A-L
= P400,000 - P132,000
= P268,000

To check the given equity:


Asset = Liabilities + Equity
P400,000 = P132,000 + P268,000
P400,000 = P400,000
B. What element/s of the accounting equation is/are affected by the following
transactions?

1. Assets , Liabilities
2. No effect
3. No effect
4. Assets , Equity
5. No effect
6. Assets , Equity
7. Assets , Equity
8. Assets , Equity

C. Kuya Joem decided to open an ice cream store on January 1, 2022. In order to do
so, he invested
P300,000 for the establishment of his business. On the month of January, Kuya Joem
also incurred
the following transactions:

Required: Determine the effect of each day’s transaction to the accounting equation.
Use the
following table as guide.

= Liabilities +
Date Cash Receivable Equipment Inventory Payable Capital Revenues
jan 1 +P300,000 +P300,
000
jan 5 -P200,000 +P200,000
jan 7 +P50,000 +P50,000
jan +P12,500 +P12,500 -P20,000 +P25,000
15
jan -P50,000 -P50,000
22
jan +P12,500 -P12,500
30
P75,000 0 P200,000 P30,000 0 P300,000 P25,000
P305,000 P305,000

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