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    Basic Concepts Theories

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    lmaxinekate

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    © All Rights Reserved
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    Basic Concepts Theories

    Uploaded by

    lmaxinekate
    28 views5 pages

    Copyright

    © © All Rights Reserved

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    PPTX, PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    28 views5 pages

    Basic Concepts Theories

    Uploaded by

    lmaxinekate

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 5

    BASIC CONCEPTS-

    THEORIES
    1. What is the purpose of preparing the chart of accounts?
    a. This will be the basis of the entity on what accounts will be used in recording the entity’s transactions.
    b. This is required by the rules and theories of accounting.
    c. This is required by the management of the entity.
    d. There is no purpose in preparing the chart of accounts

    2. What do you call the book used by the business to record the transactions for the first time?
    a. Journal
    b. Ledger
    c. Worksheet
    d. Notebook

    3. What do you call the book where transactions that were recorded in the journal are being transferred for final recording?
    a. Journal
    b. Ledger
    c. Worksheet
    d. Notebook

    4. When a customer’s account is collected in full, what will happen to the entity’s total assets?
    a. Total assets will increase
    b. Total assets will decrease
    c. There is no effect in total assets
    d. Total assets will partially increase and decrease
    1. What is the purpose of preparing the chart of accounts?
    a. This will be the basis of the entity on what accounts will be used in recording the entity’s transactions.
    b. This is required by the rules and theories of accounting.
    c. This is required by the management of the entity.
    d. There is no purpose in preparing the chart of accounts

    2. What do you call the book used by the business to record the transactions for the first time?
    a. Journal
    b. Ledger
    c. Worksheet
    d. Notebook

    3. What do you call the book where transactions that were recorded in the journal are being transferred for final recording?
    a. Journal
    b. Ledger
    c. Worksheet
    d. Notebook

    4. When a customer’s account is collected in full, what will happen to the entity’s total assets?
    a. Total assets will increase
    b. Total assets will decrease
    c. There is no effect in total assets
    d. Total assets will partially increase and decrease
    1. When a customer’s account is collected in full, what will happen to the entity’s total owner’s equity?
    a. Total owner’s equity will increase
    b. Total owner’s equity will decrease
    c. There is no effect in owner’s equity
    d. Total owner’s equity will partially increase and decrease

    2. Cleofe Arib has put up cash in the amount of P150,000 representing her initial capital. Out of the P150,000 cash he acquired an equipment costing
    P100,000 which requires a cash outlay of P75,000 and incurs a liability of P25,000. How much is the owner’s equity at the end of the year?
    a. P150,000
    b. P75,000
    c. P50,000
    d. P25,000

    3. Herson Amolo opens a servicing business and started a capital of P200,000. At the end of the year, the creditor’s claims amount to P100,000 and the
    owner’s equity is 80% of the total assets. How much is the total assets at the end of the year?
    a. P500,000
    b. P300,000
    c. P200,000
    d. P100,000
    1. When a customer’s account is collected in full, what will happen to the entity’s total owner’s equity?
    a. Total owner’s equity will increase
    b. Total owner’s equity will decrease
    c. There is no effect in owner’s equity
    d. Total owner’s equity will partially increase and decrease

    2. Cleofe Arib has put up cash in the amount of P150,000 representing her initial capital. Out of the P150,000 cash he acquired an equipment costing
    P100,000 which requires a cash outlay of P75,000 and incurs a liability of P25,000. How much is the owner’s equity at the end of the year?
    a. P150,000
    b. P75,000
    c. P50,000
    d. P25,000

    3. Herson Amolo opens a servicing business and started a capital of P200,000. At the end of the year, the creditor’s claims amount to P100,000 and the
    owner’s equity is 80% of the total assets. How much is the total assets at the end of the year?
    a. P500,000
    b. P300,000
    c. P200,000
    d. P100,000

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