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Answers R41920 Acctg Varsity Basic Acctg Level 2
Answers R41920 Acctg Varsity Basic Acctg Level 2
a) 150
b) 140
c) 160
d) 100
a) Net Loss
b) Unearned Fees
c) Equipment
d) Prepaid Expense
a) 1,200
b) 1,100
c) 1,010
d) 1,250
6. Which one of the fixed asset accounts listed below will not have a
related contra asset account?
a) Land
b) Delivery Equipment
c) Building
d) Office Equipment
8.
June Cash 6,00
23 0
Capital stock 6,000
Invest cash in Able, Co.
9. An indication that the work sheet columns are in balance and the
work sheet is completed is
a) Sales
b) Sales Returns and Allowances
c) Merchandise Inventory
d) Delivery Expense
12. After all of the account balances have been extended to the
Income Statement columns of the work sheet, the totals of the debit
and credit columns are P87,500 and P98,300, respectively. What is the
amount of the net income or net loss for the period?
a) assets
b) liabilities
c) prepaid expenses
d) stockholder's equity
a) revenue
b) deferral
c) accrual
d) expense
16. The column of the income statement show the debits are equal to
P56,899 and credits are P60,333. What do this information mean to the
accountant?
2016 2017
Prepaid royalties P60,000 P50,000
Royalties payable 75,000 90,000
a) 400,000
b) 380,000
c) 350,000
d) 370,000
19. The adjusting entry for rent earned that is currently recorded in
the unearned rent account is
21. Wright Company sells for cash major household appliance service
contracts agreeing to service customers appliances for a 1-year, 2-
year, or 3-year period. Cash receipts from contracts are credited to
unearned service contract revenues and this account had a balance of
P1,440,000 at December 31, 2017, before year-end adjustment. Service
contract costs are charged to service contract expense as incurred
and this account had a balance of P360,000 at December 31, 2017.
Outstanding service contracts at December 31, 2017, expire as
follows:
a) 490,000
b) 712,500
c) 1,080,000
d) 950,000
22. On November 1, 2017, Key Co. paid P3,600 to renew its insurance
policy for 3 years and used an income statement account to record
this transaction. At December 31, 2017, Keys unadjusted trial balance
showed a balance of P90 for prepaid insurance and P4,410 for
insurance expense. What amounts should be reported for prepaid
insurance in Keys December 31, 2017 financial statements?
a) 3,300
b) 3,400
c) 3,490
d) 3,390
24. The difference between the totals of the debit and credit columns
of the Adjusted Trial Balance columns on a work sheet
a) the last day of the accounting period, although they are actually
journalized after the end of the accounting period
b) the first day of the subsequent accounting period
c) the first day of the accounting period, although they are actually
journalized after the end of the accounting period
d) the date they are actually journalized, although they are
generally prepared after the end of the accounting period
27. The chart of account for the Frias Company includes some of the
following accounts:
Cash 750
Fees Earned 750
What is the post reference that will be found on the journal entry?
a) 3
b) 41
c) 11, 41
d) 11
a) summarizing
b) journalizing
c) recording
d) posting
2016 2017
Royalties receivable P90,000 P85,000
Unearned royalties 60,000 40,000
32. What is the major difference between the Unadjusted Trial Balance
and the Adjusted Trial Balance?
a) The Adjusted Trial Balance will show the net income (loss) as an
additional account.
b) The Adjusted Trial Balance includes the postings of the
adjustments for the period in the balance of the accounts.
c) The Unadjusted Trial Balance will be used to record the
adjustments for the period.
d) Both will need to be in balance in order to continue with the end-
of-period processing
a) 415,000
b) 390,000
c) 410,000
d) 400,000
a) Unearned Rent
b) Salaries Expense
c) Fees Earned
d) Depreciation Expense
a) An agreement has been signed for swimming pool cleaning for the
next three months.
b) Swimming pool cleaning that has been provided and paid on the same
day.
c) Swimming pool cleaning that has been for three months in advance.
d) Swimming pool cleaning that has been provided but has not been
billed or paid.
39. After net income is entered on the work sheet, the Balance Sheet
debit and credit columns must
40. The arrangements between buyer and seller as to when payments for
merchandise are to be made are called
a) net cash
b) cash on demand
c) credit terms
d) gross cash
What was the total amount of insurance premiums paid by Gerber during
2017?
a) 625,000
b) 600,000
c) 650,000
d) 475,000
43. At December 31, 2016, Cobb Company had a P695,000 balance in its
advertising expense account before any year-end adjustments relating
to the following:
Cobbs advertising expense for the year ended December 31, 2016,
should be
a) 660,000
b) 570,000
c) 740,000
d) 615,000
a) A current liability.
b) A separate item in stockholders equity.
c) Revenue in the month collected.
d) An accrued liability.
49. The post-closing trial balance differs from the adjusted trial
balance in that it
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