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Fundamentals of Accountancy Practice Questions — Set 1

10 free Fundamentals of Accountancy reviewer questions with answers and explanations. Pindutin ang sagot mo para makita agad kung tama — kasama na ang paliwanag. Set 1 of 5.

1

A business owner invests ₱100,000 cash to start a new laundry service. How does this transaction affect the accounting equation?

2

A company performs services for a client on account, meaning the client will pay ₱5,000 next month. Which accounts are affected by this transaction?

3

At the end of the year, a company has ₱2,000 of office supplies on hand, but the Supplies account shows a balance of ₱7,000. What is the correct adjusting entry to record the supplies used?

4

Which financial statement reports the financial position of a business at a specific point in time?

5

A company purchases a delivery truck for ₱1,200,000 with an estimated useful life of 10 years and no salvage value. Using the straight-line method, what is the monthly depreciation expense?

6

Under the 'Matching Principle' (Expense Recognition), when should the cost of inventory be recognized as an expense?

7

Which of the following accounts normally carries a 'Debit' balance?

8

A customer pays ₱12,000 in advance for a one-year maintenance contract starting in July. If the company's fiscal year ends in December, how much 'Unearned Revenue' should remain on the balance sheet at year-end?

9

What is the purpose of the 'Post-Closing Trial Balance'?

10

A business receives a ₱500 utility bill in December but plans to pay it in January. What is the necessary journal entry in December under the accrual basis?