ACCOUNTING 10

Assignment 1

Score
%
Name Marianne Carmel B. Agunoy
Course BS LMSection Acc 10- I
NOTE: Each of the 50 correct answers is
assigned a weight of 2%.

89

TEST 1A (Concluded)

PROBLEMSANALYSIS OF TRANSACTIONS48%
INSTRUCTIONS: Indicate the effect of each of the following transactions for the current month on assets, liabilities, and
owners equity by inserting + for increase and for decrease in the appropriate columns at the right.
Answers
A

90

OE

For
Scoring

0.

Received cash from owner as original investment .....................................

1.

Received cash on account from customers ...............................................

-,+

1. ____

2.

Purchased land for cash ............................................................................

-,+

2. ____

3.

Paid rent for month .....................................................................................

4.

Paid creditors on account ...........................................................................

5.

Received cash for fees earned from cash customers ...............................

6.

Purchased equipment by signing a six-month, non-interest-bearing

note payable ...............................................................................................

+
+

0. ____

3. ____

4. ____

5. ____
6. ____

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TEST 1A (Concluded)

7.

Charged customers for fees earned on account .......................................

7. ____

8.

Paid miscellaneous expenses ....................................................................

8. ____

9.

Paid first installment due on the non-interest-bearing note payable ..........

9. ____

10.

Purchased supplies on account .................................................................

10. ____

11.

Paid cash to owner on withdrawal ..............................................................

11. ____

12.

Recorded cost of supplies used during the month ....................................

12. ____

NOTE: Each + or is assigned a weight of 2%.

92

FILL-IN-THE-BLANKPRINCIPLES AND TERMINOLOGY52%

INSTRUCTIONS: Answer the following questions or complete the statements by writing the appropriate words or
amounts in the Answers column.

Answers

For
Scoring

93

TEST 1A (Concluded)

0.

A business entity owned by two or more individuals is referred to as a ....

Partnership

0. ____

1.

A business entity owned entirely by one individual is referred to as a ......

Sole proprietorship

1. ____

2.

The most common form of business entity is a .........................................

Sole proprietorship

2. ____

3.

If expenses exceed revenues, the difference is called ..............................

Net Income

3. ____

4.

The properties owned by a business are called ........................................

Assets

4. ____
continued

94

Answers

For
Scoring

5.

The equity of the owner of a business is called .........................................

Owners Equity

5. ____

6.

The authoritative body that currently has primary responsibility for

the development of accounting principles is ..............................................

Financial Accounting
Standards board

6. ____

7.

The excess of revenues over expenses is referred to as ..........................

Net Loss

7. ____

8.

Debts owed by a business are referred to as ............................................

Accounts Payable

8. ____

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TEST 1A (Concluded)

9.

Assets consumed or services used in the process of earning

revenue are called ......................................................................................

10.

Land was offered for sale at $50,000. If you paid $45,000 for the land,
the amount that you would record for the purchase of the land in the
accounting records is .................................................................................

Expenses

$45,000

11.

Consumable commodities purchased, such as supplies, are

considered to be assets and are called .....................................................

Expenses

12.

Equities of a business may be subdivided into two principal types:

(1) owners equity and (2) ..........................................................................

Business Equities

13.

The liabilities that result from purchases on account are referred to as ....

Accounts Payable

96

9. ____

10. ____
11. ____
12. ____
13. ____

14.

15.

If operations for an accounting period resulted in fees for cash of

$10,000 and fees on account for $50,000, the amount of revenue
for the period was .......................................................................................

-$ 40,000

If operations for an accounting period resulted in fares for cash of

$30,000, fares on account of $5,000, and expenses paid in cash
of $100,000, did the business incur a net income or a net loss for
the period? .................................................................................................

Net loss

16.

What was the amount of net income or net loss indicated in Question 15?

-$75000

17.

A statement listing the assets, liabilities, and owners equity as of a

specific date is a .........................................................................................

General Journal

14. ____

15. ____
16. ____
17. ____

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TEST 1A (Concluded)

18.

Moral principles that guide the conduct of individuals are referred to as . .

Ethics

18. ____

19.

In the accounting equation, assets minus liabilities equals .......................

Equity

19. ____

20.

The form of the balance sheet with the liability and owners equity
sections presented below the assets section is called ..............................

Posting entries

21.

If liabilities are $25,000 and owners equity is $40,000, the amount of

the assets is ...............................................................................................

$65000

21. ____

22.

If assets are $100,000 and owners equity is $20,000, the amount

of the liabilities is ........................................................................................

$80000

22. ____

23.

If total assets increased by $20,000 and liabilities increased by $9,000

98

20. ____

during the period, the amount and direction (increase or decrease) of

the periods change in owners equity was .................................................
24.

increase, $11000

The owners equity at the beginning of the period was $50,000; at the end
of the period, assets were $100,000 and liabilities were $61,000. If the
owner made no additional investments or withdrawals during the period,
did the business incur a net income or a net loss for the period? .............

Net loss

25.

What was the amount of net income or net loss indicated in Question 24?

$ 11000

26.

If assets are $100,000 and owners equity is $27,000, the amount

of liabilities is ..............................................................................................

23. ____

24. ____

$73000

25. ____
26. ____

99

TEST 1A (Concluded)

NOTE: No credit is given for a partially correct answer.

100