Reference no: EM132364199

Question 1 : The following selected accounts are taken from the books of RST Trading on April 30 before adjustment. RST has a monthly accounting period:

Accounts Receivable P5,000 Building P50,000

Sales 75,000 Service Income 10,000

Prepaid Rent 6,000 Salaries Expense 20,000

Adjustment data on April 30:

a) 2 % of sales is estimated to be uncollectible.

b) Rent expired, P2,000.

c) Salaries unpaid, P 1,500.

d) Building will be depreciated at 20% per annum, with useful lie of 10 years.

e) Income unearned , P1,000.

Income will be adjusted by

Select one:

a. Service Income P 1,000

Cash P1,000

b. Unearned Service Income P1000

Cash P1,000

c. Service Income P 1,000

Unearned Service Income P1,000

d. Unearned Service Income P 1,000

Service Income P1,000

Question 2 : Odd-man Out.

Choose the letter that does not belong to the group.

Select one:

a. Rent Expense

b. Uncollectible Accounts

c. Prepaid Insurance Expense

d. Depreciation

Question 3: The following selected accounts are taken from the ledger of XYX Merchandising on June 30, 2017: Sales, P 550,000; Sales Discount, 5%; Gross profit, P209,000; operating expenses, P150,000; merchandise inventory, Jan 1, 2017 , P75,000; merchandise inventory, June 30, 2017, P50,000; Accounts Receivable Jan1, P 70,000; Accounts Receivable, June 30, P50,000.

The day's sales in receivable is

Select one:

a. 48.26 days

b. 34.45 days

c. 39.26 days

d. 41.33 days

Question 4 : Direct reduction in the selling price of a merchandise to encourage customers to pay on time.

Select one:

a. Profit

b. Revenue and Expense summary

c. Owner's Equity

d. Trade discount

Question 5 : In a car factory: what is paint in an automobile?

Select one:

a. Direct Materials

b. Selling, General, and Administrative Expenses

c. Factory Overhead

d. Direct Labor

Question 6 : The costs of completed or finished goods during the period are shown in the ___________section of the income statement.

Select one:

a. Goods in Process or Work in Process

b. Direct materials

c. Raw Materials Purchases

d. Cost of goods manufactured

Question 7 : Trial balance consisting of all real accounts at the beginning of the next accounting period.

Select one:

a. Permanent accounts

b. Assets, liabilities, Capital

c. Post-closing Trial Balance

d. Decreases Capital

Question 8 : Salaries of office staff.

Select one:

a. Direct Materials

b. Direct Labor

c. Factory Overhead

d. Selling, General, and Administrative Expenses