Assignment 1

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. ____
91
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. ____
95
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. ____
97
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

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ACCOUNTING 10

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

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

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

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

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

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

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

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

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

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

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

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

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

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

FILL-IN-THE-BLANKPRINCIPLES AND TERMINOLOGY52%

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

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

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

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

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

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

The authoritative body that currently has primary responsibility for

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

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

Assets consumed or services used in the process of earning

Consumable commodities purchased, such as supplies, are

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

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

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

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

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

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

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

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

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

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

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

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

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