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P1 1.3CashBasisAccrualBasisSingleEntryZETA

The document contains 7 multiple choice questions regarding accounting transactions and financial statements. It provides information on rental income, sales, accounts receivable and payable, assets, liabilities, equity, dividends, and donations to calculate net income or other amounts for various companies.

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Sophia April
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687 views3 pages

P1 1.3CashBasisAccrualBasisSingleEntryZETA

The document contains 7 multiple choice questions regarding accounting transactions and financial statements. It provides information on rental income, sales, accounts receivable and payable, assets, liabilities, equity, dividends, and donations to calculate net income or other amounts for various companies.

Uploaded by

Sophia April
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Under the accrual basis, NaeNae Company reported rental income for the
current year at P700 000. The entity reported the following additional
information regarding rental income:
Unearned rental income, January 1
Unearned rental income, December 31
Accrued rental income, January 1
Accrued rental income, December31

60
85
40
50

000
000
000
000

What amount of cash was received from rental in the current year?
a. 595 000
b. 615 000
c. 750 000
d. 715 000
2. Twerkit Company experienced the following changes in selected accounts for
the current year:
Accrual Sales
5 000 000
Accounts Receivable:
January 1
800 000
December 31
500 000
Advances from customers:
January 1
300 000
December 31
400 000
What total amount of cash was received from customers during the year?
a. 5 500 000
b. 4 100 000
c. 5 400 000
d. 3 600 000
3. MarvinGaye Company maintained the accounting records on the cash basis
but instead the financial statements to the accrual basis pretax income for
2015. The entity provided the following information on December 31, 2015
and 2014.
2015
Accounts Receivable
Account Payable

2014
4 000 000

5 000 000

2 000 000
3 000 000

Under the accrual basis, what amount of income before tax should be
reported in the 2015 income statement?
a.
b.
c.
d.

6
5
9
2

500
500
500
500

000
000
000
000

4. Dakmats Company which began operations on January 1, 2015, has elected


to use cash basis accounting for tax purposes and accrual basis accounting
for the financial statements. The entity reported sales of P1,750,000 and
P8,000,000 in the tax returns for the years ended December 31, 2016 and
2015, respectively. The entity reported accounts receivable of P300,000 and
P500,000 on December 31, 2016 and 2015, respectively. What amount
should be reported as sales in the income statement for 2016?
a.
b.
c.
d.

1
1
2
1

750
550
050
950

000
000
000
000

5. Hard Company reported beginning and ending total liabilities as P840,000


and P1,000,000, respectively. At year-end, owners equity was P2,600,000
and total assets were P200,000 larger than at the beginning of the year. If
new share capital issued exceeded dividends paid by P240,000, what is the
net income or loss for the year?
a.
b.
c.
d.

40 000 income
280 000 loss
200 000 loss
280 000 income

6. Maot Company had total assets of P4,000,000 and shareholders equity of


P2,080,000 at the beginning of the year. During the year, assets increased by
P520,000 and liabilities decreased by P820,000. What is the shareholders
equity at the end of the year?
a.
b.
c.
d.

1
3
3
2

340
420
700
380

000
000
000
000

7. Clifford Company reported the following increases (decreases) in the


accounts for the current year:
Cash
Accounts receivable (net)
Inventory
Investments
Equipment
Accounts payable
Bonds payable

1 500 000
3 500 000
3 900 000
(1 000 000)
3 000 000
( 800 000)
2 000 000

During the year, the entity sold 100 000 shares with P20 par value for P30
per share and received cash in full. Dividend of P1 500 000 was paid in cash

during the year. Equipment with fair value of P2 000 000 was donated by a
shareholder during the year. What is the net income for the current year?
a.
b.
c.
d.

7
6
8
6

500
900
200
200

000
000
000
000

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