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Accounting Transactions Impact Quiz
40 Questions
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Accounting Transactions Impact Quiz

Created by
@InspirationalDifferential

Questions and Answers

What amount was withdrawn for personal use?

  • P 66,000
  • P 36,500
  • P 29,600
  • P 27,000 (correct)

    • How much was paid in salaries for the month?

  • P 36,500
  • P 29,600
  • P 66,000 (correct)
  • P 27,000

    • What was the total amount for the expenses recorded?

  • P 66,000
  • P 94,600 (correct)
  • P 96,500
  • P 27,500

    • What type of transaction was the P 36,500 from Ad Ad Ver Co. categorized as?

    <p>Expense</p> Signup and view all the answers

    What is the total amount of initial capital noted in the transactions?

    <p>P 390,000</p> Signup and view all the answers

    Which transaction represents a decrease in assets?

    <p>Withdrawal of P 27,000</p> Signup and view all the answers

    How much was the utility bill that was paid?

    <p>P 29,600</p> Signup and view all the answers

    Which entry signifies income in the transactions?

    <p>P 95,000</p> Signup and view all the answers

    What is the primary purpose of a financial transaction worksheet?

    <p>To summarize all financial transactions of a business.</p> Signup and view all the answers

    Which of the following best describes an asset?

    <p>A resource owned by a company that has economic value.</p> Signup and view all the answers

    What are liabilities?

    <p>Obligations that a company needs to pay in the future.</p> Signup and view all the answers

    Which of the following statements is true regarding assets?

    <p>Assets usually have a debit balance.</p> Signup and view all the answers

    What happens to assets when they increase?

    <p>They are debited.</p> Signup and view all the answers

    What is the relationship between equity and liabilities?

    <p>Equity equals total assets minus liabilities.</p> Signup and view all the answers

    Which publication focuses on simplifying accounting concepts for non-accountants?

    <p>Basic Accounting for Non-Accountants: Simplified Approach</p> Signup and view all the answers

    What is a key feature of the textbooks authored by Ballada and Ballada?

    <p>They provide practical examples and exercises.</p> Signup and view all the answers

    What happens to the assets of the company when it borrows P3,000 and deposits it into its bank account?

    <p>The asset of the company will increase by 3,000</p> Signup and view all the answers

    Which transaction will affect the liabilities of the entity?

    <p>Office equipment purchased on account</p> Signup and view all the answers

    What is the effect on the accounting equation when a business repays a debt of P50,000 by transferring money to the creditor's bank account?

    <p>Both assets and liabilities decrease by 50,000</p> Signup and view all the answers

    What is the total amount of the Owner’s Capital after transferring office equipment of 50,000, buying inventory of 30,000, depositing 180,000 cash, and taking a bank loan of 100,000?

    <p>360,000</p> Signup and view all the answers

    When an entity purchases P10,000 worth of furniture on credit, which of the following accounts will be affected?

    <p>Liability account will increase</p> Signup and view all the answers

    If an entity sells goods to customers on credit, how does this impact the accounting equation?

    <p>Assets increase and owner's equity increases</p> Signup and view all the answers

    What is the effect on the accounting equation when an owner deposits additional cash into the business?

    <p>Both assets and owner's equity increase</p> Signup and view all the answers

    If a company incurs an expense but does not pay it immediately, what is the impact on the accounting equation?

    <p>Assets decrease and liabilities increase</p> Signup and view all the answers

    What is the primary purpose of the Financial Transaction Worksheet?

    <p>To help accountants understand the effects of transactions on financial statements.</p> Signup and view all the answers

    Which of the following transactions represents a cash inflow for Lamyon Ramen Restaurant?

    <p>Receiving cash for Ramyon orders.</p> Signup and view all the answers

    What was the total amount deposited by Nelosencio Dagantino on January 1?

    <p>P 390,000</p> Signup and view all the answers

    Which transaction indicates a liability incurred by Lamyon Ramen Restaurant?

    <p>Acquired a service vehicle for P 195,000 on account.</p> Signup and view all the answers

    What is the amount of the cash payment made for the office supplies?

    <p>P 65,000</p> Signup and view all the answers

    How much was collected from UMYUN Co. on January 19?

    <p>P 100,000</p> Signup and view all the answers

    What is the effect of paying 50% of the account on the service vehicle acquired?

    <p>It increases cash and decreases accounts payable.</p> Signup and view all the answers

    At the end of the transactions listed, which of the following statements is true regarding Lamyon Ramen Restaurant?

    <p>The restaurant has more cash inflow than outflow.</p> Signup and view all the answers

    What type of transaction is depositing cash into the bank for the business?

    <p>Investment</p> Signup and view all the answers

    Which transaction indicates a liability being incurred?

    <p>Bought office equipment on account</p> Signup and view all the answers

    What is the effect of withdrawing cash for personal use on the capital account?

    <p>Decrease in capital</p> Signup and view all the answers

    Which of the following is categorized as an expense in the financial transactions?

    <p>Paid salaries for the month</p> Signup and view all the answers

    How is revenue recognized in this financial analysis?

    <p>By receiving professional fees for services rendered</p> Signup and view all the answers

    What type of transaction is paying rent for the month?

    <p>Expense</p> Signup and view all the answers

    Which transaction would increase the accounts receivable?

    <p>Rendered services on account</p> Signup and view all the answers

    What indicates a personal investment into the business?

    <p>Investing personal car in the business</p> Signup and view all the answers

    Study Notes

    Financial Transaction Worksheet Overview

    • A Financial Transaction Worksheet is a reporting tool used by accountants to analyze the impact of business transactions on financial statement elements.
    • Essential for demonstrating Unit Learning Outcomes (ULO) through an operational understanding of accounting terminology.

    Key Transactions in Accounting

    • Transactions influence the accounting equation, which must balance.
    • Example: Initial deposit of P 390,000 to establish Lamyon Ramen Restaurant.
    • Assets, liabilities, and equity are affected by various transactions, such as cash payments and income generation.

    Notable Transactions for Lamyon Ramen Restaurant

    • Cash deposit to bank: P 390,000 as initial capital.
    • Purchase of a service vehicle on account: P 195,000.
    • Cash payment for office supplies: P 65,000.
    • Income generated from Ramyon orders: P 95,000 cash.
    • Monthly rental expense: P 30,000.
    • Catering order delivered on account: P 199,000.
    • Personal withdrawal of P 27,000.
    • Monthly salary payment: P 66,000.
    • Utility bill settlement: P 29,600.
    • Advertising bill received: P 36,500.

    Essential Accounting Concepts

    • Assets: Resources owned by a business that have economic value, typically recorded with a debit balance.
    • Liabilities: Obligations or debts that a business owes to others, reducing owner's equity.
    • Equity: Represents the owner's residual interest in the business after liabilities are deducted from assets.

    Accounting Equation

    • The fundamental accounting equation states that Assets = Liabilities + Equity.
    • Every transaction impacts at least two accounts, ensuring the equation stays balanced.

    Types of Questions and Understanding

    • Types of transactions impact both liabilities and assets simultaneously.
    • It's essential to recognize whether a transaction increases or decreases each account type.

    Practice Scenarios

    • Analyze financial transactions and prepare appropriate worksheets to illustrate changes in financial positions.

    Self-Help Resources

    • Utilize varied resources such as textbooks and online databases to deepen understanding of accounting principles and practices.

    Review Structure

    • Emphasize the importance of understanding the roles of assets, liabilities, and equity in business transactions.
    • Regularly practice recording and analyzing transactions to ensure proficiency in financial accounting principles.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    This quiz focuses on understanding the effect of business transactions on financial statements. Participants will describe, analyze, and distinguish various transactions within the context of accounting education. Prepare to demonstrate your knowledge of the financial transaction worksheet and its significance.

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