FINAL EXAMINATION : TOURISM (TRIMEX COLLEGES INC)

If Cash has debit postings of P85,000, credit postings of P55,000, and a normal ending balance of P100,000, which of the following was its beginning balance?

• P70,000 debit
• P130,000 credit
• P70,000 credit
• P130,000 debit

The kind of debts which are needed to be repaid in a long term is known as?

• Fixed Liabilities
• Non - Current Liabilities
• Current Liabilities
• Intangible Assets

These are present obligations arising from past events which are to be settled in the future.

• Liability
• Assets
• Equity
• Cash

A P20,000 credit item is accidentally posted as a debit. The trial balance column totals will therefore differ by

• P0
• P15,000
• P20,000
• P25,000

A collection of services rendered on account should be recorded as

• a debit to Cash and credit to Accounts Receivable
• a debit to Accounts Receivable and credit to Cash
• a debit to Cash and credit to Service Revenue
• a debit to Service Revenue and credit to Cash
• a debit to Service Revenue and credit to Accounts Receivable

When does the capital of a company increases?

• Drawings Decrease
• Liabilities Decrease
• Revenue Increases
• Interest on capital increases

Purchases are Debited when?

• Goods are purchased on cash
• Goods are sold at a discount
• Goods are purchased on credit
• Goods are lost

First Statement: Journal entries are used to check whether ledger accounts are balanced and adjusted.

Second Statement: After transactions are recorded in the general journal, the next step is to prepare the trial balance.

• Both statements are true

• Both statements are false

• The first statement is true while the second statement is false

• The first statement is false while the second statement is true

It is used to record transaction involving receipt or collection of cash.

• Sales journal
• Purchase journal
• Cash disbursements journal
• Cash receipts journal

An accrued expense can best be described as an amount:

• Paid and not currently matched with earnings.
• Not paid and currently matched with earnings.
• Not paid and not currently matched with earnings.
• Paid and currently matched with earnings.