ACCTNG. QUIZ BEE 2024 (EASY ROUND)

The basic accounting equation states that Assets = Liabilities

• True

• False

The purchase of office equipment on credit increases total assets and total liabilities.

• True

• False

Net income for the period is determined by subtracting total expenses and drawings from the total revenues.

• True

• False

Which of the following would not be considered as internal users of acounting data for a company?

• The president

• The controller

• The creditors

• The salesmen

Bookkeeping differs from accounting in that bookkeeping primarily involves which part of

the accounting process?

• Identification

• Classification

• Recording

• Analysis

The OPX Company has six plants nationwide that cost P100 million. The current market

value of the plants is P500 million. The plants will be recorded and reported as assets at

• P100 million

• P400 million

• P500 million

• P600 million

The basic assumption of accounting that requires activities of an entity be kept separate

from the activities of its owner is referred to as the

• Stand Alone Principle

• Monetary Unit Assumption

• Corporate form of Ownership

• Economic Entity Assumption

A net loss will result during a time period when

• liabilities exceed assets.

• drawings exceed investments.

• expenses exceed revenues.

• revenues exceed expenses.

As of December 31, 2023, Vikers Company has assets of P35,000 and owner's equity of

P20,000. What are the liabilities for Vikers Company as of December 31, 2023?

• P15,000

• P10,000

• P20,000

• P25,000

Zenith Company buys a P12,000 equipment on credit. The transaction will affect the

• income statement only.

• balance sheet only.

• income statement and owner's equity statement only.

• income statement, owner's equity statement, and balance sheet.