NAME: _________________________________

ACC 004/IE32FA1; FINANCIAL ACCOUNTING; TEST 2; JULY 24, 2019

I- FILL IN THE BLANKS (1 point each; total 30 points)
1. Can the accounting equation be stated as: Assets = Claims of investors? (Yes or No)________________
2. Equity is also described as the ____________claims of owners
3. Are stockholders and shareholders synonyms? (Yes or No)____________________
4. What accountants use to communicate with stakeholders___________________
5. Credit is the right side of an _________________
6. Assets is the left side of the _______________________
7. The listing of accounts or dictionary used by the accountant__________________
8. The listing of transactions in accounting______________________
9. The mother of all financial statements_______________________
10. From what account in the accounting equation does revenues account come from?_______________________
11. From what account in the accounting equation does the expenses account come from? __________________
12. A business is bankrupt when equity is _________________
13. A business is bankrupt when assets is _______________than liabilities.
14. The financial statement that will show bankruptcy___________________
15. The financial statement that will show a loss___________________
16. Which is better, a loss or bankruptcy_______________________
17. Financial statement usually dated end of the accounting period__________________
18. Financial statement for a period________________________
19. Financial statement more readable to non-accountants_____________________
20. Book of original entry_____________________
21. Listing of entries and balance of an account__________________
22. Copying entries from the journal to the ledger_________________
23. Difference between chart of accounts and trial balance_________________
24. Source document for the ledger_____________________
25. Source document for the trial balance___________________
26. A credit balance for assets indicates an_____________________
27. The first financial statement prepared____________________
28. The source documents/financial statements for the statement of owner’s equity________________________
29. ___________________
30. The source documents/financial statements for the balance sheet_________________________

II – Journalize the following transactions (20 points)

1. Received investment from owner XYZ of P500 cash
2. Received from owner as investment car worth P300
3. Bought supplies P20, half on account and the balance cash
4. Paid account P10.
5. Earned taxi service fares of P100 cash
6. Rendered services P20 on credit
7. Collected account P20.
8. Bought gasoline P30 on account(use expense account instead of supplies)
9. Paid driver’s salary P20 cash(use expense account)
10. Owner withdrew investment P100 cash

III – Prepare the debit/credit rule in table form( 10 points)