Chapter 6

Types of Major Accounts

PROBLEM 1: IDENTIFICATION
1. Account 6. Chart of Accounts
2. Revenue 7. Debit
3. Gains 8. Credit
4. Expenses 9. Balance sheet(SFP)
5. Losses 10. Income statement(SPL)

PROBLEM 2: IDENTIFICATION
1. ASSET
2. EXPENSE
3. ASSET
4. EQUITY
5. ASSET
6. EXPENSE
7. INCOME
8. INCOME
9. ASSET
10. LIABILITY

PROBLEM 3: IDENTIFICATION
1. ASSET
2. EXPENSE
3. LIABILITY
4. EQUITY
5. ASSET
6. EXPENSE
7. INCOME
8. LIABILITY
9. ASSET
10. EXPENSE
PROBLEM 4: IDENTIFICATION
1. BALANCE SHEET
2. BALANCE SHEET
3. INCOME STATEMENT
4. BALANCE SHEET
5. BALANCE SHEET
6. BALANCE SHEET
7. INCOME STATEMENT
8. INCOME STATEMENT
9. INCOME STATEMENT
10. BALANCE SHEET

PROBLEM 5: IDENTIFICATION
1. BALANCE SHEET
2. BALANCE SHEET
3. INCOME STATEMENT
4. BALANCE SHEET
5. BALANCE SHEET
6. INCOME STATEMENT
7. INCOME STATEMENT
8. BALANCE SHEET
9. BALANCE SHEET
10. INCOME STATEMENT

PROBLEM 6: TRUE OR FALSE

1. TRUE
2. FALSE - ₱80
3. TRUE
4. FALSE – credit balance
5. TRUE
6. FALSE
7. FALSE
8. TRUE
9. FALSE - ₱200
10. TRUE
PROBLEM 7: TRUE OR FALSE
1. TRUE
2. TRUE
3. FALSE – formal or written promise
4. FALSE – interest expense
5. TRUE
6. FALSE - five
7. TRUE
8. TRUE
9. TRUE
10. FALSE

PROBLEM 8: MULTIPLE CHOICE

1. B
2. B
3. A
4. C
5. A
6. A
7. A
8. C
9. A
10. D

PROBLEM 9: MULTIPLE CHOICE

1. D
2. A
3. A
4. B
5. A
6. B
7. D
8. A
9. B
10. A

PROBLEM 10: MULTIPLE CHOICE

1. D
2. A
3. A
4. C
5. A
6. B
7. B
8. D
9. C
10. D

PROBLEM 11: IDENTIFICATION

Account Titles COLUMN A COLUMN B
1. Supplies expense EXPENSE I/S
2. Prepaid supplies ASSET B/S
3. Inventory ASSET B/S
4. Owner’s capital EQUITY B/S
5. Rent expense EXPENSE I/S
6. Rent income INCOME I/S
7. Interest receivable ASSET B/S
8. Interest expense EXPENSE I/S
9. Prepaid rent ASSET B/S
10. Accounts payable LIABILITY B/S
11. Unearned income LIABILITY B/S
12. Cash ASSET B/S
13. Accounts receivable ASSET B/S
14. Notes payable LIABILITY B/S
15. Depreciation EXPENSE I/S
16. Prepaid insurance ASSET B/S
17. Gains INCOME I/S
18. Notes receivable ASSET B/S
19. Land ASSET B/S
20. Building ASSET B/S
21. Furniture & fixture ASSET B/S
22. Rent payable LIABILITY B/S
23. Taxes and licenses EXPENSE I/S
24. Computer equipment ASSET B/S
25. Transportation equipment ASSET B/S

PROBLEM 12: MULTIPLE CHOICE

1. B
2. D
3. B
4. D
5. C
6. A
7. C
8. B (50,000 ÷ 5) = 10,000
9. C (10,000 x 2 years) = 20,000
10. B (50,000 – 20,000) = 30,000