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Q & A For Basic Accounting
Q & A For Basic Accounting
18.An ethical standard requiring the practitioner to be fair, to avoid bias and to always maintain
impartial attitude in all matters.
19.Any legal activity undertaking by man whereby he seeks to make money over or above his cost,and
where there is a risk of loss.
20.An ethical standard requiring the practitioner to be honest, sound,sincere and trustworthy.
21.A service activity whose purpose is to provide quantitative information, primarily financial in
nature, about economic entities which are intended to be useful in making economic decisions.
22. An ethical standard requiring the practitioner to avoid compromising relationship that may impair
objectivity.
23.A business which buys and sells goods or merchandise.
24.A financial statement why the amount of cash changed over a period of time.
25. The ability of the company to increase the owner's net worth by generating more revenues than cost
and expenses.
II: Analyze the following transactions given below as to what values are affected, whether the effect is
an increase or decrease and whether the account should be debited or credited. MENTION THE
DEBIT SIDE FIRST.
The transaction below are those of Mark Alvin's Candy Store:
2014
March1 Invested P10,000 cash for the business.
ex. , Debit cash 10,000, Asset increase. Credit Capital 10,000, Owner's Equity increase.
2 Brought various supplies, P1,500.
4 Furniture and fixtures amounting to P12,000 were bought on account.
6 Paid P5,000 for furniture and fixtures bought March
8 Purchased boxes of candies, P15,000 on account. Terms n/10.
10 Sold boxes of candies P10,000.
12 Made partial payment of candies purchased on March 8, P7,500.
14 Sold several boxes of candies for cash, P15,000.
16 Collected from the costumers P10,000.
III: TG Company opened the Mega Theatre by investing cash of P500.00 on December 1. The
following transactions took place during December.
3.
Purchased the equipment used by Cine Theatre which was closed down by the government.
Terms: P200,000 down, balance covered by one year promissory note for P300,000.
4.
Signed a contract of lease with Alabang Realty and made a cash deposit of P100,000 for rent.
5.
Paid cash of P15,000 for advertising the theatre and for the purchase of billboards.
6.
Furniture and Fixtures worth P150,000 were constructed by Engr. Addun. Gave a 50% down
payment, balance to be paid within 90 days.
8.
Opened the Theatre with a gala premiere that brought in cash receipts of P20,000.
11.
12.
Received a bill for P15,000 from LVM Productions for the rental of film.
16.
Leased out part of the lobby for the operation of a canteen at a monthly rental of P7500
18.
19.
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25
26
Made a partial payment of P15,000 for the account owing to Engr. Addun.
27
29
30
31
Received the amount due from canteen operator, P3,750.(Use the title Lease Income)
31