entries prepared, as a step in accounting process, to bring the books and accounts up-to-date, is known

as _________

_______ refers to stock that has been issued by the corporations as fully paid and later reacquired but
not retired.

If the partnership agreement does not specify how income is to be allocated, profit and loss should be
allocated in accordance with their _____________

The first step in the accounting cycle is to

a. Record transactions in a journal

b. Post journal entries to general ledger accounts
c. Analyze transactions from source document
d. Adjust the general ledger accounts

In the accounting cycle of a manual accounting system, the last step is:

a. preparing the financial statements

b. posting the closing entries

c. journalizing the adjusting entries

d. preparing a post-closing trial balance

A corporation has the following attributes except

a. An artificial being with a personality separate and apart from its shareholders

b. It is created by mere agreement of the incorporators

c. Enjoys the right of succession

d. Has the powers, attributes and properties expressly authorized by law or incident to its existence.
The portion of the paid in capital representing amounts paid by shareholders in excess of par is known
as

a. Share premium

b. Ordinary shares

c. Preference shares

d. Legal capital

The following data were available fro Mike Company’s record on December 31, 2010:

Raw materials inventory, January 1 P10,000

Purchases 85,000

Purchases returns and allowances 5,000

Freight out 2,000

Raw materials, December 31 15,000

Based on the above information, which of the following is correct?

a. The raw materials used is P73,000

b. The raw materials available for sale is P90,000

c. The raw materials available for use is P90,000

d. The raw materials used is P77,000

On March 1, 2011, Lorezco, Narvasa and Soria formed a partnership by combining their separate
business

proprietorships. Lorezco contributed cash of P120,000. Narvasa contributed property with a P70,000
carrying

amount, a P80,000 original cost and P160,000 fair value. There is a mortgage liability of P60,000
assumed by

the partnership. Soria contributed equipment with a P60,000 carrying amount, a P150,000 original
cost and

P110,000 fair value. The partnership agreement specifies that profits and losses are to be shared
equally.

Which partner has the largest March 1, 2011, capital balance?

a. Lorezco

b. Narvasa
c. Soria

d. All capital account balances are equal

In liquidation, the sale of the non-cash assets is called

a. Realization

b. Net proceeds

c. Gain from sale

d. Loss from sale

The par value of ordinary shares is equal to

a. A designated peso amount per share established in the articles of incorporation

b. The amount received by the corporation when the share was originally issued

c. The amount at which the share is currently trading in an organized market

d. The book value of the ordinary shares

The shareholders decide to donate to the entity an aggregate of 10,000 ordinary shares of their
stockholdings

with par of P100. The entry to record the receipt of the donated shares by the entity is
a. Cash 1,000,000

Donated capital 1,000,000

b. Donated capital 1,000,000

Ordinary shares 1,000,000

c. Ordinary shares 1,000,000

Donated capital 1,000,000

d. Memo entry: “Received from shareholders as donation 10,000 ordinary shares with P100 par
value.”