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TOA03 02 Accounting Process
TOA03 02 Accounting Process
San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com
ACCOUNTING PROCESS
3. Which among the rules on debit and credit below is not correct?
a. The normal balance of any account appears on the side for recording increases
b. Assets and expenses are debited when increased, and liabilities, revenues and
equity are credited when increased
c. The debit is always on the left side of the accounting double entry
d. Debit means increase, and credit means decrease
4. Debits
a. Increase assets and decrease expenses, liabilities, revenue, and equity
b. Increase assets and expenses and decrease liabilities, revenue and equity
c. Increase assets and equity and decrease liabilities, expenses and revenue
d. Decrease assets and expenses and increase liabilities, revenue and equity
5. X purchased a new register system for his grocery store, paying P1,000 in cash and
issuing a P6,000 note payable for the balance owed. As a result of this transaction,
X’s balance sheet would reflect
a. An increase in assets and an increase in liabilities
b. A decrease in assets and an increase in liabilities
c. An increase in assets and a decrease in liabilities
d. An increase in assets and an increase in owner’s equity
6. Which among the following is the last step in the accounting cycle?
a. Preparation of reversing entries
b. Preparation of financial statements
c. Journalizing and posting of closing entries
d. Preparation of the post-closing trial balance
7. Which is the correct sequence for recording transactions and preparing financial
statements?
a. Journal, ledger, trial balance, financial statements
b. Ledger, trial balance, journal, financial statements
c. Financial statements, trial balance, ledger, journal
d. Ledger, journal, trial balance, financial statements
1|P a g e RSORIANO/JMAGLINAO
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com
11. X has completed the posting process for the month of June and has prepared a trial
balance in which the debits total P11,000 and the credits total P11,100. Which of the
following errors would be the most likely candidate in causing the trial balance not to
balance by P100?
a. A P100 debit was posted as a P100 credit
b. A P100 debit was posted as a P100 credit and a P100 credit was posted as a
P100 debit
c. A P50 debit was posted as a P50 credit
d. The purchase of supplies on account was never posted to the general ledger
-Ecclesiastes 3:1
2|P a g e RSORIANO/JMAGLINAO