ACCOUNTING CFAS EXAM QUESTIONS AND ANSWERS 2022 COMPLETE SOLUTION

ACCOUNTING CFAS EXAM QUESTIONS AND ANSWERS 2022 COMPLETE SOLUTION 1. Which of the following will the vendor of the goods forward to the buyer? Group of answer choices Receiving report Invoice Purchase order Voucher 2. A balance in the ‘’Deferred Revenue’’ account represents: Group of answer choices Money received by the company for goods and services not yet conveyed to the buyer. Revenues not yet received. goods or services not set received by the company that has already been paid for. Goods or services received by the company but not yet been paid for. 3. Adjusting entries are necessary to ensure that 1. revenues are recorded in the period that they are earned. 2. expenses are recorded in the period that they are incurred. 3. assets and liabilities are stated a market value. Group of answer choices 1,2, and 3 both 1 and 2 1 only 2 only 4. If the inventory account at the end of the year is understated, the effect will be to Group of answer choices overstate the goods available for sale. overstate the gross profit on sales. overstate the cost of sales. understate the net purchases. 5. Perez Ltd received cash of P6,000 on 1 August 2012 for one year's rent in advance and recorded the transaction with credit to Rent Revenue. The 31 December 2012 adjusting entry is Group of answer choices debit Cash and credit Unearned Rent. P3,500. debit Rent Revenue and credit nearned Rent. P2,500. debit Unearned Rent and credit Rent Revenue. P2,500. debit Rent Revenue and credit Unearned Rent. P3,500. 6. If all of the trial balance figures are correct: Group of answer choices The Statement of Financial Position can be constructed from the trial balance. The Statement of Comprehensive Income can be constructed. The Statement of Financial Position can be constructed from the trial balance and The Statement of Comprehensive Income can be constructed. all of the financial statements can be prepared from the trial balance 7. Documentary evidence used in an accounting system would include except: Group of answer choices Trial balance Invoices Checks Bank deposit slips 8. Which of the following is not an internal event? Group of answer choices Dividend declaration and subsequent payment Using raw materials in the production process Supplies used Depreciation 9. An accounting record into which the essential facts and figures in connection with all transactions are initially recorded is called the Group of answer choices ledger. voucher register account. trial balance. 10. When the goods are received by the company, the following form is usually prepared: Group of answer choices Purchase order Receiving report Invoice Bill of sale 11. The balance of the "Bad Debts Expense" account is Group of answer choices Not treated like other expense accounts. A precise figure containing bad debts losses for the year An estimation representing the losses that will occur. Deducted from the Accounts Receivable 12. Which of the following accounts should be closed to income summary? 1. Sales revenue 2. Interest expense 3. Interest payable 4. dividends Group of answer choices 1 and 2 1, 2, 3 and 4 1,2 and 3 1, 2 and 4 13. Forbes Ltd paid P4,800 on 1 June 2012 for a two-year insurance policy and recorded the entire amount as Insurance Expense. The 31 December2012 adjusting entry is Group of answer choices debit Prepaid Insurance and credit Insurance Expense, P3,400. debit Insurance Expense and credit Prepaid Insurance, P3,400. debit Prepaid Insurance and credit Insurance Expense, P1,400 debit Insurance Expense and credit Prepaid Insurance, P1,400. 14. It is the difference between which two items that allows appraisal of performance? Group of answer choices actual performance and historical performance. budgeted performance and historical performance actual performance and budgeted performance. actual performance and forecasted performance. 15. The "Allowance for Bad Debt’’ account is: Group of answer choices an asset account added to accounts Receivable deducted from accounts receivable on the balance sheet an expense account 16. Chen Ltd's account balances at 31 December 2012 for Accounts Receivable and the Allowance for Doubtful Accounts are P640,000 debit and P1,200 credit. It is estimated that 1% of receivables will be uncollectable. The adjusting entry to the allowance account should be Group of answer choices P7,600 debit P5,200 credit P6,400 credit P5,200 debit 17. The entries in the general journal are: Group of answer choices posted from the ledger kept in chronological order. made once a year at year-end for specific accounts only 18. A company failed to make adjusting entry at year end for salaries incurred but not yet paid. As a result of the omission, assets. liabilities, stockholder's equity. and net income would he: Assets Liabilities Stockholder’s Equity Net Income a. Overstated Correct Overstated Overstated b. Correct Understated Understated Understated c. Overstated Understated Correct Correct d. Correct Understated Overstated Overstated A B C D 19. Which of the following does not appear on a worksheet? Group of answer choices Closing entries The unadjusted trial balance The dividends account Adjusting entries 20. A company receives interest on a P30,000, 8% 5 year note receivableeach 1 October. At 30 June 2009, the following adjusting entry was madeto accrue interest receivable: Interest Receivable 1,800 Interest Revenue 1,800 Assuming that the company does not use reversing entries, what entry should be made on 1 October 2011 when the annual interest payment is received? Cash 600 A. Interest Revenue 600 Cash 1,800 B. Interest Receivable 1,800 Cash 2,400 C. Interest Receivable 1,800 Interest Revenue 600 Cash 2,400 D. Interest Revenue 2,400 Group of answer choices C D A B 21. Rice Ltd loaned P45,000 to another comparation on 1 June 2012 and received a 3-month. 8% interest-bearing note with a face value of P45,000. What adjusting entry should Rice Ltd make on 30 June 2012? Group of answer choices Debit Interest Receivable and credit Interest Revenue. P900 Debit Cash and credit Interest Revenue. P300 Debit Cash and credit Interest Receivable. P900 Debit Interest Receivable and credit Interest Revenue. P300 22. An accrued revenue can best be described as an amount Group of answer choices not received in cash or recorded but currently recognized as revenue. received in cash or recorded and current recognized as revenue not received in cash or recorded collected and not currently recognized as revenue. received in cash or recorded but not currently recognized as revenue. 23. The chart of accounts should be designed to satisfy the: Group of answer choices desires of the chief accountant information needs of the accounting department information needs of the sales department information needs of management 24. A prepaid expense is one that has: Group of answer choices been paid in advance, and was incurred Not been paid yet and was incurred. Been paid in and new and has not yet been incurred. Not been paid yet and has not yet been incurred. 25. An accrued expense can best be described as an amount Group of