INTACC Prelim Exam | 100% Correct Answers | Verified | Latest 2024 Version

The purpose of preparing a trial balance is a. To ensure that there were no errors committed b. To prove that all journal entries were posted correctly c. To prove the equality of the monetary totals of debits and credits d. All of these - c. To prove the equality of the monetary totals of debits and credits If an entity uses the income method of initial recording of income, the year end adjusting entry involves a. Crediting an income account for the earned portion of the advance payment received b. Debiting a liability account for the earned portion of the advance payment received c. Debiting an income account for the earned portion of the advance payment received d. Crediting a liability account for the unearned portion of the advance payment received - d. Crediting a liability account for the unearned portion of the advance payment received Reversing entries may not be made on adjusting entries for a. The accrual of income or expense b. The unexpired portion of prepayments c. The unearned portion of the advances received d. The expired portion of prepayments - d. The expired portion of prepayments Which of the following should not be included in cash? a. Postdated checks drawn and delivered to payeesb. Undelivered checks drawn c. Postdated checks received from customers d. Cash collections not deposited at year end - c. Postdated checks received from customers Postdated checks received from customers should a. Be included in cash b. Be reverted back to receivables c. A and B d. Neither A nor B - b. Be reverted back to receivables Which of the following may qualify as cash equivalent? a. Shares of stocks to be sold in the near term b. Checks that are not postdated and are certified by the drawee bank c. BSP treasury bill acquired 120 days before maturity d. Investments in debt instruments acquired 3 months before maturity - d. Investments in debt instruments acquired 3 months before maturity Bank overdrafts should be a. Reported as current liabilities b. Offset from the balance of cash c. Reported as current liabilities unless offsetting is permitted d. Disclosed onl