Subject Matter The Accounting Equity

Level Objectives

Knowledge Identify the 3 major accounts

Perform operation involving

simple cases with the use of
Application
accounting equation

Illustrate the
Analysis
accounting equation

Select the effect of the displayed

transuction has on the Accounting
Avaluation
Equation for the ff. transuction.

TOTAL

Name;

Schedule:

Instructor;
Item No. No. Percentage

1,3,4,6 4 20%

9 7 35%

5 5 25%

2, 5,7,8 4 20%

20 100%
Suject Matter: The Accounting Equation

1 One of the 3 Major accounts

a. Owners Equity
b.Financial Statement
c. Accounting Equation
d. All of the above
2 ABC mows a client's yard and receives a check from the customer for $50 for the service provided.
a. Owners Equity
b.Assets Increase and Owner's Equity Increases
c. Assets Increase and liabilitis Decrease
d.Owner's Equity increase and Assets Decrease
3 Offers us a simple way to understand how these three amounts relate to each other.
a. Owners Equity
b.Financial Statement
c. Accounting Equation
d. None of the Above
4 A company's obligations—amounts the company owes.
a. Owners Equity
b.Financial Statement
c. Accounting Equation
d. Liabilities
5 ABC purchases $100 worth of office supplies for inventory and stores them in their storage room.
The office supply store gives them an invoice that allows them to pay for them in 15 days (on account).
a. Assets Increase and Liabilities Increase
b.Assets Increase and Owner's Equity Increases
c. Assets Increase and liabilitis Decrease
d.Owner's Equity increase and Assets Decrease
6 Reports the amounts invested into the company by the owners plus the cumulative net income
of the company that has not been withdrawn or distributed to the owners.
a. Owners Equity
b.Financial Statement
c. Accounting Equation
d. Liabilities
7 ABC mows a client's yard and receives a check from the customer for $50 for the service provided.
a. Assets Increase and Liabilities Increase
b.Assets Increase and Owner's Equity Increases
c. Assets Increase and liabilitis Decrease
d Assets Increase and Owner's Equity Increases
8 ABC places an ad in the local newspaper receives the invoice
from the supplier and writes a check for $25 to the newspaper.
a. Assets Increase and Liabilities Increase
b.Assets Increase and Owner's Equity Increases
c.Owner's Equity Decreases and Assets Decrease
d Assets Increase and Owner's Equity Increases

9 Illustrate and perform the following transuction. For 5 points.

Transactions:
1.      Orlando deposited P750,000 in the bank in the name of D & W Enterprise.
2.     Orlando purchased land amounting to P500,000, paid in cash.
3.     Orlando Reyes purchased P20,000 supplies paying in the near future.
4.     During the month, P15,000 is paid to creditors on account.
5.     During the month, P15,000 is paid to creditors on account.
6. Rent Paid P1,000
7. Cash withdrew for personal use P3,000.
10 Using the given data accomplish the accounting equation by applying necessary operations. 4 points

ASSETS LIABILITIES OWNER'S EQUITY

1 760,000 360,000 ?
2 860,000 ? 592,000
3 ? 108,000 760,000
4 626.6 376,240 ?
5 ? 800,000 -100,000