Question

In: Accounting

The total equity of the business is P500, 000. Owner’s equity is P400, 000. Plant and...

The total equity of the business is P500, 000. Owner’s equity is P400, 000. Plant and Equipment is 45% of total Assets, the total current assets is

Select one:

a. P225, 000

b. P220, 000

c. P275, 000

d. P100,000

Mr. A has the following revenue transactions during April of the current year: Rendered services: Cash, P5, 000 & on credit, P3, 500; received P5000 advance payment for services to be rendered in May. The amount of income to be recognized in April is

Select one:

a. P5,000

b. P13,500

c. P10,000

d. P8,500

Odd-man out: Select the word that does not belong to the group.

Select one:

a. Balance Sheet

b. Statement of Cash Flow

c. Worksheet

d. Income Statement

The company's performance for a given accounting period is measured and evaluated through the income statement.

Select one:

True

False

Odd-man out: Select the word that does not belong to the group.

Select one:

a. Factory Insurance

b. Depreciation of Delivery Equipment

c. Salaries of factory supervisor

d. Factory Supplies

Solutions

Expert Solution

The total equity of the business is P500, 000. Owner’s equity is P400, 000. Plant and Equipment is 45% of total Assets.

Plant and Equipment = Total assets x 45%

= 500,000 x 45%

= P225,000

Current assets = Total assets - Plant and Equipment

= 500,000 - 225,000

= P275,000

Correct option is (c)

c. P275,000

Mr. A has the following revenue transactions during April of the current year: Rendered services: Cash, P5, 000 & on credit, P3, 500; received P5000 advance payment for services to be rendered in May.

The amount of income to be recognized in April = 5,000 + 3,500

= P8,500

Correct option is (d)

d. P8,500

Odd-man out: Select the word that does not belong to the group.

c. Worksheet

Correct option is (c)

The company's performance for a given accounting period is measured and evaluated through the income statement.

The given statement is true

Odd-man out: Select the word that does not belong to the group.

Correct option is (b)

b. Depreciation of Delivery Equipment

ekkarill92 answered 6 months ago
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