FDNACCT 03 · Financial Statements
Conventions
Amounts are Philippine pesos (₱). Enter numeric answers without a currency symbol; commas are optional. Use accrual accounting, periodic inventory, prepaid expenses under the asset method, unearned revenue under the liability method, straight-line depreciation, and the allowance method unless a question states otherwise. Interest uses a 360-day year or months/12. Follow the course cash-flow convention: interest/dividends received are investing, interest/dividends paid are financing. Each Practice Lab table has one highlighted blank. Questions are independent; use only the facts given in that question.
Questions
01Which statement uses “as of December 31”?
- Profit or loss
- Financial position
- Changes in owner’s equity
- Cash flows
02Which item is a liability?
- Prepaid insurance
- Accrued commissions receivable
- Unearned service revenue
- Owner drawings
03Which item is excluded from revenue?
- Fees for completed services
- Goods sold
- Owner cash contribution
- Earned commissions
04What are total current assets?
Problem
All amounts are Philippine pesos (₱). Unused supplies and prepaid rent will be consumed within the next twelve months. Land and equipment are held for use in the business over several years.
| Account | Balance |
|---|---|
| Cash | 30,000 |
| Accounts receivable | 20,000 |
| Supplies | 40,000 |
| Prepaid rent | 35,000 |
| Equipment | 60,000 |
| Land | 50,000 |
| Accrued interest payable | 7,700 |
- ₱125,000
- ₱235,000
- ₱90,000
- ₱185,000
05What are total assets?
Problem
All amounts are Philippine pesos (₱). All balances are after any needed adjustments. Accrued revenue below is a separate receivable asset.
| Account | Balance |
|---|---|
| Cash | 50,000 |
| Supplies | 30,000 |
| Land | 700,000 |
| Accounts receivable | 40,000 |
| Accrued revenue receivable | 40,000 |
| Equipment | 120,000 |
| Accounts payable | 70,000 |
| Service revenue | 300,000 |
| Rent expense | 25,000 |
| Accrued expense payable | 15,000 |
| Utilities expense | 40,000 |
- ₱940,000
- ₱980,000
- ₱1,005,000
- ₱280,000
06What are total non-current liabilities?
Problem
All amounts are Philippine pesos (₱). Neither the five-year bank loan nor the mortgage has an installment due within the next twelve months. The note falls due in ninety days; accounts payable and salaries payable are due next month.
| Liability | Balance |
|---|---|
| Accounts payable | 25,000 |
| Bank loan due in five years | 50,000 |
| Notes payable, due in ninety days | 20,000 |
| Salaries payable | 10,000 |
| Mortgage payable | 100,000 |
- ₱205,000
- ₱150,000
- ₱55,000
- ₱170,000
07What are total liabilities?
Problem
All amounts are Philippine pesos (₱). The note is due in three years. Salaries payable is the unpaid-liability balance, and unearned fees are still owed as services.
| Account | Balance |
|---|---|
| Accounts payable | 30,000 |
| Salaries payable | 15,000 |
| Notes payable | 60,000 |
| Unearned service revenue | 10,000 |
| Service revenue | 25,000 |
| Insurance expense | 12,000 |
- ₱55,000
- ₱105,000
- ₱115,000
- ₱140,000
08What is ending owner’s equity?
Problem
All amounts are Philippine pesos (₱). The complete asset list and total liabilities at the reporting date are below.
| Item | Amount |
|---|---|
| Cash | 200,000 |
| Accounts receivable | 60,000 |
| Equipment | 240,000 |
| Total liabilities | 180,000 |
- ₱320,000
- ₱500,000
- ₱680,000
- ₱180,000
09What are total assets at the end of the period?
Problem
All amounts are Philippine pesos (₱). Beginning liabilities are 60,000 and beginning equity is 90,000. During the period, liabilities increase by 10,000 and equity increases by 70,000. These increases include all changes to those balances.
- ₱150,000
- ₱230,000
- ₱160,000
- ₱220,000
10What is net profit?
Problem
All amounts are Philippine pesos (₱). The following are final adjusted balances at the reporting date; all earned revenue is included in the Service revenue balance.
| Account | Balance |
|---|---|
| Earned service revenue | 120,000 |
| Unearned revenue liability | 12,000 |
| Accrued revenue receivable | 28,000 |
| Rent expense | 20,000 |
| Salaries expense | 35,000 |
| Utilities expense | 5,000 |
| Supplies expense | 3,000 |
- ₱85,000
- ₱69,000
- ₱57,000
- ₱45,000
11What is the total of the recorded expense balances?
Problem
All amounts are Philippine pesos (₱). These are final adjusted balances at the reporting date. Prepaid insurance is for future coverage.
| Account | Balance |
|---|---|
| Rent expense | 10,000 |
| Salaries expense | 25,000 |
| Utilities expense | 3,000 |
| Salaries payable | 12,000 |
| Prepaid insurance | 20,000 |
- ₱38,000
- ₱50,000
- ₱70,000
- ₱58,000
12What is ending capital?
Problem
All amounts are Philippine pesos (₱). Use accrual accounting. Owner contributions and drawings are equity transactions, not income or expenses. Beginning capital is 100,000; the owner contributes another 20,000; net profit for the year is 30,000; personal drawings are 10,000. There are no other changes to equity.
- ₱160,000
- ₱140,000
- ₱120,000
- ₱110,000
13What was beginning capital?
Problem
All amounts are Philippine pesos (₱). Ending capital is 740,000. During the period, the owner contributes massage chairs valued at 150,000, net profit is 180,000, and personal drawings are 10,000. There are no other equity changes.
- ₱410,000
- ₱420,000
- ₱440,000
- ₱1,060,000
14What total owner contribution should be recorded?
Problem
All amounts are Philippine pesos (₱). The owner contributes the following assets on the investment date.
| Contributed asset | Original personal cost | Value on contribution date |
|---|---|---|
| Cash | 500,000 | 500,000 |
| Furniture | 50,000 | 25,000 |
| Second-hand machinery | 1,000,000 | 600,000 |
- ₱1,550,000
- ₱1,125,000
- ₱1,100,000
- ₱500,000
15What is ending owner’s equity?
Problem
All amounts are Philippine pesos (₱). Use accrual accounting. Owner contributions and drawings are equity transactions, not income or expenses. Beginning assets are 200,000 and beginning liabilities are 80,000. During the year, the owner adds 40,000 cash; earned revenue is 50,000; incurred expense is 20,000; drawings are 10,000. There are no other equity changes.
- ₱180,000
- ₱200,000
- ₱160,000
- ₱100,000
16What total amount did the owner withdraw?
Problem
All amounts are Philippine pesos (₱). Beginning capital is 300,000; additional investment is 120,000; revenue is 200,000; expense is 110,000; ending capital is 480,000. Drawings are the only missing equity movement.
- ₱90,000
- ₱30,000
- ₱60,000
- ₱120,000
17What revenue was earned for the month?
Problem
All amounts are Philippine pesos (₱). Use accrual accounting. Owner contributions and drawings are equity transactions, not income or expenses. A laundry shop collects 60,000 for services performed this month and has 37,000 of uncollected charges for services performed this month. Customers also pay 32,000 in advance for work that has not been performed.
- ₱129,000
- ₱60,000
- ₱97,000
- ₱65,000
18What is net profit for August?
Problem
All amounts are Philippine pesos (₱). A tutorial center earns 28,000 of service revenue in August. It incurs salaries of 12,000, rent of 5,000, and repair/maintenance expense of 3,000. It also buys furniture for 20,000, recorded as an asset. No depreciation or other adjustments are required for this question.
- ₱8,000
- ₱12,000 loss
- ₱11,000
- ₱28,000
19What ending capital reconciles the statement of financial position?
Problem
All amounts are Philippine pesos (₱). Aim High Services reports total assets of 2,630,000 and total liabilities of 1,184,000 at December 31, 2025. Owner’s capital is the only equity account.
- ₱1,455,100
- ₱1,446,000
- ₱30,900
- ₱3,814,000
20Which statement connection is correct?
- Drawings increase profit
- Profit changes ending capital, which is reported in financial position
- All cash receipts equal income
- Land purchases reduce capital as expenses