Accounting Answers

1. Which of the following attributes will classify an item which can be seen as a liability in

the Statement of Financial Position?

a.Expenses paid before the actual utilization

B. Expenses already utilized and paid for.

c.Expenses already utilized but have not yet paid for

D. All expenses cannot be classified as a liability component

2. What is the most correct definition of Cost of Goods Sold? (1 point)

a.This is the cost associated with advertising the product we are selling

b.This is the cost associated with manufacturing the product we are selling

c.This is the cost associated with finances and other incurrences from interest

d.This is the cost associated with office expenses which are periodic in nature

3. Define an Unearned Revenue and discuss why this account is not yet a revenue.

create a Statement of Comprehensive Income using the following format and calculated values:

The Mirriam Company has the following SCI balances at the end of the year. Prepare an

SCI contains the determination of net income and comprehensive income for the period.

Gross Profit = ₱ 2,580,750

Operating Profit = ₱ 1,554,330

Income Tax Expense = 25% of Operating Profit

Comprehensive Income = ₱ 2,000,000

Statement of Financial Position based on the given accounts below in ACCOUNT FORM.

The Gelo Corporation has the following balances provided for the year 2020:

TOTAL ASSETS = ₱ 3,500,000

TOTAL LIABILITIES = 2,400,000

TOTAL CURRENT ASSETS = ₱ 2,350,000

TOTAL CURRENT LIABILITIES = ₱ 2,400,000

Accounts Receivable

Notes Payable

Unearned Revenue

Income Tax Payable

Comprehensive Income

Building

Land

Intangible Assets

Noncurrent Receivables

Owner’s Capital

Owner’s Withdrawal

Salaries Payable

Prepaid Expenses

Inventories

Interest Payable

Notes Receivable

motivate why an accounting professional should maintain a commitment to ‘delivering a service to the public / society’.

Directions: Construct and improvise a Statement of Comprehensive Income using the following format and calculated values:

The Mirriam Company has the following SCI balances at the end of the year. Prepare an

SCI which contains the determination of net income and comprehensive income for the period.

Gross Profit = ₱ 2,580,750

Operating Profit = ₱ 1,554,330

Income Tax Expense = 25% of Operating Profit

Comprehensive Income = ₱ 2,000,000

7. Suppose Ms. Ellana has to owe you money for selling goods on May 12, 2021, and she

will be going to pay only on November 2, 2021, prove that your accounts receivable is

current in nature.

8. What is the normal balance of Bonds Payable?

9. Differentiate a service, merchandising, and manufacturing entity by providing 2 examples for each type of business.