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1. The company's assets are P12,000,000, out of which 1/3 represents owner's equity. How much is total liabilities? a. P6,000,000 b. P3,000,000 c. P8,000,000 d. P4,000,000 2. The assets of the business at the start of the month total P1,000,000. Owner's equity is P800,000. Before the month ended Equipment worth P500,000 were purchased, paying PI50,000, with the balance on credit. At the start of the month, liabilities are? a. P200,000 b. P1,800,000 c. P1,200,000 d. zero 3. Refer to no 2, at the end of the month, liabilities are a. P1,150,000 b. P550,000 c. P800,000 d. P1,000,000 4. A transaction caused a P10,000 decrease in total assets This could have been due to a/an a. payment of a loan c. cash investment made by the owner b. purchase of equipment on account d. purchase of equipment for cash 5. Allen Nature Trip, a travel agency, purchased equipment for P120,000, made a down payment of P50,000 and signed a note for the balance. This transaction will a. increase total assets by P120,000 b. increase total liabilities by P50,000 c. not affect owner's equity d. all of the above choices are correct 6. On January 1, the assets were P500,000 and the liabilities were P200,000, During the year the assets increased by PI00,000 and the liabilities decreased by P50,000. Owner's equity on January I was: a P800,000 b. P700,000 с Р300,000 d. none 7. Refer to no. 6. Owner's equity on December 31 was. а Р300,000 b. P350,000 c. P250,000 d. P450,000
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