Question 1

Accounting is a ___. Its function is to provide ______ , primarily financial in nature, about ___ that is intended to be useful in making economic decisions.

Accepted Answer

service activity/quantitative information/economic entities

Answer

service activity/qualitative information/businesses

Answer

service/transactions/businesses

Answer

none of the above

Question 2

Accounting is a “Language of business.” which of the following best supports the idea?

Accepted Answer

ABM-GAS Alliance’s bank loan was approved because of a reliable financial statement.

Answer

Bureau of Customs opens packages of balikbayans for security purposes.

Answer

An accountant is confused why his Senior Accountant gave him a car for accomplishing his balance sheet.

Answer

Mr. Frederico, an entrepreneur believes that his store is gaining because there are many customers that day.

Question 3

Which of the following is considered an environment of a business entity?

Accepted Answer

All of the above

Answer

government agencies that regulate and collect taxes from the business

Answer

employees who are paid wages and salaries and provided other benefits

Answer

vendors of materials, services, supplies, parts and tools, equipment and machines

Question 4

Which of the following is an objective of accounting?

Accepted Answer

to seek profit out of business transactions

Answer

none of the above.

Answer

to check if computations are correct

Answer

to look for employee who steals through fabricated financial statements.

Question 5

Which is a function of accounting?

Accepted Answer

all of the above

Answer

to keep systematic record of business transactions

Answer

to meet legal requirement

Answer

protects properties of the business

Question 6

In ancient Egypt, the accountant was called the ___ of the king.

Accepted Answer

eyes and ears

Answer

slave

Answer

cook

Answer

mathematician

Question 7

Who is the Father of Accounting?

Accepted Answer

Luca Pacioli

Answer

Lucas Paccole

Answer

Lucas Passion

Answer

Luca Peccion

Question 8

Which of the following shows cost accounting?

Accepted Answer

Dina N. Tuto was worried about an overpayment of employee salary.

Answer

Orlando M. Nagic was planning expansion of their mall after interpreting a sound financial statement.

Answer

Anne M. Daya was given a tax holiday for her previous over payment .

Answer

all of the above

Question 9

It is the process of identifying, measuring, analyzing, interpreting and communicating information for the pursuit of an organization’s goals.

Accepted Answer

Managerial accounting

Answer

none of the above

Answer

Accounting education

Answer

Tax accounting

Question 10

What does an auditor do?

Accepted Answer

ensures compliance to requirements

Answer

computes taxes

Answer

Ensures timeliness on purchase raw materials

Answer

teaches the importance of accounting in businesses

Question 11

External user of financial statement.

Accepted Answer

banks

Answer

managers

Answer

owners

Answer

director

Question 12

Internal user of financial statement.

Accepted Answer

employees

Answer

stakeholders

Answer

creditors

Answer

suppliers

Question 13

Which activity needs financial statement?

Accepted Answer

all statements need financial statement

Answer

retrench employees aged 65 above.

Answer

reads and interprets F/s in the board meeting.

Answer

lends P3 million

Question 14

Which condition could a bank require before lending a loan?

Accepted Answer

return on investments shows a consistent growth overtime

Answer

the expenses are higher than the asset value

Answer

accounts receivable is uncollectible

Answer

the cost is equal to the profit

Question 15

An agreement between persons to bind themselves with property, money or industry into a common fund with the intention of dividing the profits or losses among themselves.

Accepted Answer

partnership

Answer

sole proprietorship

Answer

corporation

Answer

cooperative

Question 16

What is GAAP?

Accepted Answer

generally accepted accounting principle

Answer

generally accepted account priority

Answer

great access to accounting principle

Answer

generally appointed accountant principle

Question 17

Aling Nena is keeping her computer store updated of softwares and models of computers so that she will not be left behind by new market competitors. What accounting principle best applies?

Accepted Answer

going concern

Answer

historical cost

Answer

materiality

Answer

entity concept

Question 18

Daniella Fabienne coffee shop installed a separate telco line for the store for her not to be confused when paying bills. Which accounting principle applies?

Accepted Answer

entiry concept

Answer

going concern

Answer

materiality

Answer

historical cost

Question 19

Johnny Bravo wanted to establish a business using a land he bought a long time ago but cannot remember how much it was. He found that the fair market value of the land today is P20 million and recorded it in the books as is. What accounting principle does Johnny should have considered?

Accepted Answer

historical cost

Answer

entity concept

Answer

materiality

Answer

going concern

Question 20

Expenses are recognized as it is incurred and income as it is earned.

Accepted Answer

accrual

Answer

going concern

Answer

consistency

Answer

objectivity

Question 21

The book of original entry.

Accepted Answer

journal

Answer

ledger

Answer

subsidiary ledgers

Answer

chart of accounts

Question 22

The book of final entry.

Accepted Answer

ledger

Answer

chart of accounts

Answer

subsidiary ledgers

Answer

journal

Question 23

A special journal used in recording sales on credit.

Accepted Answer

sales journal

Answer

purchase journal

Answer

Cash journal

Answer

accounts receivable ledger

Question 24

Book used in classifying account titles.

Accepted Answer

ledger

Answer

chart of accounts

Answer

journal

Answer

books of accounts

Question 25

The book on the right is an illustration of ____.

Accepted Answer

subsidiary ledger

Answer

account titles

Answer

customer list

Answer

customer journal

Question 26

Read the instructions carefully!

For ITEMS 26-50 accomplish the Financial Transaction Worksheet for Da'Hackers Webpage Express. Each date is numbered twice. Put the amounts needed in the worksheet as you answer.

This item is for May 1 transaction.

Accepted Answer

+ cash P250,000

Answer

-cash P250,000

Question 27

May 01, 2022

Accepted Answer

+Hack, Capital P250,000

Answer

+Hack, Drawing P250,000

Question 28

May 05, 2022

Accepted Answer

-cash P178,000

Answer

-accounts receivable P178,000

Question 29

May 05, 2022

Accepted Answer

+computer equipment P178,000

Answer

+computer supplies P178,000

Question 30

May 09, 2022

Accepted Answer

+computer supplies P9,000

Answer

+computer equipment P9,000

Question 31

May 09, 2022

Accepted Answer

+accounts payable P9,000

Answer

+accounts receivable P9,000

Question 32

May 11, 2022

Accepted Answer

+cash P77,000

Answer

-cash P77,000

Question 33

May 11, 2022

Accepted Answer

+design income P77,000

Answer

+supplies expense P77,000

Question 34

May 16, 2023

Accepted Answer

-cash P15,000

Answer

+cash P15,000

Question 35

May 16, 2023

Accepted Answer

+utilities expense P15,000

Answer

+rent expense P15,000

Question 36

May 17, 2023

Accepted Answer

+accounts receivable P25,000

Answer

+accounts payable P25,000

Question 37

May 17, 2023

Accepted Answer

+design income P25,000

Answer

+Hack, Capital P25,000

Question 38

May 19, 2023

Accepted Answer

-cash P7,000

Answer

+cash P7,000

Question 39

May 19, 2023

Accepted Answer

-accounts payable P7,000

Answer

-accounts receivable P7,000

Question 40

May 20, 2023

Accepted Answer

+cash P21,000

Answer

+computer supplies P21,000

Question 41

May 20, 2023

Accepted Answer

-accounts receivable P21,000

Answer

-accounts payable P21,000

Question 42

May 21, 2023

Accepted Answer

-cash P20,000

Answer

+cash P20,000

Question 43

May 21, 2023

Accepted Answer

+Hack, Drawings P20,000

Answer

+Hack, Capital P20,000

Question 44

May 27, 2023

Accepted Answer

+accounts payable P8,000

Answer

-accounts payable P8,000

Question 45

May 27, 2023

Accepted Answer

+advertising expense P8,000

Answer

+salaries expense P8,000

Question 46

May 31, 2023

Accepted Answer

-cash P15,000

Answer

+cash P15,000

Question 47

May 31, 2023

Accepted Answer

+salaries expense P15,000

Answer

+Hack, Capital P15,000

Question 48

How much is the total balance of cash?

Accepted Answer

P113,000

Answer

P173,000

Answer

P123,000

Question 49

How much is the total balance of owner's equity?

Accepted Answer

P294,000

Answer

P349,000

Answer

P249,000

Question 50

How much is the accounting equation balance?

Accepted Answer

P304,000

Answer

P306,000

Answer

P326,000

Related quizzes

Related quizzes