ABE INTERNATIONAL BUSINESS COLLEGE

Marian Bldg., Luzuriaga St., Bacolod City

Business Department

ACCOUNTING FOR NON ACCOUNTANTS

Prelim Examination

Name : ______________________________________ Course-Year: ___________________ Score: ___________

I. Matching Type. Match Column A with Column B. Write the answer on the space provided before each number. 2 points each
number.
Column A Column B
_____ 1. Is an organization in which basic resources (inputs), such as materials and labor, A. Monetary Unit
are assembled and processed to provide goods or services (outputs) to customers.
_____ 2. Its function is to provide quantitative information, primarily financial in nature, B. Business Entity
about economic entities, that is intended to be useful in making economic decision. Concept
_____ 3. Income is recognized when earned regardless of when received and expense is C. Substance over Form
recognized when incurred regardless of when paid.
_____ 4. The business will continue in operational existence for the foreseeable future. D. Partnership
_____ 5. The business and its owner(s) are two separate entities. E. Conservatism
_____ 6. The life of an entity is subdivided into time periods which are of equal length for F. Completeness
the purpose of making financial reports.
_____ 7. Assets, liabilities, capital, income and expenses should be stated in terms of a unit G. Understandability
of measure (Philippine Peso).
_____ 8. A business which is owned by one individual. H. Neutrality
_____ 9. An association of two or more persons who bind themselves to contribute money, I. Accounting
property or industry to a common fund with the intention of dividing profits among
themselves.
_____ 10. Is an artificial being created by operation of law having the rights of succession, J. Comparability
attributes power incidental to its existence.
_____ 11. The capacity of information to influence a decision. K. Going Concern
_____ 12. The degree of confidence users place upon the truthfulness of the representations L. Accrual
in the financial statements.
_____ 13. The actual effects of the transaction should be properly accounted for and M. Business
reported in the financial statements.
_____ 14. Transactions should be accounted in accordance with their substance in reality N. Sole Proprietorship
and not merely their legal form.
_____ 15. Information in the Financial Statements must be free from bias. O. Reliability
_____ 16. Care and caution must be exercised when dealing with uncertainties in the P. Representation
measurement process.
_____ 17. Relevant information must be presented in a way that facilitates understanding Q. Timeliness
and avoids erroneous implication.
_____ 18. Financial information must be comprehensible or intelligible if it is to be useful. R. Time Period
_____ 19. Information must be comparable with similar information of previous periods or S. Corporation
with information of another entity.
_____ 20. Information must be available or communicated early enough when a decision is T. Relevance
to be made.

II. RULES of DEBIT and CREDITS.

1. Increase in Assets 2. Decrease in Assets 3. Increase in Liabilities 4. Decrease in Liabilities
5. Increase in Owner’s Equity 6. Decrease in Owner’s Equity 7. Increase in Revenues 8. Decrease in Revenues
9. Increase in Expenses 10. Decrease in Expenses

Prepared by: Noted by:

GEOFREY A. RIVERA, CPA, MBA MARK STEPHEN PERE-IRA, MBA

Instructor DEAN