Republic of the Philippines

Department of Education
CASTAÑAS NATIONAL HIGH SCHOOL
Sariaya, Quezon
SY 2019–2020

ACCOUNTANCY, BUSINESS AND MANAGEMENT (ABM)

1st Quarter Examination

NAME: __________________________________________________________________ Score:

GRADE & TRACK:_______________________________ Date: ______________________

Instruction: Select the letter of your answer and write it on the underline before each number.

________ 1. It is considered the language of business. [A]

A. By-Laws B. Accounting C. Financial Statement D. None of the above
________ 2. What do you call the process of accounting that involves selecting economic events that are relevant to a
particular business transaction? [C]
A. Recording B. Selecting C. Identifying D. Transacting
________ 3. Who introduced the double-entry bookkeeping. [C]
A. Dr. James Ingram B. Luca Sya C. Luca Pacioli D. None of the above
________ 4. Which of the following best defines “Accounting”? [A]
A. It is the process of Identifying, recording, and communicating economic events of an organization to
interested users.
B. It is the process analyzing transaction and later making decision.
C. It is the process of Identifying and communicating economic events to interested users.
D. None of the above
________ 5. What is the nature of accounting? [D]
A. Accounting is an information system.
B. Accounting is an Art
C. Accounting is a process
D. All of the above.
________ 6. Identify the decision that is supported by accounting information. [D]
A. Buy additional delivery truck for the forwarding business.
B. Put up new branch in other location.
C. Retrenchment of employee.
D. All of the above
________ 7. Describe one of the distinct functions of accounting that relates to the past transactions of the business
firm, Accounting records, classifies, reports, analyses and interprets the transactions already effected. [C]
A. Managerial function B. Financial Function C. Historical Function D. None of the above
_________8. Accounting serves the needs for varying information of different users. Sometimes they overlap with
each other and they are often closely intertwined. [B]
A. Principles of Accounting B. Branches of Accounting C. Accounting Concept D. None of the above
_________9. It is the broadest branch of Accounting that focuses on the needs of external users. Accounting
information is communicated in a complete set of financial statements. [C]
A. Management Accounting B. Audit Accounting C. Financial Accounting D. Government Accounting
________10. Report on the total cost of materials and labor used in the production. [C]
A. Financial Accounting B. Managerial Accounting C. Cost Accounting D. None of the above
________11. It refers to the report on the spending of government funds. [D]
A. Financial Accounting B. Managerial Accounting C. Cost Accounting D. Government Accounting
________12. Which of the following best describes Accounting Research? [C]
A. Conducting lectures on accounting topics.
B. Evaluation of the performance of a sales department.
C. Develop standards to address a new business set up.
D. Report on the total cost of material s and labor used in the production.

For question numbers 13-15, refer to this situation: MATIGAS construction and Supply won the bidding for the
concreting of 5 km farm-to-market road of Brgy. San Isidro. The company applied for a loan at ABC Bank to buy a brand
new Dump Truck with selling price of P2.0 Million. The bank requested for a three year financial statement. The project
is said to be completed by January, 2020. Answer the following question using the following choices.
A. Government Accounting B. Financial Accounting C. Audit Accounting
D. Historical Function of accounting E. External User

________13. What branch of accounting is supported by above situation. [A]

________14. The ABC Bank is considered the ____________ [E]
________15. The three year financial statement requested by the bank is classified as ___________ [D]
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________16. What the two broad categories that make use of the accounting information? [A]
A. Internal and External Users
B. Departments and staff
C. Rank and file employees
D. Store owners and suppliers
________17. Internal users is best define as: [B]
A. Individuals who are not connected with the company.
B. Are those individual inside the company who plan, organize, and run the business
C. Individuals who patronizes the product of the company.
D. None of the above
________18. Managers, Officers, Staff, CEO are COO are users that are classified as: [B]
A. External users B. Internal Users C. Downward users D. None of the above
________19. Income/earning for the period, sales for the period, available cash, production cost are examples of: [B]
A. Accounting Management B. Accounting information C. Internal users D. None of the above
________20. Given accounting information: Income/earning for the period, sales for the period, available cash,
production cost. Which decision supported based on the given information? [A]
A. Pricing Decision B. Job security C. Salary increase D. None of the above
________21. MATIGAS construction and Supply applied for a loan at ABC Bank to buy a brand new Dump Truck with
selling price of P2.0 Million. The bank requested for a three year financial statement. What information
the bank will be looking at the three year financial statement?[D]
A. Analyses the company’s net income for the last 3 years.
B. Sufficiency of cash to pay creditors
C. Liabilities and other payable of the company.
D. All of the above

Situation: Arlan’s Bakery is planning to open a branch at Karachi Street. With the volume of transaction, he applied for
ABC Bank for business loan. He sought approval for a 30 day term for the raw materials delivered by the supplier. He was
required to submit 3-year financial statement. Use the choices below to answer questions number 21-24.
A. Potential investor B. Banks C. Suppliers D. BIR E. DOLE F. SEC G. COA

________21. Analyzes if the bakery has fast moving inventory. [C]

________23 Analyzes the trend of income of the Bakery. [B]

________24. Analyzes if it is profitable to invest in the business. [A]

________25. Which agency analyzes if the bakery pays its employees according to what the law states. [B]
A. BIR B. DOLE C. BSP D. NOA
________26. What form of business that is owned by one person? [B]
A. Corporation B. Sole proprietorship C. Cooperative D. None of the above
________27. A government agency that regulates cooperatives. It is where the cooperative is being registered. [B]
A. SEC B. CDA C. DFA D. NOA
________28. Which of the following describes the manner of transfer of ownership of the Corporation? A
A. By selling stocks
B. By selling the business to a new owner
C. By selling the business or interest of the partner
D. None of the above
________29. What kind of business is best described by these statements: [A]
I am the only owner of my business, I take all the risk of doing business, I keep all the profits
A. Sole Proprietorship B. Corporation C. Partnership D. Cooperative
_______ 30. Law firms, medical practices, and auto body repair shops are examples of what type of ownership. [C]
A. Sole Proprietorship B. Corporation C. Partnership D. Cooperative Corporation
________31 Nike, IBM, Google are examples of [B]
A. Sole Proprietorship B. Corporation C. Partnership D. Cooperative
________32 Bookstore, Sari-sari Store, Hardware stores, La Swerte Warehouse, are examples of [B]
A. Service Activity B. Merchandising Activity C. Manufacturing Activity D. All of the above
________33. Service business is best define as (B)
A. Type of business that offers professional skills, advice and consultation
B. Sells products through wholesale and retail
C. Combining raw materials, labour, and expenses to create a product for sale later on.
D. None of the above
________34. Toyota, Coca-Cola, Right Med, Matigas Construction, are examples of [C]
A. Service Activity B. Merchandising Activity C. Manufacturing Activity D. None of the above
________35. Mandigma and Manguera Law Firms falls on what forms of business and activity? [B]
A. Sole Proprietorship - Merchandising
B. Partnership - Service
C. Partnership - Manufacturing
D. None of the above
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For questions 36-38, refer to this statement: Atty. Mandigma is the Chairman of the Board of XYZ Corporation. Which
has been producing rubber shoes famously marketed as ADIDULAS. Said company is celebrating its 50th founding
anniversary this coming December 2019. Answer the questions using the following choices:
A. Corporation B. Re-register C. Securities and Exchange Commission D. Manufacturing
E. Department of Labor and Employment F. Merchandising

________36. What should XYZ Corporation do when it reach its 50 years of operation? [B]

________37. XYZ belongs to what types of business activity? [A]

________38. XYZ Corporation is registered to what government agency? [C]

________39. What do you call the concept or principle that assumes the business enterprise and the owner are two
separate independent entities? [B]
A. Going Concern B. Business Entity Principle C. Objectivity Principle D. None of the above
________40. GAAP stands for: [B]
A. Grand Audition for Accounting Professors
B. Generally Accepted Accounting Principles
C. Great Accountants Association of the Philippines
D. None of the above
________41. The accounting principle that requires all relevant information to be included in the financial report. [C]
A. Materiality principle B. Conservatism Principle C. Disclosure Principle D. Time Period Principle
________42. The objectivity principle best define as: [A]
A. Means that information is supported by independent, unbiased evidence.
B. Means that information can be based on what the preparer thinks is true.
C. Means that financial statements should contain information that is optimistic.
D. Means that a business may not re-organize revenue until cash is received.
________43. Which of the following accounting principles would require that all goods and services purchased should
be recorded at cost? [D]
A. Materiality principle B. Conservatism Principle C. Disclosure Principle D. Cost Principles
________44. The rule that requires financial statements to reflect the assumption that the business will continue
operating instead of being closed or sold, unless evidence shows that it will not continue, is the: [A]
A. Going Concern B. Business Entity Principle C. Objectivity Principle D. None of the above
________45. The statement of financial position of ABC company included an equipment purchased from Japan for
350 Yen. It was reported at that amount in the statement of financial position while all the assets were
reported in Philippine pesos. Which principle is violated? [B]
A. Objectivity Principle b. Monetary Unit Principle C. Cost principle D. Accrual Accounting Principle
________46. Talab Printing Press bought an additional paper puncher in the amount of P500.00. In order not to violate
the Materiality Principle, which statement is correct? [B]
A. Record it as an asset and expense to decrease its value by P100 per year for 5 years.
B. Record it as an outright expense and will not be included in the schedule Assets and depreciation.
C. Record it as expense and include in the schedule Assets and depreciation.
D. None of the above.
________47. Accounting changes are often made and the monetary impact is reflected in the financial statements of a
company even though, in theory, this may be a violation of the accounting concept of [D]
A. Materiality B. Objectivity C. Conservatism D. Consistency
________48. Accountants do not recognize that the value of the peso changes over time. This concept is called: [A]
A. Stable monetary unit concept B. Going concern concept C. Cost principle D. Entity Concept
________49. Aside from owning a shoe store, Albert operates a canteen. The assets of the canteen are reported in the
statement of financial position of the shoe store. Select which principle is violated. [A]
A. Business Entity Principle B. Time Period Principle C. Objectivity Principle D. None of the above
________50. Which of the following is an example of Monetary Unit Principle? [A]
A. Jollibee Corporation should report financial statements in pesos even if they have store in the US.
B. When Jollibee buys a cash register, it should record in the cash register the price when they bought it.
C. When the customer paid Jollibee for their order, Jollibee should have a copy of the official receipt.
D. None of the above.

*********God Bless**********

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