Republic of the Philippines

DEPARMENT OF EDUCATION
Regional Office VIII
Division of Catbalogan City
SAMAR NATIONAL SCHOOL
Senior High School
Catbalogan City, Samar

FIRST PERIODICAL TEST

In
Fundamental Accountancy, Business and Management 1
NAME:_______________________________________ Yr.&Sec.____________________ Rating: __________
Teacher:______________________________________Date:_______________________Score: ___________

I- Multiple choice. Select the best answer to the question.

1.) What is accounting
a.) The exchange of values
b.) Is a service activity, it function to provide quantitative information, primarily financial in nature about
economic entities that are intended to be useful in making economic decisions with reasoned
choices among alternative courses of action
c.) It the statement that gives information to the users about the cash sources and the cash uses of the
business enterprise during a given period of time
d.) None of the above
2.) What is Bookkeeping
a.) As the systematic and chronological recording of business transactions, observing therein the
fundamental principle of accounting
b.) Is the act of happening
c.) Collection of business documents as transaction occurred
d.) All of the above
3.) The form of business ownership whose owners of the business enterprise is only one?
a.) Corporation
b.) Partnership
c.) Proprietorship
d.) All of the above
4.) The ownership of the business enterprise ranges from five to more persons.
a.) Corporation
b.) Partnership
c.) Proprietorship
d.) All of the above
5.) The ownership of the business enterprise ranges from two or more persons_
a.) Corporation
b.) Partnership
c.) Proprietorship
d.) All of the above
6.) The following can be found in an income statement except
a.) Income
b.) Asset
c.) Expenses
d.) Profit and loss
7.) A credit entry decreases the balances of
a.) Owners equity
b.) Assets
c.) Income
d.) Liabilities
8.) Expenses can be define as
a.) Increases in owner’s equity
b.) Decreases in economic benefits during the accounting period in the form of outflows or depletions of
assets or incurrences of liabilities that result in decreases in equity
c.) Decreases in owner’s equity
d.) Inflow of an assets from delivering or producing goods or rendering services
9.) When an entity pays employees for the services, the effect is in increase in
a.) Expenses
b.) Assets
c.) Income
d.) Liabilities
10.)A current asset which includes coins, currencies and bank deposits is called
a.) Cash equivalent
b.) Notes recievable
c.) Accounts recievables
d.) Cash
11.)When the proprietorship withdraw cash or other assets, the withdrawal account is
a.) Debited
b.) Credited
c.) Debit and credited
d.) Not affected
12.)Which of the following equation is correct?
a.) Assets + Capital = Liabilities
b.) Liabilities – Capital = Assets
c.) Capital = Assets + Liabilities
d.) Capital = Assets – Liabilites
13.)Which of the following is correct?
Assets Liabilities Capital
a.) P7,850 P1,250 P6,600
b.) P8,200 P2,800 P11,000
c.) P9,550 P1,150 P8,200
d.) P5,420 P6,540 P1,120
14.)The company collected in full an account receivable. Considering this transaction alone
a.) Total assets will remain the same
b.) Total asset will increase
c.) Total assets will decrease
d.) Equity will increase
15.)The purchase of a services vehicle on account
a.) Will increase asset and increase liability
b.) Will increase asset and decrease a liability
c.) Will decrease equity
d.) Will decrease asset and decrease liability
16.)Credits are used to record
a.) Decrease in liabilities
b.) Decreases in owner’s equity
c.) Increases in expenses
d.) Increase in income
17.)The first step in the accounting cycle is to
a.) Adjust the general ledger accounts
b.) Record transactions in a journal
c.) Analyse transactions from source documents
d.) Post journal entries to general ledger accounts
18.)Balance Sheets accounts are
a.) Permanent accounts
b.) Temporary accounts
c.) Accounts with debit balances only
d.) Adjusting accounts
19.)A journal entry composed of two or more debits or two or more credits is called a
a.) Multiple journal entry c.) Complex journal entry
b.) Compound journal entry d.) Double journal entry
20.)A chart of account is a
a.) Journal
b.) Flowchart of all transaction
c.) Accounts with debit balances only
d.) Adjusting entries
21.)The normal balance of an account is on the
a.) Side represented by decrease in the account balances
b.) Debit side of the account
c.) Side presented by increase in the account balances
 d.) Credit side of the account
22.)When an asset is purchased on account ,the credit is to
a.) A capital account
b.) A liability account
c.) An income account
d.) An expense account
23.)Gains and losses will appear in what financial statements
a.) Balance sheet
b.) Income statement
c.) Statement of cash flow
d.) Statements of retained earnings
24.)In which financial statement the net increase or decrease in cash can be seen
a.) Balance sheet only
b.) Statement of operation
c.) Statement of retained earnings and balance sheet
d.) Statement of cash flow
25.)When total expenses exceed total revenue
a.) The entity will earn an income
b.) The entity will incur net loss
c.) The entity will either earnings
d.) None of the above

TEST II

DIRECTION : Write A. if the statements is True, Write B if the statements is False and C. if the
statements is Not applicable

_____________1.) The three types of business organizations are single proprietorship,partnership

and non-profit organizations
_____________2.) A ledger is considered as a book of account
_____________3.) For academic purpose, an account is considred material even if the amount is very small Because
of the accessibility of the information
_____________4.) To persuade an investor to invest money in a particular company, relevant and reliable
Accounting information is required
_____________5.) All business entity owners are personally liable for the debts of their business in
accordance with sound accounting concepts and principles
_____________6.) In accounting and legal points of view, an owner of a single proprietorship business
enterprise is a distinct and separate entity from the business
_____________7.) The statement of financial condition is the other name fro balance sheet, the latter being an
Alternative term
_____________8.) The statement of cash flows is prepared and organized in the following order: operating
Investing and financing
_____________9.) Expenses will increase the owners capital account and also increase the reults of operation
_____________10.) A partnership business can be formed with 1000 partners without violating any provion of the law.

GOODLUCK & GODBLESS!!!!

Prepared by:

ROSELYN P.GABON
SHS-TII