COLEGIO DE DAGUPAN

MIDTERM EXAMINATION
FUNDAMENTALS OF ACCOUNTING 1

SET A

Instructions: Name:
 Turn off your cell phone/s. use of CP is not allowed during exam.Course, Year and Block:
 Write ALL YOUR ANSWERS legibly on your TEST BOOKLET Subject Code & Description:
 Use blue or black pen only. Strictly: NO ERASURES.
 READ and FOLLOW the DIRECTIONS carefully! Date:

TEST I

Multiple Choices: Select the best answer for each question. (10points)

1. The process of identifying, measuring and communicating the economic activities of a business
enterprise in order to assists user of a financial statement in making informed judgment is
a. Transacting
b. Accounting
c. Bookkeeping
d. Computing
2. A business where two or more people join together to earn and share profit is called
a. Sole-proprietorship
b. Partnership
c. Corporation
d. Cooperative
3. These are economic resources owned by the business expected for future gain. They are
property and rights of value owned by the business
a. Assets
b. Equity
c. Capital
d. Interest
4. This type of business operation is involved in the purchasing and converting of raw materials to
finish goods
a. Service
b. Trading
c. Production
d. Manufacturing
5. Which of the following is the best example of a merchandising company
a. Shoe factory
b. Food processing
c. Grocery
d. Dental clinic
6. Choose the incorrect statement about accounting
a. It is a service activity
b. It provides quantitative information
c. It is useful in making economic decisions
d. None of the above
7. It comprises the method used by the business to keep records of its financial activities and to
summarize in accounting reports
a. Accounting system
b. Accounting Cycle

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 c. Accounting process
d. Accounting principle

8. The key product or the end product of the accounting process is a set of documents called
a. Accounting results
b. Report statements
c. Financial statements
d. Financial accounting
9. Purchasing of land by real estate dealer is under
a. Operating activities
b. Investing activities
c. Financing activities
d. None of the above
10. The concept that treats a business as distinct and apart from its owners
a. Periodicity concept
b. Entity concept
c. Monetary concept
d. Concept of partition

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TEST II

Identify the following accounts whether assets, liabilities, or owner’s equity (10points)

1. Land
2. Interest expense
3. Service revenue
4. Inventory
5. Unearned revenue
6. Building
7. Prepaid expense
8. Loan payable
9. Accounts receivable
10. Salaries expense

TEST III: CLASSIFICATION

Match each numbered term with the letter of the category (15 points)

A. Users of Accounting Information

B. Aspects of Accounting

C. Basic Accounting Principle

D. Components of Financial Statements

E. Types of Business Operations

F. Types of Business Organizations

G. Types OF Cash Flow Activities

H. Branches of Accounting

1. Partnership 20. Investors

2. Income Statement
3. Materiality
4. Financial Accounting
5. Manufacturing
6. Recording
7. Creditors
8. Objectivity
9. Management Accounting
10. Statement of Cash Flows
11. Classifying
12. Corporation
13. Financing
14. Consistency
15. Stockholders
16. Balance Sheet
17. Interpreting
18. Merchandising
19. Operating

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IV. Presented below are the balance sheet accounts of Wade Consultancy Firm. Prepare a report form
balance sheet for the year December 31, 2013.(10 POINTS)

Property, Plant and Equipment Php 500,000.00

Cash 112,000.00

Wade, Capital 472,500.00

Trade Payable 115,000.00

Prepaid Expenses 78,000.00

Trade Receivable 156,000.00

Mortgage Payable 258,500.00

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