Survey Questionnaire

RELEVANCE OF BASIC ACCOUNTING PRACTICES ON THE

PROFITABILITY AND MANAGEMENT OF ONLINE MERCHANTS IN

METRO MANILA

Part I. General Information

1. Demographic Profile of the Respondents

Instruction: Please fill out the needed information or check the

corresponding answer for each item.

1.1 Name of Business: ____________________________________________

1.2 Number of Years in Operation:

Less than 1 year 4 – 6 years

1 – 3 years More than 7 years

1.3 Nature of Business

Food Electronics

Clothing Others: ____________________

Health and Beauty Products

1.4 Initial Capital

Less than 3,000 11,000 – 15,000

3,000 – 5,000 16,000 – 20,000

6,000 – 10,000 More than 20,000

1.5 Estimated Monthly Profit

Less than 5,000 16,000 – 20,000

6,000 – 10,000 21,000 – 25,000

11,000 – 15,000 More than 26,000

Part II.
Direction: Read each statement carefully. Please indicate your level of
awareness on the following statements by checking the box provided.
2. What is the level of awareness of the online merchants on basic
accounting principles?
Basic Accounting Extremely Moderately Slightly No at all
Principles Aware Aware Aware Aware
1. Economic Entity
Principle
2. Monetary Unit
Principle
3. Time Period
Principle
4. Cost Principle
5. Full Disclosure
Principle
6. Going Concern
Principle
7. Matching
Principle
8. Revenue
Recognition
Principle
9. Materiality
Principle
10.Conservatism
Principle
 Part III.
Direction: Read each statement carefully. Please indicate your level of
agreement on the following statements by checking the box provided.

3. What are the assessments of the respondents as to the relevance of

basic accounting practices towards:
A. Economic 4 3 2 1
Entity Principle Strongly Agree Agree Disagree Strongly
Disagree
1. I separate my
own earnings to
the income of my
business.
2. My personal
and business
records are
separate.
3. I never use my
business’ profits
for personal gain.
4. I take into
account only
those events that
affect my
business.
5. My business
has its own
checking account,
and as an owner,
I also have my
own personal
account.

B. Monetary Unit 4 3 2 1
Principle Strongly Agree Agree Disagree Strongly
Disagree
1. I only record
business
transactions that
can be expressed
in terms of
currency.
2. I am not
recording
anything that is
non-quantifiable
in business
financial
accounts.
3. I record every
business
transaction in
Philippine peso.
4. I usually check
if the value of the
currency is stable.
5. I do not take
into account the
impact of inflation.

C. Time Period 4 3 2 1
Principle Strongly Agree Agree Disagree Strongly
Disagree
1. The business is
consistently
reporting its
financial results
and cash flows on
a monthly,
quarterly, or
annual basis.

2. The financial
reports are
reported in
consistent
standards for all
the time periods
so that it can be
used to compare
with previous
years.

3. The financial
reports during the
particular period
of time are used
to assess the
financial
performance of
my online
business.
4. I am using the
latest, relevant
and reliable
financial
information in
making financial
decisions in a
timely manner.
5. I am using the
financial reports
during the specific
time period to
compare with
previous years’
reports for the
improvement of
my business.

D. Cost Principle 4 3 2 1
Strongly Agree Agree Disagree Strongly
Disagree
1. I am recording
most of my
assets, liabilities
and equity on
financial records
at its acquisition
cost.
2. I am applying
cost principle to
achieve
consistency and
simplicity in the
records.
3. It is more
convenient for me
to record assets
at historical cost
than on its market
value.
4. Recording
original cost
enables my
business to verify
the actual cost of
expenditures.
5. I do some
adjustments and
revaluation for the
assets, liabilities
and equities that I
initially recorded
at cost after a
period of time.

E. Full 4 3 2 1
Disclosure Strongly Agree Agree Disagree Strongly
Principle Disagree
1. I only disclose
information that
have a material
impact on my
entity's financial
position.
2. I also disclose
existing
accounting
policies and its
changes.
3. I am including
substantial
information in a
variety of places
in the financial
statements in the
footnotes.
4. Full disclosure
helps my entity's
foster
transparency in
financial market
and limit
fraudulent
activities.
5. All material
information
related to
execution of
transactions is
fully disclosed.
F. Going 4 3 2 1
Concern Strongly Agree Agree Disagree Strongly
Principle Disagree
1. I am using my
assets in the most
effective manner
possible.
2. Third party
persons
guarantee to
provide funds if
needed for
continuous
operation.
3. I am looking
forward that my
online business
will remain in the
industry for the
foreseeable
future.
4. My business
has enough
money to sustain
its operation and
avoid bankruptcy.
5. My business
are deferring
certain expenses
and assets in
financial reports.

G. Matching 4 3 2 1
Principle Strongly Agree Agree Disagree Strongly
Disagree
1. I am recording
the expenses on
the income
statement in the
same period that
related revenues
are earned.
2. Expenses not
directly tied to
revenues are
reported in the
income statement
in the same
period as their
use.
3. I am applying
matching principle
to maintain
consistency
across my
business income
statement and
balance sheet.
4. Matching
principle helps my
business to avoid
misstating profits
during an
accounting
period.
5. Matching
principle helps me
to distribute
depreciation cost
over time.

H. Revenue 4 3 2 1
Recognition Strongly Agree Agree Disagree Strongly
Principle Disagree
1. I am
recognizing
revenue when
realized and not
when cash is
received.
2. I already
recording revenue
once the delivery
has occurred or
the services has
been rendered.
3. I am offering
credit terms to my
customers
wherein they can
pay their invoice.
4. I am
reasonably sure
that the amount
billed to my
customer are
collectible.
5. For payments
that are received
in advance of
products or
services, I only
recognized
revenue only after
the products are
delivered or
services are
rendered.

I. Materiality 4 3 2 1
Principle Strongly Agree Agree Disagree Strongly
Disagree
1. I record every
little money that
comes in and go
of my business
2. I make sure
that the records
reflect the actual
amount of money
on hand and in
bank
3. If there is a little
error in financial
statements, I let it
go easily since it
is immaterial or a
relatively small
amount
4. I am rounding
off amounts to the
nearest thousand
pesos in my
financial records.
5. A 1,000 pesos
error is relevant to
the economic
decision of the
business

J. Conservatism 4 3 2 1
Principle Strongly Agree Agree Disagree Strongly
Disagree
1. In case of
uncertainties, our
 business expects
and record any
loss rather than
recording any
gain.
2.The inventories
are measured at
its lowest cost.
3. If an income is
probable to
acquire, we
recognized and
record it in our
financial record

4. Accounts
receivable that
are deemed to be
uncollected are
recorded.
5. Expenses and
liabilities are
recognized as
soon as possible
in a situation
where there is
uncertainty about
the possible
outcome.

Part IV.
Direction: Read the question carefully and provide the needed information.
4. What are the recommendations of online merchants to increase profitability and
have a good management of an online business?
Answer:___________________________________________________________
_________________________________________________________________