GENESIS COLLEGES INC.

Formerly: Genesis Children’s Growth Academy Corp.

San Francisco, Ocampo, Camarines Sur

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS, AND MANAGEMENT 1

DIRECTIONS: Read carefully each question. Shade completely with pencil the circle corresponds to the
letter of your choice. Multiple answers are not allowed.

1. What is the most important aspect of a business manager

a. leadership
b. creativity
c. originality
d. careness

2. Business Management can be done

a. by anyone
b. anyone who qualifies
c. your mom
d. you

3. Being a manager of the business variety is tough because

a. You keep track of everyone
b. You have multiple jobs
c. Everyone relies on you
d. Its a job

4. What is the job of a business manager

a. oversee the activities of workers
b. ensure that a company or department is on track to meet its financial goals
c. hire, train and evaluate new employees
d. All of the above

5. What is important about managing a business

a. You are the leader
b. People will you judge how you do
c. People will be looking up to you for leadership
d. Its a job

6. The process of recording financial transactions pertaining to a business.

a. Accounting
b. Business
c. Mathematics
d. Economics
7. This can also be referred to as book-keeping which is a process of recognizing the transactions
and setting them up as records.
a. Recording
b. Summarizing
c. Reporting
d. Analyzing

8. The accountants divide these raw data into several categories.

a. Recording
b. Summarizing
c. Reporting
 d. Analyzing
9. The owners must know about the various operations happening within the firm using their
money. And this is done by this activity.
a. Recording
b. Summarizing
c. Reporting
d. Analyzing
10. Checking for the positive and negative points and to draw conclusions.
a. Recording
b. Summarizing
c. Reporting
d. Analyzing
11. They use the financial information to know the trends and recent developments in the
prosperity of the enterprise and the range of its activities.
a. Public
b. Suppliers
c. Employees
d. Creditors
12. Determines the credibility of the tax returns filed on behalf of the company. They are interested
to know if the business paid the correct amount of taxes.
a. Tax Authorities
b. Suppliers
c. Employees
d. Creditors
13. They use the financial information to determine whether the debts owed to them will be paid
when due or whether the customer has enough funds or resources to pay the goods to be
delivered or the services to be rendered.
a. Tax Authorities
b. Suppliers
c. Employees
d. Creditors
14. Assess the companyís profitability and stability, its consequence on their future salary and job
security.
a. Tax Authorities
b. Suppliers
c. Employees
d. Creditors
15. They have interest in information about the continuance of an enterprise, especially when they
have a long-term involvement with, or are dependent on, the enterprise.
a. Public
b. Suppliers
c. Employees
d. Creditors
16. Inventory is recorded at the lower of cost or net realizable value rather than the expected
selling price. This ensures profit on the sale of inventory is only realized when the actual sale
takes place.
a. Going Concern
b. Materiality Concept
c. Prudence Concept
d. History Cost
17. Financial statements are prepared with the expectation that a business will remain in operation
indefinitely.
a. Going Concern
b. Materiality Concept
c. Prudence Concept
d. History Cost
18. GAAP stands for:
 a. Generally Accepted Auditing Procedures
b. Generally Accepted Accounting Procedures
c. Generally Accepted Accounting Principles
d. Generally Auditing Accounting Principles

19. The Corona Limited Co. has three plants nationwide that cost a total of P200 million. The
current fair value of the plants is P600 million. The plants will be recorded and reported as
assets at:
a. P200M
b. P600M
c. P400M
d. P800M
20. It includes the money and any medium of exchange acceptable by the bank for deposits such as
bills, coins, funds for current purposes, checks, cash in the bank, etc.
a. Cash
b. Notes Payable
c. Accounts Receivable
d. Utilities EXpense
21. These are economic obligations, debts, or payables of the business.
a. Assets
b. Owner's Equity
c. Liabilities
d. Expense
22. These are the costs of promoting the business such as those incurred in newspaper
publications, television and radio broadcasts, billboards, flyers, etc.
a. Delivery Expense
b. Insurance Expense
c. Advertising Expense
d. Rent Expense
23. It refers to the cost paid or to be paid to a lessor for the right to use a commercial property
such as an office space, a storeroom, a building, etc.
a. Insurance Expense
b. Rent Expense
c. Repairs and Maintenance
d. Bank Service Charge
24. Which of these is a liability?
a. Cash in bank
b. Money owed to other business (creditors)
c. Stock
d. Machinery
25. Which of these is an asset?
a. Any stock (Inventory) that you have
b. A satisfied customer
c. A loan to buy a van
d. Reduced rent
26. Which nature of Accounting emphasizes it’s NOT the objective?
a. Accounting is an art
b. Accounting is a process
c. Accounting is a means not an end
d. Accounting deals with financial information and transactions.
27. Who is considered the Father of Modern Accounting
a. Augustus
b. Luca Pacioli
c. Queen Victoria
d. Suetonius
28. Which is the most important step in the Accounting process?
 a. Communication
b. Identification
c. Recording
d. All steps are equally important

29. Which of the following is NOT an Accounting process step?

a. Communication
b. Identification
c. Recording
d. Verification

30. Who is the person responsible for the process of identifying, recording and communicating
economic events of an organization?
a. accountant
b. manager
c. secretary
d. treasurer
31. What profession does NOT use accounting information at all?
a. Economists
b. Entrepreneurs
c. Government Officials
d. none of the above

32. Which of the following is mostly used by accountants in communicating the results of
operations to outside parties?
a. Bulletin Board Postings
b. Financial Statement
c. Performance Memo
d. Public Announcements of the results of the operations

33. Which of the following can be considered can as a relevant economic event?
a. A meeting of the top management last month.
b. GMA Network signed a contract with Coco Martin.
c. Meralco announced of higher charges.
d. The company received advanced payments from its customers.

34. Which of the following cannot be considered a limitation of accounting?

a. Accounting is only historical in nature.
b. Accounting provides limited information to the management.
c. Accounting considers only those transactions which can be measured in terms of money.
d. The accounting process is tedious to execute.
35. Which of the following does NOT show one of the main functions of Accounting?
a. Fred prepared a report to be submitted to the taxing authorities.
b. John prepares financial reports monthly for the company’s stockholders.
c. Jason recorded an equipment in the accounting books immediately after purchase.
d. Allen canvassed the price of a sewing machine to be used in the company’s operat
36. Economic resources owned by the business expected for future gain.
a. Asset
b. Liabilities
c. Owner's Equity
d. Income
37. Below are balance sheet accounts, EXCEPT
 a. Supplies
b. Cash
c. Prepaid rent
d. Interest Income

38. Effect on Asset account when Owner gets cash refund for returning damaged supplies bought
on cash.
a. Decrease
b. Increase
c. No effect
d. Increase/decrease

39. Effect on the liabilities account when you borrow cash issuing a note.
a. Increase
b. Decrease
c. Increase/Decrease
d. No effect

40. The process of transferring information from the journal to the ledger.
a. Journalizing
b. Debiting
c. Posting
d. Trial Balance

41. It is a listing of all account titles with their resective debit or credit balances taken from the
ledger.
a. T-account
b. Journal
c. Chart of Account
d. Trial Balance

42. Is an activity where goods or services are exchanged for money

a. Business
b. Transaction
c. trading
d. none of the above

43. Is a business that is owned by only one individual

a. sole proprietorship
b. partnership
c. corporation
d. none of the above

44. business that is owned by two or more individuals who entered into a contract to carry on the
business and divide among themselves the earnings therefrom
a. sole proprietorship
b. partnership
c. corporation
d. none of the above
45. A business that offers services as the main product rather than physical goods
a. Service Business
b. Merchandising Business
c. Manufacturing Business
d. onkey Business

46. A business that buys and sells goods without changing their physical form
a. Service Business
b. Merchandising Business
c. Manufacturing Business
d. onkey Business

47. A business that buys and sells goods without changing their physical form
a. Service Business
b. Merchandising Business
c. Manufacturing Business
d. onkey Business

48. A business that buys raw materials and processes them into a final products
a. Service Business
b. Merchandising Business
c. Manufacturing Business
d. onkey Business

49. Owners of a partnership is called:

a. proprietor
b. partners
c. stockholders
d. members
50. Owners of a corporation is called:
a. proprietor
b. partners
c. stockholders
d. members
key to correction

1) A
2) B
3) C
4) D
5) B
6) A
7) A
8) B
9) A
10) D
11) A
12) A
13) B
14) C
15) D
16) C
17) A
18) C
19) A
20) A
21) C
22) C
23) B
24) B
25) A
26) C
27) B
28) D
29) D
30) A
31) D
32) B
33) D
34) C
35) D
36) A
37) D
38) D
39) A
40) C
41) D
42) A
43) A
44) A
45) A
46) B
47) B
48) C
49) B
50) C