Department of Education __________9.

They asses the financial information of their suppliers which

Regional VII, Central Visayas
is necessary for them to maintain a stable source of supply in the long term.
Division of City Schools, City of Naga, Cebu
Tuyan National High School – SHS EU
Tuyan, City of Naga, Cebu
__________10. They ensure that their units performances are aligned with
the organization’s objectives. IU
Formative Assessment # 2
Fundamental of Accounting, Business and Management
II. Identification: Identification what concept is being referred to. Choose
Name _________________________ Score __________
from the following items below.
Gr. /Strand/Section: _____________ Date: __________
A. Business F. Cooperative
I. Identification: Identify the different users in Accounting Information.
B. Sole Proprietor G. Partnership
Write IU if your answer is Internal Users and EU if it is External users.
C. Top-Level Management H. Service business
__________1. They are the one you represent the organization. IU D. Tax-Authorities I. Merchandising business
E. Regular Bodies J. By-laws
__________2. They need information to help them decide whether they
_______________1. They used the financial report to determine the
should invest or not in the business. EU
credibility of the tax returns filed pm behalf of the company. D
__________3. They assess the credit worthiness and the capability of the ________________2. They use the information to oversee the performance
of the whole organization. Ex. COO C
business to pay. EU
________________3. They want to ensure that the company’s disclosure of
__________4. They need information to help them decide if they should information is in accordance with the rules and regulations. Ex. SEC E
________________4. An organization formed by at least fifteen individuals,
withdraw or increase investment. IU
operated to benefit each member. F.
__________5. They used the information to get prospect for employment ________________5. An economic unit that sells goods and services with
the prime objective of generating profit. A
and used for educational purposes. EU
________________6. A business which is easy to form and with minimal
__________6. They plan and organize and run the business. IU requirements. B
________________7. Doctors’ consultation H
__________7. They used information to assess the company’s profitability
and stability and their consequence on future salary and job security. IU ________________8. A sari sari store I
________________9. Contains provision for internal administration of the
__________8. They used the information statements of their customers to
corporation. J
determine whether the debts owed to them will be paid when due. EU ________________10. Owned by two or more individuals pooling their
resources together as common fund. G
Multiple Choice: Choose and encircle the letter of the best answer. V. Tax authorities W. Suppliers

1. The following are the main branches of accounting, EXCEPT ______ 10. Which of the following is an internal users of a company’s financial
A. Government Accounting C. Private Accounting information?
B. International Accounting D. Public Accounting M. Holders of the company investment O. Stakeholders
N. Chief Executive Officers P. Creditors
2. The cash in versus cash out techniques is useful in preparing
Q. Statement of financial position S. Statement of cash flows 11. Who carries the responsibility to review the work of the
R. Statement of change in cash T. Income Statement accountants and issue opinions as for the fairness of financial
statements?
3. Which of the following is the basic component of financial R. The board of directors T. Internal Audit
statement? S. the external audit U. Management

H. Statement of financial position I. Statement of cash flows 12. Which of the following are NOT belong to the group?
J. Statement of change in cash K. Income Statement
A. Full control of ownership C. Easy to transfer of ownership
4. Which of the following is not an output of accounting process? B. More source of funds D. liability of the owner is limited
M. Statement of financial position O. Income Statement
N. None of the above P. Notes to financial statement 13. The following are the advantages of a sole proprietorship, EXCEPT.
M. Easy to start, easy to dissolve O. Full control of ownership
5. Which of the following items are NOT belong to the group? N. Unlimited life P. Less regulation
A. Supplier C. Management
B. Employees D. Owners 14. Which of the following is an example of a merchandise type of
business?
6. Which users as the question “Which product line is more A. sari-sari store C. Doctor’s Consultation
profitable”? B. A boutique shop 7. 7/11 store
A. Tax Authorities C. Marketing Department
B. Customers D. Suppliers
15. Which of the following is not included in the group of
7. Which of the following belong to group of external users. corporations?
C. Customers D. Management W. Coca-Cola X. Procter and Gamble
E. Owner F. None of the above Y. Acapulco Clinic Z. Nestle Philippines

8. Which of the following are considered interested in determining the

return of investment in the business?
N. Management P. Employees
O. Owners Q. Creditors Bonus points: Find the Missing Words: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Hint: to become a CPA you must have to finish first your study in __
9. Which of the following is not considered as an external user?
S. regulatory agencies U. Employees