QUIZ # 1 (30 pts )

NAME: ______________________________________ DATE :______________ Section: ______

A. Identification Nos.( 1 to 10)

Instruction: Choose the corresponding letter of your answer from the choices below
A) accounting G) business entity
B) accrued expenses H) objectivity
C) prepaid expenses I) liabilities
D) going concern J) external users
E) assets K) internal users
F) equity or capital L) GAAP

1. Claims on assets of the business by outside party. Also referred to as economic obligations,or payables.

2. It is an information and measurement system that identifies, records and communicates relevant,
reliable and comparable information about an organization's economic activities.
3. Expenses already incurred but not yet paid .
4. It refers to the owner’s investment in the business , networth or the residual interest.
5. It requires that financial information be documented by independent, unbiased evidence.
6. The concepts and rules that govern financial accounting.
7. These are economic resources or properties owned and controlled by the business.
8. It means that a business is accounted for separately from other business entities, including its owner .
9. The rule that requires financial statements to reflect the assumption that the business will continue
operating instead of being closed or sold, unless evidence shows that it will not continue
10. Users of accounting information who are not directly involved in running the organization.

B. TRUE OR FALSE ( 11-15)

11. Accounting is an information and measurement system that identifies, records, and communicates
relevant, reliable, and comparable information about an organization's business activities.

12) Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually or
electronically. This is just one part of accounting.

13) Financial accounting is the area of accounting aimed at serving external users by providing them with
general-purpose financial statements.

14) The business entity principle means that accounting information reflects a presumption that the
business will continue operating instead of being closed or sold.

15) Generally accepted accounting principles are the basic assumptions, concepts, and guidelines for
preparing financial statements.

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C. ACCOUNTING EQUATION

C.1 Nos. 1-12 Company ABC has the following accounts with its balances .Classify the accounts into:
(A) Assets and (L) Liabilities, ( E ) Equity. Use the basic accounting equation to answer nos. 13-15:

1. Accounts Receivable 10,000 7.Unearned Revenue 2,000

2. Accounts Payable 4,000 8. Land and Building 10,000
3. Cash on Hand 40,000 9. Utilities Expenses 10,000
4. Furnitures and Fixtures 8,000 10.Notes Payable 2,000
5. Prepaid Expenses 2,000 11. ABC, Capital 50,000
6. Accrued Expenses 2,000 12. Service Revenue 20,000

C. 2 Nos. 13 – 15 :

13. How much is Total Assets ? ____________

14. How much is Total Liabilities? _____________

15. How much is Total Equity? _____________

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ANSWER SHEET: QUIZ # 1

NAME: ______________________________________ DATE :______________ Section: ______

A&B C

1 1

2 2

3 3

4 4

5 5

6 6

7 7

8 8

9 9

10 10

11 11

12 12

13 13

14 14

15 15

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