Practice Quiz

Lesson 1
BAINTE1L

1. The writer who was credited by Luca Pacioli for the original idea of double-entry
bookkeeping. Cotrugli
2. This is where periodic reports vouched by certified public accountants were filed
by all publicly traded companies who had to register before selling their
securities to the public. Security & Exchange Commission
3. This first part of accounting wherein it tracks down, analyzes, and prepares a
progress report about the activities of the business. Bookkeeping
4. When the Spaniards introduced bookkeeping to the Philippines, the bookkeepers
are called Tenedor de Libro.
5. This type of business earns revenue based on the skills or quality of service it
offers. Service Business
6. They are not directly involved in the decision making of the company, they are
nonetheless interested in the financial position of the company to determine if
they have a future in the company. Employees
7. PICPA defines accounting as a service activity whose function is to prepare
financial reports to provide information.
8. Give the four aspects of accounting. Recording, classifying, summarizing, and
interpreting.
9. This results when expense exceeds income. Net loss
10. What are the activities that affect the owner’s equity? Investment,
Withdrawal/Recovery of Capital, Profit, or Loss.
11. This shall prevail when the Financial Reporting Standard and a concept is in
conflict. Standard
12. They use financial data to evaluate their progress towards management goals
and serve as a guide for future management actions. Managers
13. The framework is a pervasive structure which sets boundaries of the accounting
practice with its basic rule, objectives, and assumptions.
14. It involves determining the goals of the business. Planning
15. The “Father of Accounting.” Luca Pacioli
16. What are the different forms of business organizations? Give one advantage and
disadvantage of each. (Refer to the Powerpoint)
17. What are the types of business according to its operation? Service business,
Merchandising, Manufacturing.
Determine what type of business activities are the following:
1. Additional investments in the business. Financing
2. Proceeds of sales of equipment. Investing
3. Collection of interest. Operating
4. Collection from customers. Operating
5. Proceeds of bank loan. Financing
6. Proceeds of sales of furniture. Investing
7. Payment of operating expenses. Operating
8. Collection of dividends. Operating
9. Cash withdrawal of owner. Financing
10. Payment of interest. Operating
11. Collection of rent. Operating
12. Purchase of furniture. Investing
13. Payment of bank loan. Financing