MIDTERM QUIZ #1 IN ACCOUNTING 1

Name: ______________________________________ Date: ______________________ Score: ______

I. Multiple Choice. Choose the letter of the correct answer.
1) Which principle of accounting is observed if the cash of the business is separately reported to the cash of
the owner?
a. Business entity c. Time period
b. Going concern d. Monetary Unit
2) Which principle of accounting is violated if the maintenance expenses of January-March 2015 is
reported in 2017?
a. Business entity c. Time period
b. Going concern d. Monetary Unit
3) Which principle of accounting assumes that the business is continuous?
a. Business entity c. Time period
b. Going concern d. Monetary Unit
4) Which principle of accounting is violated if the sales of a business that is based in the Philippines is
reported in dollars?
a. Business entity c. Time period
b. Going concern d. Monetary Unit
5) XYZ Bakery is owned by Mr. Buraot. The sales as well the expenses of the bakery were directly
deposited and withdrawn to the bank account of Mr. Buraot. What principle is violated in this scenario?
a. Business entity c. Time period
b. Going concern d. Monetary Unit
6) Ms. Z, the owner of ABC Bar, reported the bar’s expenses from January-December 2015 in 2015.
Which principle of accounting is observed by Ms. Z?
a. Business entity c. Time period
b. Going concern d. Monetary Unit
7) Mr. Dimagulangan, a sari-sari store owner, included in his revenue report his profit from the credit of
Aling Marites. Which principle of accounting is observed by Mr. Dimagulangan?
a. Cost c. Accrual accounting
b. Objectivity d. Cash basis
8) Ms. Bibi, the owner of Fish The’ng Yawa – a fish stall, acquired a new weighing scale in the amount of
Php 50, 000 and reported the same amount in her expenses. Which principle of accounting is observed?
a. Cost c. Accrual accounting
b. Objectivity d. Cash basis
9) Which principle states that the inputs and outputs in the statement of account should be back-upped by
supporting documents that prove such input/output?
a. Cost c. Accrual accounting
b. Objectivity d. Cash basis
10) Which principle of accounting is observed if Mr. Bumbay reported the loan of Mr. Taga-utang after the
latter paid his credit to the former?
a. Cost c. Accrual accounting
b. Objectivity d. Cash basis
11) Aling Janet reported the credit of her Kumareng Tes only after the latter paid such debt. Which principle
is being observed?
a. Cost c. Accrual accounting
b. Objectivity d. Cash basis
12) Which principle of accounting states that an input/output should be reported initially at the exact
amount?
a. Cost c. Accrual accounting
b. Objectivity d. Cash basis
13) Mr. X assures that everything that is in his statement is supported by proof. Which principle is observed
by Mr. X?
a. Cost c. Accrual accounting
b. Objectivity d. Cash basis
14) Which principle of accounting is violated if X did not report the exact amount of money used to pay for
the furniture acquired by the company?
 a. Cost c. Accrual accounting
b. Objectivity d. Cash basis
15) Which principle of accounting is violated if Y did not report immediately the expenses used to pay for
acquiring televisions for the company?
a. Cost c. Accrual accounting
b. Objectivity d. Cash basis
16) Which principle of accounting states the asset acquired does make a difference in the financial
statements of the company and thus, declaring such asset as an expense?
a. Matching c. Conservatism
b. Disclosure d. Materiality
17) Which principle of accounting states that all relevant and material information should be reported?
a. Matching c. Conservatism
b. Disclosure d. Materiality
18) Which principle of accounting is also known as prudence?
a. Matching c. Conservatism
b. Disclosure d. Materiality
19) Mr. Cashier made sure that he reported the expenses of the company during its Christmas Program and
made it public, such expenses amounted to Php 1, 091, 232.57. Which principle of accounting is
observed by Mr. Cashier?
a. Matching c. Conservatism
b. Disclosure d. Materiality
20) Which principle of accounting states in case of doubt, assets and income should not be overstated while
liabilities and expenses?
a. Matching c. Conservatism
b. Disclosure d. Materiality

II. Fill in the table.

Assets
Liabilities Owner’s Equity
Cash Supplies Equipment
1
2
3
4
5
6
Total
Overall
total

Scenarios:
1) The owner invested Php 400, 000 cash and Php 40, 000 worth of supplies.
2) Purchased equipment worth Php 20, 000.
3) A customer paid Php 60, 000.
4) The owner borrowed Php 500, 000 from the bank.
5) Paid Php 30, 000 in purchasing an equipment.
6) Bought supplies worth Php 80, 000.
7) Find the total assets (cash, supplies, equipment) and liabilities/owner’s equity.