 INTRODUCTION TO ACCOUNTING b.

the process of recording, classifying and summarizing

Which of the following gives the best definition of
bookkeeping?
a. To calculate the amount of tax to be paid to BIR.
b. To record, classify and summarize financial
transactions and events.
c.To provide financial information to users.
d.To calculate the amount of profit to be paid to
investors.
It is the simplest form of business organization
business transactions for the proper determination of
correct tax declarations and payments.
c. the recording of financial transactions.
d. the art of recording, classifying, and summarizing in a
significant manner and in terms of money, transactions
and events which are, in part at least of financial
character, and interpreting the results thereof.
A business of two or more persons who bind themselves
to contribute money, property or industry to a common
fund, with the intention of dividing the profits among
themselves

a. Service entity a. Sole proprietorship

b. Partnership b. Cooperative
c. Sole proprietorship c. Partnership
d. Merchandising entity d. Corporation

Which is not one of the legal requirements of a Which is not a type of business?
business? a. Manufacturing
b. Servicing
a. Withhold taxes on certain payments c. Merchandising or trading
b. Maintain profitability d. Philanthropy
c. File and pay taxes
d. Pay business permits and licenses Bookkeeping is

Which is not a basic characteristic of a business?
a. A regular activity
b. Social marketing
c. Conducted for profit
d. Involves commercial activities
The following are examples
businesses, except
a. Rolex Watch Repair Shop
b. Red Ribbon Bakeshop
c. Sony Philippines
d. Toyota Motors, Inc.
Which is not a form of business organization?
a. Business association
b. Corporation
c. Partnership
d. Sole proprietorship
 RECORDING TRANSACTIONS
In the accounting process,
journalizing?
a. the art of recording, classifying, and summarizing in a
significant manner and in terms of money, transactions
and events which are, in part at least of financial
character, and interpreting the results thereof.
b. the process of recording, classifying and summarizing
business transactions for the proper determination of
correct tax declarations and payments.
of manufacturing c. the recording of financial transactions and is part of
the process of accounting in business.
d. the person who keeps and maintains the books of
accounts of the business organization. The bookkeeper
is responsible for recording the transactions of the
business.
Which may not be a function of a bookkeeper?
a. Record sales invoices
b. Record cash receipts and payments
c. Record employee attendances
d. Record purchase invoices
Which is not one of the legal requirements of a
business?
a. Secure business registration certificates and permits
b. Maintain accounting records
which step follows c. Issue receipts and invoices
d. Conduct profitable activities

a. Preparation of financial statements The bookkeeper is

b. Documentation of the transaction
c. Preparation of trial balance
d. Posting to the ledger
Accounting is
a. the person who keeps and maintains the books of
accounts of the business organization. The bookkeeper
is responsible for recording the transactions of the
business.
a. the process of recording, classifying and summarizing
business transactions for the proper determination of
correct tax declarations and payments.
b. the artist of recording, classifying, and summarizing in
a significant manner and in terms of money, transactions
and events which are, in part at least of financial
character, and interpreting the results thereof.
c. the person who keeps and maintains the books of
accounts of the business organization, and is
responsible for recording the transactions of the
business.
d. the recording of financial transactions and is part of
the process of accounting in business.
Which may not be a function of a bookkeeper?
a. Prepare unadjusted trial balance
b. Record transactions
c. Finalize financial statements
d. Post adjusting entries
The form of business organization
stockholders
a. Corporation
b. Partnership
c. Non-profit organization
d. Sole proprietorship
Which may not be a function of a bookkeeper?
a. Record purchases and payments
b. Record sales and collections
c. Record inventory movements
d. Approve transactions
Businesses must register in the following except
a. the person who keeps and maintains the books of
accounts of the business organization. The bookkeeper
is responsible for recording the transactions of the
business.
b. the art of recording, classifying, and summarizing in a
significant manner and in terms of money, transactions
and events which are, in part at least of financial
character, and interpreting the results thereof.
owned by c. the recording of financial transactions and is part of
the process of accounting in business.
d. the process of recording, classifying and summarizing
business transactions for the proper determination of
correct tax declarations and payments.
In the accounting process, which step follows
journalizing?
a. Posting to the ledger
b. Preparation of financial statements
c. Documentation of the transaction
d. Preparation of trial balance
A transaction or event is accountable when it meets the
following criteria, except: Select one:

a. Securities and Exchange Commission a. It can be measured in terms of money

b. Cooperative Development Authority
c. Department of Business and Management
d. Department of Trade and Industry
The following are examples of service businesses
except
a. Philippine Airlines
b. Azina Water Refilling Station
c. Cagayan River Hotel and Resorts
d. Spendmore Supermarket
It is a type of business that buys goods and commodities
then sells the same for profit without changing its form
a. Service business
b. Merchandising business
c. Manufacturing business
d. All of the above
Which document is issued by a vendor or supplier for
items or goods rendered the company? It is called Sales
Invoice from the point of view of the supplier. Select one:
a. Order slip
b. Purchase invoice
c. Disbursement voucher
d. Official receipt
In terms of debits and credits, which accounts have the
same normal balances? Select one:
a. Accounts receivable, Accounts payable, Capital
b. Prepaid expenses, Insurance expense, Capital
c. Rental expense, Professional fees, Drawing
d. Account payable, Rental revenue, Unearned rental
revenue
Bookkeeping is
b. If affects the assets, liabilities or equity of the
business
c. It is supported by a document
d. It affects the business entity
e. It is a personal transaction of the owner
Which of the following gives the best definition of
bookkeeping?
a. To provide financial information to users.
b. To calculate the amount of tax to be paid to BIR.
c. To record, classify and summarize financial
transactions and events.
d. To calculate the amount of profit to be paid to
investors.
Which of the following cannot be recorded into the
company’s books of accounts?
a. Invoices for supplies purchased have been received
but not yet paid.
b. The proprietor withdrew a certain amount of cash
from the business.
c. Repair services have been rendered to a customer
but not yet collected.
d. One month telephone services have been utilized but
the bill has not yet arrived.
What are the elements of a journal entry?
The date of the transaction
The accounts debited and credited
The monetary values of the accounts debited and
credited
The posting reference code of the destination ledger
account
A brief and clear explanation of the transaction
Select one:
a. I, II and III only
b. I, II, III and IV only
c. I, II and IV only
d. I, II, III, IV and V

Transactions are recorded chronologically in the

Select one:

a. General Ledger
b. Chart of Accounts
c. Trial Balance
d. General Journal

Journalizing involves
Select one:

a. Transferring the amounts from the source documents

to the general journal in the form of journal entry
b. Transferring the amounts from the general ledger to
the trial balance
c. Transferring the amount from the general journal to
the general ledger
d. Preparation of various source documents before
recording the transactions in the general journal

Which of the following is a simple journal entry?

Select one:

a. An entry with two or more debits and one credit

b. An entry with one debit and one credit
c. An entry with one debit and two or more credits
d. An entry of one debit only

Which of the following entries record the purchase of an

equipment by issuing a promissory note?
Select one:

a. Debit equipment and credit notes payable

b. Debit notes receivable and credit equipment
c. Debit equipment and credit notes receivable
d. Debit notes payable and credit equipment

The term footing refers to

Select one:

a. The process of obtaining the bottom number in an

account
b. The process of posting
c. The process of taking the total of a set of numbers
arranged in a column
d. The process of obtaining the top number in an
account