Republic of the Philippines

Department of Education
Summative Quiz (First Semester)
Fundamentals of ABM 1
SY: 2018-2019
=================================================================================
PART I: Multiple Choice: Read the questions and statements carefully, choose the letter of the correct
answer. Write your answer on a separate sheet of paper.(30 points)
____ 1. What is the process of identifying, recording and communicating economic events of an organization
to interested users?
A. Accounting C. Defining
B. Counting D. Organizing
____2. Ricel simply identified and communicated the transactions of her salon business to the investors.
What is the lacking process of accounting does Ricel forget to perform?
A. Accounting B. Counting C. Organizing D. Recording

____3. Which of the following statement shows identifying of economic events?

I. Acquire of new equipment for bakery business
II. Purchase of Supplies
III. Purchase of Delivery Truck
IV. Payment for delivery expenses
A. Only Statement I B. Both Statements I & II C. Statements I, II, III D. All Statements

____4. How will you describe accounting as a service activity?

A. A process refers to the method of performing specific job.
B. A process of recording financial transactions and data classifies and finalize.
C. Accounting provides assistance to decision makers by providing them financial reports
that will guide them in coming up with sound decisions.
D. Accounting collects processes and communicates financial information of any entity, which
this discipline of knowledge has evolved to meet the need for financial information.

____5. Darlene chronologically records the business transactions of her store. What nature of accounting
does Darlene practices ?
A. Accounting is a service activity
B. Accounting is an information system
C. Accounting is both an art and a discipline
D. Accounting deals with financial information and transactions

____6. Which among the following discuss the main function of accounting in business?
A. Accounting is merely identifying the business transactions.
B. Accounting is a tool for keeping up records of the employees.
C. Accounting does help only the investors to check the progress of business.
D. Accounting is the means by which information is communicated to business owners and
stakeholders.

____7. How does accounting started?

A. It started as a game.
B. It started as a collection of payment.
C. It started as a simple recording and repetitive exchanges.
D. It started as a barter system for training goods in Mesopotamia.

____8. What is the oldest evidence of accounting practice found in Mesopotamia?

A. Broom sticks B. Calculator C. Clay Tablet D. Stones

____9. Who among the following is considered as the father of accounting?

A. Aristotle
B. Leonardo Da Vinci
C. Luca Pacioli
D. Luciano Pavarotti

____10. What is the meaning of SEC?

A. Securities and Exchange Corporation
B. Securities and Exchange Commission
C. Securities and Excise Cooperative
D. Securities and Excise Commission

____11. What branch of accounting is primarily concerned with the recognition, measurement and
communication of economic activities?
A. Auditing C. Government Accounting
 B. Financial Accounting D. Tax Accounting

____12. Bureau of Internal Revenue is an agency of the government that administers and implements what
branch of accounting?
A. Auditing
B. Cost Accounting
C. Financial Accounting
D. Tax Accounting

____13. Mr. Vicente is a Certified Public Accountant and prefers to teach accounting and develop future
accountants in their city. Which branch of accounting does Mr. Vicente practiced?
A. Auditing
B. Accounting Education
C. Cost Accounting
D. Government Accounting

____14.Who do you call the individuals and organizations outside the company who want financial
information about the company?
A. External Users B. Internal Users C. Informal Users D. Regular Users

____15. Which of the following groups can be classified as external users?

A. BIR, Managers, SEC
B. BIR,LGU,SEC
C. BIR,LGU, Employees
D. BIR, SEC, Owners

____16. Who are the users of accounting information inside a company that plan, organize, and run the
business?
.
A. External Users B. Internal Users C. Informal Users D. Regular Users

____17. Which among the following can be classified as internal users of accounting?
A. Ana Lim the manager of ABC Bank
B. Bryan Dee the city mayor of Mararigua
C. Antonio the secretary of Bureau of Internal Revenue
D. Connie Reyes the regional director of Department of Labor and Employment

____18. Which among the following external users of accounting information can answer if the company is
paying the correct taxes?
A. Banks B. BIR C. DOLE D. Suppliers

____19. What question can be answered by accounting information that is needed by the bank in order to
lend loan to business owner?
A. Is the owner paying taxes?
B. Is the business profitable?
C. Are the employees paid accordingly?
D. Will it be able to pay this loan for a specified time?

____20. What questions are frequently asked by the internal users?

I. Is cash sufficient to pay bill?
II. Which product line is the most profitable?
III. What is the cost of manufacturing each unit of product?
IV. Can we afford to give employee pay raises this year of coming years?

A. Statement I only.
B. Statements I and II.
C. Statements I, II and III.
D. Statements I,II, III and IV.

____21. Suppose you want to open a sari-sari store that will need Php 5,000.00 to start by yourself, what
form of business organization you are putting up?
A. Sole proprietorship B. Partnership C. Corporation D. Cooperative

____22. What form of business is owned by two or more persons?

A. Sole proprietorship B. Partnership C. Corporation D. Cooperative
____23. What form of business organization that has a separate legal entity under law?
A. Sole proprietorship B. Partnership C. Corporation D. Cooperative

____24. What form of business is a duly registered association of person with a common bond of interest?
A. Sole proprietorship B. Partnership C. Corporation D. Cooperative

____25. Which among the following is the advantage of sole proprietorship?

A. The owner keeps all the profit.
B. Enjoys tax exemption privilege.
C. Can easily raise additional funds.
D. Higher capital because two or more will contribute.

____26. Ariel and Tide agreed to put up a mini grocery store in their barangay. What paper must be made
between partners to state their agreements?
A. Articles of Partnership
B. Cenomar
C. Memorandum of agreement
D. Secretary Certificate

____27. Elisha is planning to have her Salon business, what government agency will she registered her
business first?
A. BIR B. CDA C. DOLE D. DTI

____28.What does cost accounting principle implies?

A. All accounts should be recorded initially at cost.
B. All account should be recorded at their selling price.
C. All relevant and material information should be reported.
D. All assets and income should not be overstated while liabilities and expenses understate.

_____29. What principle of accounting they follow when the customer paid Jollibie for their order, Jollibie
should have a copy of the receipt to represent as evidence?
A. Business Entity Principle
B. Going Concern Principle
C. Objectivity Principle
D. Time –Period Principle

______30. How will you describe that Business Entity Principle of accounting is being followed?
A. If the owner has a barber shop, the cash of the shop was deposited directly to his personal
account.
B. If the owner has a barber shop, the cash of the shop should be reported separately from
personal cash.
C. If the owner has a barber shop, the cash of the shop should be reported together with his
personal savings as income for the day.
D. If the owner has a barber shop, the cash of the shop should be reported together with the
other cash from his affiliated businesses.
.
PART II. Matching Type. Match the following word/s with the statements below. Write only the correct letter
on your answer sheets. (10 points)
a. Going concern principle e. Time period principle h. Monetary unit principle
b. Objectivity principle f. Cost principle i. Accrual accounting principle
c. Matching principle g. Disclosure principle j. Conservatism principle
d. Materiality principle

__ 31. All relevant information should be included in the financial reports

__ 32. In case of doubt, assets and income should not be overstated.
__ 33. Assume that the company will continue indefinitely.
__ 34. All transactions should be supported by unbiased evidence.
__ 35. Expenses should be recorded in the period when the revenue is generated.
__ 36. Minimal costs incurred should be recorded as an expense.
__37. A Philippine company should report financial statements in pesos.
__38. A barber who performs services for a client should record revenue.
__39. Statement of Financial position should be recorded as of December 31, 2015.
__40. A company that purchases furniture should record it at its acquisition price.

PART III. Analysis of accounting equation. For each transaction, tell whether the assets, liabilities and equity will
increase (I), decrease (D) or is not affected (NE). (30 points)
ANSWER KEY IN FABM 1 Summative Quiz
 1. A. 26. A

2. D 27. D

3. D 28. A

4. C 29.C

5. C 30. B

6. D 31.G

7. C 32. J

8. C 33.A

9. C 34.B

10. B 35.C

11. B 36.D

12. D 37. H

13. B 38. I

14. A 39. E

15. B 40. F

16. B 41. I, NE, I

17. B 42. D, NE, D

18.B 43. I, I, NE

19. D 44.D, D, NE

20. D 45. NE, NE,NE

21. A 46. I, NE, I

22. B 47.I, I, NE

23.C 48. I, I, NE

24. D 49.D, NE, D

25. A 50. D, D, NE

TABLE OF SPECIFICATION IN FUNDAMENTALS OF ABM 1

 SKILLS Total
LEARNING COMPETENCIES
ITEM NUMBER Number %
I. ORIGIN & STRUCTURE OF of items
R U Ap An Syn E
THE EARTH
 1. State the different hypotheses
explaining the origin of the 1,2
universe
2. Describe the different
hypotheses explaining the
origin of the solar system.
3. Recognize the uniqueness of
Earth, being the only planet in
the solar system with
properties necessary to
support life.

4. Explain that the Earth

consists of four subsystems,
across whose boundaries
matter and energy flow.
5. Explain the current
advancements/information on
the solar system
6. Show the Contributions of
personalities/people on the
understanding of the earth
systems
7. Identify the layers of the Earth
(crust,mantle, core)
8. Differentiate the layers of the
Earth.
II. EARTH MATERIALS &
PROCESS
1. Identify common rock
forming minerals using
their physical and
chemical properties
2. Classify rocks into
igneous,sedimentary, and
metamorphic

3. Describe how rocks

undergo weathering
4. Explain how the products
of weathering are carried
away by erosion and
deposited elsewhere.

TOTAL 4 8 30 1 2 5 50 100

Prepared by:

Teacher II

Checked by:

SHS - Coordinator

Approved:

OIC-Assistant Schools Division Superintendent