FABM 1 EXAM

Who is the father of modern accounting?

• Andrea Barbarigo

• Luca Pacioli

• Amatino Manucci

This refers to the lifeblood of the government.

• Contract

• Tax

• Expense

• Businesses

What do you call the business periods within an accounting period?

• Accounting period

• Business Period

• Interim Period

• Accounting Cycle

A worthless receivable is called _______________.

• Doubtful account

• Writen-off account

• Expired accounts receivable

• None

It is called the book of final entry.

• Journals

• Memorandum book

• Financial Statements

• Ledgers

What is the accounting equation?

• Assets = Liabilities + Equity

• Assets = Equity

• Assets - Equity = Revenue

• Revenue + Expense = Net Income

Which of the following is NOT a quality of an accounting information?

• Timely

• Understandable

• Relevant

• Biased

These are resources owned by a business which would generate future benefits.

• Assets

• Liabilities

• Equity

• Revenue

The normal operating cycle of a service business starts with _______________________.

• Cash received from the suppliers

• Cash received from the customers

• Cash payment to creditors

• Services rendered to customers

These are assets held for sale.

• Machineries

• Land

• Supplies

• Inventories