Elective 1 (Bookkeeping) Pre-Test

1. ______________ is the process of IDENTIFYING, RECORDING, and COMMUNICATING economic events of an organization to interested users.

• Accounting

• Management

• Bookkeeping

• Accountant

2. The accounting guideline that requires financial statement information to be supported by independent, unbiased evidence other than someone's belief or opinion is the _____ principle.

• Business Entity

• Monieary unit

• Cost

• Objectivity

The statement of financial position of a company included an equipment purchased from Japan for 3. 350,000 yen. It was reported at that amount in the statement of financial position while all the other assets were reported in Philippine pesos. What principle is being violated?

• Time Period

• Materiality

• Monetary Unit

• Objectivity

4. It is the obligations of the company payable in money, goods or services.

• Liability

• Intangible Assets

• Owner's Equity

• Cash

5. These assets are identifiable, non-monetary assets without physical substance.

• Liability

• Intangible Assets

• Owner's Equity

• Cash

6. It is the most liquid asset and is the medium of exchange for business transactions.

• Liability

• Intangible Assets

• Owner's Equity

• Cash

7. It is the claim of the owner also known as the capital.

• Liability

• Intangible Assets

• Owner's Equity

• Cash

8. It is an expense for leased office space, equipment or assets rented from others.

• Notes Receivable

• Assets

• Rent Expense

• Cash

9. Examples of this are cash, account receivable and prepaid expenses.

• Notes Receivable

• Assets

• Rent Expense

• Cash

10. It is a written promise from the customer to pay his receivables on a certain future date.

• Notes Receivable

• Assets

• . Rent Expense

• Cash