Quiz 1

Users of accounting information include:

• The tax authorities

• Investors

• Creditors

• All of these

Double entry book-keeping was fathered by:

• F.W.Taylor

• Henry Fayol

• Lucas Pacioli

• Albert Einstein

What is the law regulating the practice of accountancy in the Philippines?

• R.A. No. 9289

• R.A. No. 9198

• R.A. No. 9928

• R.A. No. 9298

All of the following describe accounting, except

• A service activity

• An information system

• An exact science rather than an art

• A universal language of business

Using accrual accounting, revenue is recorded and reported only______________

• If cash is received after the services are rendered

• when cash is received at the time services are rendered

• when the services are rendered without regard to when cash is received

• when cash is received without regard to when the services are rendered

The overall objective of accounting is

• To provide the information that the managers of an entity need to control the operations

• To provide information that the creditors can use in deciding whether to make additional loans

• To measure the periodic income of the entity

• To provide quantitative financial information about an entity that is useful in making economic decision

A business with one owner is known as a:

• Sole proprietorship

• Company

• Partnership

• Cooperative

The two forms of business ownership with unlimited liability are:

• Sole Proprietorship

• Partnership

• Corporation

• Cooperative

Advantages of a partnership are:

• The partners split the profit

• Raise more capital than a sole trader

• Unlimited liability

• Share the workload

What do you call a person who owns part of a corporation?

• Stakeholder

• Trust Agent

• Shareholder

• Chairman