FABM1 UNIT TEST

It’s a type of accounting principles states that the operations of business will continue to operate

indefinitely into the future.

• Matching Principle

• Going Concern Assumption

• Accrual accounting

• Substance over Form

These are the amounts received by the business earned as a result of selling goods or rendering services.

• Assets

• expenses

• liabilities

• income

Which of the following is NOT an internal user of accounting information?

• Government

• Creditors

• Stockholders

• Investors

It is the process of recording business transactions in the journal. Also known as Book of

Original entry.

• Posting to ledger

• trial balance

• Journalizing

• Balance Sheet

It represents the obligations or debts of the business.

• Assets

• Owner's Equity

• Liabilities

• Income

Which of the following account titles that can be classified as Non-Current Asset?

• Cash

• Petty Cash Fund

• Accounts Receivable

• Land

What is the effect if you debit an expense?

• Increase

• Decrease

• No effect

• None of the above

Which of the following transaction will cause owner’s equity to increase?

• Purchase of additional assets

• Revenues are more than expenses

• Revenues are less than expenses

• Withdrawal made by the owner

Upon initial investment of cash by owner, which elements or major account will be affected?

• Assets and Liabilities

• Owner's Equity Only

• Asset and Owner's Equity

• Assets only

Which of the following is not an expense account?

• taxes and licenses

• Supplies expenses

• Prepaid Utilities

• Wages and Salaries Expense