Accounting Quiz Part 1

What is accounting?

• A system that helps business tracks events that affect them

• The language of business

• Art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events.

• All of the above

Identify if the transaction is an economic event

Sale of Toyota Cars

• Economic Event

• Not

Identify if the transaction is an economic event.

Hiring of new employee with a monthly salary of P25,000.00

• Economic Event

• Not

Identify if the transaction is an economic event.

Paying a bill using a credit card

• Economic Event

• Not

Identify if the transaction is an economic event.

A bill was forwarded by the Davao Light & Power Company

• Economic Event

• Not

Identify if the transaction is an economic event.

A client provided a promissory notes for their payables.

• Economic Event

• Not

Identify if the transaction is an economic event.

Delivery of raw materials.

• Economic Event

• Not

Identify if the transaction is an economic event.

Advanced payment from clients

• Economic Event

• Not

Identify if the transaction is an economic event.

Withdrawal of the owner for personal purposes.

• Economic Event

• Not

Identify if the transaction is an economic event.

Firing an employee with pro rated benefits

• Economic Event

• Not