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SUMMATIVE TEST 1

Total questions: 25

Worksheet time: 32mins

Name
Class
Date
1.

This is the system used in Accounting which states that in every business transaction, there are two effects made - value received and value parted with.

a)

Double-entry bookkeeping

b)

Debit and credit

c)

Dual aspect concept

d)

Journalizing

2.

Which of the following is NOT a step in the Accounting process?

a)

Identifying economic transactions

b)

Recording transactions in the journal

c)

Summarizing in the financial statements

d)

Classifying whether debit or credit

3.

The book "Summa de Arithmetica" was authored by:

a)

Luca Pacioli

b)

Andrea Barbarigo

c)

Amatino Manucci

d)

Lucca Paciolli

4.

These are financial statements which are already verified by an accountant.

a)

Financial Statements

b)

Audited Financial Statements

c)

General purpose Financial Statements

d)

Special purpose Financial Statements

5.

These users of accounting information is particularly interested in the financial reports of an enterprise primarily for statistics, income taxes and other regulatory policies.

a)

Investors

b)

Lenders

c)

General public

d)

Government

6.

The new tax law imposed by Duterte's administration is called TRAIN Law. What is the meaning of "TRAIN"?

a)

Tax Return in Acceleration and Inclusion

b)

Tax Reform for Acceleration and Inclusion

c)

Tax Reform in Acceleration Inclusion

d)

Taxation Reform for Acceleration and Inclusion

7.

This assumption assumes that the financial reports of a business must be in terms of money.

a)

Monetary Unit Assumption

b)

Economic Entity Assumption

c)

Time Period Assumption

d)

Going Concern Assumption

e)

Accrual Basis Assumption

8.

Which among the following financial statements DO NOT use the Accrual Basis Assumption?

a)

Statement of Financial Position

b)

Statement of Cash Flows

c)

Notes to Financial Statements

d)

Statement of Changes in Equity

e)

Statement of Comprehensive Income

9.

What financial statement is shown above?

a)

Balance Sheet

b)

Statement of Cash Flows

c)

Income Statement

d)

Statement of Financial Position

10.

This principle states that revenues must be recognized when services are rendered or goods have been sold, regardless of when cash is received.

a)

Revenue Recognition Principle

b)

Accrual Basis Assumption

c)

Cash Basis Assumption

d)

Matching Principle

e)

Going Concern Assumption

11.

It is the quality of accounting information stating that it must be capable of influencing economic decision. (Answer must be CAPITALIZED)

(a)  

12.

The board exam for Accountancy graduates is known as CPA licensure exam. What does CPA stands for? (Answer must be CAPITALIZED)

(a)  

13.

It is considered as the lifeblood of the government. (Answer must be CAPITALIZED)

(a)  

14.

He invented the double-entry bookkeeping system. (Answers must be CAPITALIZED)

(a)  

15.

It is the language of any business. (Answers must be CAPITALIZED)

(a)  

16.

The financial statements of Company G are required by the management for the fiscal year June 30, 2018. What accounting assumption is manifested in the situation? (Answers must be CAPITALIZED)

(a)  

17.

The transaction of selling the five sets of tables was evidenced by an invoice to support the transaction. What accounting principle is manifested in the situation? (Answers must be CAPITALIZED)

(a)  

18.

SM sold a shirt at Php50 on account and it was recorded in the books of SM on the same date that it was sold. What accounting principle is manifested in the situation? (Answer must be CAPITALIZED)

(a)  

19.

The company’s computer equipment was sold due to the death of the owner. What accounting assumption is manifested in the situation? (Answer must be CAPITALIZED)

(a)  

20.

This quality of accounting information enables users to identify similarities and differences between two or more companies and sets of economic circumstances. (Answers must be CAPITALIZED)

(a)  

21.

What is the meaning of DBM? (Answer must be CAPITALIZED)

(a)  

22.

Who are the intended users of SPECIAL PURPOSE FINANCIAL STATEMENTS? (Answer must be CAPITALIZED)

(a)  

23.

Source documents are first recorded in general ledgers.

a)

TRUE

b)

FALSE

24.

Footing should be done first before writing the total balances of debits and credits.

a)

TRUE

b)

FALSE

25.

A check is considered as a source document.

a)

TRUE

b)

FALSE