Font size
WorksheetsIntroduction to Accounting
Total questions: 40
Worksheet time: 16mins
In a sole proprietorship
there is only one owner
the business is a distinct entity from the owner
the business is characterized by unlimited liability
All of the responses
A partnership
is owned by two or more persons
gives a partner unlimited liability
can easily be dissolved
All of the responses
In corporation
the management is entrusted to the BOD
the ownership is divided into shares of stock
the stockholders have a limited liability
All of the responses
Information for business decisions is used by how many of the following?
1) the employees
2) the customers
3) the government agencies
None
One
Two
Three
Probably the most important service performed by public accountants is that of
bookkeeping
design of an accounting system
decision making
auditing
Laundry shops, hospitals, schools, and travel agencies are examples of which type of business organization?
Service
Merchandising
Manufacturing
None of the responses
Ford Philippines is an example of a
partnership
service firm
single proprietorship
manufacturing firm
The primary purpose of accounting is to
record the transactions entered by the business
determine the period net income
maintain a record of all assets acquired
provide information for decision makers
Which of the following accounting concepts is violated when a sole proprietor uses the same bank account for his business and personal affairs
Going concern
Matching principle
Entity concept
Accounting period
A material amount is
P100,000 or more
P1,000,000 or more
P500,000 or more
a matter of professional judgment
Those who lend money or deliver goods and services before being paid are called
creditors
debtors
investors
underwriters
Generally Accepted Accounting Principles
can be changed when called for
define accounting practice at a particular time
are developed by accountants and people of business acumen
All of the responses
Accounting principle which states that expenses be deducted from their corresponding income is the
cost principle
matching principle
going concern principle
entity concept
Accounting is a service activity. Its function is to provide
qualitative information
quantitative and qualitative information
quantitative information
none of the above
Objectivity is assumed to be achieved when an accounting transaction
allocates revenue or expenses in a rational and systematic manner
involves an arm’s-length transaction between two independent parties
involves the payment or receipt of cash
is recorded in a fixed amount of pesos
Accountants employed by a particular business firm or not-for-profit organization, perhaps as chief accountant, controller, or financial vice president, are said to be engaged in
general accounting
independent accounting
practice in commerce and industry
public accounting
True or False
An audit is the independent examination that ensures the fairness and reliability of the reports that management submits to users outside the business entity.
(a)
True or False
A business transaction is the occurrence of an event or of a condition that must be recorded.
(a)
True or False
One characteristic of a corporation is that its owners are personally liable for any losses incurred by the business.
(a)
True or False
The set of guideline and procedures that constitute acceptable accounting practice at a given time is GAAP, which stands for generally accepted accounting process.
(a)
True or False
Classification reduces the effects of numerous transactions into useful groups or categories.
(a)
True or False
The liability of corporate stockholders is limited to the amount of their investment.
(a)
True or False
The terms bookkeeping and accounting are synonymous.
(a)
True or False
Most members of the accountancy profession are Certified Public Accountants.
(a)
True or False
A separate legal entity organized in accordance with codes and laws and in which ownership is divided into shares of stock is refrred to as a corporation.
(a)
True or False
A corporation is a business owned by its stockholders.
(a)
True or False
Accounting is a service activity whose function is to provide quantitative information, about economic entities that is intended to be useful in making economic decisions.
(a)
True or False
All members of the accountancy profession are Certified Public Accountants.
(a)
True or False
Government accounting deals solely with the identification of the sources of resources consistent with laws.
(a)
True or False
For reporting purposes, the personal assets and debts of a business owner should be combined with the assets and debts of the business.
(a)
True or False
A partnership is always owned by two individuals.
(a)
True or False
Summarization reduces the effects of numerous transactions into useful groups or categories.
(a)
True or False
For accounting purposes, a business and its owner are considered one and the same.
(a)
True or False
The Philippine accountant considers peso as the common unit of measure for all business transactions.
(a)
True or False
A partnership is a business owned and operated by two or more persons who bind themselves to contribute money, property or industry to a common fund, with the intention of dividing the profits among themselves.
(a)
Raw materials to finished products
Service
Merchandising
Manufacturing
None of the responses
Boutiques
Service
Merchandising
Manufacturing
None of the responses
Professional fees
Service
Merchandising
Manufacturing
None of the responses
Merchandise inventory consists of all finished goods
Service
Merchandising
Manufacturing
None of the responses
Production concern
Service
Merchandising
Manufacturing
None of the responses
