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Accounting Definition, Users and Branches w/ Accounting Equation

Total questions: 20

Worksheet time: 14mins

Name
Class
Date
1.

This Financial Statement shows the income and expenses for a given period.

a)

Statement of Financial Position

b)

Statement of Comprehensive Income

c)

Statement of Changes in Owner's Equity

d)

Statement of Cash Flow

2.

This Financial Statement shows inflows and outflows of cash for a given accounting period.

a)

Statement of Financial Position

b)

Statement of Comprehensive Income

c)

Statement of Changes in Owner's Equity

d)

Statement of Cash Flow

3.

This Financial Statement shows the balances of Assets, Liabilities and Capital as of a given accounting period.

a)

Statement of Financial Position

b)

Statement of Comprehensive Income

c)

Statement of Changes in Owner's Equity

d)

Statement of Cash Flow

4.

This Financial Statement shows how the capital changes over time.

a)

Statement of Financial Position

b)

Statement of Comprehensive Income

c)

Statement of Changes in Owner's Equity

d)

Statement of Cash Flow

5.

Which of the following in NOT a factor that affects capital?

a)

Net Income

b)

Assets

c)

Owner's Withdrawal

d)

Additional Investment

6.

Which of the following is a branch of accounting that refers to an independent examination conducted by a CPA for the purpose of rendering an opinion as to the fairness of the presentation of the financial statements?

a)

Financial Accounting

b)

Management Accounting

c)

Auditing

d)

Tax Accounting

7.

Which of the following branch of accounting serves the information needs of the internal users?

a)

Financial Accounting

b)

Management Accounting

c)

Auditing

d)

Tax Accounting

8.

Which of the following branch of accounting helps students learn to become professional accountants?

a)

Accounting Research

b)

Cost Accounting

c)

Government Accounting

d)

Accounting Education

9.

Which of the following users of accounting information ask the question: "is the return on investment worth the risk?"

a)

Owners

b)

Suppliers

c)

Creditors

d)

Investors

10.

Which of the following users of accounting information are interested in the stability of business which is the suppliers of their needs?

a)

Employees

b)

Suppliers

c)

Customers

d)

Lending Institutions

11.

Which of the following is NOT the correct accounting equation?

a)

Assets - Capital = Liabilities

b)

Liabilities + Capital = Assets

c)

Assets = Liabilities - Capital

d)

Assets - Liabilities = Capital

12.

Assets = P410,000 ; Capital = P139,232. How much is the Liability?

a)

P 549, 232

b)

P 277, 068

c)

P 270, 768

d)

P 594, 232

13.

Capital = P192,345 ; Liabilities = P88,765. How much is the Total Assets?

a)

P 103, 580

b)

P 130, 580

c)

P 281, 101

d)

P 281, 110

14.

Assets = P1,567,769 ; Liabilities = 26% of Assets. How much is the Capital?

a)

P 1,160,149.60

b)

P 1,160,149.06

c)

P 1,610,149.60

d)

P 1,161,149.60

15.

Assets = P1,567,769 ; Liabilities = 26% of Assets. How much is the Liability?

a)

P 407,619.94

b)

P 470,691.94

c)

P 1,610,149.60

d)

P 1,161,149.60

16.

Capital = P678,987 ; Liabilities = 36% of Assets. How much is the Liability?

a)

P 1,060,917.19

b)

P 381,903.19

c)

P 1,060,971.19

d)

P 381,930.19

17.

Capital = P678,987 ; Liabilities = 36% of Assets. How much is the Assets?

a)

P 1,060,917.19

b)

P 381,903.19

c)

P 1,060,971.19

d)

P 381,930.19

18.

What is the 8th step of the accounting cycle?

a)

Unadjusted Trial Balance

b)

Adjusting Entries

c)

Preparation of Financial Statement

d)

Preparation of worksheet

19.

Liabilities = P67,843 ; Capital = 72% of Assets. How much is the Assets?

a)

P 174,435.43

b)

P 242,296.34

c)

P 174,453.43

d)

P 242,296.43

20.

Liabilities = P67,843 ; Capital = 72% of Assets. How much is the Capital?

a)

P 174,435.43

b)

P 242,296.34

c)

P 174,453.43

d)

P 242,296.43