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BRP 1 - Fundamentals of Acctg

Total questions: 34

Worksheet time: 26mins

Name
Class
Date
1.

This is what the business owns.

a)

Assets

b)

Liablities

c)

Loans

d)

Owner's Equity

2.

This is what the business owes.

a)

Assets

b)

Liabilities

c)

Loans

d)

Owner's Equity

3.

Also known as the "Long-term Assets"

a)

Non-current Assets

b)

Current Assets

c)

Non-current liabilities

d)

Current Liabilities

4.

A liability expected to be settled in the entity’s normal operating cycle (1 year).

a)

Non-current Assets

b)

Current Assets

c)

Non-current Liabilities

d)

Current Liabilities

5.

A current asset that normally consists of coins and currencies on hand, money orders and deposits in bank account.

a)

Inventories

b)

Cash

c)

Receivables

d)

Prepaid Expenses

6.

Plant and equipment are what type of accounts?

a)

Current Assets

b)

Non-current Liabilities

c)

Current Liabilities

d)

Non-current Assets

7.

A present obligation of the enterprise arising from past events.

a)

Liabilities

b)

Assets

c)

Expenses

d)

Income

8.

What is a financial statement that shows the financial position of an enterprise at a particular point in time?

a)

Balance Sheet

b)

Cash Flow Statement

c)

Income Statement

d)

Statement of Changes in Equity

9.

ABC Company has a non-current assets of Php 60000, current assets of Php 70000, current liabilities of Php 40000, and a long-term loan of Php 50000. How much is the owner's equity?

(a)  

10.

If assets are Php 17000 and owner's equity is Php 1000, liabilities are (a)  

11.

Which of the following is an element of a Statement of Comprehensive Income?

a)

Sales

b)

Accounts Payable

c)

Notes Receivable

d)

Capital

12.

What do you call the economic events of an organization?

a)

Business

b)

Transactions

c)

Records

d)

Journals

13.

It is when a certain process follows certain standards and professional ethics.

a)

Art

b)

Nature

c)

Philosophy

d)

Discipline

14.

Which of the following nature of accounting tells us that accounting is considered as a storehouse of information.

a)

Accounting as an art and discipline.

b)

Accounting as an service activity.

c)

Accounting as an information system

d)

Accounting as a process

15.

What civilization used clay tablets to record commercial transactions?

a)

China

b)

India

c)

Mesopotamia

d)

Phoenician

16.

Who is the father of accounting?

a)

Luca Pacioli

b)

Luca Paciolo

c)

Luca Paciola

d)

Luca Paciole

17.

What does GAAP mean?

a)

Generally Accepted Accounting Principles

b)

Generally Authoritative Accounting Principles

c)

Generally Administrative Accounting Principles

d)

Generally Amendable Accounting Principles

18.

What accounting is considered as the subset of management accounting?

a)

Auditing

b)

Cost Accounting

c)

Financial Accounting

d)

Accounting Research

19.

If DPWH will liquidate their expenses in the farm road project in a certain barangay in General Santos City, what branch of accounting will process the liquidation?

a)

Tax Accounting

b)

Accounting Education

c)

Financial Accounting

d)

Government Accounting

20.

Which of the following is an internal user?

a)

BIR

b)

OWNER

c)

SEC

d)

LGU

21.

What is the simplest form of business organization?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Cooperative

22.

Which is a service type of business?

a)

Car manufacturing

b)

Laundry business

c)

Grocery Store

d)

Book stores

23.

Which is a manufacturing type of business?

a)

Alex's Barber Shop

b)

Toyota Corporation

c)

National Book Store

d)

Pick n' Save Mini Mart

24.

The company declares their financial statements in Pesos even though they are situated in South Korea. What accounting principle is violated by the company?

a)

Time period

b)

Monetary unit

c)

Objectivity

d)

Going concern

25.

A company overstates the rent expense by Php 5,500.00. What accounting principle is violated?

a)

Conservatism

b)

Disclosure

c)

Going Concern

d)

Materiality

26.

A company declares that the equipment that they purchased at one million pesos is written at 750,000 pesos, the fair market value of the equipment, in their financial statements. This is a clear violation of what accounting principle?

a)

Cost

b)

Matching

c)

Accrual accounting

d)

Business entity

27.

Which of the following equations is the fundamental accounting equation?

a)

Assets-Liabilities=Owner's Equity

b)

Assets=Liabilities + Owner's Equity

c)

Assets-Owner's Equity=Liabilities

d)

Assets-Owner's Equity=Liabilities

28.

Financial Accounting is concerned only with information that is significant enough to affect evaluation or decision

a)

Materiality

b)

Timeliness

c)

Comparability

d)

Cost and Benefit

29.

Using the accounting equation, if assets is P 50,000, capital is P30,000, how much is the value of liability?

a)

P10,000

b)

P20,000

c)

P80,000

d)

P25,000

30.

Which of the following pertains to business entity concept?

a)

Transactions of the business (as a separate entity) must be distinguished from the transactions of the owners.

b)

Transactions of the business (as a separate entity) must be merged with the transactions of the owners.

c)

Revenues are recorded when it is earned.

d)

Revenues are recorded when the corresponding cash has been received.

31.

Other term for Statement of Comprehensive Income

a)

Income Statement

b)

Balance Sheet

c)

Cash Flow Statement

d)

Statement of Liquidation

32.

Are assets that cannot be realized (collected, sold, used up) one year after year-end date. Examples include Property, Plant and Equipment (equipment, furniture, building, land), long term investments, etc.

a)

Intangible Assets

b)

Current Assets

c)

Non-current Assets

d)

Liabilities

33.

Liability = Asset + Equity

a)

True

b)

False

34.

is the process of IDENTIFYING, MEASURING , RECORDING and COMMUNICATING economic events of the organization to interested users.

(a)