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FABM 1 - Diagnostic Test

Total questions: 15

Worksheet time: 11mins

Name
Class
Date
1.

Debits in accounting always mean adding/increasing in value.

a)

True

b)

False

2.

The following are forms of business organization except:

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Cooperative

e)

Passive

3.

The following are forms of businesses according to activity except:

a)

Service

b)

Manufacturing

c)

Merchandising

d)

Franchising

4.

(a)   is an accounting term used for things the business owns.

5.

(a)   is an accounting term used for things the business owes.

6.

These are the customer's payables to the business.

a)

Accounts Receivables

b)

Accounts Payable

c)

Trade Discount

d)

Sales Revenue

7.

These are the business's payables to the suppliers, service providers and etc.

a)

Accounts Receivables

b)

Accounts Payable

c)

Trade Discount

d)

Sales Revenue

8.

This is the term used in recording sales in a merchandising business.

(a)  

9.

This is the term used in recording sales in a service business.

(a)  

10.

This describes the total cost of producing a tangible good or intangible service that has been sold by the business at a certain point of time.

a)

Business Expense

b)

Production Cost

c)

Fixed Cost

d)

Cost of Goods Sold

11.

What does CPA in accounting mean?

(a)  

12.

Cash is a good measure of profitability. Therefore, cash, not profit, is king.

a)

True

b)

False

13.

The total sales in December is P500,000.00 and the cost of producing the sold goods were at P250,000.00. Given this, how much is the gross profit?

(a)  

14.

The following must be considered in getting the net income of the business.

a)

Utilities Expense

b)

Inventory Expense

c)

Salary Expense

d)

Rent Expense

15.

For a business transaction to be recorded in their accounting books, it must have the following characteristics except:

a)

It must have a financial value of more than Php 1,000.00

b)

There must be two parties involved in the transaction.

c)

The transaction is on behalf of the business entity, and it is not for an individual purpose.

d)

It must be supported by business documents.