WorksheetsBasic Accounting_Quiz No. 1
Total questions: 82
Worksheet time: 41mins
Name
Class
Date
1.
Accounting is an art and a perfect science.
a)
True
b)
False
2.
The culmination of accounting service is the preparation of financial reports.
a)
True
b)
False
3.
Accounting serves as an information system for business purposes.
a)
True
b)
False
4.
Good reputation and proficiency are the primordial qualities of an accountant.
a)
True
b)
False
5.
Accounting internal control protects the assets of the business.
a)
True
b)
False
6.
The objective of accounting underscores the fact that financial reporting is the end in itself.
a)
True
b)
False
7.
Accounting touches all aspects of activities, except that of non- stock, non-profit entities.
a)
True
b)
False
8.
Accounting shows the financial statements users the true picture of business financial condition.
a)
True
b)
False
9.
External users of accounting information need more detailed information than the management group.
a)
True
b)
False
10.
Internal accounting reports are more strictly governed by the required accounting standards than the general accounting reports for external users.
a)
True
b)
False
11.
Employees and investors are external users of financial reports.
a)
True
b)
False
12.
The success or failure of business is due to accounting records that are kept.
a)
True
b)
False
13.
Accounting practice in education is one of the specialized fields of accountancy.
a)
True
b)
False
14.
Auditing is the critical part of accounting and it answers the question "why?"
a)
True
b)
False
15.
Accounting is a service activity.
a)
True
b)
False
16.
Bookkeeping is synonymous to accounting.
a)
True
b)
False
17.
Auditing is performed before financial accounting starts.
a)
True
b)
False
18.
Economic decision making is the main reason why accounting records and reports are prepared.
a)
True
b)
False
19.
The American Institute of CPAs describes accounting as an art.
a)
True
b)
False
20.
Accounting could not fall within the definition of an information system, because its main concern is the processing of data and interpreting the results thereof.
a)
True
b)
False
21.
Accounting is the medium of communication through which financial reports are furnished to different users for decision- making.
a)
True
b)
False
22.
The IASB regulates the Accounting practice throughout the world.
a)
True
b)
False
23.
International accounting is inseparable from international business.
a)
True
b)
False
24.
A practice of CPA profession is exercised by sole proprietorship but not by partnership.
a)
True
b)
False
25.
A corporation like partnership has unlimited life.
a)
True
b)
False
26.
Cost accounting is used to support the amounts used in financial accounting.
a)
True
b)
False
27.
Tax-exempt businesses are not required to prepare accounting reports.
a)
True
b)
False
28.
The SFP shows the business' assets, liabilities, and capital.
a)
True
b)
False
29.
All users of financial accounting have basic knowledge of accounting.
a)
True
b)
False
30.
The main objective of the GAAP is to ensure that the financial statements are reliable and for general-purpose.
a)
True
b)
False
31.
The preparation of the financial statements is the foundation of the conceptual framework of accounting.
a)
True
b)
False
32.
The personal transactions of the sole proprietor owner can be merged with the business transactions because he owns the business.
a)
True
b)
False
33.
The source document identifies the reliability of the cost and the related business transaction.
a)
True
b)
False
34.
Whether going concern or liquidating concern, the business assets should be valued at cost.
a)
True
b)
False
35.
The SCI for a given period only reflects the portion of the business operating performance.
a)
True
b)
False
36.
Understanding of financial information is very important in the making of economic decisions.
a)
True
b)
False
37.
Accounting concepts serve as the bedrock of accounting practice.
a)
True
b)
False
38.
Accounting conventions are accounting concepts that are in existence and used for a long period of time.
a)
True
b)
False
39.
Accounting principles are the same as accounting procedures, rules, and methods.
a)
True
b)
False
40.
The overall objective of financial accounting is achieved through the observance of GAAP.
a)
True
b)
False
41.
GAAP are developed on the basis of experience, research, and careful study promulgated by the authoritative body in Accountancy.
a)
True
b)
False
42.
The main objective of GAAP is to present fair financial statements.
a)
True
b)
False
43.
The basic assumptions provide foundation for the rational and systematic formulation of accounting principles and procedures.
a)
True
b)
False
44.
Accrual basis and going concern are implicit accounting assumptions.
a)
True
b)
False
45.
All financial statements are prepared based on the accrual basis of accounting.
a)
True
b)
False
46.
The accrual concept focuses on determining the actual cash receipts and cash disbursements in a given accounting period.
a)
True
b)
False
47.
Under the going concern concept, the assets of the business are carried in its books at current market value.
a)
True
b)
False
48.
Interim financial statements are prepared at the end of a 12- month accounting period using the calendar year.
a)
True
b)
False
49.
Accountants should provide economic decision makers financial reports that are organized and comprehensible.
a)
True
b)
False
50.
Accountants are required to report all potentially useful information.
a)
True
b)
False
51.
To evaluate the operating performance of the business, the decision maker has to look into its SFP..
a)
True
b)
False
52.
Accounting communicates financial information to different parties for decision making.
a)
True
b)
False
53.
Accounting entity presumes that the business is separate and distinct from its owner(s) and that its operation continues indefinitely.
a)
True
b)
False
54.
The main purpose of the separate entity concept is to report the true and fair picture of the business financial affairs.
a)
True
b)
False
55.
The PAS and PFRS are the primary sources of GAAP in the Philippines.
a)
True
b)
False
56.
The double-entry system is not universally accepted.
a)
True
b)
False
57.
Merchandise inventory
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
58.
Accounts receivable
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
59.
Worthless receivable
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
60.
Prepaid rent
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
61.
Obsolete merchandise
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
62.
Rent expense
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
63.
Notes receivable
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
64.
Accrued interest receivable
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
65.
Unused supplies
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
66.
Used supplies
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
67.
Land
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
68.
Store building
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
69.
Owner's equity
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
70.
Furniture & fixture
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
71.
Accum. Depreciation Store building
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
72.
Sales (80% cash)
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
73.
Accum. Depreciation Furniture and fixture
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
74.
Depreciation expense
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
75.
Cash
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
76.
Accounts payable
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
77.
Withholding tax payable
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
78.
Notes payable (20% current)
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
79.
Accrued interest payable
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
80.
Interest income
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
81.
Interest expense
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
82.
Owner's drawings
a)
Asset
b)
Liability
c)
Capital
d)
Revenue
e)
Expense
100 %
