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WorksheetsQ1 TLE09 Lesson 01,02,03 Assessment
Total questions: 90
Worksheet time: 1hrs 8mins
Name
Class
Date
1.
Which of the following best describes an asset?
a)
A debt owed by the business
b)
An item of value owned by a business
c)
The owner's investment in the business
d)
An expenditure made to generate revenue
2.
For an item to be listed as an asset on a balance sheet, which condition must it meet?
a)
It must be a physical object
b)
It must have been purchased within the last year
c)
The business must control or own the item
d)
It must generate revenue directly
3.
Assets that are expected to be converted into cash within one year are known as what?
a)
Noncurrent assets
b)
Intangible assets
c)
Tangible assets
d)
Current assets
4.
Which of the following is an example of a current asset?
a)
Land and buildings
b)
Machinery
c)
Inventory or stock
d)
Patents and copyrights
5.
Assets that are expected to be of value to the business for more than a year are categorized as:
a)
Current assets
b)
Liquid assets
c)
Noncurrent assets
d)
Owner's Equity
6.
Land, buildings, and vehicles are all examples of which type of asset?
a)
Intangible assets
b)
Current assets
c)
Tangible assets
d)
Liabilities
7.
An asset that lacks physical form, such as a patent or copyright, is known as:
a)
A tangible asset
b)
A current asset
c)
A physical asset
d)
An intangible asset
8.
What is the term for the debts of a business?
a)
Assets
b)
Equity
c)
Revenue
d)
Liabilities
9.
Debts and obligations that should be paid off within one year are classified as:
a)
Noncurrent liabilities
b)
Owner's Equity
c)
Long-term debts
d)
Current liabilities
10.
Which of the following is an example of a current liability?
a)
Mortgages
b)
Bank loans
c)
Accounts payable
d)
Owner's investment
11.
Long-term debts of a business, such as a mortgage, are referred to as:
a)
Current liabilities
b)
Noncurrent liabilities
c)
Current assets
d)
Accounts payable
12.
What does Owner's Equity represent?
a)
The total debts of the business
b)
The total sales of the business
c)
The amount the owner has invested in the business
d)
The cash on hand in the business
13.
What are the two sources of Owner's Equity?
a)
Assets and Liabilities
b)
Revenue and Expenses
c)
Owner's Investment and Retained Earnings
d)
Current and Noncurrent Assets
14.
Which of the following must have a value that can be measured to be considered an asset?
a)
A skilled employee team
b)
A positive business reputation
c)
Office equipment
d)
A potential future contract
15.
A business's financial position is based on which three elements?
a)
Revenue, Expenses, and Profit
b)
Cash, Inventory, and Debt
c)
Assets, Liabilities, and Owner's Equity
d)
Sales, Costs, and Investments
16.
The fundamental accounting equation is:
a)
Assets = Liabilities - Owner's Equity
b)
Assets + Liabilities = Owner's Equity
c)
Assets = Liabilities + Owner's Equity
d)
Assets + Owner's Equity = Liabilities
17.
Which is an alternative way to state the accounting equation?
a)
Assets + Liabilities = Owner's Equity
b)
Assets - Owner's Equity = Liabilities
c)
Liabilities - Assets = Owner's Equity
d)
Assets - Liabilities = Owner's Equity
18.
If a business has Assets of P200,000 and Owner's Equity of P150,000, what is the value of its Liabilities?
a)
P350,000
b)
P50,000
c)
P200,000
d)
P150,000
19.
What happens to the accounting equation when an owner invests P100,000 cash into a new business?
a)
Assets decrease and Liabilities increase
b)
Assets increase and Owner's Equity increases
c)
Liabilities increase and Owner's Equity decreases
d)
Assets decrease and Owner's Equity decreases
20.
When a business borrows P50,000 cash from a bank, how does this affect the accounting equation?
a)
Assets increase by P50,000 and Liabilities increase by P50,000
b)
Assets increase by P50,000 and Owner's Equity increases by P50,000
c)
Liabilities decrease by P50,000 and Owner's Equity increases by P50,000
d)
Assets decrease by P50,000 and Liabilities decrease by P50,000
21.
What is a chart of accounts?
a)
A financial statement showing profit or loss
b)
A list of account codes for assets, liabilities, equity, revenues, and expenses
c)
A report of all cash transactions
d)
A summary of the owner's investments
22.
What does revenue refer to in a business context?
a)
Expenditures made to generate sales
b)
The owner's personal investment
c)
Debts owed by the business
d)
The amount earned by selling goods or performing services
23.
Expenditures made by a business to generate revenue are called:
a)
Assets
b)
Liabilities
c)
Equity
d)
Expenses
24.
In the sample chart of accounts for Lee's Travel and Tours, what type of account is "Service Income"?
a)
Asset
b)
Liability
c)
Expense
d)
Revenue
25.
In the sample chart of accounts, "Salaries Expense" would be classified as what type of account?
a)
Asset
b)
Equity
c)
Expense
d)
Liability
26.
The accounting equation must always remain:
a)
Profitable
b)
Positive
c)
Balanced
d)
Liquid
27.
Why is a chart of accounts useful for a business?
a)
It guarantees profitability
b)
It automatically calculates taxes
c)
It is used to record business transactions in an organized way
d)
It lists all the employees of the company
28.
If a business's Assets are P150,000 and its Liabilities are P50,000, what is the Owner's Equity?
a)
P200,000
b)
P100,000
c)
P50,000
d)
P150,000
29.
The account "Lee's Drawings" in the sample chart of accounts represents:
a)
Money the business has earned
b)
Money the owner has withdrawn for personal use
c)
A loan taken by the business
d)
An expense for art supplies
30.
The number and types of accounts in a chart of accounts depend on what?
a)
The number of employees
b)
The age of the business
c)
The type of business operations
d)
The location of the business
31.
What are the two main types of bookkeeping discussed?
a)
Manual and Computerized
b)
Single-entry and Double-entry
c)
Asset and Liability
d)
Debit and Credit
32.
Which type of bookkeeping is simplest and often used by small businesses and nonprofit organizations?
a)
Double-entry bookkeeping
b)
Computerized bookkeeping
c)
Single-entry bookkeeping
d)
Audited bookkeeping
33.
In its most basic form, single-entry bookkeeping can be just the maintenance of a:
a)
Balance Sheet
b)
General Ledger
c)
Receipts and payments account
d)
Profit and Loss Statement
34.
What is a more common name for a receipts and payments account?
a)
Journal
b)
Ledger
c)
Cashbook
d)
Balance sheet
35.
Which of the following is a limitation of single-entry bookkeeping?
a)
It is too complex for small businesses
b)
Assets are not shown, making theft more likely
c)
It requires expensive software
d)
It requires two entries for every transaction
36.
Why can auditing a single-entry system be a tedious process?
a)
The records are too detailed
b)
Information must be added to convert it to a double-entry system
c)
It uses a complex coding system
d)
The data is always stored electronically
37.
The standard system of bookkeeping used by many businesses, where each transaction requires two entries, is called:
a)
Single-entry bookkeeping
b)
Manual bookkeeping
c)
Double-entry bookkeeping
d)
Simple bookkeeping
38.
What are the two entries required for every transaction in double-entry bookkeeping?
a)
An asset entry and a liability entry
b)
An income entry and an expense entry
c)
A debit entry and a credit entry
d)
A manual entry and a computerized entry
39.
What are double-entry accounts often referred to, due to their shape?
a)
'L' accounts
b)
'T' accounts
c)
'Box' accounts
d)
'Cross' accounts
40.
In double-entry bookkeeping, an increase in an asset account is recorded as a:
a)
Credit
b)
Liability
c)
Debit
d)
Expense
41.
A decrease in an asset account is recorded as a:
a)
Debit
b)
Credit
c)
Equity
d)
Income
42.
An increase in a liability account is recorded as a:
a)
Debit
b)
Asset
c)
Expense
d)
Credit
43.
A decrease in a liability account is recorded as a:
a)
Credit
b)
Income
c)
Debit
d)
Asset
44.
An increase in an expense account is recorded as a:
a)
Credit
b)
Income
c)
Liability
d)
Debit
45.
An increase in an income account is recorded as a:
a)
Debit
b)
Expense
c)
Liability
d)
Credit
46.
When an owner invests P100,000 cash into a business, what are the two entries in a double-entry system?
a)
Debit Capital, Credit Cash
b)
Debit Cash, Credit Capital
c)
Debit Cash, Credit an Expense
d)
Debit a Liability, Credit Cash
47.
If a business buys inventory worth P550 on credit, what is the correct double-entry?
a)
Debit Cash, Credit Purchases
b)
Debit Purchases, Credit a Liability (Creditor)
c)
Debit a Liability (Creditor), Credit Purchases
d)
Debit Purchases, Credit Cash
48.
When a business pays off a P550 liability with a check, what is the double-entry?
a)
Debit Bank, Credit the Liability
b)
Debit the Liability, Credit Bank
c)
Debit Purchases, Credit Bank
d)
Debit Bank, Credit Purchases
49.
What are the two methods of bookkeeping?
a)
Single and Double
b)
Debit and Credit
c)
Manual and Computerized
d)
Simple and Complex
50.
Which bookkeeping method is paper-based and performed by hand?
a)
Computerized bookkeeping
b)
Double-entry bookkeeping
c)
Modern bookkeeping
d)
Manual bookkeeping
51.
Which method of bookkeeping uses software for a faster and more convenient process?
a)
Manual bookkeeping
b)
Traditional bookkeeping
c)
Paper bookkeeping
d)
Computerized bookkeeping
52.
What is a key advantage of manual bookkeeping for small businesses?
a)
It is fast and efficient
b)
It is technologically advanced
c)
It is simple, cheap, and easy to maintain
d)
It prevents all errors
53.
What is a characteristic of computerized bookkeeping?
a)
It is paper-based
b)
It is generally cheaper than manual methods
c)
It is reliable and efficient but can be expensive
d)
It is only used for single-entry systems
54.
Which of the following is NOT a limitation of single-entry bookkeeping?
a)
Clerical errors are often committed
b)
Liabilities are not immediately determined
c)
It is too complicated for small businesses
d)
Financial reports are limited
55.
The purpose of cross-referencing accounts in a double-entry system is to:
a)
Make the system more complicated
b)
Facilitate checking that the system is correctly maintained
c)
Increase the number of accounts
d)
Calculate profit automatically
56.
A trademark is an example of what kind of asset?
a)
Current asset
b)
Tangible asset
c)
Liquid asset
d)
Intangible asset
57.
What does "Salaries Payable" represent?
a)
Salaries that have been paid in advance
b)
Services from employees that are not yet paid
c)
The total salary budget for the year
d)
An asset account for employee advances
58.
When a company's liabilities are greater than its assets, the owner's equity will be:
a)
Positive
b)
Negative
c)
Zero
d)
Equal to the assets
59.
In the sample chart of accounts, which range of codes is assigned to Capital?
a)
18264
b)
51-100
c)
101-150
d)
151-200
60.
What does a debit entry do to a capital account?
a)
Increases it
b)
Has no effect
c)
Decreases it
d)
Balances it
61.
What does a credit entry do to an expense account?
a)
Increases it
b)
Decreases it
c)
Has no effect
d)
Closes it
62.
Which bookkeeping system provides a more complete and reliable record of business transactions?
a)
Single-entry system
b)
Manual system
c)
Cash-based system
d)
Double-entry system
63.
The purchase of office supplies for cash would result in:
a)
An increase in assets and an increase in liabilities
b)
An increase in one asset and a decrease in another asset
c)
A decrease in assets and a decrease in liabilities
d)
An increase in assets and an increase in owner's equity
64.
Which item is NOT a tangible, noncurrent asset?
a)
Building
b)
Vehicle
c)
Copyright
d)
Furniture
65.
What is the origin of the liability "Accounts Payable"?
a)
Unpaid employee salaries
b)
Purchase of items (on credit)
c)
Unpaid utility bills
d)
A loan from a bank
66.
If a business has zero liabilities, its assets will be equal to its:
a)
Revenue
b)
Expenses
c)
Owner's Equity
d)
Profit
67.
Which account is NOT part of the Balance Sheet?
a)
Cash
b)
Accounts Payable
c)
Salaries Expense
d)
Lee's Capital
68.
An individual or company to which money is owed is called a:
a)
Debtor
b)
Owner
c)
Creditor
d)
Customer
69.
What is the first step when analyzing a transaction in a double-entry system?
a)
Calculate the profit
b)
Record it in the cashbook
c)
Identify the two accounts affected
d)
Prepare a financial statement
70.
Receiving cash from a customer for services performed would be recorded as:
a)
Debit Cash, Credit Accounts Payable
b)
Debit Service Income, Credit Cash
c)
Debit Cash, Credit Service Income
d)
Debit Accounts Receivable, Credit Service Income
71.
A decrease in an income account is recorded with a:
a)
Debit
b)
Credit
c)
Asset entry
d)
Liability entry
72.
A decrease in a capital account is recorded with a:
a)
Credit
b)
Debit
c)
Expense entry
d)
Income entry
73.
The amount of profit kept in the business is called:
a)
Owner's Investment
b)
Retained Earnings
c)
Owner's Drawings
d)
Capital
74.
The term 'trade receivables' refers to:
a)
Loans the business has taken
b)
Amounts owing to the business from credit sales
c)
Inventory the business plans to sell
d)
Debts the business owes to suppliers
75.
Which of the following is an advantage of computerized bookkeeping over manual bookkeeping?
a)
It is always cheaper
b)
It is paper-based
c)
It is generally faster and more convenient
d)
It does not require knowledge of accounting principles
76.
The owner taking cash from the business for personal use is recorded as a:
a)
Debit to Cash and Credit to Drawings
b)
Debit to Drawings and Credit to Cash
c)
Debit to Expense and Credit to Cash
d)
Debit to Capital and Credit to Cash
77.
Which bookkeeping system makes it easier to commit clerical errors without detection?
a)
Double-entry
b)
Computerized
c)
Audited
d)
Single-entry
78.
In double-entry bookkeeping, there will be separate accounts for each type of:
a)
Employee and customer
b)
Day of the week
c)
Asset, expense, and income
d)
Product sold
79.
Which action decreases owner's equity?
a)
Owner investing more cash
b)
The business earning a profit
c)
Owner withdrawing cash for personal use
d)
The business taking out a loan
80.
Which of these has a physical substance?
a)
Copyright
b)
Goodwill
c)
Trademark
d)
Equipment
81.
If a business pays its utility bill, what is the effect on the accounting equation?
a)
Assets decrease, liabilities increase
b)
Assets decrease, owner's equity decreases
c)
Assets increase, owner's equity increases
d)
Liabilities decrease, owner's equity increases
82.
A loan from a bank that is due in three years is classified as a:
a)
Current Asset
b)
Current Liability
c)
Noncurrent Asset
d)
Noncurrent Liability
83.
The primary goal of bookkeeping is to:
a)
Calculate the market value of the company
b)
Record financial transactions
c)
Manage employees
d)
Develop marketing strategies
84.
If a business's total debits do not equal its total credits in a double-entry system, it indicates:
a)
The business is profitable
b)
The business is losing money
c)
An error has been made
d)
It's the end of the accounting period
85.
Which financial statement is built directly from the accounting equation?
a)
Income Statement
b)
Statement of Cash Flows
c)
Balance Sheet
d)
Statement of Retained Earnings
86.
Paying rent for the month is an example of an:
a)
Asset
b)
Liability
c)
Expense
d)
Equity
87.
Which of the following is NOT a liability?
a)
Mortgages Payable
b)
Notes Payable
c)
Accounts Receivable
d)
Utilities Payable
88.
The 'credit' side of a 'T' account is always on the:
a)
Left
b)
Right
c)
Top
d)
Bottom
89.
Which bookkeeping method would a large corporation most likely use?
a)
Manual single-entry
b)
Manual double-entry
c)
Computerized double-entry
d)
It would not use bookkeeping
90.
In double-entry bookkeeping, what must always be true?
a)
Total cash must equal total liabilities
b)
Total income must equal total expenses
c)
Total assets must equal total liabilities
d)
Total debits must equal total credits
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