WorksheetsQ2 TLE09 General Quiz
Total questions: 80
Worksheet time: 1hrs 20mins
Name
Class
Date
1.
What is the fundamental accounting equation that has been a standard for over 500 years?
a)
Assets = Liabilities + Equity
b)
Assets = Liabilities - Equity
c)
Assets + Liabilities = Equity
d)
Equity = Assets + Liabilities
2.
Who was the 15th-century monk and mathematician who first documented the double-entry accounting system?
a)
Paolo Pacioli
b)
Leonardo da Vinci
c)
Luca Pacioli
d)
Donatello
3.
What is the primary focus of the single-entry accounting system?
a)
Tracking cash only
b)
Tracking all assets
c)
Tracking loans and debts
d)
Tracking owner's equity
4.
A business buys a ₱50000 truck but uses the single-entry method. What is the problem here?
a)
The profit will be too high
b)
The system cannot track the cash paid
c)
The system has no way to record the truck as an asset
d)
The system will record the truck as a liability
5.
What is the core idea of the double-entry accounting system?
a)
Every transaction is recorded once
b)
Every transaction must have an opposite corresponding entry
c)
Only cash transactions are recorded
d)
It is only used for liabilities
6.
What are assets in accounting terms?
a)
What you owe to others
b)
What you owe to owners
c)
All the valuable stuff a business owns
d)
The profit a business makes
7.
What are liabilities in accounting terms?
a)
What you owe to others
b)
What the owners invest
c)
All the valuable stuff a business owns
d)
The cash in the bank
8.
What is equity in accounting terms?
a)
A bank loan
b)
The cash a business has
c)
What the business owes to its owners
d)
What the business owes to others
9.
Paolo starts a new business by investing ₱100000 of his own money. How does this affect the accounting equation?
a)
Assets increase by ₱100000 and Liabilities increase by ₱100000
b)
Assets decrease by ₱100000 and Equity decreases by ₱100000
c)
Assets increase by ₱100000 and Equity increases by ₱100000
d)
Liabilities increase by ₱100000 and Equity decreases by ₱100000
10.
Paolo's business then borrows ₱50000 from a bank. How does this affect the accounting equation?
a)
Assets increase by ₱50000 and Equity increases by ₱50000
b)
Assets increase by ₱50000 and Liabilities increase by ₱50000
c)
Assets decrease by ₱50000 and Liabilities decrease by ₱50000
d)
Liabilities decrease by ₱50000 and Equity increases by ₱50000
11.
The business buys a computer for ₱25000 using cash. What is the effect on the equation?
a)
Total assets increase by ₱25000
b)
Total assets decrease by ₱25000
c)
Total assets stay the same
d)
Equity decreases by ₱25000
12.
If a business has ₱150000 in Assets and ₱100000 in Equity what is the value of its Liabilities?
a)
₱150000
b)
₱100000
c)
₱250000
d)
₱50000
13.
If a business has ₱200000 in Assets and ₱80000 in Liabilities what is the value of its Equity?
a)
₱120000
b)
₱200000
c)
₱80000
d)
₱280000
14.
What is the 'Chart of Accounts'?
a)
A list of all business profits
b)
A list of all business debts
c)
A financial report
d)
A filing cabinet or table of contents for all finances
15.
What are the five major account categories in a Chart of Accounts?
a)
Cash Loans Profit Loss Sales
b)
Assets Liabilities Equity Revenue Expenses
c)
Debits Credits Cash Loans Equity
d)
Assets Debts Profit Loss Cash
16.
In double-entry bookkeeping what is a debit?
a)
Where the money comes from
b)
An error in the books
c)
Where the money goes to
d)
The owner's investment
17.
In double-entry bookkeeping what is a credit?
a)
Where the money comes from
b)
A positive transaction
c)
Where the money goes to
d)
A loan from a bank
18.
What is the T-shaped visual tool used to track debits and credits for an account?
a)
A Balance Sheet
b)
An Income Statement
c)
A T-Account
d)
A Chart of Accounts
19.
On a T-Account which side are debits recorded?
a)
The left side
b)
The right side
c)
Both sides
d)
The bottom side
20.
On a T-Account which side are credits recorded?
a)
The left side
b)
The right side
c)
Both sides
d)
The top side
21.
What is a major limitation of the 'simple list' or single-entry method?
a)
It is too complicated
b)
It makes it easy to commit clerical errors
c)
It requires a computer
d)
It costs too much money
22.
Which accounting method provides a more accurate and complete snapshot of a business's health?
a)
The Single-Entry Method
b)
The Double-Entry Method
c)
The Cash-Only Method
d)
The Manual Method
23.
What are the two main methods for *how* bookkeeping is performed?
a)
Debit and Credit
b)
Internal and External
c)
Manual and Computerized
d)
Assets and Liabilities
24.
Alex's sticker shop has ₱50000 in Assets and ₱10000 in Liabilities. What is Alex's Equity?
a)
₱60000
b)
₱50000
c)
₱10000
d)
₱40000
25.
A coffee shop has ₱70000 in Assets and ₱40000 in Equity. What are its Liabilities?
a)
₱30000
b)
₱70000
c)
₱110000
d)
₱40000
26.
A business buys ₱5000 of supplies on credit meaning it will pay the supplier later. What is the effect on the equation?
a)
Assets increase and Liabilities increase
b)
Assets decrease and Liabilities decrease
c)
Assets increase and Equity increases
d)
Liabilities decrease and Equity increases
27.
The owner of a business takes ₱1000 in cash from the business for personal use. This is called a 'draw'. How does this affect the equation?
a)
Assets decrease and Liabilities decrease
b)
Assets increase and Equity increases
c)
Assets decrease and Equity decreases
d)
Liabilities increase and Equity decreases
28.
A business pays a ₱2000 electricity bill with cash. What is the effect on the equation?
a)
Assets decrease and Equity decreases
b)
Assets increase and Liabilities increase
c)
Assets decrease and Liabilities decrease
d)
Total Assets stay the same
29.
What is the primary goal of the accounting equation?
a)
To always stay in balance
b)
To calculate profit only
c)
To track cash only
d)
To list all employees
30.
Which transaction will NOT change the total value of Assets?
a)
Borrowing cash from a bank
b)
Buying a machine using cash
c)
Paying a supplier for a debt
d)
Selling products for cash
31.
What does the '500-Year-Old Formula' refer to?
a)
The formula for profit
b)
The single-entry method
c)
The concept of a T-Account
d)
The accounting equation Assets = Liabilities + Equity
32.
Which report shows a business's profit and loss?
a)
The Balance Sheet
b)
The T-Account
c)
The Income Statement
d)
The Chart of Accounts
33.
Which report provides a snapshot of everything you own and owe at a specific moment?
a)
The Balance Sheet
b)
The T-Account
c)
The Income Statement
d)
The Cashbook
34.
What is the main advantage of computerized bookkeeping over a manual paper-based method?
a)
It is simple and cheap
b)
It is more reliable and efficient
c)
It does not require debits or credits
d)
It is better for small businesses
35.
Why did the simple list method 'break' for Alex's sticker shop?
a)
Alex ran out of paper
b)
The business grew and the simple list could not track loans or errors
c)
Alex forgot how to add
d)
The list was too slow
36.
If a business's equation is 'out of balance' what does this mean?
a)
The business is very profitable
b)
The business is losing money
c)
A mistake has been made in the bookkeeping
d)
The business has no liabilities
37.
A company performs a service and receives ₱5000 in cash. What is the effect on the equation?
a)
Assets increase and Equity increases
b)
Assets increase and Liabilities increase
c)
Assets decrease and Equity decreases
d)
Liabilities increase and Equity increases
38.
A business pays ₱10000 to a supplier for a debt it owed. How does this affect the equation?
a)
Assets decrease and Equity decreases
b)
Assets decrease and Liabilities decrease
c)
Assets increase and Liabilities increase
d)
Total Assets stay the same
39.
What is the main difference between an Asset and an Expense?
a)
Assets are bad and Expenses are good
b)
Assets are what you own and Expenses are what you spend to make money
c)
Assets are cash and Expenses are debts
d)
There is no difference
40.
Who is considered the 'Father of Accounting'?
a)
Paolo Pacioli
b)
Alex the sticker creator
c)
Luca Pacioli
d)
The 15th-century monk
41.
Alex sells a sticker for ₱10 cash. In a double-entry system what is the debit?
a)
A ₱10 debit to Cash
b)
A ₱10 debit to Sales Revenue
c)
A ₱10 debit to Equity
d)
A ₱10 debit to Liabilities
42.
Alex sells a sticker for ₱10 cash. In a double-entry system what is the credit?
a)
A ₱10 credit to Cash
b)
A ₱10 credit to Sales Revenue
c)
A ₱10 credit to Expenses
d)
A ₱10 credit to Liabilities
43.
Why is single-entry bookkeeping compared to a simple list?
a)
It is very complex
b)
It only records each transaction one time
c)
It is used by large companies
d)
It requires a T-Account
44.
What is a major problem Alex faced using a simple list for a growing business?
a)
It was too fast
b)
It was too accurate
c)
It couldn't track things like unpaid bills (Liabilities)
d)
It required too many computers
45.
A business pays ₱200 for shipping. In a single-entry cashbook what is recorded?
a)
A ₱200 entry in the 'money in' column
b)
A ₱200 entry in the 'money out' column
c)
A ₱200 debit and a ₱200 credit
d)
A ₱200 entry as an Asset
46.
In the double-entry system what are the 'two famous words' that pop up?
a)
Assets and Liabilities
b)
Profit and Loss
c)
Debit and Credit
d)
Manual and Computerized
47.
Alex buys ₱1000 of sticker paper from a supplier but will pay next month. How does this affect the accounting equation?
a)
Assets increase by ₱1000 and Liabilities increase by ₱1000
b)
Assets decrease by ₱1000 and Liabilities decrease by ₱1000
c)
Assets increase by ₱1000 and Equity increases by ₱1000
d)
Equity decreases by ₱1000 and Liabilities increases by ₱1000
48.
What is the purpose of a 'T-account'?
a)
To calculate the final profit
b)
To visually organize debits on the left and credits on the right
c)
To list all company employees
d)
To replace the accounting equation
49.
If Alex's sticker shop has ₱15000 in Assets and ₱5000 in Equity what are the Liabilities?
a)
₱15000
b)
₱5000
c)
₱20000
d)
₱10000
50.
What is the 'Golden Rule of Balance'?
a)
Revenue must equal Expenses
b)
Debits must equal Credits
c)
Assets = Liabilities + Owner's Equity
d)
Cash in must equal Cash out
51.
Which accounting method is described as being more 'accurate' and allowing you to 'check' your work?
a)
Single-Entry
b)
Double-Entry
c)
The List Method
d)
The Manual Method
52.
A business owner invests ₱50000 of their own money. What is the credit entry?
a)
A ₱50000 credit to Cash
b)
A ₱50000 credit to Owner's Equity
c)
A ₱50000 credit to Liabilities
d)
A ₱50000 credit to Expenses
53.
A business owner invests ₱50000 of their own money. What is the debit entry?
a)
A ₱50000 debit to Cash
b)
A ₱50000 debit to Owner's Equity
c)
A ₱50000 debit to Liabilities
d)
A ₱50000 debit to Expenses
54.
What are the two main tools or methods for performing bookkeeping?
a)
Debit and Credit
b)
Internal and External
c)
Paper/Manual and Pixel/Computerized
d)
Assets and Liabilities
55.
What is the '500-Year-Old Formula'?
a)
Profit = Revenue - Expenses
b)
Debit = Credit
c)
Assets = Liabilities + Equity
d)
Cash In - Cash Out = Profit
56.
Who is the 15th-century monk credited with documenting this formula?
a)
Luca Pacioli
b)
Paolo da Vinci
c)
Alex of Venice
d)
An unnamed monk
57.
A business starts with a ₱100000 cash investment from the owner. What are the initial balances for Assets Liabilities and Equity?
a)
Assets ₱0 Liabilities ₱0 Equity ₱100000
b)
Assets ₱100000 Liabilities ₱100000 Equity ₱0
c)
Assets ₱100000 Liabilities ₱0 Equity ₱100000
d)
Assets ₱100000 Liabilities ₱0 Equity ₱0
58.
The same business borrows ₱100000 from a bank. What are the new balances for Assets Liabilities and Equity?
a)
Assets ₱100000 Liabilities ₱100000 Equity ₱100000
b)
Assets ₱200000 Liabilities ₱100000 Equity ₱100000
c)
Assets ₱200000 Liabilities ₱0 Equity ₱200000
d)
Assets ₱200000 Liabilities ₱200000 Equity ₱0
59.
The business now has ₱200000 in cash. It buys ₱25000 of furniture with cash. What are the new balances for Assets Liabilities and Equity?
a)
Assets ₱175000 Liabilities ₱100000 Equity ₱100000
b)
Assets ₱200000 Liabilities ₱100000 Equity ₱100000
c)
Assets ₱225000 Liabilities ₱125000 Equity ₱100000
d)
Assets ₱200000 Liabilities ₱125000 Equity ₱75000
60.
In the previous transaction (buying ₱25000 of furniture with cash) what happened to the total value of the Assets?
a)
It increased by ₱25000
b)
It decreased by ₱25000
c)
It stayed the same
d)
It became ₱0
61.
What does the term 'Equity' represent in the accounting equation?
a)
What the business owes to banks
b)
What the business owes to its owners
c)
What the business owns
d)
The business's total cash
62.
What does the term 'Assets' represent in the accounting equation?
a)
What the business owes
b)
What the business has spent
c)
What the business owns
d)
What the business has lost
63.
What does the term 'Liabilities' represent in the accounting equation?
a)
What the business owes to external creditors
b)
What the business owes to its owners
c)
What the business owns
d)
The business's total sales
64.
Why did the single-entry system fail for growing businesses?
a)
It was too expensive
b)
It created massive blind spots for assets and liabilities
c)
It was too slow to write down
d)
It was only for computers
65.
What is the 'dual effect' or 'dual transaction' principle?
a)
Every transaction is recorded once
b)
Every transaction has two corresponding entries
c)
Every transaction creates a profit
d)
Every transaction involves cash
66.
What report is described as a 'snapshot of everything you own and owe'?
a)
Income Statement
b)
Chart of Accounts
c)
Cash Flow Statement
d)
Balance Sheet
67.
What report is described as a 'report of your profit and loss'?
a)
Income Statement
b)
Balance Sheet
c)
T-Account
d)
Chart of Accounts
68.
A business has ₱500000 in Assets and ₱350000 in Equity. What are its Liabilities?
a)
₱850000
b)
₱500000
c)
₱150000
d)
₱350000
69.
Paolo invests ₱100000 of his own money into his new garment factory. What is the effect on the equation?
a)
Assets increase and Liabilities increase
b)
Assets increase and Equity increases
c)
Liabilities increase and Equity increases
d)
Assets decrease and Equity decreases
70.
Paolo's business borrows ₱50000 from a bank. What is the effect on the equation?
a)
Assets increase and Liabilities increase
b)
Assets increase and Equity increases
c)
Liabilities increase and Equity increases
d)
Assets decrease and Liabilities decreases
71.
If Paolo's business has ₱150000 in Assets and ₱50000 in Liabilities what is his Owner's Equity?
a)
₱150000
b)
₱50000
c)
₱200000
d)
₱100000
72.
What is the 'Chart of Accounts' compared to?
a)
A cash register
b)
A filing cabinet or table of contents
c)
A profit report
d)
A bank statement
73.
What are the five major categories in a Chart of Accounts?
a)
Assets Liabilities Equity Revenue Expenses
b)
Cash Loans Profit Loss Sales
c)
Debits Credits Cash Equity Loans
d)
Assets Debts Profit Loss Cash
74.
Why must every transaction keep the accounting equation in balance?
a)
It is just a suggestion
b)
It is the single most important rule to ensure accuracy
c)
It only applies to cash
d)
It is a government law
75.
What is the 'single most important rule in all of accounting'?
a)
You must make a profit
b)
You must use a computer
c)
The accounting equation must always be in balance
d)
You must only use cash
76.
A business has ₱300000 in Assets and ₱100000 in Liabilities. What is the Owner's Equity?
a)
₱400000
b)
₱300000
c)
₱100000
d)
₱200000
77.
A business has ₱250000 in Liabilities and ₱400000 in Owner's Equity. What are its Assets?
a)
₱150000
b)
₱650000
c)
₱400000
d)
₱250000
78.
Paolo's business pays a ₱5000 supplier bill with cash. What is the effect on the equation?
a)
Assets decrease and Liabilities decrease
b)
Assets increase and Liabilities increase
c)
Assets decrease and Equity decreases
d)
Assets increase and Equity increases
79.
What is Revenue?
a)
Money spent on bills
b)
Money borrowed from a bank
c)
Money earned from sales or services
d)
Money invested by the owner
80.
What are Expenses?
a)
Money earned from sales
b)
Money invested by the owner
c)
The cost of doing business
d)
The total value of assets
100 %
