Bulacan Polytechnic College

Bulihan, City of Malolos

SENIOR HIGH SCHOOL DEPARTMENT

1st Semester Sy. 19-20

1st Quarter Examination

Fundamental of Accountancy, Business and Management 1
score
Name: ______________________________________
Grade and section______________________________ Date: _____________

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I.MULTIPLE CHOICE
Directions: Read and analyze each of the following questions. Encircle the letter of the correct answer in each of
the following item.

__________ 1. It is a branch of accounting which focusses on the preparation of financial reports used by managers in
their day-to-day decision making.
A. Management Accounting B. Costs Accounting
C. Financial Accounting D. Tax Accounting
__________ 2. It is a formal written promises of the owner to pay a sum of certain in a future determinable time.
A. Accounts Receivable B. Accounts Payable
C. Notes Payable D. Notes Receivable
__________ 3. It’s a type of accounting principles states that the operations of business will continue to operate
indefinitely into the future.
A. Matching Principle B. Going Concern Assumption
C. Accrual Accounting D. Substance over Form
__________ 4. It’s a type of companies that deals with the buying and selling of goods.
A. Merchandising Companies B. Service Companies
C. Industrial Companies D. Manufacturing Companies
__________ 5. Open up a business and owner invested cash P100, 000. What is the correct journal entry?
A. Dr. Owner’s Capital P100, 000 B. Dr. Cash P100, 000
Cr. Cash P100, 000 Cr. Owner’s Capital P100, 000
C. Dr. Cash P10, 000 D. Dr. Owner’s Capital P10, 000
Cr. Owner’s Capital P10, 000 Cr. Cash P10, 000
__________ 6. These are the amounts received by the business earned as a result of selling product or render services.
A. Assets B. Expenses
C. Liability D. Income
__________ 7. It’s a type of principles of accounting consists standards, rules and guidelines that companies follow to
achieve consistency and comparability in their financial statements.
A. International Financial Reporting Standards B. Time Period Assumption
C. Accounting Entity Assumption D. Generally Accepted Accounting Principles
__________ 8. What are the two types of subsidiary ledger?
A. Cash Receipts & Cash Payment B. Sales & Purchases
C. Accounts Receivable & Accounts Payable D. Income & Expenses
__________ 9. It is a listing of the names of the accounts that a company has identified and made available for recording
of transactions.
A. Account Summary B. Chart of Accounts
C. Account Description D. Account Title
__________ 10. It is a kind of assets that belong to fixed assets or Non-Current assets.
A. Cash B. Brand
C. Receivables D. Machineries
__________ 11. Select what is the correct Operating Cycle for Merchandising Companies.
A. Cash Buy Goods Inventory Sells inventory Receives Payment from customers
B. Cash Inventory Sells inventory Buy Goods Receives Payment from customers
C. Cash Sells inventory Buy Goods Inventory Receives Payment from customers
D. Cash Inventory Buy Goods Sells inventory Receives Payment from customers
__________ 12. It was known as “The Father of Modern Accounting”.
A. Cassius Dio B. Augustus
C. Luca Pacioli D. Suetonius
__________ 13. It’s a type of accounting principles states that related revenues and expenses should always go together.
A. Prudence B. Matching Principle
C. Accrual Accounting D. Substance over Form
__________ 14. A Corporation can extend its life for a period not exceeding?
A. 30 years B. 40 years
C. 60 years D. 50 years
__________ 15. Select what is the correct Operating Cycle for Service Companies.
A. Cash on hand Performs services Paid Expenses Receives Payment from customers
B. Performs services Paid Expenses Cash on hand Receives Payment from customers
C. Performs services Cash on hand Paid Expenses Receives Payment from customers
D. Cash on hand Paid Expenses Performs services Receives Payment from customers

FABM 1/ First Quarter Exam /1st Sem SY. 19-20

__________ 16. Purchase office supplies on credit P5, 000. What is the journal entry for this transaction?
A. Dr. Office supplies P5, 000 B. Dr. Cash P5, 000
Cr. Cash P5, 000 Cr. Office supplies P5, 000
C. Dr. Office supplies P5, 000 D. Dr. Office supplies P5, 000
Cr. Accounts receivable P5, 000 Cr. Accounts Payable P5, 000
__________ 17. Which of the following can be considered a fiscal year?
A. March 1- December 31 B. October 1 – May 31
C. February 1 – January 31 D. January 1 – December 31
__________ 18. It is a branch of accounting that provides the information for management and financial accounting.
A. Cost Accounting B. Auditing
C. Management Accounting D. Financial Accounting
__________ 19. All of the following are external users of accounting Information, except for?
A. Government B. Customers
C. Stockholders D. Investors
__________ 20. It is a group of accounts with a similar characteristics (e.g., accounts receivables & accounts payables)
A. Trial Balance B. Subsidiary ledger
C. Journal D. General Ledger
__________ 21. It is a list of accounts with open balances in the general ledger. It shows the equality of the total debits
and total credits.
A. Journal B. Income Statement
C. Ledger D. Trial Balance
__________ 22. What is the correct equation in finding the Net Income or Net Loss?
A. Income – Liability = Net Income/Loss B. Income + Expenses = Net Income/Loss
C. Income – Expenses = Net Income/Loss D. Income – Equity = Net Income/Loss
__________ 23. It is defined as the art of recording, classifying, summarizing in a significant manner.
A. Management B. Accounting
C. Transactions D. Business
__________ 24. It is the grouping of all accounts of a company showing its respective outstanding balances. Also known
as Book of Final entry.
A. Ledger B. Trial Balance
C. Journal D. Balance sheet
__________ 25. All of the following are internal users of accounting Information, except for?
A. Employees B. Managers
C. Board of directors D. Public
__________ 26. What is the correct accounting equation?
A. Assets = Equity – Liability B. Assets = Liability + Equity
C. Equity = Assets + Liability D. Equity = Assets - Liability
__________ 27. What is the effect if you credit an income?
A. Decrease B. No Effect
C. None of the above D. Increase
__________ 28. It is a kind of liability that belongs to Non-Current liability.
A. Loan Payable, 2 yrs. B. Accounts Payable
C. Notes Payable D. Unearned Revenue
__________ 29. It is the amount consumed by the business to operate.
A. Assets B. Expenses
C. Liability D. Income
__________ 30. What is the correct equation in finding the Equity?
A. Assets = Equity - Liability B. Assets = Liability + Equity
C. Equity = Assets + Liability D. Equity = Assets - Liability
__________ 31. It is a type of business ownership whereby two or more persons bind themselves to contribute money,
property, and industry to achieve a common goal.
A. Sole Proprietorship B. Partnership
C. Corporation D. Cooperative
__________ 32. These are properties and rights owned by the business.
A. Income B. Owner’s Equity
C. Assets D. Liability
__________ 33. It is a nature of accounting entails creativity and skills to help us attain some objectives
A. Accounting is a means not an end B. Accounting is a process
C. Accounting is an art D. Accounting is an information system
__________ 34. It’s a type of accounting principles also called conservatism.
A. Prudence B. Matching Principle
C. Accrual Accounting D. Substance over Form
__________ 35. It is the process of recording a business transaction in the accounting records. Also known as Book of
Original entry.
A. Posting to the Ledger B. Trial Balance
C. Journalizing D. Balance sheet
__________ 36. What is the effect if you debit a liability?
A. Decrease B. Increase
C. No effect D. None of the above
__________ 37. Which of the following statements describes the accounting process?
A. Identifying relevant economic events B. Communicating financial information to interest users
C. Recording economic events D. All of the above

FABM 1/ First Quarter Exam /1st Sem SY. 19-20

__________ 38. All of the following are kinds of special journals, except for?
A. Purchase Journal B. Accounts Receivables
C. Sales Journal D. Cash Receipts Journal
__________ 39. It represents the obligations or debts to external creditors.
A. Assets B. Owner Equity
C. Liability D. Income
__________ 40. Paid office rent P25, 000. What is the journal entry for this transaction?
A. Dr. Cash P25, 000 B. Dr. Rent Expense P25, 000
Cr. Rent Expense P25, 000 Cr. Cash P25, 000
C. Dr. Rent Expense P25, 000 D. Dr. Salary expense P25, 000
Cr. Accounts Payable P25, 000 Cr. Cash P25, 000
__________ 41. It is a kind of assets that belongs to Intangible assets.
A. Trademark B. Accounts Receivable
C. Building D. Cash
__________ 42. Give the total amount for debit and credit for this transactions using the trial balance:
cash – P7, 000; office supplies – P1, 850; accounts receivable – P995; notes payable – P350;
capital – P7, 000; income – P3, 515; expenses – P1, 020.
A. Dr. P10, 865 Cr. P10, 865 B. Dr. P10, 000 Cr. P10, 000
C. Dr. P10, 495 Cr. P10, 495 D. Dr. P10, 500 Cr. P10, 500
__________ 43. What is the effect if you debit an expense?
A. Increase B. Decrease
C. No effect D. None of the above
__________ 44. It’s a type of accounting principles states that a business is an entity separate and distinct from its owner.
A. Prudence B. Accrual Accounting
C. Accounting Entity Assumption D. Substance over Form
__________ 45. What is the effect if you debit an asset?
A. Decrease B. Increase
C. No effect D. None of the above
__________ 46. What is the correct amount based on the accounting equation?
A. A= P28, 950 L= P1, 050 + E= P21, 850 B. A= P28, 950 L= P6, 250 + E= P21, 850
C. A= P28, 950 L= P7, 100 + E= P21, 850 D. A= P28, 950 L= P7, 050 + E= P21, 850
__________ 47. What is the ending balance of Accounts Payable using the t-account? Dr. – P475, P550
Cr. – P600, P425
A. Dr. P25 C. Cr. P25
C. Dr. P0 D. Cr. P0
__________ 48. It’s a type of accounting principles information presented in the financial statements of a company should
truthfully and faithfully.
A. Substance over form B. Time Period Assumption
C. Accrual Accounting D. Accounting Entity
__________ 49. It is a nature of accounting storehouse of information
A. Accounting is a means not an end B. Accounting is a process
C. Accounting is an information system D. Accounting is an art
__________ 50. It’s a type of accounting principles opposite of cash basis accounting.
A. Matching Principle B. Accrual Accounting
C. Substance over form D. Prudence

FABM 1/ First Quarter Exam /1st Sem SY. 19-20