Draw the number of according to your choice of answer.

1. Which of the following is not a concept and principle of accounting?

Time-period
Accrual basis
Going Concern
Personal interest
Draw the number of according to your choice of answer.
2. Identify the concept defined or described; An Accounting entity is viewed as a continuing in operation.

Accounting Entity
Going Concern
Time Period
Monetary Unit
Draw the number of according to your choice of answer.

3. Which of the following accounting principles would require that all goods and services purchased be
recorded at cost?

Going-concern principle
Continuing-concern principle
Cost principle
Business entity principle

Draw the number of according to your choice of answer.

Monetary Unit
Going Concern
Business Entity
Time Period
Draw the number of according to your choice of answer.
5. Financial Statements of a company is prepared at a regular interval.

Going Concern
Time Period
Monetary Unit
Accounting Entity
Draw the number of according to your choice of answer.
6. Finch Dexter is the owner of Davao Animal Central. Which accounting principle requires Finch to keep his
personal financial information separate from the financial information of Davao Animal Central?

Monetary unit principle

7. This type of business buys raw materials and uses them in making a new product, therefore combining raw
materials, labour and expenses into a product for sale later on.

8 – 10. Provide the 3 forms of business organizations

11. This branch of accounting deals with developing future accountants by creating relevant accounting
curriculum. Accounting professionals can become faculty members of educational institutions. Accounting
educators contribute to the development of the profession through their effective teaching, publications of their
research and influencing students to pursue careers in accounting. Accounting teachers share their knowledge
on accounting so that students are informed of the importance of accounting and its use in our daily lives.
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12. Branch of accounting that report on the total cost of materials and labor used in the production

13. This involves keeping a chronological diary of events that are measured in pesos. The diary referred to in
the definition are the journals and ledgers which will be discussed in future chapters.

14. This involves selecting economic events that are relevant to a particular business transaction

15. This branch of accounting provides timely and relevant information for those internal users of
accounting information, such as the managers and employees in their decision-making needs.

16. A branch of accounting that deals with the process of recording, analyzing, classifying, summarizing,
communicating and interpreting financial information about the government in aggregate and in detail
reflecting transactions and other economic events involving the receipt, spending, transfer, usability and
disposition of assets and liabilities.

17. Branch of accounting that review tax compliance of the business.

18-19. Give at least 2 internal users of accounting information.

20-25. Give at least 5 external users of accounting

26-27. Give the difference between internal and external users of accounting
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28. A type of business organization owned by shareholders
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29. A type of business that offers professional skills, advice and consultations.

30. Type of business buys raw materials and uses them in making a new product, therefore combining raw
materials, labour and expenses into a product for sale later on.
31. A principle where revenue should be recognized when earned regardless of collection and expenses should
be recognized when incurred regardless of payment.

32. Accounting principle that is also known as prudence. In case of doubt, assets and income should not be
overstated while liabilities and expenses should not be understated. In case of doubt, expenses should be
recorded at a higher amount. Revenue should be recorded at a lower amount.
33. Indicate if there is an increase, decrease or not affected in the succeeding scenario.
Assets = ?
The owner withdraws business assets for personal use.

34. Indicate if there is an increase, decrease or not affected in the succeeding scenario.
Liabilities = ?
The company receives cash from a bank loan.

35. Indicate if there is an increase, decrease or not affected in the succeeding scenario.
Equity= ?
The company purchases supplies on credit.

36-37. Indicate if there is an increase, decrease or not affected in the succeeding scenario.
Assets = ?
Equity = ?
The company repays the bank that had lent money.

38. Indicate if there is an increase, decrease or not affected in the succeeding scenario.
Liabilities = ?
The company purchases equipment with its cash.

39-40. Indicate if there is an increase, decrease or not affected in the succeeding scenario.
Equity = ?
Liabilities = ?

The company purchases land by paying half in cash ang signing a note.