FUNDAMENTALS OF ACCOUNTANCY, BUS. & MNGT.

1
LONG QUIZ

Name: ______________________________________ Score _______________________

Grade:______ Section/Block: ___________________ Date: _______________________
TEST I. TRUE OR FALSE
DIRECTIONS: Write TRUE if the statement is correct and FALSE if the statement is incorrect. Write your answer
on the space provided before each number.
________1. Ledger is the chronological record of all company’s transactions listed by date.
________2. Books of accounts are the finance records, ledgers, and journals that compose the company’s
accounts.
________3. General journals are used by large companies for recurring transactions such as sales on account
and purchases of merchandise on account.
________4. Posting involves the transferring of journal entries to the ledger accounts to bring together the
effect of the transactions to the individual accounts of the company.
________5. General Ledger is the most basic type of journal.
________6. General Ledger are usually grouped according to their chart of accounts and arranged according to
the order on how they appear on the financial statements, starting from liabilities accounts, followed by assets
accounts, and finally, the equity accounts including revenues and expenses accounts.
________7. Special journals are usually used to record typical and similar types of transactions.
________8. The basic audio representation of account is T-account.
________9. Journalizing is the process of recording business transactions in the books.
________10. Journalizing is the process of transferring of balances from journals to the general ledger.

TEST II. FILL IN THE BLANK (2 points each)

DIRECTIONS: Fill each blank with the correct answer. Write your answer on the blank provided. USE CAPITAL
LETTERS ONLY.
1. Revenues minus expenses equals ______________.
2. Obligations (amounts owed) are reported on the balance sheet and are referred to as _________.
3. Assets minus liabilities equals ____________.
4. ________ is the term associated with the word “left” or “left side” account.
5. When cash is received, the account Cash will be ________.
6. When a company pays a bill, the account Cash will be __________.
7. ________ is the term associated with the word “right” or “right-side”.
8. The accounting cycle begins by recording _______________ in the form of journal entries.
9. After a business transaction has occurred, journal entries are recorded in the: ________________.
10. Once journal entries are recorded, they can be posted to: ________________.

TEST III. IDENTIFICATION TEST

DIRECTIONS: Write your answer on the space provided below the questions.
1. Assets are usually reported on the balance sheet at which amount/account?
2. Unearned Revenues is what type of account?
3. What will usually cause an asset account to increase?
4. What will usually cause the liability account Accounts Payable to increase?
5. It is the process of transferring account to the ledger.

1. __________________
2. __________________
3. __________________
4. __________________
5. __________________
TEST IV. WORD SCRAMBLES
DIRECTIONS: Arrange the letter to satisfy the appropriate answer to each question. Write your answer
on the space provided after the question. USE CAPITAL LETERS ONLY.
1. Resources. (SSSTAE) 10. It is the basic representation of an
2. Obligations. (EITILASIBIL) account. (T NCOACUT)
3. Sales on account that have not yet been
collected are accounts _____________. 1. ______________
(LVEIECAERB) 2. ______________
4. Merchandise on hand. (NYTRIEONV) 3. ______________
5. A corporation’s owner’s equity is 4. ______________
referred to as ___________’ equity. 5. ______________
(THEROLKODSCS) 6. ______________
6. Inventories are often at the lower of 7. ______________
cost or __________. (KATMER) 8. ______________
7. One section of stockholders’ equity is 9. ______________
paid-in or contributed_________. 10. ______________
(PLATCIA)
8. Another term for shareholders.
(SCSDOKLOREHT)
9. Noncurrent liabilities are also referred
to as _____-term liabilities. (GLON)

TEST V. MULTIPLE CHOICE (2 points each)

DIRECTIONS: Read and analyze each question and encircle the letter that correspond to your best
answer.
1. When an owner draws ₱5,000 from a sole proprietorship or when a corporation declares and pays a
₱5,000 dividend, the asset Cash decreases by ₱5,000. What is the other effect on the balance sheet?
a. Owner’s/Stockholders’ Equity Decreases
b. Liabilities Increases
c. Inventory Decreases
d. None
2. BIE Co. incurs cleanup expense of $500 on December 30. The supplier’s invoice states that the $500 is
due by January 10 and BIE will pay the invoice on January 9. BIE follows the accrual accounting and its
accounting year ends on December 31. What is the effect of the cleanup service on the December
balance sheet of BIE?
a. Liabilities Increased
b. Assets Decreased
c. No effect on Owner’s Equity
d. Assets Increased
3. Notes Payable could not appear as a line on the balance sheet in which classification?
a. Current Assets
b. Current Liabilities
c. Long-term Liabilities
d. Equity
4. On December 1, ABM Co. hired Juanita Perez to begin working on January 2 at a monthly salary of
$4,000. ABM’s balance sheet of December 31 will show a liability of?
a. $4,000
b. $48,000
c. $50,000
d. No Liability
5. BES Co. has current assets of ₱50,000 and total assets of ₱150,000. BES has current liabilities of
₱30,000 and total liabilities of ₱80,000. What is the amount of BES’ owner’s equity?
a. ₱20,000 c.₱70,000
b. ₱30,000
d.₱120,000

“It does not matter how slowly you go, as long as you do not stop.”
-Ma’am Irish