Professional Documents
Culture Documents
Department of Education
Region IV – A CALABARZON
Paaralang Sekundarya ng Heneral Nakar
Brgy. Anoling General Nakar, Quezon
Potential Investors – Is it profitable for me to invest in this business? Banks – If extend a loan to this company, will it be able to
pay this loan? Does this company have sufficient resources to pay its loan? Suppliers – Do I extend credit to this company? For
how long? BIR – Is the owner paying the correct taxes? DOLE – Are the employees paid according to what the law states? Do
they get the benefits required?
Internal users of accounting information are those who are involved in planning, organizing and running the business. They need
more detailed information on a timely basis in order to support their decisions. Examples of these internal users are managers,
employees and owners.
The external users of accounting information are those individuals or organizations outside a company who are interested in its
financial information.
Fundamentals of Accountancy and Business Management 1
Work sheet No. 2-A
Name: _______________________________________________ Score: ___________________
Section: _________________ Date: ___________________
Answers : E, B, A, B, A, D, C
Fundamentals of Accountancy and Business Management 1
Work sheet No. 2-B
_______ 3. The rule that requires financial statements to reflect the assumption that the business will continue operating instead of
being closed or sold, unless evidence shows that it will not continue, is the:
a. Going-concern principle b. Business entity principle c. Objectivity principle
d. Cost Principle e. Monetary unit principle
_______ 4. To include the personal assets and transactions of a business's owner in the records and reports of the business would
be in conflict with the:
a. Objectivity principle b. Realization principle c. Business entity principle
d. Going-concern principle e. Revenue recognition principle
__________6. Marian Mosely is the owner of Mosely Accounting Services. Which accounting principle requires Marian to keep
her personal financial information separate from the financial information of Mosely Accounting Services?
a. Monetary unit principle b. Going-concern principle
c. Cost principle d. Business entity principle
______ 8. Which of the following accounting principles would require that all goods and services purchased be recorded at cost?
a. Going-concern principle b. Continuing-concern principle c. Cost principle d. Business entity principle
Fundamentals of Accountancy and Business Management 1
Work sheet No. 3
B. Indicate whether it is an increase (+), decrease (-), or no effect on the asset, liabilities and equity accounts.
Assets Liabilities Equity
1. Investment of cash in the business ___+____ __NE_____ ___+____
2. Purchase of computer equipment for cash ___NE____ __NE_____ ___NE____
3. Billed a customer for services rendered ___+____ __NE_____ ___+____
4. Paid salaries ___-____ __NE_____ ___-____
5. Purchased office supplies on credit ___+____ __+_____ ___NE____
6. Paid advertising expense ___-____ __NE_____ ___-____
7. Paid rent in advance for 3 months ___NE____ __NE_____ ___NE____
8. Received cash from customers on account ___+____ __NE_____ ___+____
9. Withdrew cash for personal use ___-____ __NE_____ ___-____
10. Invested land into the company ___+____ __NE_____ ___+____
Fundamentals of Accountancy and Business Management 1
Work sheet No. 5
Topic: Assets
a. Current b. Non-Current Assets c. Tangible d. Intangible Assets.
_____ 1. This assets are assets that can be realized (collected, sold, used up) one year after year-end date.
_____ 2. This assets Examples include Cash, Accounts Receivable, Merchandise Inventory, Prepaid Expense, etc.
_____ 3. This assets are assets that cannot be realized (collected, sold, used up) one year after year-end date.
_____ 4. This assets are Property, Plant and Equipment (equipment, furniture, building, land), long term investments, etc.
_____ 5. This assets are physical assets such as cash, supplies, and furniture and fixtures.
_____ 6. This assets are non-physical assets such as patents and trademarks
Fundamentals of Accountancy and Business Management 1
Work sheet No. 6
________1. It is a money on hand, or in banks, and other items considered as medium of exchange in business transactions.
________2. The amounts due from customers arising from credit sales or credit services. • Notes Receivable are amounts due
from clients supported by promissory notes.
________3. The assets held for resale
________4. The items purchased by an enterprise which are unused as of the reporting date.
________5. The expenses paid in advance. They are assets at the time of payment and become expenses through
the passage of time.
________6. The revenue earned but not yet collected
________7. The investments made by the company that are intended to be sold immediately
________8. The Property, Plant and Equipment are long-lived assets which have been acquired for use in operations.
________9. The investments made by the company for long-term purposes
Given : Canto Merchandising sells facsimile, copiers and other types of office equipment.
Transactions during the month of September 2016 are as follows:
Instructions:
1. Prepare journal entries to record the above transactions, assuming Canto uses periodic inventory system.
2. Prepare necessary adjusting entries on September 30, 2016.
Practice Set 1
Fundamentals of Accountancy and Business Management 1
Work sheet No. 8
Practice Set
Given :
Listed below are some of the accounts relating to the income of Leather Plus (owned by Abner Bravo) for the
three month period ended March 31, 2016:
Instructions:
1. Prepare a schedule of cost of goods sold for the three-month period ended March 31, 2016.
2. Prepare a statement of income for the period ended March 31, 2016. 3. Prepare closing entries.