PANPACIFIC UNIVERSITY, INC

( formerly Panpacific University North Philippines, Inc. )

PACUCOA ACCREDITED ISO 9001:2008 CERTIFIED

PRELIM EXAMINATION – 1st Semester S.Y. 2018-2017

Subject: Fundamentals of Accounting

General Instructions: (1) Use only black or blue pen. No friction pen. (2)
Erasures/Superimposition/Alterations is considered wrong. (3) Do not tear or fold of any page/s of
your test booklet it will invalidate all your answers. (4) mind your own business and use only your
own calculator when needed. Anybody caught is considered cheating and will be dealt with
accordingly. (5) No permit, no exams.

Multiple Choice: Write the letter of your choice in CAPITAL LETTERS.(10 points)

1. The following can be found in an income statement except

a. Income b. assets c. expenses d. profit or loss
2. Which of the following is not subject to depreciation?
a. Building b. land c. equipment d. machinery
3. Which of the following is an intangible asset?
a. Trademarks b. copyrights c. patents d. all of the above
4. Another way of stating an accounting equation is
a. Assets = Liabilities + Owner’s Equity
b. Assets = Liabilities + Owner’s Equity
c. Assets - Liabilities + Owner’s Equity
d. Assets +Liabilities = Owner’s Equity
5. A credit entry decreases the balance of
a. Owner’s equity b. assets c. income d. liabilities
6. Decrease in asset may
a. Decrease another asset b. decrease liabilities c. increase capital d. increase liabilities
7. When an entity pays employees for their services, the effect is an increase in
a. expenses b. assets c. income d. liabilities
8. Which of the following is not a type of business?
a. Services b. trader c. agent d. manufacturing
9. The purchase of supplies for cash will
a. Increase supplies and decrease cash
b. Increase supplies expense and decrease cash
c. Decrease cash and increase accounts payable
d. Decrease cash and increase capital
10. The Father of Accounting is?
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a. Finance b. Dizon c. Pacioli d. Accounant

FundamentalsOfAccounting/DinoDizon