Republic of the Philippines

PALAWAN STATE UNIVERSITY

Narra Campus
Poblacion, Narra, Palawan

MIDTERM EXAMINATION
BEC 2001 Fundamentals of Accounting

NOTE: This is your test paper. Write your answer on separate TEST BOOKLET. Use
Journal for Test V. Read each instruction carefully.

Test 1. True or False. Write T if the statement is true and F if it is false. Use
CAPITAL LETTER only. Erasures will be marked incorrect.
Scoring: One (1) point for every correct answer. Minus one (-1) for every wrong
answer and zero (0) for a blank item.

1. Accounting is a service activity.

2. Accounting is the language of business.
3. Accounting is qualitative in nature.
4. Assets are resources owned and controlled by the business.
5. Owner’s equity is the amount left when you add asset and liability.
6. The Industrial Revolution was the transition to new manufacturing processes.
7. The corporation owners-the shareholder -were no longer necessarily the
managers of their business.
8. During the reign of the Roman Empire, accounting continued to evolve much
further. ”The Deeds of the Divine Augustus” is an account of Emperor
Augutus’ political dealings.
9. In 1494 Pacioli wrote Summa de Arithmetica, Geometria, Proportioni et
Proportionalita, which included a twenty-seven-page treatise on bookkeeping
in titled, Particularis de Computis et Scripturis.
10. The origin of keeping accounts has been traced as far back as 8500 B.C., the
date archeologist have establish for certain clay token-scones, disk, spheres
and pellets-found Mesopotamia.
11. Early accounting methods played a role in monitoring and public spending
among the Greeks, Romans and Egyptians.
12. The fourth industrial represent the combination of cyber-physical systems the
internet of things, and the internet of system in short it is the idea of smart
factories.
13. Entity concept states that business and personal transactions should be
recorded together in one book.
14. Asset increase on the credit side.
15. Matching principle states that expenses incurred in a period should be
matched against the revenue earned during the same period.

Test II. Enumeration

1-4 What are the four periods in the history of accounting.

5-7 The basic classification of accounts.
8-10 Enumerate at least three basic accounting concept.
10-12 Enumerate at least three kinds of assets.
13-15 Enumerate at least three expense accounts.

Test III. Account Classification. Classify each account as to asset, liability, owners
equity, expense or revenue.

1. Cash
2. Supplies
3. Accounts Payable
4. Notes Receivables
5. Malou Wang Capital
6. Furniture and Fixture
7. Utilities Expense
8. Consulting Revenue
9. Prepaid Rent
10. Accounts Receivables
11. Adik Tos Withdrawals
12. Salaries Expense
13. Loans Payable
14. Unearned Revenue
15. Rent Income

Test IV Prepare the Financial Transaction Worksheet for the following Transactions.

May 1 Lara Croft Invested P500,000.00 in a business Tomb Raider

Embalming
Services.
3 Purchased supplies on account, P20,000.00.
5 Purchased equipment on account, P100,000.00
9 Received P20,000 from clients served.
11 Billed customer for services rendered, P15,000.00
15 Paid salaries of employees, P20,000.00.
19 Withdrew cash for personal use, P10,000.00.
22 Collected cash, P15,000.00 from client previously billed.
24 Received cash from clients, P25,000.00
29 Paid P20,000 for the supplies purchased on account.
30 Received electric bill P5,000.00 which will be paid next month.

Use the following account titles: Cash, Accounts Receivables, Supplies, Equipment,
Accounts Payable, Lara Croft Capital, Lara Croft Drawing, Embalming Revenue,
Salaries Expense, Utilities Expense

Test V Prepare the journal entries for the transaction above. (You can use pencil for
Test V)

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