FUNDAMENTALS OF ACCOUNTANCY BUSINESS AND MANAGEMENT -1

GRADE 11- SY-2021

WRITTEN TEST

TRUE OR FALSE: Write TRUE if the statement is correct and FALSE if the statement is wrong.
1. The ability to turn into a need and opportunity to undertake a business is consistent with
the concept of environmental scanning.
2. The Cash-in versus cash-out technique of measuring business performance will always
result in the correct net profit.
3. A complete set of Financial statements has five basic components.
4. The financial statements are outputs of the accounting process.
5. The objective offFinancial statement is to provide information about the financial position,
financial performance and cash flows of a business that is useful to specific users so that
they can make sound decisions.
6. Financial statements provide information about a business assets, liabilities, equity,
income and expenses, cash flow, and contributions to owners in their capacity as
owners.
7. Business transactions are limited to interactions being engaged by business with
customers and suppliers.
8. There is only one acceptable meaning of accounting.
9. Accounting is only applicable to business rendering services because accounting is a
service business.
10. Because accounting is systematic, definite techniques and their application require
particular skill and expertise.
MULTIPLE CHOICE: Choose the letter of the best answer.
1. Which of the following is not a basic component of financial statement?
A. Statement of Financial Position B. Statement of change in cash
C. Statement of cash flows D. Income Statement
2. Economic activities relates to transactions affect ____________.
A. Financial performance B. Financial position
C. Cash Flows D. All of the above
3. Because accounting is an art, _____________
A. it refers to something that can be performed
B. It refers to skill that can be enhanced
C. It refers to behavioral knowledge
D. All of the above
4. Accounting being regarded as the performance of specific actions such as identifying,
measuring and communicating financial information is through the nature of accounting
A. a service business B. as a process C. an art D. a skill
5. Which professional organization below defines accounting as a service activity?
A.American Association of Certified Public Accountant
B. Philippine Institute of Certified Public Accountant
C. American Accounting Association
D. Accounting Satandard Council