Name: Kirk Vega

Date: September 25,2021

Ex. 2 Choose the correct answer from the choices. Check the letter of your answer
1. The form of business ownership whose owners are legally distinct from the business

a. Corporation ✔
b. Partnership
c. Sole proprietorship
d. All of the above

2. The objectivity principle of accounting means

a. The entity will be objective in its operation for the foreseeable future
b. The Entity will be objective the int financial statement preparation ✔
c. The Entity and the people that comprise the organization must be objective in the
operation of the business
d. The Entity records must be based on the most reliable data

3. The pr which states that the assets acquired by the entity should be recorded at their actual
price paid for.
a. Cost principle ✔
b. Objectivity Principle
c. Reliability Principle
d. Stable dollar principle

4. Transactions are reliable if they are

a. Relevant ✔
b. Truthful
c. Objective
d. Full and fair

5. Which of the following statement is not true

a. Reliable data must be supported by an objective supporting evidence
b. The informed opinion of owners is a vital source of aan objective evidence
c. An independent appraiser’s opinion is usually considered reliable ✔
d. Reliable data is verifiable

6. Net income can be computed as

a. Revenue – Expenses – dividends
b. Revenue + Expenses
c. Revenue – Expenses ✔
d. Revenue – Expenses + dividends
7. Via Nar has monthly revenue of P30,000, and a monthly expense of 18,000 how much is the
net
income for the month?
a. P8,000
b. P48,000
c. P26,000
d. 12,000 ✔

8. A company’s gross profit for a period is reported on the

a. Balance sheet
b. Income statement ✔
c. Statement of cash flow
d. Statement of Retained Earnings