Joyland School Inc.

San Fabian, Pangasinan

Monthly exam.
Accounting
Grade 12 Gas

Name ______________________________ Score ___________

I. Multiple Choice. Read and analyze each item. Circle the letter of the best answer.

1. This branch of accounting focuses on creating value for the business by providing information used in
financial accounting and management accounting fields.

a. Accounting Education
b. Cost Accounting
c. Tax Accounting
d. Auditing

2. One of the differences of financial accounting from management accounting is

a. Financial accounting are beneficial to external users only.

b. Financial accounting can be used by internal users only.
c. Financial accounting produces reports known as the financial statements.
d. Financial accounting, unlike management accounting, primarily aims to help managers in their
decision- making.

3. Information produced by this branch of accounting aims to educate students in the field of accountancy

a. Accounting Education
b. Accounting Research
c. Financial Accounting
d. Management Accounting

4. Which of the following qualifications of an external auditor is considered the most important?

a. Competence
b. Objectivity
c. Independence
d. Integrity

5. Financial accounting is concerned with

a. General purpose financial statements

b. Special purpose financial statements
c. Tax returns
d. Management reports

6. Financial accounting reports primarily to

a. Government agencies
b. Taxing authorities
c. Top management of the company
d. Creditors and investors

7. Which of the following is true about the board exam of accountancy students?
 a. In order to pass, a student needs to achieve a general average of at least 75%.
b. All in all, there are a total of six subjects in the board exam.
c. In order to pass, a student should not get a rating below 60% in any of the subjects.
d. a and c only
8. The primarily guidance followed by tax accountants is

a. National Internal Revenue Code (NIRC)

b. Philippine Financial Reporting Standards (PFRS)
c. Philippine Accounting Standards (PAS)
d. Chartered Institute of Management Accountants (CIMA)

9. These are cost that do not change in total amount within a relevant range of activity.

a. Variable costs
b. Fixed costs
c. Direct costs
d. Indirect costs

10. Which government agency is responsible for the keeping of the national funds of the government?
a. Bureau of Treasury
b. Department of Budget and Management
c. Commission on Audit
d. Department of Education

11. What is the main benefit of standardized financial statements?

a. Easier to prepare than no-standardized financial statements

b. Provide more useful information for internal users
c. Adhere to the requirements of relevant accounting standards
d. Enhance the comparability and understandability of financial statements

12. Which of the following is NOT a role of a management accountants?

a. Assists in the preparation of general purpose financial statements

b. Monitors spending and financial control
c. Conducts internal business audits
d. Explain the impact of the competitive landscape

13. The frequency of reports generated by management accounting can be best described as

a. Annually
b. Quarterly
c. Semi-annually
d. Whenever management demands

14. Which of the following agency is NOT charged with government accounting responsibility?

a. Government agencies
b. Bureau of Treasury
c. Legislative Department
d. Commission on Audit

15. The role of the Commission on Audit in the government accounting process includes
 a. Efficient and sound utilization of government funds
b. Keeping and updating the accounting books of the government
c. Management and distribution of government funds
d. Safekeeping of the national funds

16. Which of the following is a purpose of auditing?

a. To ensure that the financial statements are free from errors

b. To check the presentation of the financial statements
c. To enhance the credibility of the financial statements
d. None of the above

17. The primary users of the financial statements include

I. Potential and existing investors

II. Customers and creditors
III. Government agencies
a. I only
b. I and II only
c. II and
d. I, II, and III

18. Which of the following can be considered as an internal user?

a. Board of directors
b. Creditors
c. Investors
d. Customers

19. Which of the following is an objective of financial reporting?

a. To help management in the company's decision-making

b. To solve conflicts inside the company's
c. To help interested users in their economic decisions
d. To adhere to government rules and regulations

20. Financial statements that undergo the process of auditing are called

a. Audited financial statements

b. Certified financial statements
c. Qualified financial statements
d. Financial statements; as is

21. These are resources sacrificed to achieve an objective.

a. Expenses
b. Costs
c. Benefits
d. Revenues

22. Statement I - Managers of a company are considered internal users of financial reports.
Statement II- The public, even if not potential investors, creditors, or customers, are considered
external users of financial reports.
 a. Both statements are true.
b. Only statement I si true.
c. Only statement II is true.
d. Both statements are false.

23. Statement I - Only Certified Public Accountants who passed the board exam can practice the
the profession of accountancy in the Philippines.
Statement II - Auditors are also users of general purpose financial statements.

a. Both statements are true

b. Only statement I si true.
c. Only statement II is true.
d. Both statements are false.

24. Statement I - Indirect costs are costs that can be economically traced to a cost object.
Statement II - Direct costs are costs that cannot be traced to a costs object.

a. Both statements are true

b. Only statement I is true
c. Only statement II is true
d. Both statement are true.

25. Statement I - Fixed costs are costs that do not change within a relevant range of activity.
Statement II - Variable costs are costs that change as the level of activity or production increases.

a. Both statement are true.

b. Only statement I is true.
c. Only statement II is true.
d. Both statements are false.