PUNTA NATIONAL HIGH SCHOOL
Senior High School Department
PRETEST
1st Semester, S.Y. 2021-2022
Fundamentals of Accountancy, Business
and Management – 1
Name:_________________________________________
Directions: Choose your answer from the given choices.
Use separate sheets.
1: What is the process of IDENTIFYING, RECORDING
AND COMMUNICATING economic events of an
organization to interested users?
A. Accounting B. Management
C. Organization D. Planning
2: Which of the following is/are an objective/s of
accounting?
A. To ascertain the results of operations during the
period.
B. To ascertain the financial position.
C. To maintain control over assets.
D. All of the above.
3: Which of the following is the purpose of accounting?
A. To aid management in planning and performance
evaluation.
B. To provide information to government agencies and
other legal purposes.
C. To help end-users see the true picture of the business
in financial terms.
D. None of the above
4: What accounting function that is employed to ensure
all the business transactions are recorded in a systematic
manner in property books of accounts?
A. Communicating
B. Identifying
C. Recording
D. Summarizing
5: What is a measurement of rules used to develop the
information in financial
statements?
A. General-purpose financial reporting. B. Generally
accepted accounting principles.
C. Philippine Standards in Accounting
D. Securities and Exchange Commission.
6. “The owner of a business takes goods from inventory
for his personal use”. The transaction here is an example
of what accounting concept?
A. Accrual Concept
B. Business Entity Concept
C. Going Concern Concept
D. Substance over form Concept
7. Below are statements about Accounting Concepts.
Which of the following described the feature of
consistency of presentation?
A. Firms in the same industry must account for similar
items in the same way.
Strand & Grade Level: __________________
B. Firms may never change the way in which they
prepare their accounts.
C. In preparing the accounts of a firm, one should
normally account for similar
items in the same way from one accounting period to the
next.
D. All of the above
8. A business transaction with an omission or misstating
information which can influence and affect the decision
of the users of financial statements. Which of the
following accounting principle described the given
situation?
A. Adequate Disclosure
B. Expense Recognition Principle
C. Historical Cost
D. Materiality Principles
9. Which of the following statements best explain the
entity concept?
A. Accounts must be prepared for every firm.
B. Because a firm is separate and distinct from its
owners, those owners
cannot have access to its assets unless the firm ceases to
trade.
C. The financial affairs of a firm and its owner are
always kept separate for
the purpose of preparing accounts.
D. All of the above.
10. Which of the following accounting concepts states
that an accounting transaction should be supported by
sufficient evidence to allow two or more qualified
individuals to arrive at essentially similar conclusion?
A. Matching Concept
B. Objectivity Concept
C. Periodicity Concept
D. Stable Monetary Unit
11. Which of the following is NOT a feature of an asset?
A. Provide future economic benefits.
B. Value cannot be measured
C. Controlled by business
D. As a result of a past event.
12. Which of the following item is NOT an asset to a
company?
A. Cash B. Building C. Debt D. Vehicle
13. Which of the following is the BEST description of
capital or owner's equity?
A. It is the amount owed by the owner.
B. it is the net assets of the business.
C. it is contributed by the owners.
D. it is earned by the business.
 PUNTA NATIONAL HIGH SCHOOL
Senior High School Department
PRETEST
1st Semester, S.Y. 2021-2022

A. Cash Receipt Journal

14. Which of the following statement is NOT a B. General Journal
settlement method of a present C. Purchase Journal
obligation? D. Sales Journal
A. Provision of service.
B. Delivery of goods. 23. Those transactions for which there is no separate
C. Borrowing cash. D. Paying cash. book are recorded in the?
15. Retained earnings can be increased by A. Cash Receipt Journal
____________? B. General Journal
A. Borrowing C. Purchase Journal
B. Drawing D. Sales Journal
C. Owner’s investment
D. Profitable operation 24. The Person from whom the goods are purchased on
credit are called:
16. What is the principal classification of liabilities? A. Creditor
A. Accrued Income and Prepaid Expense B. Debtor
B. Current and Non-current Liabilities C. Purchaser
C. Mortgage and Loans Payable D. Seller
D. Current liabilities
25. Which of the following statements is false with
17. What type of account is prepaid insurance? regard to a Cash Receipts
A. Assets Journal?
B. Expense A. All receipts of cash from customers are recorded in it
C. Income B. Receipts of cash from the owner should NOT be
D. Owner’s Equity recorded in it
C. Receipt of cash from cash sales should be recorded in
18. What type of account is accrued income? it
A. Assets D. Receipts of cash from borrowings should be recorded
B. Expense in it
C. Liabilities
D. Owner’s Equity 26. What do you call this type of business offers
professional skills, advice and
19. Which of the following best describe PREPAID Consultations?
RENT? A. Merchandising business
A. It represents to the amount of money owed by the B. Manufacturing business
customers to the C. Service business
business. D. All of these
B. It refers to advanced payment made by the business to
cover future rental 27. What type of business is also known as "buy and
payments. sell"?
C. It is the physical structure owned and used by the A. Merchandising business
business to conduct its B. Manufacturing business
business operation. C. Service business
D. It refers to the amount of money owed by the D. All of these
customer or debtor to the
business evidenced by a promissory note. 28. What type of business buys raw materials and uses
them in making a new
20. What account title represent the cost being incurred product, therefore combining raw materials, labor and
by the business in generating revenues? expenses into a product for
A. Assets sale later on?
B. Expenses A. Merchandising business
C. Liabilities B. Manufacturing business
D. Revenues C. Service business
D. All of these
21. What is to be recorded in a purchase book?
A. All cash purchases 29. What do you call this step of accounting cycle, the
B. All Credit purchases documents used by the
C. All collections business are analyzed whether it has financial impact or
D. All purchases effect?
A. Journal Entries
22. All Collections from debtors are to be recorded in B. Closing the Books
what book? C. Posting
 PUNTA NATIONAL HIGH SCHOOL
Senior High School Department
PRETEST
1st Semester, S.Y. 2021-2022

D. Transactions C.Cash Receipts Book

D. Cash Disbursement Book

30. What is the last step of accounting cycle? 39. Company A has a total collection of three thousand
A. Journal Entries pesos (PHP3,000) coming
B. Closing the Books from M PHP800, N PHP1,200, and O PHP1,000. What
C. Posting book will be used to
D. Transactions record the total amount and the breakdown?
A. General ledger and subsidiary ledgers
31. What is the second step of accounting cycle? B. Subsidiary ledgers and general ledger
A. Journal Entries C. Cash receipts book and cash disbursement book
B. Closing the Books D. Cash disbursement book and cash receipts book
C. Posting
D. Transactions 40. ABC Company has the following credit sales: X =
32. Which of the following is an example of financial PHP4,500; Y = PHP2,000; and Z = PHP1,500. What is
transactions? the amount that will be recorded to the General Ledger of
A. Death of owner the receivable account?
B. Payment of electric bill A. PHP6,000
C. Hiring and termination of employees B. PHP7,000
D. Recognition from the government as most outstanding C. PHP8,000
business D. PHP9,000

33. What type of business document that acknowledges 41. PNOC Company has a ten thousand pesos
that money or a check have been received? (PHP10,000) written in its General Ledger of Accounts
A. Charge Invoice or Sales Invoice Receivable for the day. Subsidiary ledgers of X and Y
B. Check or Cash Voucher show an amount of PHP2,500 and PHP4,000 credited to
C. Official Receipt or Cash Receipt their account respectively. What must be the amount to
D. All of these be credited to the ledger of Z?
A. PHP3,000
34. What business document used when a service has B. PHP3,500
been rendered, but the client will be billed only after a C. PHP4,000
certain number of days from the date of service? D. PHP4,500
A. Charge Invoice or Sales Invoice 42. DEF Company purchased on account merchandise
B. Check or Cash Voucher worth PHP15,000 from M
C. Official Receipt or Cash Receipt Company, PHP20,000 from N Company, and O
D. All of these Company, PHP25,000. What book will be used to record
the above transactions and how much?
35. What business document used when a check is issued A. General ledger of Accounts Payable; PHP60,000
to pay a certain supplier or vendor? B. General Journal of Accounts Payable; PHP60,000
A. Charge Invoice or Sales Invoice C. General ledger of Accounts Receivable; PHP60,000
B. Check or Cash Voucher D. General Journal of Accounts Receivable; PHP60,000
C. Official Receipt or Cash Receipt
D. All of these 43. The Accounts Payable ledger of DEF Company
shows a debit entry of ten
36. What is the book of final entry? thousand pesos (PHP10,000). One ledger of the creditor
A. Journal shows a debit entry amounting to PHP7,000. If there is
B. Ledger one more creditor, what amount must be written on the
C. Cash book debit side of the individual ledger?
D. Sales book A. PHP3,000 C. PHP7,000
B. PHP11,000 D. PHP14,000
37. What book contains the individual account of the
customers of the company? 44. What side of the General and Subsidiary Ledgers an
A. Cash book Accounts Receivable will be
B. The journal written?
C. General ledger A. General Ledger: debit; Subsidiary Ledger: debit
D. Subsidiary ledger B. General Ledger: credit; Subsidiary Ledger: debit
C. General Ledger: debit: Subsidiary Ledger: credit
38. What book contains a summary of the individual D. General Ledger: credit; Subsidiary Ledger: credit
account of the different
customers of the company? 45. What side of the General and Subsidiary Ledgers an
A. General Ledger Accounts Payable will be
B. Subsidiary Ledger recorded?
 PUNTA NATIONAL HIGH SCHOOL
Senior High School Department
PRETEST
1st Semester, S.Y. 2021-2022

A. General Ledger: debit; Subsidiary Ledger: debit

B. General Ledger: credit; Subsidiary Ledger: debit
C. General Ledger: debit: Subsidiary Ledger: credit
D. General Ledger: credit; Subsidiary Ledger: credit

46. What is a part of the accounting cycle that will be

prepared before the
preparation of the financial statements?
A. Footing
B. Journalizing
C. Posting
D. Trial Balance

47. What part of the trial balance shows the name of the
company and the date?
A. Heading
B. Debit total
C. Credit total
D. Account titles

48. What amount will be written in the Trial Balance

concerning real and nominal
accounts?
A. Real accounts: ending balances; Nominal accounts:
total balance
B. Real accounts: total balances; Nominal accounts:
ending balance
C. Real accounts: beginning balances; Nominal accounts:
total balance
D. Real accounts: ending balances; Nominal accounts:
beginning balance

49. How do you present the different accounts in the

Trial Balance?
A. Assets, liabilities, capital, income, and expense
B. Assets, liabilities, capital, expenses, and income
C. Assets, liabilities, income, expense, and capital
D. Assets, liabilities, expenses, income, and capital

50. What side of the Trial Balance can you find expenses
and income accounts?
A. Expenses: debit; income: debit
B. Expenses: credit: income: debit
C. Expenses: debit; income: credit
D. Expenses: credit: income: credit

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Prepared by:
JUNCAR T. TOME
SHST-II