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INITAO COLLEGE
Jampason, Initao, Misamis Oriental
1st Semester, S.Y. 2021 - 2022
EC1 – Module 2 Assessment

NAME: __________________________________ DATE: _____________

COURSE: __________ GROUP NO. _____ LEARNING HUB: ______________________
Fill in the blanks above. Use the spaces below as your answer sheet. Shade your answer properly using a
blue or black ball pen only. Erasures are automatically marked wrong. Two points each.

1. [A] [B] [C] [D] 6. [A] [B] [C] [D] 11. [A] [B] [C] [D]
2. [A] [B] [C] [D] 7. [A] [B] [C] [D] 12. [A] [B] [C] [D]
Score:
3. [A] [B] [C] [D]
4. [A] [B] [C] [D]
8. [A] [B] [C] [D]
9. [A] [B] [C] [D]
13. [A] [B] [C] [D]
14. [A] [B] [C] [D]
30
5. [A] [B] [C] [D] 10. [A] [B] [C] [D] 15. [A] [B] [C] [D]

1. Accounting is a service activity. Its function is to provide _________________.

a. quantitative information.
b. qualitative information.
c. quantitative and qualitative information.
d. none of the above.

2. The basic purpose of accounting is _______________.

a. To provide the information that the managers of an economic entity need to control its operations.
b. To provide information that the creditors of an entity can use in deciding whether to make additional
loans to the entity.
c. To measure the periodic income of the economic entity.
d. To provide quantitative financial information about a business enterprise that is useful in making
rational economic decision.

3. Which area of public accounting means the examination of financial statements by a Certified Public
Accountant (CPA) for the purpose of expressing an opinion as to the fairness of the statements?
a. Management Advisory Services c. Internal Auditing
b. Taxation d. External Auditing

4. Statement 1: To be useful in making decisions, the recorded data must be classified and summarized.
Statement 2: Classification increases the effects of numerous transactions into useful groups or
categories.
a. True, True b. False, False c. True, False d. False, True

5. Statement 1: An important responsibility of management is to control costs.

Statement 2: Manufacturing companies use management accounting to calculate the cost of making
products.
a. False, True b. True, False c. True, True d. False, False

6. Why do managers need accurate and timely financial data?

a. To make intelligent decisions in solving business problems c. To pay lesser tax
b. To promote the products in their website d. To increase the selling price of products

7. Statement 1: Accounting uses historical data to form the basis for future budgets and cost controls.
Statement 2: Managers monitor the regular accounting reports to make sure costs exceed the budgets.
b. False, False b. False, True c. True, False d. True, True
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8. It is the art of recording, classifying and summarizing in a significant manner and in terms of money,
transactions and events which are, in part at least, of a financial character, and interpreting the results
thereof.
a. Auditing b. Accounting c. Taxation d. Marketing Management

9. It is commonly defined as a financial plan for a defined period, normally a year that is known to greatly
enhance the success of any financial undertaking.
a. Budget b. Cost Control c. Sales Plan d. Audit Report

10. The process of recording, analyzing and reporting all of a company’s costs related to the production of
a product is called ____________.
a. Auditing b. Management Accounting c. Cost Accounting d. Financial Accounting

11. Statement 1: A manager’s decisions may not be backed up with factual data.
Statement 2: To successfully achieve the company’s objectives, organizations must create plans.
a. True, False b. False, True c. False, False d. True, True

12. A branch of accounting concerned with the summary, analysis and reporting of financial transactions
related to a business.
a. Auditing b. Management Accounting c. Cost Accounting d. Financial Accounting

13. Statement 1: Accounting assists in a range of decision-making process and help owners in developing
policies to increase the efficiency of business processes.
Statement 2: Some examples of decisions based on accounting information include the price to be
charged for products and services and the resources needed to make these products.
a. True, True b. False, False c. True, False d. False, True

14. A professional who is responsible for keeping and interpreting financial records is called _________.
a. an auditor b. a manager c. an accountant d. a sales agent

15. Statement 1: An accountant only records transactions of a business.

Statement 2: Interpreting the financial information cannot be made by an accountant.
a. True, False b. True, True c. False, False f. False, True
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INITAO COLLEGE
Jampason, Initao, Misamis Oriental
1st Semester, S.Y. 2021 - 2022
EC1 – Module 3 Assessment

NAME: __________________________________ DATE: _____________

COURSE: __________ GROUP NO. _____ LEARNING HUB: ______________________
Instructions: Fill in the blanks above. Use only black or blue ball pen.

Scenario: Juan Dela Cruz paid the Club Tara Suite ₱20,000 on August 20, 2021 for a one-week hotel
accommodation to be consumed starting September 4, 2021. Suppose you are tasked to give a financial
report at the end of August 2021. Explain why accrual basis of accounting will provide a better measure
of income for Club Tara Suite. Your answer should not exceed 100 words. Use the spaces below for
your explanation. (50 points)

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