Answer Key

Quizzers - - - - - -

1-1
Identifying Business Transactions

Instruction: Under the “business entity concept” which of the following are considered as business transactions and
events. Place a “check mark” on the space provided:
1. /
2. /
3.
4.
5. /
6. /
7.
7. /
8. /
10. /

1-2
Identifying the Nature of Business Organization

Instruction: Enumerated below are the list of business organizations. Identify and classify each based on the nature of
business whether it is a Service Concern, Trading or Merchandising, Manufacturing, Agri-Business and Hybrid Business.

1. Service Concern 11. Service Concern

2. Trading or Merchandising 12. Trading or Merchandising
3. Agri-Business 13. Manufacturing
4. Service Concern 14. Service Concern
5. Service Concern 15. Service Concern
6. Manufacturing 16. Service Concern
7. Trading or Merchandising 17. Service Concern
8. Manufacturing 18. Service Concern
9. Agri-Business 19. Service Concern
10. Agri-Business 20. Service Concern
 1-3
Classifying Accounting Elements

Instruction: Classify the following account tittles as to Assets, Liabilities and Owner’s Equity (Income, Cost and
Expense). Use “check mark”.
ASSET LIABILITY OWNER’S
EQUITY
Sample (a) Rent Expense /
1. Cash In Bank /
2. Barroga, Capital /
3. Prepaid Expenses /
4. Accounts Receivable /
5. Accounts Payable /
6. Unused Office Supplies /
7. Taxes And Licenses /
8. Uncollectible Accounts /
9. Barroga, Drawing /
10. Notes Payable /
11. Repairs And Maintenance /
12. Accrued Income /
13. Petty Cash Fund /
14. Insurance Expense /
15. Purchases /
16. Cash On Hand /
17. Unearned Income /
18. Accumulated Depreciation /
19. Estimated Uncollectible Accounts /
20. Sales /
21. Merchandise Inventory, Beginning /
22. Freight Out /
23. Sales Returns And Allowances /
24. Merchandise Inevntory, End /
25. Freight In /
 1-4
Filling the blanks

Instruction: On the space provided, indicate the appropriate account title for the following:

1. Cash

2. Accounts Payable

3. Cash Equivalents

4. Store equipment

5. Store furniture and fixtures

6. Service income

7. Cost of sales or cost of goods sold

8. Sales

9. Freight in

10. Freight out

11. Sales discount

12. Sales returns and allowances

13. Purchase returns and allowances

14. Uncollectible account / doubtful account

15. Depreciation expense

16. Unearned income

17. Miscellaneous expense

18. Mortgage payable

19. Intangible asset/s

20. Utilities expense

 1-5

Multiple Choice Type

1. C
2. A
3. D
4. C
5. D
6. A
7. B
8. A
9. B
10. D
11. D
12. A
13. A
14. D
15. D
16. A
17. D
18. B
19. A
20. C

Exercises and Problems - - - - - -

1-6

Determination of Unknown Accounting Values

CASE 1 CASE 2 CASE 3

Assets P150,000 P250,000 P180,000

Liabilities P90,000 100,000 120,000

Owner’s Equity P60,000 P150,000 P300,000