Inventory is recorded at the lower of cost or net realizable value

rather than the expected selling price. This ensures profit on the sale
of inventory is only realized when the actual sale takes place.
answer choices
Going Concern
Prudence Concept
Materiality Concept
History Cost
2. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
The same accounting procedure must be followed in the same way in
each accounting period.
answer choices
Consistency
Materiality
Objectivity
Conservatism
3. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
Financial statements contain all information necessary to understand
a business's financial condition.
answer choices
Full Disclosure
Periodicity
Going Concern
Objectivity
4. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
The revenue from business activities and the expenses associated
with earning that revenue are recorded in the same accounting
period.
answer choices
Matching Principle
Periodicity
Historical Cost
Full Disclosure
5. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
An accounting standard can be ignored if the net impact of doing so
has such a small impact on the financial statements that a reader of
the financial statements would not be misled.
answer choices
Materiality
Objectivity
Full Disclosure
Conservatism
6. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
Business transactions are reported in numbers that have common
values—that is, using a common unit of measurement.
answer choices
Money Measurement
Entity Concept
Revenue Recognition
Matching Principle
7. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
Financial statements are prepared with the expectation that a
business will remain in operation indefinitely.
answer choices
Going Concern
Consistency
Conservatism
Matching Principle
8. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
GAAP stands for:
answer choices
Generally Accepted Auditing Procedures
Generally Accepted Accounting Principles
Generally Accepted Accounting Procedures
Generally Auditing Accounting Principles
9. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
The Corona Limited Co. has three plants nationwide that cost a total
of P200 million. The current fair value of the plants is P600 million. The
plants will be recorded and reported as assets at:
answer choices
P200 M
P400 M
P600 M
P800 M
10. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
Information is based on actual costs incurred in transactions.
answer choices
Business Entity Concept
Matching Principle
History Cost Principle
Full Disclosure
11. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
Mr. Philip Pines is the owner of a beauty spa and wellness salon. He
bought a residential house and lot which he included in the balance
sheet of a beauty spa and wellness salon. This is a violation of
accounting principle.
answer choices
Business Entity
Going Concern
Conservatism
Objectivity
12. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
The manager of the business wrote on a piece of paper that utility
expenses incurred by the business were paid the amount of P2,222.
The bookkeeper asked for the invoice evidencing the payment before
recording it in journal.
answer choices
Objectivity
Materiality
Money Measurement
Going Concern
13. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
On June 25, Galing Repair Shop rendered service shop to a client for
P600. The service fee was collected July 4. The bookkeeper recorded
the revenue on June 25.
answer choices
Revenue Recognition
Matching Principle
History Cost
Objectivity
14. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
Bilis Computer Shop purchased P200 paper puncher. The useful life of
paper puncher is 5 years. The bookkeeper expense the entire cost of
P200 in the year it is purchased.
answer choices
Conservatism
Matching Principle
History Cost
Going Concern
15. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
Bookkeeping is a detail-oriented career that requires knowledge and
skills to do the job correctly.
answer choices
Competence
Integrity
Independence
Objectivity
16. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
Failure to keep information confidential could open the door to fraud,
identity theft, and other illegal activities if the information is shared
with the wrong parties.
answer choices
Integrity Standards
Confidentiality of Information
Professional Skill
Independence and Objectivity
17. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
A bookkeeper should always present the facts objectively and refrain
from slanting information in a misleading way.
answer choices
Integrity Standard
Objectivity
Professional Competence
Professionalism
18. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
A written policy document issued by expert accounting body or body
of government or regulatory body covering the aspects of recognition,
treatment, measurement, presentation and disclosure of accounting.
answer choices
Rule of Conduct
Accounting Standard
Accounting Ethics
Accounting Guidelines
19. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
These are broad, general statements or “rules” and “procedures” that
serve as guides in the practice of accounting
answer choices
Accounting Principles
Accounting Ethics
General Accounting Procedures
Professionalism
20. Multiple-choice
Edit
Report an issue
30 seconds
1 point
Q. 
Mrs Do has personal properties of amounting to P3 million pesos. One
half of this was invested in the business called Do Laundry Shop and
the other half in another business called Do Convenience Store. Two
financial reports were prepared by the bookkeeper, one for each
business.
answer choices
Money Measurement
Business Entity
Going Concern
Objectivity