Republic of the Philippines

Department of Education
REGION III
SCHOOLS DIVISION OF BULACAN
Salapungan National High School
1st Quarter Exam in
FABM2

Direction: Choose the letter of the correct answer. Write your answer in a separate sheet of paper.

1. Accounting provides information on

(A) Cost and income for managers (C) Financial conditions of an institution
(B) Company’s tax liability for a particular year (D) All of the above

2. The long-term assets that have no physical existence but are rights that have value is known as
(A) Current assets (C) Intangible assets
(B) Fixed assets (D) Investments

3. The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
(A) Current assets (C) Intangible assets
(B) Fixed assets (D) Investments

4. Patents, Copyrights and Trademarks are

(A) Current assets (C) Intangible assets
(B) Fixed assets (D) Investments

5. The following is not a type of liability

(A) Short term (C) Fixed
(B) Current (D) Contingent

6. The liabilities that are payable in more than a year and are not liquidated from current assets
(A) Current liabilities (C) Contingent liabilities
(B) Fixed liabilities (D) All of the above

7. The debts, which are to be repaid within a short period (year or less) are known as
(A) Current liabilities (C) Contingent liabilities
(B) Fixed liabilities (D) All of the above

8. The sales income (Credit and Cash) of a business during a given period is called
(A) Transactions (C) Turnover
(B) Sales returns (D) Purchase returns

9. Any written evidence in support of a business transaction is called

(A) Journal (C) Ledger posting
(B) Ledger (D) Voucher

10. The accounts that records expenses, gains and losses are
(A) Personal accounts (C) Nominal accounts
(B) Real accounts (D) None of the above

11. In journal, the business transaction is recorded

(A) Same day (C) Once in a week
(B) Next day (D) Once in a month

12. The following is (are) the type(s) of Journal

(A) Purchase journal (C) Cash journal
(B) Sales journal (D) All of the above
13. The process of entering all transactions from the journal to ledger is called

Address:
Brgy.
Salapung
 Republic of the Philippines
Department of Education
REGION III
SCHOOLS DIVISION OF BULACAN
Salapungan National High School
(A) Posting (C) Accounting
(B) Entry (D) None of the above

14. The following is a statement showing the financial status of the company at any given time
(A) Trading account (C) Balance sheet
(B) Profit and Loss statements (D) Cash book

15. The following is a statement of revenues and expenses for a specific period of time
(A) Trading account (C) Profit and loss statements
(B) Trial balance (D) Balance sheet

16. Balance sheet is a statement of

(A) Assets (C) Capital
(B) Liability (D) All of the above

17. He was known as the “Father of Accounting”.

A. Stepehen Zeff C. Leonardo De Vinci
B. Barry Melancon D. Luca Pacioli
18. It refers to the method of performing any specific job step-by-step according to the objectives.
A. Accounting is a process. C. Identifying the events
B. Accounting is a service activity. D. Recording the events
19. These users need accounting information as a factor to consider in staying employment or to look for other employment
opportunities.
A. creditors C. owners
B. employees D. suppliers
20. These users need accounting information to evaluate and examine the feasibility of investing in a company.
A. creditors C. investors
B. employees D. suppliers
21. Accounting provides assistance to decision makers by providing them financial reports that will guide them in coming up
with sound decisions. What nature of accounting is this?
A. finance C. recording
B. recognition D. service
22. This involves keeping a chronological diary of events that are measured in pesos.
A. evaluating C. recording
B. recognizing D. summarizing
23. These are individuals and organizations outside a company who want financial information about the company. These
users are not directly involved in managing and operating the business.
A. external users C. internal users
B. keepers D. Recorders
24. It is known as the language of business because it communicates the financial information to the users.
A. accounting C. recording
B. communicating D. identifying
25. Which is the accounting equation?
A. assets= liabilities + owner’s equity C. owner’s equity = assets + liabilities
B. liabilities = assets + owner’s equity D. assets = revenue – expenses
26. What are the resources owned by the owners?
A. expenses C. revenues
B. liabilities D. assets

Address:
Brgy.
Salapung
 Republic of the Philippines
Department of Education
REGION III
SCHOOLS DIVISION OF BULACAN
Salapungan National High School
27. Which term refers to the obligations of the business?
A. liabilities C. revenues
B. assets D. owner’s equity
28. Which refers to the remaining amount of the assets after paying all the company’s liabilities?
A. revenues C. expenses
B. owner’s equity D. net profits
29. What does an extended accounting equation include?
A. revenues and expenses C. expenses and liabilities
B. revenues and assets D. none of the above
30. When the owner invested cash on the business, what account/s
increase/s?
A. assets and owner's equity C. liabilities and assets
B. assets only D. owner's equity only
31. Is there an effect on the assets account when the owner withdraws
cash for personal use?
A. Yes, it decreases. C. Yes, it increases and decreases
B. Yes, it increases. D. None of the above
32. What would be the effect to the liabilities of the business after availing
loan from Panata Bank?
A. It remains the same. C. It increases.
B. It decreases. D. None of the above
33. Mr. Kim has assets of Php1,000,000.00 and liabilities of Php 300,000.00
What is his equity?
A. Php 700,000 C. Php 800,000
B. Php 1,300,000 D. 0
34. The liabilities of Senshin’s Shop are Php 450,000 and his equity is
Php 780,000. What is the business' total assets?
A. Php 1,032,000 C. Php 1,023,000
B. Php 1,320,000 D. Php 1,230,000
35. This is not one of the five major accounts.
A. interest C. liability
B. income D. owner's equity

36. These are the resources owned by the owners.

A. assets C. revenues
B. liabilities D. expenses
37. These are the debts of the business.
A. liabilities C. revenues
B. assets D. owner's equity
38. Capital and drawings are examples of these.
A. owner's equity C. expenses
B. revenues D. net profit
39. This is a tangible asset.
A. land C. patent
B. goodwill D. copyright
40. This is the account title where the Unearned Revenue falls.
A. liability account C. income account
B. asset account D. revenue account

Address:
Brgy.
Salapung
 Republic of the Philippines
Department of Education
REGION III
SCHOOLS DIVISION OF BULACAN
Salapungan National High School
41. Loan payable and mortgage payable are examples of Non-Current Liabilities.
A. Yes, these are examples of Non-Current Liabilities. C. Yes, but sometimes these are current assets.
B. No, these are examples of Current Liabilities. D. No, because these are non-current assets.
42. It is the listing of the accounts used by the company to their financial records.
A. chart of accounts C. accounts receivable
B. list of accounts D. accounts payable
43. These are amounts due from third parties supported by promissory notes.
A. notes payable C. notebook
B. notes receivable D. none of the above
44. These are the items purchased by an enterprise that are unused as of the
reporting date.
A. supplies C. equipment
B. inventories D. machineries
45. These are long-lived assets that have been acquired for use in operations.
A. property C. non-current assets
B. property, plant, and equipment D. current assets
46. This is an increase in resources resulting from the performance of services
or selling of goods.
A. goodwill C. expenses
B. assets D. income
47. This is an account withdrawn by the owner for personal use from the
business.
A. capital C. drawing
B. accounts payable D. mortgage payable
48. This is a cash or payment collected in advance.
A. accounts receivable C. sales
B. service revenue D. unearned revenue

49. These consist the chart of accounts.

A. account code, account title C. description, date, account code
B. account, date, reference D. none of the above

50. According to AICPA, the definition of Accounting is?

A. The art of classifying, recording, 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.
B. The art of recording, classifying, and summarizing in a significant manner and events which are in part at least of a
financial character, and interpreting the results thereof.
C. The art of recording, classifying, and summarizing insignificant manner and in terms of money, transactions and events
which are in part at least of financial character, and interpreting the results thereof.
D. 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 financial character, and interpreting the results thereof.

Address:
Brgy.
Salapung