MOUNT CARMEL SCHOOL OF MARIA AURORA (MCSMA), INC.

Formerly Mount Carmel High School

Maria Aurora 3202, Aurora

Prelim EXAMINATION
ABM 11 • FABM1

Name:______________________________ Date:__________________
Multiple choice:
Read each question below. Then, write the letter of your answer on your answer sheet.

1. What do you call the reports that reflect the financial standing and economic activities of the
business?
a. Accounting books b. Financial Accounts c. Financial Statements
2. Which of the following is considered the language of business?
a. Handshake b. Accounting c. Customers
3. Which of the following professions never uses accounting information?
a. Company managers b. Government Officials c. Neither of a and b
4. What refers to the interactions of a business with other businesses and stakeholders?
a. Business Investments b. Business Transactions c. Business Obligations
5. Which of the following is NOT a business stakeholder?
a. Customers b. Government Officers c. Neither of a and b
6. Who is considered the father of modern accounting?
a. Luca Pacioli b. Queen Victoria c. Augustus
7. Who does the job of identifying, recording, and communicating the financial events of a business?
a. Company owner b. Treasurer c. Accountant
8. What branch of accounting targets to educate students in the accounting field?
a. Financial Accounting b. Accounting Research c. Accounting Education
9. What government agency manages tax return filing and tax collection?
a. Bureau of Treasury b. Department of Education c. Bureau of Internal Revenue
10. In accounting, what term is used to refer to bills, coins, checks, deposits in banks, and bank drafts?
a. Cash b. Money c. Exchangeable
11. The following are steps in the accounting process except _________.
a. Identifying b. Recording c. Segregating
12. Which of the following is NOT considered a feature of accounting?
a. Accounting is a process. c. Accounting records all business happenings
b. Accounting is an information system.
13. What does GAAP stand for?
a. Generally Accepted Accounting Proposals
b. Generally Accepted Accounting Principles
c. Government Accepted Accounting Principles
14. Which of the following statements about accounting is NOT correct?
a. Accounting is a process.
b. Accounting is a service activity.
c. Accounting is an activity that follows unchangeable rules.
15. Which of the following statements about accounting is correct?
a. The history of accounting can be traced back to ancient Mesopotamia.
b. There is one only acceptable definition of accounting.
c. Accounting is a one-step process.

Ordering:
When did accounting start? Who were the people who contributed to its development? Order the
following events in accounting history and development by writing 1 for that which happened first, 2 for
that which happened next, and so on until 5. Be sure to be on watch for clues along each item. Write
your answers on your answer sheet
_______ 1. Luca Pacioli wrote his Summa de Arithmetic, Geometria, Proportioni et Proportionalita which
introduced double-entry bookkeeping in 1400s.
_______ 2. A remarkable leap in accounting took place in the 19th century when Queen Victoria of
Scotland gave a royal charter to the Institute of Accountants in
Glasgow.
_______ 3. Philippines has started to be completely compliant with the International Financial Reporting
standards to the present.
_______ 4. Egyptians invented the abacus of bead and wire and were making and keeping accounting
records.
_______ 5. The beginning of accounting can be traced back to income calculation and taxation activities
of Ancient Mesopotamia.

Identification. Examine the following problems and identify whether the user faced with the decision is
an internal user or an external user. Write the correct answer in the provided space before each
number.

________________ 1. Does the company have the ability to pay increased salaries and wages?
________________ 2. Should an investment be made in this company?
________________ 3. Does the company charge a fair rate for its goods and services?
________________ 4. Should I lend money to the company?
________________ 5. What is the company’s progress in achieving its goals and objectives?

Matching Type. Identify which type of user is underlined in the given scenarios.
Match the statements in column A with the words in column B. Write the letter of the
correct answer in the space provided.

Column A Column B

_____________ 1. Jill’s role is to oversee the company's sales operation. a. creditor

_____________ 2. ABC company lends money to XYZ company. b. employee

_____________ 3. Jack is the owner of Big Bang Proprietorship. c. government

_____________ 4. The tax department audits DEF’s Financial Statements. d.management

_____________ 5. Milk collects receivables from UVW company. e. owner