Republic of the Philippines

Department of Education
Region V – Bicol
SCHOOLS DIVISION OFFICE OF CAMARINES NORTE
CARINGO HIGH SCHOOL
MERCEDES DISTRICT
Barangay Caringo, Mercedes, Camarines Norte

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1

(Grade 12)
1st Quarter Exam

Name: __________________________________________________ Score: ________________________

DIRECTION: Read the statement carefully choose the letter of the correct answer and write
it on the space provided before each number.
_______1. It is a service activity that provides quantitative information which is financial in nature.
a. Bookkeeping c. Journalizing
b. Accounting d. Selling
_______2. The double entry system of accounting was first established by:
a. An Indian Philosopher c. An Asian Monk
b. An Italian Priest d. A Middle East Prophet
_______3. In the definition of accounting, the transactions and events are expressed in:
a. Monetary Value c. Quantitative means
b. Qualitative Nature d. None of the above
_______4. Managers, production supervisors, owners, and finance directors are in this group
who are into planning, organizing, and operating the business. Who are these users?
A. external users B. keepers C. internal users D. recorders
_______5. 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 B. recognition C. recording D. service
_______6. Mass production and the great importance of fixed assets were given attention
during this period. What part of evolution of accounting history is this?
A. Cradle Civilization B. French Revolution C. Industrial Revolution D. The Present

_______7. The principle that requires every business to be accounted separately and
distinctly from its owner or owners is known as the .
A. objectivity principle C. going-concern principle
B. business entity principle D. revenue recognition principle
_______8. It requires the expenses incurred during a period to be recorded in the same
period in which related revenues are earned. This refers to .
A. matching principle C. conservatism principle
B. objectivity principle D. materiality principle
_______9. The accounting principle that requires all goods and services purchased to be
recorded at cost is the .
A. going-concern principle C. cost principle
B. continuing-concern principle D. business entity principle
_______10. Mr. Lopez has his shoe branch in America and the financial records there are in
dollars. Which accounting principle best describes the situation?
A. Materiality principle C. Monetary Unit principle
B. Objectivity principle D. Cost principle
_______11. Charlie prepares financial statements yearly as what his boss wanted.
A. Materiality principle C. Time Period principle
B. Objectivity principle D. Cost principle
_______12. Increase in Capital is
a. Debit c. both a and b
b. Credit d. None of the above
_______13. Decrease in Liability is
a. Debit c. both a and b
b. Credit d. None of the above
_______14. What will happen when we credit our income?
a. Revenue will increase c. Capital will decrease
b. Revenue will Decrease d. Asset will increase
_______15. Collected P 5,000 from a patient undergoing surgery.
a. Increase in assets = increase in capital
b. Increase in assets = decrease in capital
c. Deacrease in assets = increase in liabilities
d. Increase in one form of asset = decrease in another form of asset
_______16. Paid the monthly rental of the clinic for P 10,000.
a. Increase in assets = increase in capital
b. Increase in liabilities = increase in capital
c. Deacrease in assets = decrease in capital
d. Increase in assets = decrease in capital
_______17. Which among the following explains the dual effect principle?
a. Left side of the equation must be equal to the right side of the equation
b. Every transaction will affect your debit and credit side
c. both a and b
d. None of the above
_______18. Represents the amount collectible to customers arising from sales of
merchandise or performance off services.
A. Payables C. Unearned revenues
B. Receivables d. Sales Revenue
_______19. Examples includes goodwill, patent, copyright, franchise, trademark, brand
names
a. Current Assets c. Non-Current Assets
b. Fixed Assets d. Intangibles
_______20. Amount owed to unpaid expenses
a. Accounts Payable c. Prepaid Expenses
b. Accrued Expenses d. Salaries Expenses
_______21. Which among the following is not part of Non-Current Assets?
a. Trademark c. Building
b. Land d. Cash
_______22. What are the 3 major accounting elements?
a. Asset, Income, Liabilities c. Asset, Liabilities, Capital
b. Asset, Liabilities, Expenses d. Asset, Liabilities, Income
_______23. Are debts or financial obligations of an individual or company to other
individuals or companies.
a. Asset c. Capital
b. Liabilities d. Expenses
_______24. What is the difference between Accounts Payable and Notes Payable?
a. Accounts payable is a written agreement while Notes payable is an oral agreement
b. Accounts payable is a promise to pay while Notes payable is collection from
clients who owe you.
c. Accounts payable is an oral agreement while Notes payable is a written agreement
d. None of the above
_______25. What is the difference between Receivables from Payables?
a. Receivables refer to the money that you owe while Payables refer to the money
that others owe you.
b. Payables refer to the money that you owe while Receivables refer to the money
that others owe you.
c. Payables refer to your unearned income while Receivables refer to the money that
others owe you.
d. None of the above
_______26. Which is not Part of Current Liabilities?
a. Mortgage Payable c. Unearned Revenue
b. Accounts Payable d. Accrued Expenses
_______27. Why is Intangibles part of Non-Current Assets?
a. They are the only part of assets that appreciates in the future
b. They have no physical aspect
c. They can be used in a longer period of time
 d. None of the above
_______28. What happen when we debit cash?
a. Asset will increase c. Asset will not be affected
b. Asset will decrease d. Capital will increase
_______29. What happen when we debit Accounts payable?
a. Liability will increase c. Liabilities will not be affected
b. Liability will Decrease d. Capital will increase
_______30. What will happen when we credit Investment?
a. Liability will increase c. Capital will decrease
b. Liability will Decrease d. Capital will increase
_______31. What will happen when we debit rent expense?
a. Expense will increase c. Asset will decrease
b. Expense will Decrease d. Liabilities will increase
_______33. The normal balance of withdrawal is?
a. Debit b. Credit c. Nominal d. Rational
_______34. The Decrease account of an expenses is.
a. Debit b. Credit c. Nominal d. Rational
_______35. To increase the liabilities and capital is what the normal balance?
a. Debit b. Credit c. Nominal d. Rational
_______36. Which transaction will increase your liability?
a. Purchase supplies and paid cash c. Payment of Expenses
b. Investment of the owner d. Purchase equipment on account
_______37. What will happen when you pay for your for the money that you borrow from
your creditor?
a. increase capital c. increase asset
b. decrease liability d. increase liability
_______38. What happens when you withdraw money from your business?
a. asset will increase c. capital will increase
b. asset will decrease d. none of the above
_______39. Which among the following is not an expense?
a. Prepaid expense c. rent expense
b. salary expense d. utilities expense
_______40. What will happen when you purchase equipment and paid cash?
a. Asset will increase, liability will also increase
b. Asset will increase, Capital will also increase
c. Asset will increase and another asset will decrease
d. None of the above
_______41. The information contained in the financial statements is useful to the:
a. Owners of the business organization
b. Creditors and investors, customers and government entities
c. Management and employees
d. All of the above
_______42. The statement of financial position provides information about:
a. the financial position of the business
b. The function of accounting system
c. The profitability of the business
d. None of the above
_______43. The statement of income provides information about:
a. The comapany’s performance in terms of profit or loss
b. The financial position of the business
c. The resources acquired by the business
d. The function of accounting system
_______44. What financial statements are prepared at the end of accounting period?
a. Statement of income
b. Statement of fiancial position and changes in owner’s capital
c. Statement of cash flows
d. All of the above
_______45. The balance sheet can be presented in:
a. Report form b. Account form c. Either a or b d. None of the above
_______46. Preparation of the financial statement will be made easier if facilitated through
the preparation of;
a. Trial balance b. The general ledger c. Journal entries d. Worksheet
_______47. Which of the following is not a contra-asset account?
a. Accumulated Depreciation c. Accrued Expense
b. Allowance for uncollectible accounts d. None of the above
_______48. Which of the following is a liability?
a. Rent Revenue c. Accumulated Depreciation
b. Unearned Revenue d. Allowance for uncollectible accounts
_______49. An item not usually found in the statement of financial position is:
a. Unearned Revenue
b. Allowance for uncollectible accounts
c. Accumulated Depreciation
d. None of the above
_______50. Which of the following would not have any effect on the statement of income?
a. Drawings made by the owner
b. Rent expense
c. Revenue or income
d. Used supplies

G-O-O-D L-U-C-K!

Prepared by:

ALVIN ECHANO ASANZA

SHS Teacher II

Republic of the Philippines

Department of Education
 Region V – Bicol
SCHOOLS DIVISION OFFICE OF CAMARINES NORTE
CARINGO HIGH SCHOOL
MERCEDES DISTRICT
Barangay Caringo, Mercedes, Camarines Norte

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1

(Grade 12)
st
1 Quarter REMEDIAL Exam

Name: __________________________________________________ Score: ________________________

_______1. The principle that requires every business to be accounted separately and
distinctly from its owner or owners is known as the .
C. objectivity principle C. going-concern principle
D. business entity principle D. revenue recognition principle
_______2. It requires the expenses incurred during a period to be recorded in the same
period in which related revenues are earned. This refers to .
C. matching principle C. conservatism principle
D. objectivity principle D. materiality principle
_______3. The accounting principle that requires all goods and services purchased to be
recorded at cost is the .
C. going-concern principle C. cost principle
D. continuing-concern principle D. business entity principle
_______4. Mr. Lopez has his shoe branch in America and the financial records there are in
dollars. Which accounting principle best describes the situation?
C. Materiality principle C. Monetary Unit principle
D. Objectivity principle D. Cost principle
_______5. Charlie prepares financial statements yearly as what his boss wanted.
C. Materiality principle C. Time Period principle
D. Objectivity principle D. Cost principle
_______6. It is a service activity that provides quantitative information which is financial in nature.
c. Bookkeeping c. Journalizing
d. Accounting d. Selling
_______7. The double entry system of accounting was first established by:
c. An Indian Philosopher c. An Asian Monk
d. An Italian Priest d. A Middle East Prophet
_______8. In the definition of accounting, the transactions and events are expressed in:
c. Monetary Value c. Quantitative means
d. Qualitative Nature d. None of the above
_______9. Managers, production supervisors, owners, and finance directors are in this group
who are into planning, organizing, and operating the business. Who are these users?
A. external users B. keepers C. internal users D. recorders
_______10. 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 B. recognition C. recording D. service
_______11. Mass production and the great importance of fixed assets were given attention
during this period. What part of evolution of accounting history is this?
A. Cradle Civilization B. French Revolution C. Industrial Revolution D. The Present
_______12. Paid the monthly rental of the clinic for P 10,000.
a. Increase in assets = increase in capital
b. Increase in liabilities = increase in capital
c. Deacrease in assets = decrease in capital
d. Increase in assets = decrease in capital
_______12. Which among the following explains the dual effect principle?
a. Left side of the equation must be equal to the right side of the equation
b. Every transaction will affect your debit and credit side
c. both a and b
d. None of the above
_______13. Represents the amount collectible to customers arising from sales of
merchandise or performance off services.
A. Payables C. Unearned revenues
B. Receivables d. Sales Revenue
_______14. Examples includes goodwill, patent, copyright, franchise, trademark, brand
names
a. Current Assets c. Non-Current Assets
b. Fixed Assets d. Intangibles
_______15. Amount owed to unpaid expenses
a. Accounts Payable c. Prepaid Expenses
b. Accrued Expenses d. Salaries Expenses
_______16. Increase in Capital is
a. Debit c. both a and b
b. Credit d. None of the above
_______17. Decrease in Liability is
a. Debit c. both a and b
b. Credit d. None of the above
_______18. What will happen when we credit our income?
a. Revenue will increase c. Capital will decrease
b. Revenue will Decrease d. Asset will increase
_______19. Collected P 5,000 from a patient undergoing surgery.
a. Increase in assets = increase in capital
b. Increase in assets = decrease in capital
c. Deacrease in assets = increase in liabilities
d. Increase in one form of asset = decrease in another form of asset
_______20. What is the difference between Accounts Payable and Notes Payable?
a. Accounts payable is a written agreement while Notes payable is an oral agreement
b. Accounts payable is a promise to pay while Notes payable is collection from
clients who owe you.
c. Accounts payable is an oral agreement while Notes payable is a written agreement
d. None of the above
_______21. What is the difference between Receivables from Payables?
a. Receivables refer to the money that you owe while Payables refer to the money
that others owe you.
b. Payables refer to the money that you owe while Receivables refer to the money
that others owe you.
c. Payables refer to your unearned income while Receivables refer to the money that
others owe you.
d. None of the above
_______22. Which is not Part of Current Liabilities?
a. Mortgage Payable c. Unearned Revenue
b. Accounts Payable d. Accrued Expenses
_______23. Why is Intangibles part of Non-Current Assets?
a. They are the only part of assets that appreciates in the future
b. They have no physical aspect
c. They can be used in a longer period of time
d. None of the above
_______24. What happen when we debit cash?
a. Asset will increase c. Asset will not be affected
b. Asset will decrease d. Capital will increase
_______25. What happen when we debit Accounts payable?
a. Liability will increase c. Liabilities will not be affected
b. Liability will Decrease d. Capital will increase