Filipino Institute

Dubai, UAE
Prelim Exam in Accounting Professional Diploma

Name: Antonia Jessa Tegerero Date: July 22, 2023

Batch ____________________________ Trainer : Sir Darwin

Direction. Choose the letter that corresponds to the correct answer.

D 1. He was known as the “Father of Accounting”.

A. Stepehen Zeff B. Barry Melancon C. Leonardo De Vinci D. Luca Pacioli

A- 2. It refers to the method of performing any specific job step-by-step according to the objectives.
A. Accounting is a process. B. Accounting is a service activity. C. Identifying the events D. Recording the
events

B 3. These users need accounting information as a factor to consider in staying employment or to look for
other employment opportunities.
A. creditors B. employees C. owners D. suppliers

C 4. These users need accounting information to evaluate and examine the feasibility of investing in a
company.
A. creditors B. employees C. investors D. suppliers

C 5. 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 Assessment

d A 6. 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

C 7. This involves keeping a chronological diary of events that are measured in pesos.
A. evaluating B. recognizing C. recording D. summarizing
 C 8. 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

A 9. 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 B. keepers C. internal users D. recorders

A 1 0. It is known as the language of business because it communicates the financial information to the
users. A. accounting B. communicating C. recording D. identifying

A 11. The accounting guideline that requires financial statement information to be supported by
independent, unbiased evidence other than someone's belief or opinion is the _______.
A. objectivity principle B. monetary unit principle C. going-concern principle D. cost principle

B 12. The principle that requires every business to be accounted separately and distinctly from its owner
or owners is known as the _______.
A. objectivity principle B. business entity principle C. going-concern principle D. revenue recognition
principle

A 13. The rule that requires financial statements to reflect the assumption that the business will continue
operating instead of being closed or sold, unless evidence shows that it cannot continue is the _______.
A. going-concern principle B. business entity principle C. objectivity principle D. cost principle

C 14. To include the personal assets and transactions of a business' owner in the records and reports of
the business would be in conflict with the _______.
A. objectivity principle B. realization principle C. business entity principle D. going-concern principle

A 15. The objectivity principle means _______.

A. the information is supported by independent, unbiased evidence
B. the information can be based on what the preparer thinks is true
C. financial statements should contain information that is optimistic
D. a business may not reorganize revenue until cash is received
 D A 16. Marian Mosely is the owner of Mosely Accounting Services. The accounting principle that requires
Marian to keep her personal financial information separated from the financial information of Mosely
Accounting Services is _______.
A. monetary unit principle B. going-concern principle C. cost principle D. business entity principle

C 17. The accounting principle that requires all goods and services purchased to be recorded at cost is the
_______.
A. going-concern principle B. continuing-concern principle C. cost principle D. business entity principle

A 18. The business files for bankruptcy when it is not in the _______.
A. going concern principle B. matching principle C. materiality principle D. monetary unit principle

D 19. The statement that is correct in relation to Cost Principle is _______.

A. cost is relevant. B. cost is reliable. C. only letter a is correct. D. letter a and b are correct.

A 20. Matching principle is important because proper matching of_____ and _____ gives a more accurate
report.
A. revenue and expenses B. cash and expenses C. cost and expenses D. value and expenses

A 21. The transactions of the business are separated from the personal transactions of the owner. This
principle is stated by _______________.
A. business entity B. matching principle C. objectivity D. going-concern

A 22. The business will run in an indefinite time. This principle stated is from ____.
A. going-concern principle B. conservatism C. accrual D. business entity

A 23. Conservatism is also known as _______.

A. prudence B. patience C. frugality D. generosity

A 24. Mr. Pedro makes his financial reports monthly. What kind of principle his accountant performs
_______ principle.
A. time period B. conservatism C. revenue recognition D. accrual

A 25. 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 B. objectivity principle C. conservatism principle D. materiality principle
A 26. Which is the accounting equation?
A. assets= liabilities + owner’s equity
B. liabilities = assets + owner’s equity
C. owner’s equity = assets + liabilities
D. assets = revenue - expenses

D 27. What are the resources owned by the owners?

A. expenses B. liabilities C. revenues D. assets

A 28. Which term refers to the obligations of the business?

A. liabilities B. assets C. revenues D. owner’s equity

B D 29. Which refers to the remaining amount of the assets after paying all the company’s liabilities?
A. revenues B. owner’s equity C. expenses D. net profits

A 30. What does an extended accounting equation include?

A. revenues and expenses B. revenues and assets C. expenses and liabilities D. none of the above

A 31. When the owner invested cash on the business, what account/s increase/s?
A. assets and owner's equity B. assets only C. liabilities and assets D. owner's equity only

A 32. Is there an effect on the assets account when the owner withdraws cash for personal use?
A. Yes, it decreases. B. Yes, it increases. C. Yes, it increases and decreases. D. None of the above

C 33. What would be the effect to the liabilities of the business after availing loan from Panata Bank?
A. It remains the same. B. It decreases. C. It increases. D. None of the above

A 34. Mr. Kim has assets of Php1,000,000.00 and liabilities of Php 300,000.00 What is his equity?
A. Php 700,000 B. Php 1,300,000 C. Php 800,000 D. 0
dd
C 35. 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 B. Php 1,320,000 C. Php 1,023,000 D. Php 1,230,000
A 36. This is not one of the five major accounts.
A. interest B. income C. liability D. owner's equity

A 37. These are the resources owned by the owners.

A. assets B. liabilities C. revenues D. expenses

A 38. These are the debts of the business.

A. liabilities B. assets C. revenues D. owner's equity

A 39.Capital and drawings are examples of these.

A. owner's equity B. revenues C. expenses D. net profit

A . 40 This is a tangible asset.

A. land B. goodwill C. patent D. copyright

A 41. This is the account title where the Unearned Revenue falls.
A. liability account B. asset account C. income account D. revenue account

A 42. Loan payable and mortgage payable are examples of Non-Current Liabilities.
A. Yes, these are examples of Non-Current Liabilities.
B. No, these are examples of Current Liabilities.
C. Yes, but sometimes these are current assets.
D. No, because these are non-current assets.

A 43. It is the listing of the accounts used by the company to their financial records.
A. chart of accounts B. list of accounts C. accounts receivable D. accounts payable

b A 44. These are amounts due from third parties supported by promissory notes.
A. notes payable B. notes receivable C. notebook D. none of the above

A 45.These are the items purchased by an enterprise that are unused as of the reporting date.
A. supplies B. inventories C. equipment D. machineries
A D 46. These are long-lived assets that have been acquired for use in operations.
A. property B. property, plant, and equipment C. non-current assets D. current assets

D 47. This is an increase in resources resulting from the performance of services or selling of goods.
A. goodwill B. assets C. expenses D. income

C 48. This is an account withdrawn by the owner for personal use from the business.
A. capital B. accounts payable C. drawing D. mortgage payable

d B 49. This is a cash or payment collected in advance.

A. accounts receivable B. service revenue C. sales D. unearned revenue

C 50. These consist the chart of accounts.

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

D 51. This is the book of original entry.

A. ledger B. special journal C. subsidiary ledger D. general journal

B 52. This is the book of final entry.

A. general journal B. general ledger C. subsidiary ledger D. special journals

B 53. This is used to record purchases on account.

A. sales journal B. purchase journal C. general journal D. cash receipts journal

C 54. This is used to record sales on credit.

A. cash disbursement journal B. purchase journal C. sales journal D. ledger

B 55. This is used to record cash receipts.

A. ledger B. cash receipts journal C. cash disbursement journal D. journal

A 56. This is used to record cash payments.

A. cash disbursement journal B. cash receipts journal C. purchase journal D. sales journal
B 57.This contains the details supporting the balance in the general ledger account.
A. general ledger B. subsidiary ledger C. ledger D. none of the above

D 58. This is also known as the controlling account.

A. cash receipts journal B. notes payable C. accounts receivable D. general ledger

C 59. This type of entry involves only two accounts: one debit and one credit.
A. compound entry B. dual entry C. simple entry D. jumbled entry

A C 60.It is an entry that requires three or more accounts.

A. compound entry B. dual entry C. simple entry D. jumbled entry

B 61.This type of special journal makes use of official receipts issued by companies.
A. cash disbursement B. cash receipts C. purchase journal D. sales journal

B 62.This is the type of special journal makes use of sales invoices issued by companies.
A. purchase journal B. sales journal C. cash receipt journal D. cash disbursement journal

B A 63.This is the type of special journal where sales invoice from a supplier may be found.
A. sales journal B. purchase journal C. cash receipt journal D. cash disbursement journal

A B 64.This is the type of special journal where official receipts from suppliers as proof of payment may be
found. A. cash disbursement journal B. cash receipt journal C. purchase journal D. sales journal

B D 65.A cash disbursement journal or cash payments journal is not used to record this transaction.
A. purchase of merchandise for cash B.purchase of merchandise on account C. all cash paid D. payment to
creditors and suppliers