MASBATE POLYTECHNIC AND DEVELOPMENT COLLEGE, INC.

Poblacion, Baleno, Masbate

SHS Department

Name: ___________________________ Score: ________________________

Quiz No. 1 in Fundamentals of Accountancy, Business and Management

(Intended for Grade 11-ABM)
Multiple Choice. Direction: Read each item or question carefully. Choose and encircle the letter of the
correct answer.

1. Which of the following is a correct listing of the steps in the accounting process?
a. identifying, recording, communicating
b. identifying, segregating, communicating
c. segregating, recording, verifying

2. Accounting serves as channel of success for businesses. What nature of accounting

is meant by this?
a. Accounting is a process. c. Accounting is a means not an end.
b. Accounting is an art. d. Accounting is an information system.

3. Who signed the royal charter for the Institute of Accountants in Glasgow.
a. Luca Pacioli c. Phoenician
b. Queen Victoria d. Egyptian Traders

4. Which among the steps in the accounting process is most important?

a. Identifying c. Communicating
b. Recording d. All are equally important.

5. Which of the following business transactions is not financial in nature?

a. Company A borrowed money from bank to buy additional equipment.
b. Company B hired employees.
c. Company C sold P10,000 worth of inventories.
d. Company D paid its hired employees for the month of November.

6. Which of the following statements is NOT correct?

a. Luca Pacioli is considered as the father of modern accounting.
b. Today, accounting rules and standards are available to help accountants in the practice of their
profession.
c. In 2006, Philippines have fully complied with the IFRS.
d. Phoenicians invented an alphabet with accounting to avoid being cheated by Egyptians in their
trading.

7. Accounting being a service activity is applicable only to businesses rendering services.

a. The statement is true.
b. The statement is false.
8. There is only one definition of accounting that can be considered acceptable.
a. The statement is true.
b. The statement is false.
 9. Accountants communicate the summarized results of all company financial events to interested parties
to help them in ________.
a. making relevant decisions c. selling products
b. choosing job applicants d. extending the life of the business

10. Accounting keeps a record of all financial transactions done by the company period after period.
What nature of accounting is shown in this?
a. Accounting is a process. c. Accounting is an art.
b. Accounting is a means rather than an end. d. Accounting is an information system.

11. Which of the following is a chronologically ordered listing of accounting history events?
a. Income of temples was recorded in lower Mesopotamia → Origination of the profession of chartered
accountants in Scotland → Invention of the first bead and wire abacus by the Egyptians
b. Creation of alphabet with accounting by the Phoenicians → Formulation of GAAP, PAS and IFRS →
Luca Pacioli wrote a book that introduced double-entry bookkeeping
c. Income of temples was recorded in lower Mesopotamia → Creation of alphabet with accounting by the
Phoenicians → Luca Pacioli wrote a book that introduced double-entry bookkeeping
d. None of the above

12. The PAS, GAAP and IFRS are accounting ________.

a. steps c. standards
b. features d. events

13. Two of that which accountants must possess are mathematical skill and analytical skill. This
statement presents what feature of accounting?
a. Accounting is a process. c. Accounting is an art.
b. Accounting is a means rather than an end. d. Accounting is an information system.

14. One of the features of accounting is that it is concerned with financial information and transactions.
Which of the following is not similar in meaning with the underlined phrase?
a. economic information c. money matters
b. material information d. managerial information

15. Accounting is considered a ship that carries the company to its destination. What feature of
accounting is meant by this?
a. Accounting is a process. c. Accounting is an art.
b. Accounting is a means rather than an end. d. Accounting is an information system.
TEST II. Were you amazed by when and how accounting started? As your final task, make a timeline
of the history/origin and developments of accounting. Do it as creatively as you can using any tools
available at home. Utilize a separate sheet for this task. Do it with fun!

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

History of Accounting

When did accounting begin?

It is said that the beginning of accounting can be traced back to as early as when people
learned to trade, tax and develop a system of counting money. According to history, in 4000B
B.C., the income of temples was recorded in lower Mesopotamia. The Phoenicians also in
1000 B.C. created an alphabet with accounting to help them in their trades with the ancient
Egyptians and avoid being cheated. In 500 B.C. history recorded the invention of the first bead
and wire abacus by the Egyptians who were already making and keeping accounting records
during the time.

In the 14th century, Luca Pacioli became a prominent person in accounting history due
to writing a book that introduced and disseminated the double-entry bookkeeping. The Summa
de Arithmetica, Geometria, Proportioni et Proportionalita of Pacioli is the first book to
introduce bookkeeping. Pacioli is considered as the father of modern accounting.

Another event in accounting history and development took place in Scotland in the
19th century where the modern profession of chartered accountants originated. This became
possible by the granting of Queen Victoria of a royal charter to the Institute of Accountants in
Glasgow.

Currently, accounting standards are available to provide guidance to accountants in

their professional practice. Some of these are the Philippine Accounting Standards (PAS), the
Generally Accepted Accounting Principles (GAAP), and the International Financial Reporting
Standards (IFRS). Since 2005, the Philippines became completely compliant with the IFRS.
Currently, accounting standards are available to provide guidance to accountants in their
professional practice. Some of these are the Philippine Accounting Standards (PAS), the