Name: _________________________________ Date: ______________
Grade & Section: ________________________ Score: _____________
FUNDAMENTALS OF ACCOUNTING AND BUSINESS MANAGEMENT 2
QUIZ # 1
I. Encircle the letter of the correct answer. 7. Which is an example of a liability?
1. Which of the following is the basic A. Accounts Receivable
accounting equation? B. Cash
A. Assets = Liabilities + Revenue C. Accounts Payable
B. Assets = Liabilities + Owner’s Equity D. Service Revenue
C. Assets = Liabilities − Owner’s Equity 8. The owner’s withdrawal account has
D. Assets = Revenue – Expense what type of normal balance?
2. Which account normally has a debit A. Debit
balance? B. Credit
A. Accounts Payable C. Either debit or credit
B. Service Revenue D. None of the above
C. Cash 9. Recording transactions in chronological
D. Capital order is done in the:
3. An increase in assets can be caused by: A. Ledger
A. An increase in liabilities B. Journal
B. A decrease in liabilities C. Trial Balance
C. An increase in expenses D. Balance Sheet
D. A decrease in capital 10. Which is an example of an asset?
4. The left side of a T-account is always: A. Salaries Expense
A. Debit B. Building
B. Credit C. Capital
C. Liability D. Unearned Revenue
D. Equity 11. Which of the following accounts
5. Which of the following is NOT a increases with a credit?
financial statement? A. Cash
A. Statement of Financial Position B. Accounts Receivable
B. Statement of Comprehensive Income C. Accounts Payable
C. Statement of Cash Flows D. Supplies
D. Chart of Accounts 12. The trial balance is prepared to:
6. Which financial statement shows the A. Show net income for the period
financial position of a business at a B. Check equality of debits and credits
specific date? C. Record transactions
A. Income Statement D. Adjust accounts
B. Balance Sheet 13. In the double-entry system, every
C. Statement of Changes in Equity transaction affects:
D. Cash Flow Statement A. Only assets
B. Only liabilities
C. At least two accounts
D. Only one side of the equation
14. Which account represents the owner’s
investment in the business?
A. Capital
B. Accounts Payable
C. Drawing
D. Service Revenue
15. Which of the following accounts is an
expense?
A. Salaries Payable
B. Salaries Expense
C. Accounts Receivable
D. Unearned Revenue
16. In accrual accounting, revenue is
recorded when:
A. Cash is received
B. Service is performed
C. An invoice is issued
D. Either A or B
17. Which entry records payment of a utility
bill?
A. Debit Utilities Expense, Credit Cash
B. Debit Cash, Credit Utilities Expense
C. Debit Accounts Payable, Credit Cash
D. Debit Utilities Payable, Credit Cash
18. The process of transferring journal
entries to ledger accounts is called:
A. Journalizing
B. Posting
C. Closing
D. Adjusting
19. Which account will appear on the
Income Statement?
A. Equipment
B. Accounts Payable
C. Service Revenue
D. Capital
20. Which of the following is considered a
contra asset account?
A. Accounts Receivable
B. Cash
C. Accumulated Depreciation
D. Prepaid Insurance
Name: _________________________________ Date: ______________
Grade & Section: ________________________ Score: _____________
FUNDAMENTALS OF ACCOUNTING AND BUSINESS MANAGEMENT 2
QUIZ # 2
Bright Star Services started operations on January 1, 2025. The following transactions occurred during
the month of January. Your task is to journalize each transaction using the general journal format.
Transactions
Jan 1 – Owner invested ₱200,000 cash and ₱50,000 office equipment into the business.
Jan 2 – Paid ₱12,000 for one year’s rent in advance.
Jan 3 – Purchased cleaning supplies on account, ₱5,000.
Jan 5 – Performed services for a client and received ₱15,000 cash.
Jan 8 – Performed cleaning services for a client on account, ₱10,000.
Jan 10 – Paid salaries to employees, ₱8,000.
Jan 12 – Received ₱5,000 from a client as partial payment of account receivable.
Jan 15 – Paid ₱3,000 for utility bill.
Jan 20 – Purchased additional cleaning supplies for ₱2,500 cash.
Jan 25 – Owner withdrew ₱7,000 cash for personal use.
Required: Journalize the above transactions using the Chart of Accounts below:
Cash
Accounts Receivable
Prepaid rent
Supplies
Office Equipment
Accounts Payable
Owner’s Capital
Owner’s withdrawal
Service Revenue
Salaries expense
Utilities expense
