ALAMINOS CITY NATIONAL HIGH SCHOOL

SENIOR HIGH SCHOOL DEPARTMENT 11. The accounting guideline that requires financial statement information to be supported
SUMMATIVE ASSESSMENT by independent, unbiased evidence other than someone's belief or opinion is the:
FUNDAMENTALS OF ACCOUNTANCY BUSINESS AND MANAGEMENT
a. Going-concern b. Objectivity c. Business d. Monetary unit
FIRST SEMESTER S.Y. 2020-2021
principle principle entity principle principle
Name Date
Grade & Section Score 12. The principle that requires every business to be accounted for separately and distinctly
from its owner or owners is known as the:
a. Going-concern b. Revenue c. Objectivity d. Business
Multiple Choice. Direction. Read the questions carefully and choose the letter of the correct principle recognition principle entity principle
answer. Use separate sheet of paper as answer sheet. principle

1. It is called the language of business?

a. Auditing b. Marketing c. Accounting d. Bookkeeping 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 will not
2. Which of the following accounting process is performed last? continue, is the:
a. identifying b. communicating c. interpreting d. recording a. Objectivity b. Cost Principle c. Going-concern d. Business
principle principle entity principle
3. Which is process of assigning monetary value to an account?
a. measuring b. communicating c. reporting d. identifying
14. To include the personal assets and transactions of a business's owner in the records and
4. Who is the author of the book summa de arithmetica and was also regarded as father of reports of the business would conflict with the:
modern accounting?
a. Devin Pascili b. John Petrucci c. Billy Sheedan d. Fra Luca Pacioli a. Business b. Going-concern c. Objectivity d. Realization
entity principle principle principle principle
5. Which of the following is an internal user of financial information?
a. Board of Directors b. Supplier c. Lender d. Creditor 15. The objectivity principle:
a. means that financial statements should contain information that is optimistic
6. Which user of accounting do not have direct access to the accounting records of the
b. means that a business may not re-organize revenue until cash is received
business?
a. Internal b. External c. Government regulatory d. External c. means that information is supported by independent, unbiased evidence
authorities auditors d. means that information can be based on what the preparer thinks is true

7. Which users are interested in information that enables them to assess whether their loans 16. Which of the following accounting principles would require that all goods and services
will be paid to them when due? purchased be recorded at cost?
a. Borrowers b. Investors c. Owners d. Creditors a. Continuing- b. Cost principle c. Business d. Going-concern
concern principle entity principle
8. Which user require information on risk and return on investment?
a. Employees b. Lenders c. Customers d. Investors
17. Which of following statements best describe the term “going concern”?
9. These users are interested in information about the profitability and stability of an entity a. The potential to contribute to the flow of cash to the entity
in order to assess the ability of the entity to provide remuneration, retirements benefit and b. The expenses of an entity exceed its income
employment opportunities.
c. When current liabilities of an entity exceed current assets
a. Government b. Employees c. Customers d. The public
d. The ability of the entity to continue in operation for the foreseeable future.
10. These users are interested in information that enables them to assess whether their
loans, the related interest thereon, and other amounts owing to them will be paid when due.
a. Trade creditors b. Owners c. Creditors d. Borrowers
18. Preparing financial statements at least annually is an application of which of the 27. An event that resulted to the obtaining of control over an economic resource or the
following accounting concepts? incurrence of a present obligation
a. Accrual basis b. Stable c. Time period d. Historical cost a. Past event b. Current event c. Future event d. special event
monetary unit

19. Valuing assets at their liquidation value rather than their cost is inconsistent with the 28. It is present obligation that has resulted from past events and has the potential to cause
a. Going concern b. Matching c. Materiality d. Time period a transfer of an economic resource in its settlement.
assumption principle constraint a. Asset b. Income/revenue c. Liability d. Expense

20. An entity prepares annual financial statement every December 31, the entity uses what 29. A busines has a total asset of 1,000,000 and equity is 30%. How much is the total
type of accounting period. liability?
a. Calendar b. Fiscal c. Interim period d. Christmas a. 180,000 b. 1,000,000 c. 700,000 d. 3,333,333
period

30. The amount of liability is P180,000. The capital is 90% of total assets. The value of the
21. Which of the following are present obligation of the enterprise that resulted from past assets is
transaction and event that require an outflow of resources. a. 180,000 b. 162,000 c.1,800,000 d. 200,000
a. Assets b. Equities c. Liabilities d. Capital

22. Which of the following is the basic accounting equation?

Prepared by:
a. Assets x Liabilities= Owners Equity
b. Assets =Liabilities + Owners Equity ROMUALDO F. CREDO
c. Assets / Liabilities= Owners Equity Teacher III
d. Assets x Owners Equity = Liability
Checked by: Approved:

23. Which of the following is correct? LOVELIE M. VERCELES CYNTHIA B. TABLANG

ASSETS LIABILITY CAPITAL MASTER TEACHER I OIC Assistant Principal II, Academics
a. 7,850 1,250 6,600
b. 5,420 6,540 1,120
c. 8,200 2,800 11,000
d. 9,550 1,150 8,200

24. ABC Co. has a total liability of 40 Million and total equity of 60 Million. ABC Co, has a
total asset of
a. 20 million b. 80 million c. 100 million d. 200 million

25. It is an economic resource controlled by the entity that has resulted from past
transaction and has potential to produce economic benefits.
a. Liability b. Expense c. Income/Revenue d. Assets

26. A decrease in the economic benefits of a resource would be treated as

a. Expense b. Income/Revenue c. Assets d. Liability