Fundamentals of Accounting, Business and Management 1 - A 11. Branch of accounting that focus on the preparation of financial statements.

a. Management Accounting c. Auditing

b. Financial Accounting d. Tax Accounting

NAME: _____________________________________________ DATE: __________________________ 12. This branch of accounting deals on collating cost information that is useful to set prices of goods and services for sale.

STRAND/GRADE: _____________________________________ SECTION: _______________________ a. Auditing c. Cost Accounting

b. Government Accounting d. Accounting Education

Encircle the correct answer. 13. This branch of accounting tells that the in-house information generated by the accountant for specific purposes will
serve as benchmarks to company’s performance.
1. It is a service activity that provides quantitative information which is financial in nature.
a. Financial Accounting c. Tax Accounting
a. Bookkeeping c. Journalizing
b. Management Accounting d. Government Accounting
b. Accounting d. Selling
14. This is the branch of accounting that focuses on the preparation of tax return as required by the Bureau of Internal
2. It is the language of business. Revenue (BIR).
a. Bookkeeping c. Journalizing a. Management Accounting c. Auditing
b. Accounting d. Selling b. Financial Accounting d. Tax Accounting
3. The double entry system of accounting was first established by: 15. This is carried out by certified Public Accountants in the public practice who a should be accredited by the Board of
a. An Indian Philosopher c. An Asian Monk Accountancy (BOA).

b. An Italian Priest d. A Middle East Prophet a. External Auditing c. Government Accounting

4. The book of Luca de Pacioli was published in: b. Internal Auditing d. Tax Accounting

a. 1500 c. 1650 16. This profession is carried out by Certified Public Accountants in the academe.

b. 1495 d. 1494 a. Government Accounting c. Accounting Education

5. Accounting is defined as: b. Auditing d. Financial Accounting

a. An art c. A discipline 17. This type of business requires management accounting.

b. A science d. All of the above a. A drug store business c. A sari-sari store

6. In the definition of accounting the transactions and events are expressed in: b. A manufacturing Business d. None of the above

a. Monetary value c. Quantitative means 18. This type of business requires management accounting.

b. Qualitative nature d. None of the above a. A barbershop business c. A school business

7. An information system may mean as: b. A hardware store business d. None of the above

a. A manual system c. A customized system designed to fit accounting 19. This type of business requires education accounting.

b. A computerized system d. All of the above a. A barbershop business c. A school business

8. Analyzing and interpreting means: b. A hardware store business d. None of the above

a. Expressing it in a vertical analysis c. Expressing it in a horizontal analysis 20. This is a type accountant’s profession in the Commission on Audit.

b. Expressing it in financial ratios d. All of the above a. Government Accounting c. Tax accounting

9. The management reports that are generated by an organization is solely for: b. Accounting research d. Auditing

a. In-house reporting c. Outside agencies reporting 21. He is the user of accounting information who determines the credit worthiness of the organization.

b. External reporting d. All of the above a. Creditors c. Investors

10. Accounting information is helpful to: b. Owners d. Regular bodies

a. Decision makers c. People who have interest in the business

b. Management users d. All of the above
22. He is the user of accounting information who uses information for analyzing the feasibility of investing in the Write TRUE if the statement is correct or FALSE if the statement is incorrect.
organization.
a. Customers c. Investors
__________ 1. A sole proprietorship business is owned by two or more individuals.
b. Tax authorities d. Employees
__________ 2. A partnership can conduct business in its own name and represent itself as a person.
23. He is the user of accounting information who uses it for assessing the financial position of its suppliers which is
__________ 3. The owners of a corporation are called shareholders and own shares of stocks.
necessary for them to maintain a stable source of long-term supply.
__________ 4. One of advantages of a partnership is that it is easy to organize but takes more time to establish it.
a. Customers c. Investors
__________ 5. The distribution of profits to partnership in a partnership is called dividends.
b. Tax authorities d. Employees
__________ 6. A sole proprietorship business is a unique entity that is separate and distinct from the owners.
24. He is the user of accounting information that uses it for decision making.
__________ 7. A joint venture is just like a general partnership, but the time is normally limited and it entails a
a. Management c. Investors
single project of operation.
b. Employees d. All of the above
__________ 8. A sole proprietorship is a business that will be registered in the Securities and Exchange
25. He is the user of accounting information that uses it for assessing business organization’s profitability and its
consequence on their future remuneration and job security. Commissions.
a. Owners c. Creditors __________ 9. One of the advantages in setting up a partnership is that it has limited life and can be dissolve by a
b. Employees d. Customer withdrawal or death of a partner.
26. He is the user of accounting information that assesses whether business organization pays correct taxes. __________ 10. One example of partnership is a law or accounting firm.
a. Tax Authorities c. Investors __________ 11. Government accounting practice is reviewed by the Securities and Securities Commission (SEC).
b. Regulatory Authorities d. Owners __________ 12. Auditing can be internal or external.
27. He is the user of accounting information which ensures that the business organization’s disclosure of __________ 13. The accounting research can be performed by academic researchers only.
accounting information is in accordance with the rules and regulations to be complied with.
__________ 14. The function of external auditing can be performed by Certified Public Accountants who are not
a. Tax Authorities c. Investors
accredited by the Board of Accountancy (BOA).
b. Regulatory Authorities d. Owners
__________ 15. Cost accounting can also be practice even in restaurant business.
28. This is an example of an internal user.
__________ 16. Certified Public Accountants in the public practice can also perform internal auditing.
a. Management c. Employees
__________ 17. Management accounting is a branch of accounting wherein it focuses primarily on the preparation
b. Owners d. All of the above
of the financial statements.
29. This is an example of external user.
__________ 18. Financial accounting reports is required by owners who are part of the management of business
a. Owners c. Banks
organization.
b. Management d. None of the above
__________ 19. Government entities require management reports from business organization.
30. He is the user of accounting information that uses it to determine any course of action for the business
__________ 20. One of the functions of accounting is to identify business activities relevant to the operation of an
organization to protect his invested capital.
organization.
a. Owners c. Investors
b. Management d. Creditor