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BUSMATH

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11 views

BUSMATH

Uploaded by

Aj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 5

INSTRUCTIONS: Please read each question carefully and answer all questions

honestly, as your responses will contribute valuable insights to our research. Your
answers will be kept confidential and used only for this purpose.

SECTION 1: DEMOGRAPHIC INFORMATION


Grade Level: Grade 12 Class Schedule: ___ Late Afternoon ___ Regular
Gender: ___ Male ___ Female ___Other Age: _____ years old

Instructions: In this part, you’ll be asked about different types of financial statements
and what each one represents. ENCIRCLE the chosen answer that best matches each
principle’s definition or application.
Accounting Principle And Theories

1. Which principle says companies must use the same accounting methods each
year?

A) Matching Principle
B) Consistency Principle
C) Revenue Recognition Principle
D) Conservatism Principle

2. What does the Going Concern Principle assume about a company?


A) It will stay in business for the future.
B) It will sell all its assets.
C) It will go out of business soon.
D) It will be closed down.

3. When should a company recognize its revenue?

A) When cash is received.


B) When the product is sold and payment is likely.
C) When an expense is paid.
D) At the end of the year.

4. Which method matches revenues with expenses to show the true profit?

A) Cash Basis Accounting


B) Accrual Basis Accounting
C) Deferral Accounting
D) Modified Cash Basis Accounting
5. According to the conservatism principle, when unsure, accountants should:

A) Record the highest revenue.


B) Delay recording expenses.
C) Expect losses, but not gains.
D) Treat gains and losses equally.

Financial Statements

1. Which statement is prepared first?

A) Income Statement
B) Balance Sheet
C) Cash Flow Statement
D) Retained Earnings Statement

2. Which statement shows a company’s financial position at a certain time?

A) Income Statement
B) Cash Flow Statement
C) Balance Sheet
D) Retained Earnings Statement

3. The income statement shows:

A) Assets, liabilities, and equity


B) Revenues and expenses over time
C) Cash inflows and outflows
D) Changes in equity

4. The statement of retained earnings shows:

A) The amount owed to creditors


B) Net income or loss
C) Changes in earnings kept in the company
D) Assets and liabilities

5. Which of these is part of the balance sheet?

A) Revenue from sales


B) Net income
C) Assets, liabilities, and equity
D) Depreciation expense
Journal Entries
1. When a company sells something on credit, which entry is correct?

A) Debit Cash, Credit Sales


B) Debit Accounts Receivable, Credit Sales
C) Debit Accounts Payable, Credit Sales
D) Debit Sales, Credit Accounts Receivable

2. When a company buys inventory on credit, which entry is correct?

A) Debit Inventory, Credit Cash


B) Debit Inventory, Credit Accounts Payable
C) Debit Accounts Receivable, Credit Inventory
D) Debit Accounts Payable, Credit Inventory

3. If a company pays rent in advance for 6 months, which entry is correct?

A) Debit Prepaid Rent, Credit Cash


B) Debit Rent Expense, Credit Cash
C) Debit Cash, Credit Prepaid Rent
D) Debit Rent Expense, Credit Prepaid Rent

4. When a company gets cash from a customer for future services, which entry is
correct?

A) Debit Accounts Receivable, Credit Service Revenue


B) Debit Cash, Credit Unearned Revenue
C) Debit Service Revenue, Credit Cash
D) Debit Unearned Revenue, Credit Cash

5. When a company pays wages to employees, which entry is correct?

A) Debit Wages Expense, Credit Accounts Payable


B) Debit Wages Expense, Credit Cash
C) Debit Cash, Credit Wages Expense
D) Debit Accounts Receivable, Credit Wages Expense
Adjusting Entry

1. When is an adjusting entry needed?

A) When cash is received


B) When a service is done but not billed
C) When money is borrowed
D) When inventory is sold

2. If a company gets paid in advance for services, what adjusting entry is needed at
the end of the period?

A) Debit Unearned Revenue, Credit Service Revenue


B) Debit Service Revenue, Credit Unearned Revenue
C) Debit Cash, Credit Service Revenue
D) Debit Accounts Receivable, Credit Service Revenue

3. If a company paid for insurance in advance, what entry is needed at the end of the
year?

A) Debit Prepaid Insurance, Credit Insurance Expense


B) Debit Insurance Expense, Credit Prepaid Insurance
C) Debit Insurance Expense, Credit Cash
D) Debit Prepaid Insurance, Credit Cash

4. If a company used up some supplies but didn’t record it, what entry is needed?

A) Debit Supplies, Credit Supplies Expense


B) Debit Supplies Expense, Credit Supplies
C) Debit Supplies Expense, Credit Cash
D) Debit Supplies, Credit Accounts Payable

5. If a company owes wages but hasn’t paid yet, what entry is needed?

A) Debit Wages Payable, Credit Wages Expense


B) Debit Wages Expense, Credit Wages Payable
C) Debit Wages Expense, Credit Accounts Payable
D) Debit Accounts Payable, Credit Wages Expense
SECTION 2: ACCOUNTING PROFICIENCY
Instructions: Please carefully rate your level of understanding and proficiency in
accounting when choosing a rating. CHECK the number that most accurately represents
your proficiency and skill level in each topic using the following scale:

1 – Not at all proficient


2 – Slightly proficient
3 – Moderately proficient
4 – Proficient
5 – Highly proficient

Journal Entries: Financial Statements:

1 2 3 4 5 1 2 3 4 5
Preparing journal Preparing a balance
entries for common sheet.
business
Preparing an
transactions.
income statement.
Understanding the
debit and credit Preparing a
rules. statement of cash
Identifying the flows.
appropriate Analyzing financial
accounts to be statements to
debited and understand a
credited. company’s financial
health.
Adjusting Entries:

1 2 3 4 5
Understanding the
need for adjusting
entries.
Preparing adjusting
entries for accruals
and deferrals.
Recognizing the
impact of adjusting
entries on financial
statements.

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