• 1.

Which of the following is NOT a step in the

accounting process?
• a. Identification
• b. Communication
• c. Recording
• d. Verification
• 1. Which of the following is NOT a step in the
accounting process?
• a. Identification
• b. Communication
• c. Recording
• d. Verification
• 2. Which of the following is NOT a relevant economic
event?
• a. An agent who attended to the concern of a complaining
customer.
• b. Patricia, manager of Company X, who sold an
abandoned building of her company.
• c. Company Y which borrowed P5M from a bank due to
tight financial conditions.
• d. Company Z which paid its employees their salaries for
the month of January.
• 2. Which of the following is NOT a relevant economic
event?
• a. An agent who attended to the concern of a complaining
customer.
• b. Patricia, manager of Company X, who sold an
abandoned building of her company.
• c. Company Y which borrowed P5M from a bank due to
tight financial conditions.
• d. Company Z which paid its employees their salaries for
the month of January.
• 3. Which of the following does NOT show one of the
main functions of accounting?
• a. Fred prepare a report to be submitted to the taxing
authorities.
• b. John recorded the purchase of an equipment in the
accounting books immediately after purchase.
• c. Jason prepares financial reports monthly for the
company’s stakeholders.
• d. Allen canvassed the price of a sewing machine to be
used in the company’s operations.
• 3. Which of the following does NOT show one of the
main functions of accounting?
• a. Fred prepare a report to be submitted to the taxing
authorities.
• b. John recorded the purchase of an equipment in the
accounting books immediately after purchase.
• c. Jason prepares financial reports monthly for the
company’s stakeholders.
• d. Allen canvassed the price of a sewing machine to be
used in the company’s operations.
• 4. Which of the following statements describes the
accounting process?
• a. It involves identifying relevant economic events
• b. Recording economic events is an essential part of the
accounting process
• c. The accounting process is not complete if the financial
information is not communicated to interested users
• d. All of the above
• 4. Which of the following statements describes the
accounting process?
• a. It involves identifying relevant economic events
• b. Recording economic events is an essential part of the
accounting process
• c. The accounting process is not complete if the financial
information is not communicated to interested users
• d. All of the above
• 5. Which is the most important step in the accounting
process?
• a. Identification
• b. Recording
• c. Communication
• d. All steps are equally important
• 5. Which is the most important step in the accounting
process?
• a. Identification
• b. Recording
• c. Communication
• d. All steps are equally important
• 6. Which of the following cannot be considered a
limitation of accounting?
• a. Accounting is only historical in nature
• b. Accounting provides limited information to the
management
• c. The accounting process is tedious to execute
• d. Accounting considers only those transactions which can
be measured in terms of money or those quantitatively
expressed
• 6. Which of the following cannot be considered a
limitation of accounting?
• a. Accounting is only historical in nature
• b. Accounting provides limited information to the
management
• c. The accounting process is tedious to execute
• d. Accounting considers only those transactions which can
be measured in terms of money or those quantitatively
expressed
• 7. Who is considered as the father of modern
accounting?
• a. Queen Victoria
• b. Luca Pacioli
• c. Augustus
• d. Suetonius
• 7. Who is considered as the father of modern
accounting?
• a. Queen Victoria
• b. Luca Pacioli
• c. Augustus
• d. Suetonius
• 8. Which nature of accounting best emphasizes that
accounting is not the objective?
• a. Accounting is an art
• b. Accounting deals with financial information and
transactions
• c. Accounting is a means not an end
• d. Accounting is a process
• 8. Which nature of accounting best emphasizes that
accounting is not the objective?
• a. Accounting is an art
• b. Accounting deals with financial information and
transactions
• c. Accounting is a means not an end
• d. Accounting is a process
• 9. Jamie, the chief accountant of Company X, is
preparing for a meeting with the top management.
This meeting is done monthly to evaluate the
performance of the company. Which step of the
accounting process is most likely being done?
• a. Recording
• b. Communication
• c. Identification
• d. Classification
• 9. Jamie, the chief accountant of Company X, is
preparing for a meeting with the top management.
This meeting is done monthly to evaluate the
performance of the company. Which step of the
accounting process is most likely being done?
• a. Recording
• b. Communication
• c. Identification
• d. Classification
• 10. Which of the following is mostly used by
accountants in communicating the results of
operations to outside parties?
• a. Performance memos
• b. Bulletin board postings
• c. Public announcements of the results of operations
• d. Financial Statements
• 10. Which of the following is mostly used by
accountants in communicating the results of
operations to outside parties?
• a. Performance memos
• b. Bulletin board postings
• c. Public announcements of the results of operations
• d. Financial Statements
• 11. What profession does NOT use accounting
information at all?
• a. Entrepreneurs
• b. Economists
• c. Government Officials
• d. None of the above
• 11. What profession does NOT use accounting
information at all?
• a. Entrepreneurs
• b. Economists
• c. Government Officials
• d. None of the above
• 12. Who is the person responsible for the process of
identifying, recording, and communicating economic
events of an organization?
• a. Manager
• b. Accountant
• c. Bookkeeper
• d. Treasurer
• 12. Who is the person responsible for the process of
identifying, recording, and communicating economic
events of an organization?
• a. Manager
• b. Accountant
• c. Bookkeeper
• d. Treasurer
• 13. Which of the following is false?
• a. The accounting process consists of identifying economic
events, recording these events, and communicating these
events to external users only
• b. The accounting process consists of identifying economic
events, recording these events, and communicating these
events to internal and external users
• c. The accounting process consists of identifying economic
events, recording these events, and communicating these
events to internal users only
• d. a and c only
• 13. Which of the following is false?
• a. The accounting process consists of identifying economic
events, recording these events, and communicating these
events to external users only
• b. The accounting process consists of identifying economic
events, recording these events, and communicating these
events to internal and external users
• c. The accounting process consists of identifying economic
events, recording these events, and communicating these
events to internal users only
• d. a and c only
• 14. The history of accounting covers a very long
period. Which of the following statements regarding
the history of accounting is NOT correct?
• a. PAS and PFRS are the standards followed by
accountants in performing their profession in the present
day.
• b. It is believed that accounting was being used as early as
the days of the ancient Mesopotamia.
• c. During the 14th century Italy, the use of the single-entry
bookkeeping became widespread due to the work of Luca
Pacioli
• d. The modern profession of chartered accountants
originated in Scotland.
• 14. The history of accounting covers a very long
period. Which of the following statements regarding
the history of accounting is NOT correct?
• a. PAS and PFRS are the standards followed by
accountants in performing their profession in the present
day.
• b. It is believed that accounting was being used as early as
the days of the ancient Mesopotamia.
• c. During the 14th century Italy, the use of the single-entry
bookkeeping became widespread due to the work of Luca
Pacioli
• d. The modern profession of chartered accountants
originated in Scotland.
• 15. Which of the following can be considered as a
relevant economic event?
• a. A meeting of the top management was held in
discussion room last month.
• b. The company received an advance payment from its
customers.
• c. Meralco announced that it will increase energy prices
by the end of the month.
• d. GMA Network signed a contract with Kris Aquino.
• 15. Which of the following can be considered as a
relevant economic event?
• a. A meeting of the top management was held in
discussion room last month.
• b. The company received an advance payment from its
customers.
• c. Meralco announced that it will increase energy prices
by the end of the month.
• d. GMA Network signed a contract with Kris Aquino.
• For the following next items, identify if the
statements are true or false. Choose the
letter that represents the correct
combination of answers.
• 16. Statement I – Double entry bookkeeping involves a
debit and credit for every transaction.
• Statement II – The recording of the economic events
also involves the classifying of such events.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 16. Statement I – Double entry bookkeeping involves a
debit and credit for every transaction.
• Statement II – The recording of the economic events
also involves the classifying of such events.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 17. Statement I – Accounting is used by all types of
businesses, even not for profit organizations such as
charitable institutions.
• Statement II – Government agencies have no use for
accounting.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 17. Statement I – Accounting is used by all types of
businesses, even not for profit organizations such as
charitable institutions.
• Statement II – Government agencies have no use for
accounting.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 18. Statement I – Accounting gives more benefit to
larger companies than smaller companies.
• Statement II – Large companies normally have more
complex accounting processes.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 18. Statement I – Accounting gives more benefit to
larger companies than smaller companies.
• Statement II – Large companies normally have more
complex accounting processes.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 19. Statement I – Small businesses, such as sari-sari
stores, have little to no use of accounting.
• Statement II – Accounting reports and/or financial
statements need not be presented in a standardized
way.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 19. Statement I – Small businesses, such as sari-sari
stores, have little to no use of accounting.
• Statement II – Accounting reports and/or financial
statements need not be presented in a standardized
way.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 20. Statement I – Accounting involves financial
information in the recording process.
• Statement II – There are three principal activities in
the accounting process.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 20. Statement I – Accounting involves financial
information in the recording process.
• Statement II – There are three principal activities in
the accounting process.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 21. Statement I – Keeping a chronological diary of
events is part of the recording aspect of accounting.
• Statement II – Preparing accounting reports is part of
the communication aspect of accounting.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 21. Statement I – Keeping a chronological diary of
events is part of the recording aspect of accounting.
• Statement II – Preparing accounting reports is part of
the communication aspect of accounting.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 22. Statement I – The performance of car
maintenance services of Toyota is a relevant economic
event.
• Statement II – Events that do not affect the company
financially need not be recorded.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 22. Statement I – The performance of car
maintenance services of Toyota is a relevant economic
event.
• Statement II – Events that do not affect the company
financially need not be recorded.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 23. Statement I – All business are required to
communicate the results of their operations to
interested outside parties.
• Statement II – In double-entry bookkeeping, the total
amount in the debit and credit columns should be
equal.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 23. Statement I – All business are required to
communicate the results of their operations to
interested outside parties.
• Statement II – In double-entry bookkeeping, the total
amount in the debit and credit columns should be
equal.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 24. Statement I – Accounting helps managers and
owners of businesses in decision making.
• Statement II – All successful companies use
accounting process in some form.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.
• 24. Statement I – Accounting helps managers and
owners of businesses in decision making.
• Statement II – All successful companies use
accounting process in some form.
• a. Both statements are true.
• b. Only statement I is true.
• c. Only statement II is true.
• d. Both statement are false.