ACCOUNTING

ACCOUNTING
1. All relevant information should be included in the financial reports
Disclosure principle
2. In case of doubt, assets and income should not be overstated.
Conservatism principle
3. Assume that the company will continue indefinitely.
Going concern principle
4. All transactions should be supported by unbiased evidence.
Objectivity principle
5. Expenses should be recorded in the period when the revenue is generated.
Matching principle
6. Minimal costs incurred should be recorded as an expense.
Materiality principle
7. A Philippine company should report financial statements in pesos.
Monetary unit principle

8. A barber who performs services for a client should record revenue.
Accrual accounting principle
9. Statement of Financial position should be recorded as of December 31, 2015.
Time period principle
10. A company that purchases furniture should record it at its acquisition price.
Cost principle
a. Going concern principle
e. Time period principle
h. Monetary unit principle
b. Objectivity principle
f. Cost principle
i. Accrual accounting principle
c. Matching principle
g. Disclosure principle
j. Conservatism principle
d. Materiality principle
1. The accounting guideline that requires financial statement information to be
supported by independent, unbiased evidence other than someone's belief or
opinion is the:
a. Business entity principle
b. Monetary unit principle
c. Going-concern principle
d. Cost principle
e. Objectivity principle
2. The principle that requires every business to be accounted for separately and
distinctly from its owner
a. Objectivity principle
b. Business entity principle

c. Going-concern principle
d. Revenue recognition principle
e. Cost principle
3. 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 continue, is the
a. Going-concern principle
b. Business entity principle
c. Objectivity principle
d. Cost Principle
e. Monetary unit principle
4. To include the personal assets and transactions of a business's owner in the

records and reports of the business would be in conflict with the:
a. Objectivity principle
b. Realization principle
c. Business entity principle

d. Going-concern principle
e. Revenue recognition principle
5. The objectivity principle:
a. means that information is supported by independent, unbiased

evidence
b. means that information can be based on what the preparer thinks is true
c. means that financial statements should contain information that is optimistic
d. means that a business may not re-organize revenue until cash is received
6. Marian Mosely is the owner of Mosely Accounting Services. Which accounting

principle requires Marian to keep her personal financial information separate
from the financial information of Mosely Accounting Services?
a. Monetary unit principle
b. Going-concern principle
c. Cost principle
d. Business entity principle
7. Which of the following accounting principles would require that all goods and
services purchased be recorded at cost?
a. Going-concern principle
b. Continuing-concern principle
c. Cost principle
d. Business entity principle
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.
3. Which of the following does NOT show one of the main functions of
accounting?
D. Allen canvassed the price of sewing machine to be used in the
company's operations.
4. Who is considered as the father of modern accounting?
B. Luca Pacioli
5. Which order of events correctly portrays the history of accounting?

A. Early development in Mesopotamia-
Development in the Roman Empire Dissemination of double-entry
bookkeeping in the 14th century Italy-
Signing of charter Queen Victoria-
Formation of accounting standards such as PAS and PFRS.
6. Which nature of accounting best emphasized that accounting is not the

objective?
C. Accounting is means not an end
7. 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?
B. Communication
8. Which of the following is mostly used by accountants in communicating

the results of operations to outside parties?
D. Financial statements
9. Which among the following is NOT considered an internal user of

accounting information?
A. Owners of a business
B. Senior partner of an audit firm
C. Supplier
D. Field workers
10. Which of the following is NOT considered an external user of

accounting information?
A. BIR officials
B. Customers
C. Production supervisor
11. Jason is a professor in accountancy in the BS Accountancy program

of the University of the Philippines. He is also a stockholders of Everest
Co. In the point of view of Everest Co., Jason is an
B. Internal user
12. This group of users of accounting information invested resources to

the company with hopes of earning acceptable returns.
C. Potential investors
13. What is most likely to happen when companies are experiencing

financial difficulties?
D. Investors will postpone or cancel their investments.
14. Which of the following is NOT considered a service company?

A. Beauty salon
B. Carwash business
C. Bus company
15. Which of the following statement regarding service companies is

correct?
C. Services companies are firms that generally use their employees
to provide intangible products or services to customers
16. The set of accounting standards followed in the Philippines?

B. PFRS
17. According to this concept, revenues, and expenses exhibiting cause-

and-effect relationships should be recognized in the same accounting
period.
A. Matching principle
B. Accrual basis of Accounting
C. Cash basis of accounting
D. Time period of assumption
18. Which of the following is NOT an accounting assumption?

C. Matching principle
19. Also known as conservatism

D. Prudence
20. This assumption states that a business is an entity separate and
distinct from its owners.
C. Accounting entity assumption
21. The indefinite life of a company can be divided into periods of equal
length for the preparation of financial reports.
I. Time period assumption
22. Income and assets are not overstated and liabilities and expenses are
not overstated.
C. Prudence
23. Income should be recognized in the period when it is earned

regardless of when the payment is received.
A. Accrual accounting
24. The business is separate from the owners, managers and employees
operating the business.
H. Accounting entity assumption
25. Expenses are recognized in the same period as related revenue.

J. Matching principle
26. Approximation made by accountants of the management in the

preparation of financial statements.
F. Use of judgment and estimates
27. It is assumed that the operations of a business will continue
indefinitely into the future.
B. Going concern assumption
28. This principles states that transactions must be supported by

evidences or source documents.
G. Objective principle
29. The Philippine currency which is expressed in "Peso" is a reasonable

unit of measure and that is purchasing power is relatively stable
E. Stable Monetary Unit Concept
30. The financial reporting is concerned only with information that is

significant enough to affect evaluations and decision.
D. Materiality
Journal- Book of original entry

General- Book of final entry
September 1, 2022
Cortez, Sheryll mae
Dela Cruz, Micaela

ACCOUNTING

Uploaded by

Copyright:

Available Formats

ACCOUNTING

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ACCOUNTING

Uploaded by

Copyright:

Available Formats

ACCOUNTING

1. All relevant information should be included in the financial reports

2. In case of doubt, assets and income should not be overstated.

3. Assume that the company will continue indefinitely.

Going concern principle

4. All transactions should be supported by unbiased evidence.

5. Expenses should be recorded in the period when the revenue is generated.

6. Minimal costs incurred should be recorded as an expense.

7. A Philippine company should report financial statements in pesos.

Monetary unit principle

Accrual accounting principle

9. Statement of Financial position should be recorded as of December 31, 2015.

Time period principle

a. Going concern principle

e. Time period principle

h. Monetary unit principle

i. Accrual accounting principle

a. Business entity principle

b. Monetary unit principle

b. Business entity principle

d. Revenue recognition principle

e. Monetary unit principle

4. To include the personal assets and transactions of a business's owner in the

c. Business entity principle

e. Revenue recognition principle

5. The objectivity principle:

a. means that information is supported by independent, unbiased

c. means that financial statements should contain information that is optimistic

6. Marian Mosely is the owner of Mosely Accounting Services. Which accounting

a. Monetary unit principle

d. Business entity principle

1. Which of the following is NOT a step in the accounting process?

2. Which of the following is NOT a relevant economic event?

5. Which order of events correctly portrays the history of accounting?

6. Which nature of accounting best emphasized that accounting is not the

7. The chief accountant of Company X, is preparing for a meeting with the

8. Which of the following is mostly used by accountants in communicating

9. Which among the following is NOT considered an internal user of

10. Which of the following is NOT considered an external user of

11. Jason is a professor in accountancy in the BS Accountancy program

12. This group of users of accounting information invested resources to

13. What is most likely to happen when companies are experiencing

14. Which of the following is NOT considered a service company?

15. Which of the following statement regarding service companies is

16. The set of accounting standards followed in the Philippines?

17. According to this concept, revenues, and expenses exhibiting cause-

18. Which of the following is NOT an accounting assumption?

19. Also known as conservatism

23. Income should be recognized in the period when it is earned

25. Expenses are recognized in the same period as related revenue.

26. Approximation made by accountants of the management in the

28. This principles states that transactions must be supported by

29. The Philippine currency which is expressed in "Peso" is a reasonable

30. The financial reporting is concerned only with information that is

Journal- Book of original entry

You might also like