FIRST ACC111 QUIZ
Question 1- Accounting records and statements are based on reliable data. Data is reliable
when it is verifiable and can be confirmed by an independent observer therefore the
information is not bias and based on documented evidences. This is an adherence to ______
principle.
Select one:
a. Relevant Principle
b. Historical cost principle
c. Adequate disclosure
d. Objectivity Principle
The correct answer is: Objectivity Principle
Question 2- A business which prepares financial statements every year is following the ____
concept.
Select one:
a. Stable monetary Unit
b. Entity concept
c. Going concern concept
d. Periodicity concept
The correct answer is: Periodicity concept
Question 3-This is an element that increases assets or decreases in liabilities that result in
increases in equity other than those relating to contributions of owners.
Select one:
a. Assets
b. Revenue
c. Equity
d. Expenses
The correct answer is: Revenue
Question 4- This is a concept in accounting where business is considered as a separate unit
from that of the owner therefore personal transactions should not be mixed with business
affairs.
Select one:
a. Stable Monetary Unit concept
b. Going concern concept
c. Business Entity concept
d. Consistency concept
The correct answer is: Business Entity concept
Question 5-These are claims from customers supported by a written pledge
Select one:
a. Accounts Receivable
b. Interest Receivable
c. Notes Receivable
d. Promissory Note
The correct answer is: Notes Receivable
Question 6-The accountancy profession has well-defined set of competencies for the Filipino
CPAs to ensure our country produces technically competent and ethical professionals. One
of the competencies is to equip Filipino CPAs with knowledge. Which of the following does
not belong to this category?
Select one:
a. Proficient in accounting, finance and other related areas
b. Has the ability to communicate both orally and in writing.
c. Conversant in IT concepts for business system and have an understanding on how the global
system works.
d. Gain an understanding of the different culture in the world, to make Filipino CPAs prominent
in the global marketplace.
The correct answer is: Has the ability to communicate both orally and in writing.
Question 7-Which of the following is an investing activity?
Select one:
a. Buying land
b. Paying advertisement bills
c. Borrowing money from lenders
d. Giving commission to salesmen
The correct answer is: Buying land
Question 8-It is one of the basic principles wherein income is recognized when earned.
Select one:
a. Objectivity Principle
b. Expense Recognition Principle
c. Accrual Principle
d. Revenue Recognition Principle
The correct answer is: Revenue Recognition Principle
Question 9-It is defined as controlled by the enterprise as a result of past transaction and
events and from which future economic benefits are expected to flow to the enterprise.
Select one:
a.Liabilities
b.Equity
c.Revenue
d.Assets
The correct answer is: Assets
Question 10-This field of accounting is focused on the recording of business transactions and
the periodic preparation of reports on financial position and results of operations. What is
this?
Select one:
a. financial management
b. financial accounting
c. Management accounting
d. Bookkeeping
The correct answer is: Financial accounting
Question 11-All of the following affect the owner’s equity account except,
Select one:
a. original investment
b. Withdrawal by the owner
c. Additional investment
d. Payment of a liability
The correct answer is: Payment of a liability
Question 12-This principle required relevant information to form part of financial
statements for decision-making purposes.
Select one:
a. materiality
b. objectivity
c. relevance
d. adequate disclosure
The correct answer is: adequate disclosure
Question 13-The expectation of a future payment from a customer for goods sold is
Select one:
a. All of the above
b. A Notes receivable
c. An Accounts receivable
d. A Prepaid expense
The correct answer is: An Accounts receivable
Question 14-This principle supports the practice in accounting that when cash is received
but earning does not take place at the time of acceptance, then recognition is deferred:
Select one:
a. revenue recognition principle
b. consistency principle
c. principle of materiality
d. Expense recognition principle
The correct answer is: revenue recognition principle
Question 15-The company bought shares of stock from other company is an example of
_________.
Select one:
a. Diversified Activity
b. Investing Activity
c. Financing Activity
d. Operating Activity
The correct answer is: Investing Activity
Question 16-This account is used to record the original and additional investment of owner
of the business.
Select one:
a. Financing capital
b. Investment of owner
c. owner's investment
d. owner's capital
The correct answer is: owner's capital
Question 17-Which of the following is true?
Select one:
a. Partners are personally liable for the liabilities of the partnership if the partnership is unable to
pay
b. Normally, shareholders can only sell their ownership interests when the corporation terminates
c. Shareholders are personally liable for the liabilities of the corporation if the company is unable
to pay
d. Partners can normally transfer their partnership interest with ease
The correct answer is: Partners are personally liable for the liabilities of the partnership if
the partnership is unable to pay
Question 18-When an entity pays employees for their services, the effect is an increase in:
Select one:
a. Income
b. Assets
c. Expenses
d. Liabilities
The correct answer is: Expenses
Question 19-A realty company sold house and lot to the customers is an example of ______.
Select one:
a. Investing Activity
b. Selling activity
c. Financing Activities
d. Operating Activity
The correct answer is: Operating Activity
Question 20-What area of accounting in which generally accepted accounting principles
are primarily relevant?
Select one:
a. External Auditing
b. Financial Management
c. Private Accounting
d. Financial Accounting
The correct answer is: Financial Accounting
Question 21-Obligations which are expected to be liquidated through the use of existing
current assets or the creation of other current liabilities are called:
Select one:
a. Long-term liabilities
b. Current liabilities
c. Current assets
d. Unearned revenues
The correct answer is: Current liabilities
Question 22-Which of the following is a liability of a firm?
Select one:
a. Money owed to the firm by its debtors
b. Cash in the firm’s safe
c. A building owned by the firm
d. Money which the firm has borrowed and has not yet repaid
The correct answer is: Money which the firm has borrowed and has not yet repaid
Question 23-This account records long-term debt of the business entity for which it has
pledged certain assets as security.
Select one:
a. Bonds Payable
b. Mortgage Payable
c. Accounts Payable
d. Notes Payable
The correct answer is: Mortgage Payable
Question 24-An investor invested cash to the business, this transaction is an example of
Select one:
a. Financing Activities
b. Investing activities
c. business activities
d. Operating Activities
The correct answer is: Financing Activities
Question 25-Payment of insurance premium in advance gives rise to:
Select one:
a. Accrued income
b. Prepaid expense
c. Unearned income
d. Accrued expense
The correct answer is: Prepaid expense
Question 26-In these forms of business organization, the owner receives all profits, absorbs
all losses and is solely responsible for all debts of the business. What is this?
Select one:
a. Sole proprietorship
b. Cooperative
c. Corporation
d. Partnership
The correct answer is: Sole proprietorship
Question 27- It is concerned with the identification of the sources and uses of resources
consistent with the provisions of the city, municipal, provincial or national laws. What is it?
Select one:
a. Taxation
b. financial management
c. Management accounting
d. Government accounting
The correct answer is: Government accounting
Question 28- Repaying the creditors and paying a return to the owners are examples of what
business activity?
Select one:
a. Recording
b. Investing
c. Operating
d. Financing
The correct answer is: Financing
Question 29-This activity involves the use of resources to design, produce, distribute, and
market goods and services. What is this?
Select one:
a. Financing activity
b. Selling activity
c. Operating activity
d. Investing activity
The correct answer is: Operating activity
Question 30-Payment of loan of the business entity is an example of ________.
Select one:
a. cannot be determined
b. Operating Activity
c. Investing Activity
d. Financing Activity
The correct answer is: Financing Activity