FINANCIAL ACCOUNTING AND REPORTING (FUNDAMENTALS)
INTRODUCTION TO ACCOUNTING
ASSIGNMENT_001
TRUE OR FALSE
1. Only "accountable events" are recorded in the books of accounts.
2. Accounting reports, such as financial statements, are used to communicate information to
users.
3. The common branches of accounting include auditing and marketing.
4. Financial accounting focuses on the information needs of internal users.
5. External users are directly involved in managing the business.
6. General purpose accounting information is primarily prepared for internal users.
7. Special purpose accounting information is provided by government accounting.
8. Examples of service businesses include consulting firms and healthcare services.
9. The different forms of business organizations include corporations and cooperatives.
10. Manufacturing business are classified as service businesses.
11. A cooperative is formed according to the provisions of The Philippine Cooperative Code of
2008.
12. Technology companies like Apple and Samsung are examples of service businesses.
13. Food processing companies are examples of manufacturing business.
MULTIPLE CHOICE
1. Which of the following is an example of a form of business organization?
a) Financial accounting
b) Cost accounting
c) Corporation
d) Auditing
2. What branch of accounting focuses on the information needs of external users?
a) Financial accounting
b) Management accounting
c) Tax accounting
d) Auditing
3. What are accountable events in accounting?
a) Events that do not affect the financial position of a business
b) Events that affect the assets, liabilities, equity, income, or expenses of a business
c) Events that occur only on weekends
d) Events that involve external users
4. The most common form of business organization is a
a. corporation
c. sole proprietorship
b. partnership
d. cell phone stand
5. Why is accounting considered the "language of business"?
a) Because it's fun to learn
b) Because it's not important
c) Because it's essential in communicating financial information
d) Because it's only spoken in businesses
6. What are the two types of accounting information?
a) General and Specific
b) Common and Uncommon
c) Regular and Irregular
d) General Purpose and Special Purpose
7. This type of business organization is created by a contractual agreement between two or
more individuals
a. Corporation
b. Cooperative
c. Partnership
d. Sole Proprietorship
8. It is the first process used in accounting. It refers to the identification of events as to whether
they are recognized or not in the financial statements.
a. Identifying b. Recording c. Communicating d. Auditing
9. These are the principal means through which an entity communicates its financial information
to those outside it.
a. managerial reports
c. segment reports
b. financial statements
d. directors’ statements
10. The basic purpose of accounting is
a. to provide information useful in making economic decisions
b. to provide information useful only for investors
c. to provide information regarding the economic resources controlled by an entity
d. to provide business owners, politicians, and other government officials an opportunity to
evade taxes