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Quiz No# 1 - Fundamentals of Accounting (Module 1) Name: Section: Date Submitted

The document is a quiz for a fundamentals of accounting module. It contains 15 multiple choice questions testing concepts like the basic purpose of accounting, characteristics of different business entities like partnerships and corporations, accounting concepts like the stable money unit concept and entity concept, users of internal and external accounting information, and examples of different types of business entities like service, merchandising, and manufacturing.

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Marco Rvs
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826 views3 pages

Quiz No# 1 - Fundamentals of Accounting (Module 1) Name: Section: Date Submitted

The document is a quiz for a fundamentals of accounting module. It contains 15 multiple choice questions testing concepts like the basic purpose of accounting, characteristics of different business entities like partnerships and corporations, accounting concepts like the stable money unit concept and entity concept, users of internal and external accounting information, and examples of different types of business entities like service, merchandising, and manufacturing.

Uploaded by

Marco Rvs
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Quiz No# 1 – Fundamentals of Accounting (Module 1)

Name:
Section:
Date Submitted:

INSTRUCTION: Highlight the correct answer for each question.

Example:

Whale is a____
a. Mammal
b. Fish
c. Reptile

QUESTIONS:

1. Accounting is a service activity. Its function is to provide


a. Quantitative information
b. Qualitative information
c. Quantitative and qualitative information
d. None of the above

2. The basic purpose of accounting is


a. To provide the information that the managers of an economic
entity need to control its operations.
b. To provide information that the creditors of an economic entity
can use in deciding whether to make additional loans to the
entity.
c. To measure the periodic income of the economic entity.
d. To provide quantitative financial information about a business
enterprise that is useful in making rational economic decision.

3. Which of the following best describes the attributes of a partnership


a. Limited ability to raise capital; unlimited personal liability of
owners.
b. Limited ability to raise capital; limited personal liability of
owners.
c. Ability to raise large capital; unlimited personal liability of
owners.
d. Ability to raise large amounts of capital; limited personal
liability of owners.

4. Which of the following is true?


a. Stockholders are personally liable for the liabilities of the
corporation if the company us unable to pay.
b. Normally, stockholders can only sell their ownership interests
when the corporation terminates.
c. Partners are personally liable for the liabilities of the
partnership if the partnership is unable to pay.
d. Partners can normally transfer their partnership interests with
ease.
5. Which accounting process is the recognition or non-recognition of
business activities as accountable events?
a. Identifying
b. Communicating
c. Recording
d. Measuring

6. The concept of the accounting entity is applicable


a. Only to the legal aspects of business organizations
b. Only to the economic aspects of business organizations
c. Only to business organizations
d. Whenever accounting is involved

7. The entity concept means that


a. Because a firm is separate and distinct from its owners, those
owners cannot have access to its assets unless the firm ceases to
trade.
b. Accounts must be prepared for every firm.
c. The financial affairs of a firm and its owner are always kept
separate for the purpose of preparing accounts.
d. None of the above

8. Accountants do not recognize that the value of the peso changes over
the time. This concept is called the
a. Stable money unit concept
b. Going concern concept
c. Cost principle
d. Entity concept

9. The principle of objectivity includes the concept of


a. Summarization
b. Verifiability
c. Classification
d. Conservatism

10. Which of the following is not a user of internal accounting


information?
a. Store Manager
b. Chief executive officer
c. Creditor
d. Chief financial officer

11. An event that affects the financial position of an organization and


requires recording is called:
a. Transaction
b. Account
c. Business documents
d. Operating activities

12. All of the following are external users of accounting information


except:
a. Creditors, lenders and suppliers
b. Present and potential investors
c. Government regulatory bodies
d. Managers and employees
13. It is the simplest of business organization
a. Service Entity
b. Merchandising Entity
c. Partnership
d. Sole Proprietorship

14. The following are examples of service business except:


a. SM Supermarket
b. Amana Hotel and Resorts
c. Cebu Pacific
d. Manila Water Inc.

15. 15. The following are examples of manufacturing business, except:


a. Toyota Motors, Inc.
b. Sony Philippines
c. Red Ribbon Bakeshop
d. Rolex Watch Repair Shop

-nothing follows-

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