Republic of the Philippines

Department of Education
REGION II – CAGAYAN VALLEY
SCHOOLS DIVISION OF CAGAYAN
Allacapan Vocational High School
Allacapan North District

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1

2ND QUARTER EXAMINATION, SY 2022-2023
I. MULTIPLE CHOICE. Choose the letter that corresponds to the correct answer. Write your
answers on a separate sheet of paper.
___________1. The art of classifying, recording and summarizing business transactions.
A. Accounting B. Directing C. Financing D. Marketing
___________2. This involves selecting economic events that are relevant to a particular business transaction.
A. Accounting B. Classifying C. Recording D. Summarizing
__________ 3. Preparation and distribution of financial and other accounting reports.
A. Accounting B. Classifying C. Recording D. Summarizing
___________4. Keeping a chronological diary of events that are measured in pesos.
A. Accounting B. Classifying C. Recording D. Summarizing
___________5. Below are examples of economic events except one.
A. Purchase of supplies B. meeting with employees
C. Payment of salaries D. sale of goods
___________6. Accounting provides assistance to decision makers by providing them financial reports that will guide
them in coming up with sound decisions. Which nature of accounting is described?
A. Accounting is a process C. Accounting is an art and a discipline
B. Accounting is a service activity D. Accounting is an information system.
___________ 7. Accounting collects, processes, and communicates storehouse of information.
A. Accounting is a process C. Accounting is an art and a discipline
B. Accounting is a service activity D. Accounting is an information system.
___________8. Accounting also follows certain standards and professional ethics.
A. Accounting is a process C. Accounting is an art and a discipline
B. Accounting is a service activity D. Accounting is an information system.
___________9. The father of accounting is_____________________
A. Lucy Pacioly C. Luke Palacio
B. Luca Pacioli D. Luka Palacio
___________10. The thorough study of accounting and development of accounting theory began during this period.
A. The Cradle of Civilization C. Industrial Revolution
B. French Revolution D. 19th century
___________11. Clay tablet was introduced during this period.
A. The Cradle of Civilization C. Industrial Revolution
B. French Revolution D. 19th century
___________12. Modern accounting in Europe and America began.
A. The Cradle of Civilization C. Industrial Revolution
B. French Revolution D. 19th century
___________13. They are interested in financial statements to determine the stability of their employment.
A. Owners C. Employees
B. Managers D. Creditors
___________14. They want to determine the credit worthiness of an organization.
A. Owners C. Employees
B. Managers D. Creditors
___________15. Analyze the organization's performance and position and take appropriate measures to improve the
company results.
A. Owners C. Employees
B. Managers D. Creditors
___________16. The cash of the business is separate from the personal cash of the owner. What principle of accounting is
this?
A. Business entity principle C. Going concern principle
B. Monetary Unit Principle D. Objectivity principle
___________17. When preparing financial statements, you should assume that the entity will continue indefinitely.
A. Business entity principle C. Going concern principle
B. Monetary Unit Principle D. Objectivity principle
___________18. Philippine companies should report financial statements in pesos.
A. Business entity principle C. Going concern principle
B. Monetary Unit Principle D. Objectivity principle
___________19. When a company purchases a laptop, it should be recorded at the price it was purchased.
A. Conservatism Principle C. Accrual accounting principle
B. Cost Principle D. Disclosure principle
___________20. When a company incurred transportation expense, a voucher should be prepared as evidence.
 A. Business entity principle C. Going concern principle
B. Monetary Unit Principle D. Objectivity principle
__________ _21 . A barber should record when he finishes his services even if it is not yet paid.
A. Conservatism Principle C. Accrual accounting principle
B. Cost Principle D. Disclosure principle
___________22. Revenue should be recorded at a lower amount if in doubt.
A. Conservatism Principle C. Accrual accounting principle
B. Cost Principle D. Disclosure principle
___________23. 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 C. Business entity principle
B. Realization principle D. Going-concern principle
___________24. Things owed by the business.
A. Assets C. Owner’s Equity
B. Liabilities D. Revenue
____________25. Things owned by the business
A. Assets C. Owner’s Equity
B. Liabilities D. Revenue
II. Identify the following as to Assets, Liabilities or Owners Equity. Write A for Asset, L for Liability and OE for
Owner’s Equity, R for Revenue, EX for Expense.
_____26. Accounts Receivable _____31. Capital
_____27. Drawing _____32. Sales
_____28. Accounts Payable _____33. Loans Payable
_____29. Cash _____34. Utilities
_____30. Equipment

III. Analyze the effects of each transaction in the accounting equation. Write I for increase, and D for Decrease.
Asset Liabilities Equity
35-36. Invested 100,000 cash for the business.
37-39. Purchased equipment P 20,000. 50% down payment, balance on account.
40-41. Delivered service on cash, P 5,000

IV. Analyze and Prepare the journal entries of the following transactions.
42-43. On Jan 4, 2016, received PHP20,000 from a customer in payment for services rendered.
44-45. Maria invested PHP60,000 on Jan 18, 2016, to start a barbershop in Iligan City.
46-47. On Jan 15, 2016, Peter Pawn withdrew PHP30,000 from his business to pay for the tuition of his son.
48-49. Collected PHP20,000 of the accounts receivable from Malakas Company on Jan 17, 2016
50-51. Paid the salary of the office secretary amounting to PHP15,000 on Jan 18, 2016.
52-54. Purchased office equipment worth PHP20,000 by paying 40% down payment and the balance on account

V. Prepare the adjusting entries of the following (55-60)

On April 1, 2016, Mar Cruz, a lawyer, opened his own.
legal practice. The business adjusts and closes its accounts.
at the end of each month. The following trial balance was.
prepared after one month of operations. More information:

1. Office supplies on hand by April 30 amounted to PHP400.

2. The office equipment was purchased on April 1
and is being depreciated over an estimated useful life
of 10 years with no residual value.