Activity 01 :
Answer the following statements true (T) or false (F) with an explanation of the erroneous
sentences in briefly (answer all questions).
1. The three steps in the accounting process are identification, recording, and
communication.
2. Bookkeeping encompasses all steps in the accounting process.
3. Accountants prepare, but do not interpret, financial reports.
4. The two most common types of external users are investors and company officers.
5. Managerial accounting activities focus on reports for internal users.
6. Accountant’s ability to analyze and forecasting the data and reported information
in financial statement.
7. Accounting is recording transactions or business deals, such as purchases and sales,
and auditing them in the form of financial statements.
8. Management information system is the process of recording financial transactions
and keeping financial records.
9. Financial accounting is internal decision makers use information provided about
operating, investing, and financing activities.
10. Accountants focus on the needs for financial information, whether the decision
makers are inside not outside a business or other economic entity
Solution:
1. True
2. False. Bookkeeping involves only the recording step.
3. False. Accountantsanalyze and interpret information in reports as part of the
communication step.
4. False. The two most common types of external users are investors and creditors.
5. True.
6. false .is not forecasting is analyzing and interpreting.
7. false. Accounting is not auditing them is report them in financial statements.
8. False. Bookkeeping.
9. False .managerial accounting.
10. False .inside or outside
Activity 02:
Choose the best answer between alternative.
1. The three types of business entities are:
a. proprietorships, small businesses, and partnerships.
b. proprietorships, partnerships, and corporations.
c. proprietorships, partnerships, and large businesses.
d. financial, manufacturing, and service companies.
2.Net income will result during a time period when:
a. assets exceed liabilities.
b. assets exceed revenues.
c. expenses exceed revenues.
d. revenues exceed expenses.
3. Performing services on account will have the following effects on the
components of the basic accounting equation:
a. increase assets and decrease owner’s equity.
b. increase assets and increase owner’s equity.
c. increase assets and increase liabilities.
d. increase liabilities and increase owner’s equity.
4.As of December 31, 2017, Chehaoui Company has assets of $3,500 and owner’s
equity of $2,000. What are the liabilities for Chehaoui Company as of December
31, 2017?
a. $1,500. b. $1,000. c. $2,500. d. $2,000.
5. Which of the following is not includes of Fixed assets?
a.equipment. b.machinery. c. buildings. d. cash.
6.The accounting equation they have two sides of the equation must always be
……………….
a.multiple . b.minus. c.equal. d. plus.
7.its obligations are amounts owed to suppliers for goods or services bought on
credit accout……………….
a. Reivable . b.inventory. c.Payable. d.capital.
8.……………………………..an owner of shares in a company.
a.equity . b.stakeholder. c.capital. d. company.
9. ………………………………… An item of property owned by a person or company,
regarded as having value and available to meet debts.
a.assets . b.capital. c.liabilities. d. intangible.
10.……………………………….A thing for which someone is responsible, especially an
amount of money owed.
a. capital. b. assets . c. intangible. d. liabilities.
Solutions
1. (b) proprietorships, partnerships, and corporations.
2. (d) revenues exceed expenses.
3. (b)increase assets and increase owner’s equity.
4. (a)($3,500 2 $2,000).
5. (d)cash.
6. (c)equal.
7. (c)Payable.
8. (b)stakeholder
9. (a)assets .
10. (d)liabilities.
