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FABM1_Review_QuarterlyExam

Marianne M. Custodio
1st Round
Mr. Lao prepares the monthly financial reports for the company's
stakeholders. This situation shows what step in the accounting process? 1pt

A. Identification
B. Communication
C. Recording
D. Verification
True or False? In partnership, the business is
owned and run only by two persons.
1pt

FALSE
It is considered as the most complex form under
which a business can operate.
1pt

A. Cooperative
B. Sole proprietorship
C. Corporation
D. Partnership
In this period, social upheavals affecting government,
finances, laws, customs and business had greatly 1pt
influenced the development of accounting.

A. 19th Century
B. 14th Century
C. Industrial Revolution
D. French Revolution
It is the subset of Management Accounting. 1pt

A. Auditing
B. Financial Accounting
C. Tax Acounting
D. Cost Accounting
2nd Round
A corporation can extend its life for a period
2pts
not exceeding:

50 years
Marketing managers, production supervisors,
finance directors, company officers and 2pts
owners are example of _____________.

Internal users of
accounting information
What government agency is assigned to
2pts
regulate cooperatives?

CDA - Cooperative
Development Authority
When a company purchases a vault, it should be recorded
at the price it was purchased. What accounting principle is 2pts
being emphasized in this situation?

Cost Principle
It pertains to a company's financial debt or
obligations that arise during the course of its 2pts
business operations.

Liability
What do you call the money owed by a
2pts
company to its creditors?

Accounts
3rd Round
Which of the following is a characteristic of a
cooperative?
3pts

A. It has the right of succession.


The objectivity principle: 3pts

A. means that information is supported by


What would be the effect on the accounting equation if the company
purchased supplies worth Php15,000 and paid Php10,000 cash 3pts
and the balance on account.

Asset - increase
Asset - decrease
A customer hired the services of M Company and promised to pay
Php10,000 next week. What accounts would be affected and how much? 3pts

Accounts Receivable - Increase - Php10,000


Service Revenue - Increase - Php10,000
4th Round
Tell something about the nature of accounting 5pts
as a process.
Accounting is a process, as it performs the
specific task of collecting, processing and
communicating financial information. In
doing so, it follows some definite steps like
the collection, recording, classification,
summarization, finalization, and reporting of
financial data.
Explain monetary unit principle of 5pts
accounting.

It means amounts are stated


into a single monetary unit.
What is accounts receivable? 5pts

It is the money owed to a


company by its debtors.
Give 5 examples of hyrid business. 5pts