1. It is a type of business involved in converting raw materials to a finished product.

– Manufacturing
2. Accountants performing consultancy, auditing, and tax services. - Public Accountants
3. The Philippine Institute of Certified Public Accountants devised the compilation of accounting guidelines called Generally
Accepted Accounting Principles. – False
4. Following are examples of a corporation except - Alice Trading
5. Financial Accounting, Management Accounting, Cost Accounting - Major Branches of Accounting
6. Acquisition of non-current assets is a - Investing Activity
7. It is the branch of accounting that stem from the manufacturing type of business. - Cost Accounting
8. Borrowing funds is a financing activity and payment of corresponding interest is an operating activity. – True
9. It is added to raw materials and overhead to produce a finished product. - Selling Expenses
10. In case of bankruptcy, proprietors, partners, and shareholders are liable held liable to the creditors to the extent of their
personal properties. – False
11. Primary users of financial accounting information include the following except. – Prospective investors
12. The concept referring to the assumption that financial statements and reports are prepared on the basis of continuity of
the business operations in the future. - Going Concern Principle
13. Raw materials, labor and overhead costs pertains to a – Manufacturing business
14. Issuance of stocks and bonds is a – Financing Activity
15. Purchase of bonds or stocks is a – Investing Activity
16. Measuring and repoting the cost and value of people in an organization – Human Resource Accounting
17. The ultimate goal of any business organization is profit – True
18. Financial accounting focuses on the needs of internal users like creditors and government for financial information. – False
19. Measurability Concept. – Monetary Unit Principle
20. It is a type of business whose source of revenues is mainly rendering services to customers – Service concern or service
type
21. In merchandising type of business, the merchandiser performs two roles- a buyer and a seller. – True
22. The organization responsible for the development and implementation of the accountants professional ethics and values
is - Philippine Institute of Certified Public Accountants
23. Recording business transactions, Classifying, Summarizing, and interpreting the results. – Phases of Accounting
24. Their services include budgeting, general accounting and internal auditing in a firm. – Private Accountants
25. Granting loans to other entities is a(n) – Investing Activity
26. Andrea Bargarigo is called the father of modern accounting – False
27. It is every business organization’s category of activities that involves generation of income and incurrence of costs and
expensesin the firm’s main line of business - Operating activities
28. It is the kind of corporation whose owners are called members. – Non-stock corporation
29. National Accounting in an area of accounting that deals with accounting, auditing, and investigative techniques in cases of
litigation or disputes. – False
30. Issuance of Stocks and bonds is a – Financing Activity
31. Procedures refer to the different approaches used in both AISs to gather, keep, retrieve, and process_____. – Data
32. A well designed AIS can make changes without disturbing the whole system. – True
33. Following are intangible assets except - Accounts Receivable
34. The Statement of Equity serves as the basis for measuring and evaluating the company's performance for a given period
of time. – True
35. Restricted information should be protected fro unauthorized persons refers to _____ principle of AIS. – Confidentiality
36. Positive cost-benefit analysis feature of Accounting information system means the benefits it will generate should
outscore its _____. – Cost
37. Accounting information system is generally a _______________ approach for monitoring accounting activities -
Computer-based
38. _____________ of AIS pertains to the security measures that will protect sensitive data. - Internal controls
39. In computerized AIS, a list of selections in choosing computer functions is called what? – Menu
40. An internal operations _____ involves methods and techniques that will allow transactions and protect assets of the firm.
– Control
41. In a computerized accounting system, the ______ are primarily used to translate accounts and their balances to financial
reports. - Account numbers
42. Give the following for RST Trading: Gross profit, P400,000 which is 40% of net sales , sales discount is 5%, sales returns
and allowances is 7.5% The following are expense except – Depreciation or Prepaid Insurance Expense
43. If the total assets of ABC is P750,000 and liabilities is 30%, total equity is – P225,000
44. Only authorized person should have access to the system and the data is a the _____ feature of AIS identified by AICPA. –
Security
45. ______ processes include journalizing business transactions, posting to the ledger and preparing the financial statements.
– Manual
46. The AIS users are referred to as what component? – People
47. The principle of AIS that states that restricted information should be protected from unauthorized exposure. –
Confidentiality
48. The following are subject to depreciation except – Land
49. The computer programs that will be used to store, retrieve, process, and analyze financial data of the business is called
______. – Software
50. Give the following for RST Trading: Gross profit, P400,000 which is 40% of net sales , sales discount is 5%, sales returns
and allowances is 7.5% Gross Sales is (round-off your answers to the nearest peso) - P1,600,000
51. It is a type of businesses which is also termed trading or buy and sell. – Merchandising
52. Which of the following is a new area of accounting application" - Human Resource Accounting
53. The business most liquid asset is cash. – True
54. A kind of partnership owned by l partners who are liable to the partnership liabilities to the extent of his persona
properties. - General partnership
55. It is the branch of accounting whose main users are the external users. - Financial Accounting
56. Which of the following statements is not true? - None of these. / A school who also sells books to their students is
a merchandising type of business.
57. The ultimate goal of any business organization is profit. - True
58. Ten accountants formed a business for the practice of accountancy. Their business is proprietorship - False
59. Branch of accounting for government and not-for-profit organizations. - Fund Accounting
60. Which of the following can be a partner's contribution to the partnership? - All of these
61. Data include billing statements, sales reports, check registers and purchase invoices. – False
62. Concept that asserts that the business transactions of an entity are separated from the owner's personal transactions. -
Economic Entity Principle
63. Accountants performing consultancy, auditing, and tax services. - Public Accountants
64. Public accountants are those who rendered services to the general public in exchange of professional fees. They should
pass the licensure examination given by - oard of Accountancy
65. Which of the following should be registered with the Securities and Exchange Commission? - Both Partnership and
Corporation
66. An internal operations _____ involves methods and techniques that will allow transactions and protect assets of the firm.
– Control
67. The branch of accounting that deals with the implementation of a complete and consistent accounting principles and
techniques in measuring the country's economic activities. - National Accounting
68. He has a direct and lone responsibility to the assets, liabilities, capital, even the profits and losses of the business: - Sole
Proprietor
69. The Statement of Financial Position lists the three accounting elements. – False
70. Payment of dividends is a financing activity. – True
71. It is the financial statement where the three categories of business activities are presented in details - Statement of Cash
Flows
72. IT Infrastructure refers to the hardware components of AIS. – True
73. The ultimate goal of any business organization is profit. – True
74. The concept referring to the assumption that financial statements and reports are prepared on the basis of continuity of
the business operations in the future is - Going concern principle
75. The financial statement that presents the operating, investing, and financing activities is - Statement of Cash Flows
76. Measurability Concept. - Monetary Unit Principle
77. Which of the following statements is correct? - The statement of financial position shows the results of operations of the
business
78. This is the category of activities pertaining to acquisition of long term loans and issuance of equities to fund or sustain a
business. - Financing activities
79. ______ processes include journalizing business transactions, posting to the ledger and preparing the financial statements.
– Manual
80. Granting loans to other entities is a(n) - Investing Activity
81. Primary users of financial accounting information include the following except - Prospective investors
82. The statement of cash flow is also directly related to the balance sheet as it details the change in cash during the period as
it affects the other components of the balance sheet like other assets, liabilities and equity. – True
83. Jollibee is a merchandising type of business – False
84. Following are examples of a service concern business except - Retail Store
85. All kinds of business organization should register a business name with - Bureau of Internal Revenue
86. If the finished product is the output, the term inputs refers to - All of these
87. In merchandising type of business, the merchandiser performs two roles-a buyer and a seller – True
88. The computer programs that will be used to store, retrieve, process, and analyze financial data of the business is called
______. – Software
89. The organization responsible for the development and implementation of the accountants' professional ethics and values
is - Philippine Institute of Certified Public Accountants
90. A well designed AIS can make changes without disturbing the whole system. – True
91. Recognizing income and expenses in the period that they are earned or incurred whether cash is received or not. -
Accrual Principle
92. To meet the objectives of the accountancy profession to work to the highest standards and attain the highest level of
performance, the following are required except - Subjectivity
93. Also called the measurability accounting principle, materiality principle states that only transactions that can be
expressed in money should be recorded. - False
94. A professional accountant should be fair and should not allow biases, conflict of interest, or influence other people in
the performance of their functions. - Objectivity
95. Creditors, potential investors, consumers - Financial Accounting
96. It is the financial statement where the three categories of business activities are presented in details. - Statement of
Cash Flows
97. Which of the following business organization is created under the Batas Pambansa Bilang 68? - Corporation
98. Father of modern accounting. - Luca Pacioli
99. Measurability Concept. - Monetary Unit Principle
100. Management accounting is the branch of accounting that concentrates on the information needed by external
users. – False

1) He is liable to the partnership debts to the extent of his contribution only. - Limited partner
2) Which of the following statement is not true? - None of these
3) A business organization owned by only one person who usually manages the same. - Sole proprietorship
4) Selling of plant assets is what category of business activity? - Investing activities
5) Accounting is the information system that measures business transactions, process information into reports, and
communicate the results to decision makers. – True – (false)
6) Raw materials, labor and overhead costs pertains to a - Manufacturing business
7) All kinds of business organization should register a business name with - Bureau of Internal Revenue
8) Business owners, managers, employees . - Internal Users
9) If the finished product is the output, the term inputs refers to - All of these
10) The inventor of double-entry system. - Amanito Manucci