Fundamentals of Accounting, Business and Management 1 - B 10.

The book of Luca de Pacioli was published in:

NAME: _____________________________________________ DATE: __________________________ 11. Accounting information is helpful to:

STRAND/GRADE: _____________________________________ SECTION: _______________________ a. Decision makers b. People who have interest in the business
c. Management users d. All of the above

Encircle the correct answer. 12. Branch of accounting that focus on the preparation of financial statements.

1. It is the language of business. a. Management Accounting b. Auditing

c. Accounting d. Selling 13. He is the user of accounting information who uses it for assessing the financial position of its suppliers which is
necessary for them to maintain a stable source of long-term supply.
2. This branch of accounting tells that the in-house information generated by the accountant for specific purposes will
serve as benchmarks to company’s performance. a. Customers b. Investors
a. Financial Accounting b. Tax Accounting c. Tax authorities d. Employees
c. Management Accounting d. Government Accounting 14. This is the branch of accounting that focuses on the preparation of tax return as required by the Bureau of Internal
Revenue (BIR).
3. The double entry system of accounting was first established by:
a. Management Accounting b. Auditing
a. An Indian Philosopher b. An Asian Monk
c. Financial Accounting d. Tax Accounting
c. An Italian Priest d. A Middle East Prophet
15. This profession is carried out by Certified Public Accountants in the academe.
4. In the definition of accounting the transactions and events are expressed in:
a. Government Accounting b. Accounting Education
a. Monetary value b. Quantitative means
c. Auditing d. Financial Accounting
c. Qualitative nature d. None of the above
16. This type of business requires management accounting.
5. It is a service activity that provides quantitative information which is financial in nature.
a. A barbershop business b. A school business
a. Bookkeeping b. Journalizing
c. A hardware store business d. None of the above
c. Accounting d. Selling
17. This type of business requires education accounting.
6. An information system may mean as:
a. A barbershop business b. A school business
a. A manual system b. A customized system designed to fit accounting
c. A hardware store business d. None of the above
c. A computerized system d. All of the above
18. This is a type accountant’s profession in the Commission on Audit.
7. He is the user of accounting information which ensures that the business organization’s disclosure of accounting
information is in accordance with the rules and regulations to be complied with. a. Government Accounting b. Tax accounting
a. Tax Authorities b. Investors c. Accounting research d. Auditing
c. Regulatory Authorities d. Owners 19. This type of business requires management accounting.
8. The management reports that are generated by an organization is solely for: a. A drug store business b. A sari-sari store
a. In-house reporting b. Outside agencies reporting c. A manufacturing Business d. None of the above
c. External reporting d. All of the above 20. He is the user of accounting information who determines the credit worthiness of the organization.
9. Accounting is defined as: a. Creditors b. Investors
a. An art b. A discipline c. Owners d. Regular bodies
c. A science d. All of the above
21. This branch of accounting deals on collating cost information that is useful to set prices of goods and services for sale.
a. Auditing b. Cost Accounting
Write TRUE if the statement is correct or FALSE if the statement is incorrect.
c. Government Accounting d. Accounting Education
22. He is the user of accounting information that uses it to determine any course of action for the business
organization to protect his invested capital. __________ 1. The owners of a corporation are called shareholders and own shares of stocks.

a. Owners b. Investors __________ 2. Government accounting practice is reviewed by the Securities and Securities Commission (SEC).

c. Management d. Creditor __________ 3. A sole proprietorship business is a unique entity that is separate and distinct from the owners.

23. Analyzing and interpreting means: __________ 4. A joint venture is just like a general partnership, but the time is normally limited and it entails a

a. Expressing it in a vertical analysis b. Expressing it in a horizontal analysis single project of operation.

c. Expressing it in financial ratios d. All of the above __________ 5. A sole proprietorship is a business that will be registered in the Securities and Exchange

24. He is the user of accounting information who uses information for analyzing the feasibility of investing in the Commissions.
organization. __________ 6. A partnership can conduct business in its own name and represent itself as a person.
a. Customers b. Investors __________ 7. One of the advantages in setting up a partnership is that it has limited life and can be dissolve by a
c. Tax authorities d. Employees withdrawal or death of a partner.
25. He is the user of accounting information that uses it for decision making. __________ 8. One example of partnership is a law or accounting firm.
a. Management b. Investors __________ 9. Certified Public Accountants in the public practice can also perform internal auditing.
c. Employees d. All of the above __________ 10. Government entities require management reports from business organization.
26. He is the user of accounting information that uses it for assessing business organization’s profitability and its __________ 11. One of advantages of a partnership is that it is easy to organize but takes more time to establish it.
consequence on their future remuneration and job security.
__________ 12. The distribution of profits to partnership in a partnership is called dividends.
a. Owners b. Creditors
__________ 13. Auditing can be internal or external.
c. Employees d. Customer
__________ 14. One of the functions of accounting is to identify business activities relevant to the operation of an
27. He is the user of accounting information that assesses whether business organization pays correct taxes.
organization.
a. Tax Authorities b. Investors
__________ 15. A sole proprietorship business is owned by two or more individuals.
c. Regulatory Authorities d. Owners
__________ 16. The accounting research can be performed by academic researchers only.
28. This is an example of an internal user.
__________ 17. The function of external auditing can be performed by Certified Public Accountants who are not
a. Management b. Employees
accredited by the Board of Accountancy (BOA).
c. Owners d. All of the above
__________ 18. Cost accounting can also be practice even in restaurant business.
29. This is carried out by certified Public Accountants in the public practice who a should be accredited by the Board of
Accountancy (BOA). __________ 19. Management accounting is a branch of accounting wherein it focuses primarily on the preparation

a. External Auditing b. Government Accounting of the financial statements.

c. Internal Auditing d. Tax Accounting __________ 20. Financial accounting reports is required by owners who are part of the management of business

30. This is an example of external user. organization.

a. Owners b. Banks
c. Management d. None of the above