NAME: _____________________________________GRADE LEVEL & STRAND: ________ SCORE: ____

Directions. Read carefully the statements or questions below and write your answers on a
separate piece of a paper.

1. The art of recording, classifying, summarizing and finalizing financial data.

a. finance b. accounting c. marketing d.entrepreneurship
2. This occurs through the preparation and distribution of financial and other accounting reports.
a. recording b. summarizing c. classifying d.finalizing
3. This involves selecting economic events that are relevant to a particular business transaction.
a.recording b. classifying c. finalizing d. summarizing
4. Involves keeping a chronological diary of events that are measured in pesos
a.recording b. classifying c. finalizing d. summarizing
5 The Father of Accounting.
a. Luca Pacioli b. Albert Einstein c. Euclid d.Pythagoras
6. Which of the following would be considered an internal users of accounting data for a
company.
a. A Local Government Unit Accountant c. Credit Analyst of a bank
b. A Production Manager d. President of a Cooperative
7. Which of the following would NOT be considered as internal users of accounting data for a
company?
a. The CEO of a company c. The Local Government Unit Officer
b. The Department Manager d. The owner of the company
8. They are in charge of the overall plans and policies of the organization.
a. Top level manager b. Middle level manager c. Low level manager d.
Chief Accountant
9. They are the first-line managers who supervise the day-to-day operations of the business and directs
workers and employees.
a. Top level manager b. Middle level manager c. Low level manager d. All
of the above
10. What level of management does departmental heads, branch managers, junior executives
belong?
a. Top level manager b. Middle level manager c. Low level manager d.
CEO of a company
11. Johnny receives money (cash) from his client after rendering services. What major account
does Johnny receive (cash) from his client?
a. Asset b. Liability c. Expenses d. Capital
12. Chuchu and Coco plan to start their own business. What do you call the cash/property/services used
to invest in a business?
a. Income b. Expenses c. Capital d. Liability.
13. Almogen’s Furniture Store is experiencing a great loss. Hence, the owner needs to borrow
money from the bank. The amount borrowed is called ____________.
a. Asset b. Liability c. Capital d. Income
14. A and Z Corporation pays their monthly dues like electricity, water supply, internet
connection as well as the salaries of their employees. These payments are part of the
company’s __________.
a. Income b. Expenses c. Capital d. Asset
15. Krista receives Php 600.00 from selling a dress to her customer. She then paid Php 400.00
to the supplier of the dress. What do you call the remaining Php 200.00 that Krista received
from selling the dress?
a. Asset b. Expenses c. Capital d. Income
16. Revenues minus expenses equals __________.
a. Net income b. Net Loss c. Gross Income d. Both A or B
17. What types of reports are created during the accounting cycle for the use of management?
a. None b. General ledger c. General journal d. Financial statements
18. The financial statement that reports the assets, liabilities, and stockholders’ equity at a
specific date is the ________.
 a. Balance Sheet b. Income Statement c. Statement of Changes in Equity d.
Trial Balance
19. These are accounts that are closed at the end of the accounting period.
a. Temporary accounts b. Permanent accounts c. Nominal Accounts d. Both A
and C
20. After preparing for closing entries in the general journal, what is the next step?
a. Prepare post-closing trial balance c. Prepare reversal entry
b. Posting it to the general journal d. Prepare balance sheet
21. The following are part of the operating cycle of a merchandising business except _________.
a. receive Cash b. obtain Accounts Payable c. buy Merchandise Inventory d.
sell Inventory

22. Which of the following establishments is a merchandising business?

a. Barber Shop b. Restaurant c. Dental Clinic d.
Pharmacy
23. It is a type of business activity that buys and sells goods to earn a profit.
a. Service Business b. Manufacturing Business c. Merchandising Business
d. None of these
24. It refers to the total cost of merchandise sold during the period.
a. Beginning Inventory b. Cost of Goods Sold c. Ending Inventory d.
Operating Expenses
25. It is a type of special journal used to record all transactions involving cash payments.
a. Purchase Journal b. Sales Journal c. Cash Receipts Journal d.
Cash Disbursements Journal
26. Another type of journal used to record all cash that had been received.
a. Cash Receipts Journal b. Cash Disbursements Journal c. Sales Journal d.
Purchase Journal
27. A merchandising inventory system where cost of goods sold is determined only at the end of
an accounting period.
a. Ending Inventory b. Beginning Inventory c. Periodic System d. Perpetual
System
28. It is a type of merchandiser who sells products to end users.
a. Buyer b. Retailer c. Wholesaler d. Customer
29. It is the expenses incurred in the process of earning sales revenue.
a. Cost of Goods Sold b. Inventory Expense c. Sales Expense d. Operating
Expenses
30. Analyze the following statements:
Statement 1: A periodic inventory system provides better control over inventories than a
perpetual inventory.
Statement 2: The periodic system only periodically updates the cost of inventory on hand.
a. Only Statement 1 is True b. Only Statement 2 is True c. Both Statements are True d. Both
Statements are False
31. Gross profit from sales is the difference between
a. net sales and operating expenses c. net sales and the cost of goods sold plus
all the expenses
b. net sales and the cost of goods sold d. gross sales less the sales discounts and sales
returns and allowances
32. The buyer received an invoice from the seller for merchandise with a list price of P400 and
credit terms of 2/10, n/60. The number 10 in the credit terms is the:
a. credit period c. discount period
b. cash discount allowed for early payment of the invoice d. trade discount
33. The records for Uptown Pet Shop showed the following:
Sales P75,000 Beginning Inventory P10,000
Purchases 45,000 Cost of good sold 50,000
The ending merchandise inventory must have been:
a. P5,000 b. P15,000 c. P25,000 d. P40,000
34. Under the periodic inventory system, the Purchases account is used to record
a. only cash purchases of merchandise inventory
b. purchases of any asset on account or note payable
c. only purchases of merchandise inventory on account
d. purchases of merchandise inventory for cash or on account
35. Which of the following is used to determine the cost of goods available for sale (periodic
inventory)?
a. beginning merchandise inventory + purchases + ending merchandise inventory
b. ending merchandise inventory + purchases - freight charges
c. beginning merchandise inventory + purchases - freight charges
d. beginning merchandise inventory + purchases - purchases discount + freight charges

II. Write A for Asset, L for Liability, and E for Equity:

1. Cash 8. Mortgage Payable
2. Equipment 9. Retained Earnings
3. Accounts Receivable 10. Petty Cash Fund
4. Accounts Payable 11. Inventory
5. Capital 12. Company Vehicle
6. Land 13. Prepaid Insurance
7. Notes Payable