COLEGIO DE AMORE

ACCOUNTING 1 PRELIM QUIZ#1

I. IDENTIFICATION CHOOSE YOUR
Partnership
Financial
Statements
Assets
Double-Entry
Accounting
Government
Net Income
Accounting
Recording
Single Or Sole
Proprietorship

ANSWER FROM THE LIST: (20 pts.)

Contra Assets
Trial Balance
Income
Statement
Journal
Owners Equity Ledger
Classifying

Expenses

Corporation

Accounting

1.
2.
3.
4.
5.
6.

Accounting
Cycle
Liabilities

It is a business that is owned by a single individual.

It is a business that is owned by two or more individuals.
Economic resources of value that is owned by the business.
Economic or legal obligations that a business owes to other businesses or individuals.
This is technically called bookkeeping.
Accounting reports that provide the financial information of the transactions that have
been recorded and summarized.
7. A record keeping system in which each business transactions affects at least two accounts
8. It is called a book of original entry.
9. It is a listing of all accounts in the general ledger and the sum of debit and credit amounts
of their balance.
10.Asset accounts with credit balances.
11.It is a summary of the revenue and expenses for a specific period of time such as a month
or a year.
12.A book of final entry.
13.It is the owners interest in, claim to the assets of a business. It is the difference between
the amount of assets and amount of liabilities.
14. A business that is owned by its shareholders and is organized under operation of law that
has a separate and legal entity.
15.It is defined as the art of recording, classifying, summarizing in a significant manner and in
terms of money, transactions and events, which are in part, at least, of financial character
and interpreting the result thereof.
16.This area of accounting focuses on the accounting development and communication of
financial affairs of governmental agencies.
17.It is the complete series of steps used to account for a businesss financial transaction
during a fiscal period.
18.Outflows of assets resulting from cash spent or liability incurred in order to produce
revenue.
19.The excess (deficit) of revenue over expenses for an accounting period.
20.In this phase of accounting, items are sorted and grouped.
II. ENUMERATION (20 pts.)
1. What are the four (4) phases of accounting?
2. Give at least three (3) users of accounting information.
3. Three (3) types of ownership structures of a business organization.
4. Three (3) types of business.
5. Three (3) major areas of accounting
6. Why Accounting is also called a science? 4pts.

COLEGIO DE AMORE
ACCOUNTING 1 PRELIM QUIZ#1
I. IDENTIFICATION CHOOSE YOUR
Partnership
Financial
Statements
Assets
Double-Entry
Accounting
Government
Net Income
Accounting
Recording
Single Or Sole
Proprietorship

ANSWER FROM THE LIST: (20 pts.)

Contra Assets
Trial Balance
Income
Statement
Journal
Owners Equity Ledger
Classifying

Expenses

Corporation

Accounting

Accounting
Cycle
Liabilities

1.
2.
3.
4.

SINGLE OR SOLE PROPRIETORSHIP is a business that is owned by a single individual.

PARTNERSHIP is a business that is owned by two or more individuals.
ASSETS economic resources of value that is owned by the business.
LIABILITIES economic or legal obligations that a business owes to other businesses or
individuals.
5. RECORDING this is technically called bookkeeping.
6. FINANCIAL STATEMENTS are accounting reports that provide the financial information
of the transactions that have been recorded and summarized.
7. DOUBLE-ENTRY ACCOUNTING is a record keeping system in which each business
transactions affects at least two accounts
8. JOURNAL is called a book of original entry.
9. TRIAL BALANCE is a listing of all accounts in the general ledger and the sum of debit
and credit amounts of their balances.
10.CONTRA ASSETS are asset accounts with credit balances.
11.INCOME STATEMENT is a summary of the revenue and expenses for a specific period of
time such as a month or a year.
12.LEDGER is a book of final entry.
13.OWNERS EQUITY it is the owners interest in, claim to the assets of a business. It is
the difference between the amount of assets and amount of liabilities.
14. CORPORATION is a business that is owned by its shareholders and is organized under
operation of law that has a separate and legal entity.
15.ACCOUNTING is defined as the art of recording, classifying, summarizing in a significant
manner and in terms of money, transactions and events, which are in part, at least, of
financial character and interpreting the result thereof.
16.GOVERNMENT ACCOUNTING -This area of accounting focuses on the accounting
development and communication of financial affairs of governmental agencies.
17.ACCOUNTING CYCLE - It is the complete series of steps used to account for a businesss
financial transaction during a fiscal period.
18.EXPENSES - Outflows of assets resulting from cash spent or liability incurred in order to
produce revenue.
19.NET INCOME - The excess (deficit) of revenue over expenses for an accounting period.
20.CLASSIFYING - In this phase of accounting, items are sorted and grouped.
II. ENUMERATION (20 pts.)
1. What are the four (4) phases of accounting?
FOUR PHASES OF ACCOUNTING- RECORDING, CLASSIFYING, SUMMARIZING,

INTERPRETING

2. Give at least three (3) users of accounting information.

USERS OF ACCOUNTING INFORMATION- OWNERS-Present and prospective

investors, MANAGEMENT or MANAGERS, CREDITORS, GOVERNMENT
National and Local Government Units, OTHERS Employees, customers,
Financial Analyst, Stock Exchanges, Trade Association etc.
3. Three (3) types of ownership structures of a business organization. - SINGLE OR SOLE
PROPRIETORSHIP, PARTNERSHIP, CORPORATION
4. Three (3) types of business- SERVICE BUSINESS, MERCHANDISING BUSINESS,
MANUFACTURING BUSINESS
5. Three (3) major areas of accounting- FINANCIAL ACCOUNTING, MANAGEMENT
ACCOUNTING, GOVERNMENT ACCOUNTING

6. Why Accounting is also called a science? 4pts- . ACCOUNTING IS ALSO A SCIENCE

IN A WAY THERE ARE ACCOUNTING PRINCIPLES THAT SERVE AS GUIDE IN

ACCOMPLISHING DATA AND PREPARING REPORTS.